1. The marginal rate of transformation:

Select one:

a.

represents the willingness to sell one good for another

b.

is the slope of the indifference curve

c.

is the slope of the feasible frontier

d. represents the willingness to trade off one good for another

2, Which of the following statements are correct?

1. In an economic model, ceteris paribus means an analysis holding other things constant.

2. Economic rent is a payment or benefit received above what the individual would have received in his/her next best alternative.

3. An economic rent is the amount you pay to your landlord for the use of an apartment.

4. An increase in economic rent decreases an individual's benefit.

5. An economic rent is the extra profit that firm makes by using innovative technologies before its competitors.

3.Which of the following statements is not true of indifference curves?

Select one:

a.

They are usually smooth

b.

They can't cross

c.

They have a slope that equals MRT

d.

They are downward sloping

4.For a production function that exhibits diminishing marginal product:

Select one:

a.

Average product is typically below marginal product

b.

Both marginal and average product must be zero

c.

Average product is typically equal to marginal product

d.

Marginal product is typically below average product

5,A technological change that shifts out the feasible frontier of grades and free time means that:

Select one:

a.

Either free time, grades or both can be increased

b.

Both free time and grades will be increased

c.

Only free time can be increased

d.

Only grades can be increased