November 10th Economics assessment

Based on the table above, what is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

• 150 burgers

• 225 burgers

• 300 burgers

• 450 burgers

The production possibilities curve (PPC) is a graph that shows the various combinations of output that an economy

• should produce

• demands

• can produce

Production Possibilities Curves (PPCs) are usually bowed outward. This is because...

• the more resources a society uses to produce one good, the fewer resources it has available to produce another good.

• the opportunity cost of producing a good decreases as more and more of that good is produced

• of the effects of technological change

• resources are specialized; that is, some are better at producing particular goods rather than other goods. (Apples & Carrots example)

What is the opportunity cost to Footville of increasing production of shoes from 400 to 600?

• 400 socks

• 300 socks

• 200 socks

• 100 socks

Which of the following points on the PPC above represents a combination of Steel & Wheat that this economy could NOT produce?

• A

• G

• D

• F

Generally, each successive unit of a good consumed will cause marginal utility to...

• Increase at an increasing rate

• Increase at a decreasing rate

• Decrease (or "diminish")

• Who knows? Life's a gamble!

According to economists, a consumer will maximize their total utility when...

• Marginal Utility/Price is equal for all the goods/services they purchase

• Marginal Utility is equal for all goods

• Price/Marginal Utility is equal for all the goods/services they purchase

• Marginal Utility is as high as possible for all the goods they purchase.

Which of the following is the best definition of the word "marginal?"

• Additional

• Abstract

• Econometric

• Complicated

The relationship between demand and marginal utility is best explained as ...

• the marginal utility a person gets from consuming a good determines their demand for the good.

• the total utility a person gets from consuming a good determines their demand for the good.

• the marginal utility a person gets from consuming a good determines their market demand for the good.

• the total utility a person gets from consuming a good determines their market demand for the good.

If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, What can we determine about Ann?

• She does not enjoy reading books.

• She does not enjoy playing with her cat.

• She prefers reading a book to playing with her cat.

• She prefers playing with her cat to reading a book.