Question 18 (1 point)

A bakery can produce either bread or pastries, if it produces only bread it can make 90 loaves per day. The opportunity cost of 1 loaf of bread in terms of pastries is constant and equal to 1/3 pastries. How many pastries can the bakery produce in a day if it only produces pastries?

Question 18 options:

a	270
b	30
c	180
d	90

Question 19 (1 point)

If the minimum wage (a price floor in the labor market) is set ________ the equilibrium wage level, then the quantity of labor supplied _________ the quantity demanded, resulting in unemployment.

Question 19 options:

a	Below, is smaller than
b	Above, exceeds
c	Below, exceeds
d	Above, is smaller than

Question 20 (1 point)

Suppose we know that in the market for computers the equilibrium price increased and the equilibrium quantity decreased. Which of the following can explain this event?

Question 20 options:

a	The number of producers in the market increased.
b	The price of computer chips (an input in the production of computers) increased.
c	The price of tablets (a substitute for computers) increased.
d	The price of computer software (a complement for computers) increased.

Question 21 (1 point)

Jake buys an iPod for $150 and as a result gets consumer surplus of $80. What is his willingness to pay for the iPod?

Question 21 options:

a	$150
b	$80
c	$230
d	$70

Question 22 (1 point)

Competitive market equilibrium maximizes:

Question 22 options:

a	Consumer surplus
b	The sum of consumer surplus and producer surplus.
c	Producer surplus
d	All of the above

Question 23 (1 point)

If the quantity supplied in a competitive market exceeds the quantity demanded in a market, we would expect prices to:

Question 23 options:

a	rise.
b	rise in order to clear the market.
c	stay the same.
d	fall.

Question 24 (1 point)

Farmer Jane has a constant opportunity cost for the production of corn and tomatoes. She can produce 600 bushels of corn in a day if she specializes in corn. She can produce 1200 bushels of tomatoes in a day if she specializes in tomatoes. Which combination of corn and tomatoes is both feasible and efficient for Farmer Jane to produce?

Question 24 options:

a	500 bushels of corn and 600 bushels of tomatoes
b	300 bushels of corn and 1000 bushels of tomatoes
c	500 bushels of corn and 200 bushels of tomatoes
d	300 bushels of corn and 300 bushels of tomatoes

Question 25(1 point)

\fMarket for Rollercoaster Rides $7.00 $6.00 $5.00 $4.00 Price (per ride) $3.00 + + $2.00 S $1.00 -D-- $0.00 O 10 20 30 40 50 60 Quantity of Rides