L02 Model Building and Gains from Trade

Word Cloud

Which of the areas do you think you would like to focus on?

4th District; 7th District; Agriculture, Manufacturing; Housing; Trade; GDP; Jobs; Inflation; Interest Rates; Consumer Sentiment

Open Ended

What are the five foundations of economics?

Multiple Choice

Although you are feeling full after a large dinner, you are considering having a bowl of ice cream. You will choose to eat the ice cream...

• if the marginal benefit of having a bowl of ice cream is less than the marginal cost.

• if the marginal benefit of having a bowl of ice cream is greater than the marginal cost.

• if having a bowl of ice cream is free, so the marginal cost is zero.

• if you love ice cream, so the marginal benefit is high.

Multiple Choice

Samantha makes her own jewelry.

It takes her an hour to make a necklace. With the same material and in the same amount of time, Samantha could instead make 2 bracelets.

What is the opportunity cost of one bracelet, in terms of necklaces?

• 0

• 0.5

• 1

• 2

Multiple Choice

With regard to the PPF, an efficient point is a point that is

• impossible to reach

• inside the PPF

• outside the PPF

• on the PPF

Multiple Choice

What is the opportunity cost of producing capital goods instead of consumer goods?

• We give up consumption today

• We give up consumption tomorrow

• We have less enjoyment today

• We have a lower standard of living tomorrow