All Unit review

Which of the point(s) on the graph represent an efficient use of productive resources?

• C,B,A,E

• B

• C,B,A

• E

If the individual was producing at point B and chooses to produce at point A instead, what is the total opportunity cost of their decision?

• 3 boats

• 2/3 truck

• 3/2 boats

• 3 trucks

What important role does the government play in a 100% free market economy?

• the government does not play any role whatsoever

• the government decides what to produce and how much to produce given scarce resources

• the government decides what price is fair to charge in the market

• the government protects private property rights so that individuals have an incentive to innovate, earn and retain profits

Which of the following statements is true in regards to Lebron and Stephon's production possibilities listed in the table above?

• Lebron has an absolute advantage in cooking pizzas and a comparative advantage in baking cakes

• Stephon has a comparative advantage in baking cakes and Lebron has a absolute advantage in baking cakes

• Stephon has a comparative advantage in cooking pizzas and Lebron has a comparative advantage in baking cakes

• Stephon has a comparative advantage in cooking pizzas and Lebron has a comparative advantage in baking cakes

If Lebron and Stephon both want to obtain a result in which they are able to obtain a maximum combination of lawns mowed and cakes baked ...

• Lebron should specialize in cooking pizzas while Stephon should specialize in making cakes

• Lebron should cook pizzas and bake cakes and not engage in trade with Stephon

• Lebron should produce a combination of pizzas cooked and cakes baked and Stephon should produce a combination of pizzas cooked and cakes baked

• Stephon should specialize in cooking pizzas while Lebron should specialize in making cakes

Which of the following trade rations would satisfy the condition for mutually beneficial trade if both Lebron and Stephon specialize in trade?

• 1 pizza for 3 cakes

• 1 pizza for 10 cakes

• 1 pizza for 7 cakes

• 1 pizza for 12 cakes

What is Angelina's marginal utility of consuming her 4th can of soda?

• 3 utils

• 2 utils

• 1 util

• 6 utils

Suppose Angelina will only buy chips. If chips are priced at $2.50 per bag of chips, how many bags of chips should Angelina purchase? (Note: utils = $)

• 2

• 3

• 4

• 5

If the price of chips are $2 per bag and the price of soda is $3 per can, which of the following is correct?

• Angelina's MU per dollar for the 2nd bag of chips is 5 utils

• Angelina's MU per dollar for the 4th soda is 3 utils

• Angelina's MU per dollar for the 3rd bag of chips is 6 utils

• Angelina's MU per dollar for the 2nd soda is 6 utils

What type of tax system decreases the tax rate % as the income increases.

• progressive

• regressive

• flat

• state sales