Economics and True False

Question 2 (0.5/0.5)

Exhibit 2–4 Production possibilities curve data

| A | B | C | D | E | F | Capital goods | 150 | 140 | 120 | 90 | 50 | 0 | Consumer goods | 0 | 20 | 40 | 60 | 80 | 100 | | | | | | | |

In Exhibit 2-4, the concept of increasing opportunity costs is represented by the fact that:

a) Greater amounts of capital goods must be sacrificed to produce each additional unit of consumption goods.

Question 4 (0.5/0.5)

As shown in Exhibit 8-3, in order to maximise its profit, what price should GeneTech charge for it’s vaccine?

a) $35 per dose

Question 5 (0.5/0.5)

A demand curve for the Steel Porcupines’ concert tickets would show the:

a) Number of tickets that will be purchased at various prices

Question 6 (0.5/0.5)

A free ride is a person who:

a) Receives benefits from someone else’s action but does not pay for them.

Question 8 (0.5/0.5)
A point inside a production possibilities curve reflects: a) Less than full use of resources and technology

Question 9 (0.5/0.5)
According to the law of supply, there is a direct relationship between the quantity supplied and: a) The price of the good
Question 10 (0.5/0.5)
As a result of a kinked demand curve, the price: a) Settles at the kink
Question 11 (0/0.5)
As output increases, a) ATC rises at and then falls b) AFC rises at first and then falls c) AFC declines
Question 12 (0.5/0.5)
Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause: a) A rightward shift in the demand curve for bus travel
Question 13 (0.5/0.5)
Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a: a) Rightward shift in the demand curve for hot dogs
Question 15 (0/0.5)
Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass,