devry econ312n week 1 quiz latest 2017

Question 1 :- The table shows

Opportunity

Fish Berries Gain in Fish given cost

Possibility (pounds) (pounds) Move berries Up of berries

A 0 20 from (pounds) (pounds) (pounds of fish)

8 12 18 B to A 2 12 6.00'

C 22 15

C to B 3 10 3.3

Use the table to fill in the columns on the right and calculate Crusoe's opportunity cost of a pound of berries as he spends more time picking berries.

If Crusoe produces efficiently, his opportunity cost of a pound of berries increases as he spends more time picking berries.

Question 2 :- The table shows an economy that produces education services and consumption goods.

Education Consumption

If the economy currently produces 1.000 graduates and 2.000 units of consumption goods the opportunity cost of services goods

one additional graduate is Possibility (graduates) (units)

2 units of consumption goods . A 2,000 0

>>> Answer to 1 decimal place 8 1,500 1.000

C 1,000 2.000

D 0 3.000

Question 3 :- The table shows Robinson Crusoe’s production possibilities.

If Crusoe increases production of berries from 42.0 pounds to 52.0 pounds and his production is efficient, his opportunity cost of a pound of berries is ________pounds of fish.

Crusoe's opportunity cost of an extra pound of berries __________ as he produces more berries.

Possibility Fish

(pounds) Berries

(pounds)

A 0 72.0

B 8.0 70.0

C 15.0 66.0

D 21.0 60.0

E 26.0 52.0

F 30.0 42.0

G 33.0 30.0

H 35.0 16.0

1 36.0 0

Question 4 :- Facebook serves

the self-interest of its users, and the social interest of only its investors

the self-interest of investors because it enables them to earn increased profits, but it does not serve the social interest

the self-interest of its investors, users, and advertisers, and the social interest by enabling people to share information

the social interest of advertisers because it enables advertisers to increase their revenue, but it does not serve the self-interest the self-interest of its users, but it does not serve the social interest

Question 5 :- Identify which of the following questions is a microeconomic question.

Will the economy of China expand faster than the U S. economy?

What is the cause of unemployment?

How would a tax on Internet trading affect eBay?

Can the Fed bring prosperity by cutting interest rates?

Question 6 :- Choose the correct statement.

Social interest and self-interest do not conflict.

What we do in pursuit of our self-interest is independent of the social interest.

You make choices based on what you think is best for society as a whole. s/ Choices that are the best for society as a whole are said to be in the social interest.

Question 7 :- Look at today's newspaper and find an example of a want that is not satisfied.

We can’t anticipate what will be happening on the day that you look at your newspaper (or Web news source). But here are five headlines, only one of which is an example of a want that isn't satisfied. Which one is it?

Unlimited downloads now available

Pacific Ocean yacht race ends in smiles

HIV-AIDS toll is heaviest in Africa

Smart cards get smarter

Everyone a winner

Question 8:- The people of Leisure Island have 50 hours of labor a day that can be used to produce entertainment and good food.

The table shows the maximum quantity of either entertainment or good food that Leisure Island can produce with different quantities of labor.

An output of 100 units of entertainment and 100 units of good food is .

unattainable and efficient

sometimes attainable and sometimes unattainable: sometimes efficient and sometimes inefficient

attainable and efficient

attainable and inefficient

unattainable and inefficient

With a production of 100 units of entertainment and 100 units of good food, the people of Leisure Island _________a tradeoff.

Labor	Entertainment (units)		Good food (units)
0	0	or	0
10	40	or	60
20	80	or	100
30	120	or	120
40	160	or	130
50	200	or	134

Question 9 Every dav. we make many choices. We can't avoid having to make choices because

there is too much available

we have too much time on our hands

we don't have enough time to do all the things we'd like to do D.

we keep changing our minds

we can't find enough things to do to fill our day

Question 10 Are either or both of these newspaper headlines positive or normative?

1.Smoking causes lung cancer.

2. The minimum wage should not be increased.

Statement #1 is a normative statement because it can be tested. Statement #2 is a positive statement because it can't be tested.

Statement #1 is a positive statement because it can't be tested. Statement #2 is a positive statement because it can't be tested.

Statement #1 is a positive statement because it can be tested. Statement #2 is a normative statement because it can't be tested.

Statement #1 is a normative statement because it can't be tested. Statement #2 is a positive statement because it can be tested.

Question 11 Mario's is a pizza and pasta producer that experiences increasing opportunity cost.

Draw a production possibilities frontier for the firm.

Label it PPF.

Draw a point that is attainable Label it Attainable.

Draw a point that is not attainable. Label it Unattainable.

Unattainable points are

A. outside and on the PPF

on the PPF but not inside the PPF inside the PPF but not on the PPF * outside the PPF

Question 12

What you get from a one-unit increase in an activity that you enjoy is called

a marginal activity

making a decision at the margin marginal benefit

marginal increase

When you spend two hours reading. you can read 50 pages And if you spend three hours reading you can read 70 pages To read for the extra hour. you give up working out at the gym for that hour. The marginal benefit from reading one more hour is

The marginal benefit from reading is measured by

the 70 pages you read; the time at the gym you must give up

the extra 20 pages you read; the time at the gym you are willing to give up the extra 20 pages you read; the time at the gym you must give up

the extra 20 pages you read; the total time you spent reading

Question 13 Apple Computer Inc. decides to make iTunes freely available in unlimited quantities. This decision means that

tunes remain scarce and the incentive to listen to tunes remains the same

tunes are no longer scarce and the incentive to listen to tunes remains the same tunes are no longer scarce and the incentive to listen to tunes changes

tunes remain scarce but the incentive to listen to tunes changes

Apple's decision is a decision.

A. microeconomic

B. macroeconomic

Question 14 The line in the graph shows a relationship between two variables. x and y. What is the slope of the curve?

The slope of the curve is ________

>>> If the slope is negative. use a minus sign If the slope is positive do not use a plus sign.

Question 15 The line on the graph to the right represents what economists call a "demand" curve. This line represents information about the number of cups of lemonade that Caroline and Emily can sell each day at various prices. The number of cups of lemonade demanded is shown on the X-Axis and the price on the Y-Axis.

Individual points on a line or curve can also be identified and labeled.

Problem statement: —) Caroline and Emily can sell 15 cups of lemonade at a price of 50 cents: the point (15, $0.50) is on this demand line.

instruction: —> Use the point drawing tool to identify this point. and label the point "B."

To access the tool palette used to draw your answer to the question. click anywhere inside of the graph. Click on the Point Drawing Tool icon and then click on the point (15, $0.50). To label the point. click on the question marks and choose the letter "B."

Carefully follow the instructions above. and only draw the required objects. BE

Question 16 The table shows a farm's production possibilities.

If the farm uses its resources efficiently, what is the opportunity cost of an increase in chicken production from 300 pounds to 500 pounds a year?

The opportunity cost of an increase in chicken production from 300 pounds to 500 pounds a year is _______________ a year.

Soybean (bushels per year)		Chicken (pounds per year)
500	and	0
400	and	300
200	and	500
0	and	600

Question 17 The table shows some data on the quantity of ice cream consumed at different prices and at different temperatures.

Quantity of ice cream consumed Price (gallons per day)

(dollars per scoop ) 50 degrees 70 degrees 90 degrees

0.50 20 25 40

1.50 10 15 30

2.50 5 10 25

Draw the relationship between the quantity of ice cream consumed and the price of ice cream when the temperature is 50 degrees F.

Label the curve 50 degrees.

Question 18 The opportunity cost of a cake is at point A than at point B.

The opportunity cost of a loaf of bread is at point B than at point A.

A. less: greater

greater: greater

C) less: less

C) greater: less

Question 19 Choose the statement below that is one of the two big questions that summarize the scope of economics.

A. Should we buy our food only from American farmers?

b. Can our economy survive the outsourcing of work to India?

C. When do choices made in the pursuit of self-interest also promote the social interest?

D. When shall we run out of oil and coal?

Question 20 A possible headline from the local media is:

"Inflation is not a current threat"

This headline provides an example of a__________

positive statement about a microeconomic issue

normative statement about a microeconomic issue

positive statement about a macroeconomic issue

non-economic positive statement

non-economic normative statement