Question 1. When there are people who are able and willing to work but unemployed in an economy, the economy is:

A. Outside its PPF (Production possibility frontier)

B. On its PPF (Production possibility frontier)

C. Efficient

D. Inside its PPF (Production possibility frontier) (correct)

Question 2. If a market is having a surplus (excess supply), which of the following is NOT true?

A. Price is higher than equilibrium price

B. Price will eventually fall as there is downward pressure on price

C. Quantity demanded is less than quantity supplied

D. Either the law of demand or the law of supply no longer holds (Correct)

Question 3. If the relationship between price and quantity supplied is given by Qs=a+bP. (P is price, Qs is quantity supplied, a and b are constants). Which of the following is true?

A. When input price increases, all else equal, the value of "a" increases

B. When the value of "a" increases, supply curve shifts to the left

C. The marginal cost of supplying the 100th unit of good is (100-a)/b (Correct)

D. b can be a negative number

Question 4. Which of the following is most likely to be part of the opportunity cost for you to study at Langara during 2020 summer?

A. Tuition this summer.

B. Grocery costs.

C. Rental payment made to the landlord.

D. Income you would earn if you could work as a lifesaver at a swimming pool in Vancouver. (Correct)