Microeconomy Homework

1744 Words Mar 13th, 2016 7 Pages
Microeconomics - Homework 1 - due 28th January
Choose the one alternative that best completes the statement or answers the question
Tick off your answer in the table on page 7 – do not forget to write your name

Economic concepts and reasoning
1) When the government chooses to increase public spending on domestic security, its choice ________.
A) involves a tradeoff with other public services such as education, to allow more domestic security
B) illustrates that scarcity does not always exist
C) involves no tradeoff because domestic security is necessary
D) primarily affects who gets the goods and services produced

2) Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing
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Based on the table above, for country B, the opportunity cost of producing an additional unit of X is
A) 4 units of Y per unit of X
B) 2 units of Y per unit of X
C) 3/2 units of Y per unit of X
D) 1 unit of Y per unit of X

14) In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of Y is
A) 1/2 unit of X per unit of Y
B) 2/3 unit of X per unit of Y
C) 2 units of X per unit of Y
D) 3 units of X per unit of Y

15) Country A is producing 4 units of X and 8 units of Y; country B is producing 4 units of X and 6 units of Y. Based on the table above, the opportunity cost of producing more of
A) good X is lower in country A
B) good Y is lower in country A
C) good X is the same for both countries
D) good Y is the same for both countries

Production Possibilities Frontier
Questions 16 to 18

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