Micro Unit 1 Challenge (LET'S SEE WHAT YOU CAN DO!)

Posljednje ažuriranje 11 months ago

Instrukcije

Micro Unit 1 Challenge (LET'S SEE WHAT YOU CAN DO!)

Posljednje ažuriranje 11 months ago

Instrukcije

These come from a competition called the ECON Challenge. All students in the AP Micro / AP Macro will be competing this spring. The competition is an online test which will count as a 2nd semester 'BONUS' of sorts, so no stress. The top students whose scores merit, may be teamed and offered a coveted spot to compete at the Federal Reserve Bank! Trust me when I say this...it is a BIG DEAL! Just getting into the building is hard enough to tour the museum...but to be invited....you can do it.

Do your best and take the econ seriously. With a little luck you shall be rewarded.

In a circular flow of production and spending, which of these is true?

Businesses demand products, and households supply labor.

Households demand products, and households supply labor.

Income flows from businesses to households in product markets.

Income flows to businesses in resource markets and to households in product markets.

Businesses supply resources, and households demand resources.

In the production possibilities of the only two countries in the world (Aconia and Zeconia), assuming efficient production, which of the following statements is true?

Zeconia has a comparative advantage in both goods.

Zeconia has a comparative advantage in corn.

Aconia should specialize in producing corn.

Specialization and trade can not increase output in this case.

Zeconia gives up 2.5 yards of textiles for each 100 bushels of corn.

The theory of decreasing marginal utility (decreasing marginal values) implies that individuals will

spend less of their income on necessities as consumer incomes increase.

place the most value on the goods for which they are the lowest cost producers.

value the third hamburger they consume less than the second.

value the tenth hamburger they consume more than the ninth.

produce fewer products on the margin as more workers are hired.

According to the data in the table, the opportunity cost of producing steel is __ in Country X and in Country Y. The opportunity cost of producing bananas is _ in Country X and _____ in Country Y. (All quantities are in tons).
Production Possibilities
Country X
A
B
C
D
E
Bananas (tons)
8
6
4
2
0
Steel (tons)
0
10
20
30
40
Country Y
A
B
C
D
E
Bananas (tons)
16
12
8
4
0
Steel (tons)
0
12
24
36
48

1/5 banana; 1/3 banana; 5 steel; 3 steel

1/3 banana; 5 bananas; 3 steel; 1/3 steel

5 steel; 1/5 steel; 3 bananas; 1/3 bananas

1/5 bananas; 1/3 banana; 3 steel; 5 steel

3 steel; 5 bananas; 1 banana; 3 steel

If both countries specialize completely according to their comparative advantage, which of the following is true? (All quantities are in tons)
Production Possibilities
Country X
A
B
C
D
E
Bananas (tons)
8
6
4
2
0
Steel (tons)
0
10
20
30
40
Country Y
A
B
C
D
E
Bananas (tons)
16
12
8
4
0
Steel (tons)
0
12
24
36
48

Country X will produce 8 steel and Country Y will produce 48 bananas.

Country X will produce 40 steel and Country Y will produce 16 bananas.

Country X will produce 0 steel and Country Y will produce 0 bananas.

Country X will produce 40 bananas and Country Y will produce 48 steel.

Country X will produce 4 steel and 20 bananas, and Country Y will produce 8 bananas and 24 steel.

Assuming that both countries specialize where they have the comparative advantage, which of the following are possible terms of trade between Country X and Country Y that would benefit both countries? (All quantities are in tons)
Production Possibilities
Country X
A
B
C
D
E
Bananas (tons)
8
6
4
2
0
Steel (tons)
0
10
20
30
40
Country Y
A
B
C
D
E
Bananas (tons)
16
12
8
4
0
Steel (tons)
0
12
24
36
48

1 ton of bananas for 1 ton of steel

1 ton of bananas for 2 tons of steel

1 ton of bananas for 6 tons of steel

1 ton of bananas for 4 tons of steel

1 ton of bananas for 8 tons of steel

Suppose Luke allocates exactly $120 a month to the purchase of candy bars (C) and bones for his dog (B). His marginal utility for candy bars is given by the equation MU_c = B and his marginal utility for dog bones is given by the equation MU_B = 2C. The price of candy bars is $2 and the price of dog bones is $4. What is Luke's maximizing level of candy bar purchases per month?

Consider a country that produces only two goods, Good X and Good Y. The country's production possibilities frontier (PPF) exhibits increasing opportunity costs. What will be the effect of an increase in unemployment?

The PPF will shift inward.

The price of Good X and Good Y will both fall.

There will be a movement along the PPF up and to the left.

There will be a movement along the PPF down and to the right.

There will be a movement from a point on or inside the PPF toward the origin.

What is your high school?

GSMST

Some other school

Nina chooses to eat at a higher-priced restaurant in her neighborhood over a cheaper restaurant 20 miles away. Which of the following best explains her behavior?

The high prices at the more expensive restaurant understate the true opportunity cost of eating there.

The opportunity cost of the cheaper restaurant offsets the higher prices at the expensive restaurant

Nina generally doesn't take travel time into consideration

The opportunity cost of Nina's time is very low

No sensible answer is given

If this country is able to trade at a rate of one pizza for one brownie, it could, after specializing and trading, consume all of the following combinations of pizzas and brownies expect for which one?
Pizzas
24
20
16
12
8
4
0
Brownies
0
2
4
6
8
10
12

This economic discipline would not exist if which statement were true?

A person should continue to consume more popcorn if

there is no additional cost from consuming it.

the net marginal benefit of its consumption is positive.

total utility from consuming popcorn equals the total cost.

total utility from consuming popcorn is less than the total cost.

the marginal benefit of consuming it is less than the marginal cost.

Refer to the information provided in the table below. Pat's income is $23 and he is choosing between 2 goods ("X" and "Y"). The price of X is $1, while the price of Y is $5. If Pat is consuming 3 units of X and 4 units of Y, which statement is true?
Q
TU from X
TU from Y
1
10
50
2
18
100
3
24
140
4
28
170
5
29
190
6
30
200
7
31
195
8
30
180

Pat is not behaving rationally.

Pat is maximizing his utility.

Pat should increase his consumption of X.

Pat should increase his consumption of Y.

Pat should increase his consumption of both X and Y.

Which of the following best illustrates opportunity cost?

the curve shifts toward the origin

the curve shifts away from the origin

a movement from point c to point d

a movement from point c to point b

a movement from point b to point d

Based on the production possibility graphs of Portugal and England, which country(s) has a comparative advantage in the production of cheese and which has a comparative advantage in the production of cloth?

Cheese-no country; Cloth-England

Cheese-no country; Cloth-Portugal

Cheese-England; Cloth-Portugal

Cheese-Portugal; Cloth-England

Cheese-England; Cloth-England

China, which is labor-abundant, has a comparative advantage in clothing production, which is labor-intensive. Which model explains this pattern of comparative advantage?

In a single growing season, the country of Henrovia can raise 100 tons of beef or produce 1,000 boxes of turnips. In the same growing season, the country of Niefoerton can raise 50 tons of beef or 750 boxes of turnips. Assuming specialization, at which of the prices below will trade occur between the two countries?

One ton of beef costs 2 boxes of turnips

One ton of beef costs 5 boxes of turnips

One ton of beef costs 8 boxes of turnips

One ton of beef costs 10 boxes of turnips

One ton of beef costs 12 boxes of turnips

Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:

only the expenses of moving costs.

only her foregone salary of $42,000 per year.

only the expenses incurred for office space, equipment, and supplies.

both the expenses incurred for office space, equipment, and supplies and her foregone salary of $42,000 per year.

neither the expenses incurred for office space, equipment, and supplies nor her foregone salary of $42,000 per year.

Nation
Autos
Clothing
United States
80
40
Canada
60
30
The table shows the maximum amounts of autos and clothing that the United States and Canada can produce if they only produce one good. Both nations face constant cost of production.
The opportunity cost of producing one unit of autos in Canada is

1/2 unit of clothing

1 unit of clothing

8 units of clothing

different than it is in the United States

2 units of clothing, which is the same as in the United States

It can be concluded from the diagrams that

Graustark has a comparative advantage in both goods.

Norstrilia has a comparative advantage in both goods.

Norstrilia has a comparative advantage in manufacturing goods and Graustark has a comparative advantage in agriculture goods.

Norstrilia has a comparative advantage in agricultural goods and Graustark has a comparative advantage in manufacturing goods.

Neither country has a comparative advantage in the production of manufacturing goods.

The three broad types of factors of production are:

Capital, labor, and natural resources.

Money, profit and interest

Stocks, bonds, and financial assets

Technology, human capital, and comparative advantage

Rent, financial assets, and savings

Ben is exhausting his income consuming products A and B in such quantities that MUa/Pa = 5 and MUb/Pb = 8. Ben should...

purchase more of and less of b.

purchase more of a and less of b.

purchase more of b and less of a.

purchase less of both a and b.

purchase more of both a and b.

Micro Unit 1 Challenge (LET'S SEE WHAT YOU CAN DO!)

Micro Unit 1 Challenge (LET'S SEE WHAT YOU CAN DO!)

In a circular flow of production and spending, which of these is true?

In the production possibilities of the only two countries in the world (Aconia and Zeconia), assuming efficient production, which of the following statements is true?

The theory of decreasing marginal utility (decreasing marginal values) implies that individuals will

Consider a country that produces only two goods, Good X and Good Y. The country's production possibilities frontier (PPF) exhibits increasing opportunity costs. What will be the effect of an increase in unemployment?

What is your high school?

Nina chooses to eat at a higher-priced restaurant in her neighborhood over a cheaper restaurant 20 miles away. Which of the following best explains her behavior?

If this country is able to trade at a rate of one pizza for one brownie, it could, after specializing and trading, consume all of the following combinations of pizzas and brownies expect for which one?
Pizzas
24
20
16
12
8
4
0
Brownies
0
2
4
6
8
10
12

This economic discipline would not exist if which statement were true?

A person should continue to consume more popcorn if

Which of the following best illustrates opportunity cost?

Based on the production possibility graphs of Portugal and England, which country(s) has a comparative advantage in the production of cheese and which has a comparative advantage in the production of cloth?

China, which is labor-abundant, has a comparative advantage in clothing production, which is labor-intensive. Which model explains this pattern of comparative advantage?

Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:

It can be concluded from the diagrams that

The three broad types of factors of production are:

Ben is exhausting his income consuming products A and B in such quantities that MUa/Pa = 5 and MUb/Pb = 8. Ben should...

In a circular flow of production and spending, which of these is true?

In the production possibilities of the only two countries in the world (Aconia and Zeconia), assuming efficient production, which of the following statements is true?

Assume that without specialization and trade, Zeconia produces and consumes 16 yards of textiles, and Aconia produces and consumes 6 yards of textiles. If they specialize completely and produce according to comparative advantage, then

The theory of decreasing marginal utility (decreasing marginal values) implies that individuals will

Consider a country that produces only two goods, Good X and Good Y. The country's production possibilities frontier (PPF) exhibits increasing opportunity costs. What will be the effect of an increase in unemployment?

What is your high school?

Nina chooses to eat at a higher-priced restaurant in her neighborhood over a cheaper restaurant 20 miles away. Which of the following best explains her behavior?

If this country is able to trade at a rate of one pizza for one brownie, it could, after specializing and trading, consume all of the following combinations of pizzas and brownies expect for which one?
Pizzas
24
20
16
12
8
4
0
Brownies
0
2
4
6
8
10
12

This economic discipline would not exist if which statement were true?

A person should continue to consume more popcorn if

Which of the following best illustrates opportunity cost?

How could this economy choose to produce more Y without giving up any X?

Based on the production possibility graphs of Portugal and England, which country(s) has a comparative advantage in the production of cheese and which has a comparative advantage in the production of cloth?

China, which is labor-abundant, has a comparative advantage in clothing production, which is labor-intensive. Which model explains this pattern of comparative advantage?

Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:

It can be concluded from the diagrams that

The three broad types of factors of production are:

Ben is exhausting his income consuming products A and B in such quantities that MUa/Pa = 5 and MUb/Pb = 8. Ben should...

Assume that without specialization and trade, Zeconia produces and consumes 16 yards of textiles, and Aconia produces and consumes 6 yards of textiles. If they specialize completely and produce according to comparative advantage, then

How could this economy choose to produce more Y without giving up any X?

Production Possibilities
Country X	A	B	C	D	E
Bananas (tons)	8	6	4	2	0
Steel (tons)	0	10	20	30	40

Country Y	A	B	C	D	E
Bananas (tons)	16	12	8	4	0
Steel (tons)	0	12	24	36	48

Q	TU from X	TU from Y
1	10	50
2	18	100
3	24	140
4	28	170
5	29	190
6	30	200
7	31	195
8	30	180

Micro Unit 1 Challenge (LET'S SEE WHAT YOU CAN DO!)

Micro Unit 1 Challenge (LET'S SEE WHAT YOU CAN DO!)

In a circular flow of production and spending, which of these is true?

In the production possibilities of the only two countries in the world (Aconia and Zeconia), assuming efficient production, which of the following statements is true?

The theory of decreasing marginal utility (decreasing marginal values) implies that individuals will

If both countries specialize completely according to their comparative advantage, which of the following is true? (All quantities are in tons)Production PossibilitiesCountry XABCDEBananas (tons)86420Steel (tons)010203040Country YABCDEBananas (tons)1612840Steel (tons)012243648

Consider a country that produces only two goods, Good X and Good Y. The country's production possibilities frontier (PPF) exhibits increasing opportunity costs. What will be the effect of an increase in unemployment?

What is your high school?

Nina chooses to eat at a higher-priced restaurant in her neighborhood over a cheaper restaurant 20 miles away. Which of the following best explains her behavior?

If this country is able to trade at a rate of one pizza for one brownie, it could, after specializing and trading, consume all of the following combinations of pizzas and brownies expect for which one?Pizzas24201612840Brownies024681012

This economic discipline would not exist if which statement were true?

A person should continue to consume more popcorn if

Which of the following best illustrates opportunity cost?

Based on the production possibility graphs of Portugal and England, which country(s) has a comparative advantage in the production of cheese and which has a comparative advantage in the production of cloth?

China, which is labor-abundant, has a comparative advantage in clothing production, which is labor-intensive. Which model explains this pattern of comparative advantage?

Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:

NationAutosClothingUnited States8040Canada6030The table shows the maximum amounts of autos and clothing that the United States and Canada can produce if they only produce one good. Both nations face constant cost of production.The opportunity cost of producing one unit of autos in Canada is

It can be concluded from the diagrams that

The three broad types of factors of production are:

Ben is exhausting his income consuming products A and B in such quantities that MUa/Pa = 5 and MUb/Pb = 8. Ben should...

In a circular flow of production and spending, which of these is true?

In the production possibilities of the only two countries in the world (Aconia and Zeconia), assuming efficient production, which of the following statements is true?

Assume that without specialization and trade, Zeconia produces and consumes 16 yards of textiles, and Aconia produces and consumes 6 yards of textiles. If they specialize completely and produce according to comparative advantage, then

The theory of decreasing marginal utility (decreasing marginal values) implies that individuals will

If both countries specialize completely according to their comparative advantage, which of the following is true? (All quantities are in tons)Production PossibilitiesCountry XABCDEBananas (tons)86420Steel (tons)010203040Country YABCDEBananas (tons)1612840Steel (tons)012243648

Consider a country that produces only two goods, Good X and Good Y. The country's production possibilities frontier (PPF) exhibits increasing opportunity costs. What will be the effect of an increase in unemployment?

What is your high school?

Nina chooses to eat at a higher-priced restaurant in her neighborhood over a cheaper restaurant 20 miles away. Which of the following best explains her behavior?

If this country is able to trade at a rate of one pizza for one brownie, it could, after specializing and trading, consume all of the following combinations of pizzas and brownies expect for which one?Pizzas24201612840Brownies024681012

This economic discipline would not exist if which statement were true?

A person should continue to consume more popcorn if

Which of the following best illustrates opportunity cost?

How could this economy choose to produce more Y without giving up any X?

Based on the production possibility graphs of Portugal and England, which country(s) has a comparative advantage in the production of cheese and which has a comparative advantage in the production of cloth?

China, which is labor-abundant, has a comparative advantage in clothing production, which is labor-intensive. Which model explains this pattern of comparative advantage?

Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:

NationAutosClothingUnited States8040Canada6030The table shows the maximum amounts of autos and clothing that the United States and Canada can produce if they only produce one good. Both nations face constant cost of production.The opportunity cost of producing one unit of autos in Canada is

It can be concluded from the diagrams that

The three broad types of factors of production are:

Ben is exhausting his income consuming products A and B in such quantities that MUa/Pa = 5 and MUb/Pb = 8. Ben should...

Assume that without specialization and trade, Zeconia produces and consumes 16 yards of textiles, and Aconia produces and consumes 6 yards of textiles. If they specialize completely and produce according to comparative advantage, then

How could this economy choose to produce more Y without giving up any X?

If this country is able to trade at a rate of one pizza for one brownie, it could, after specializing and trading, consume all of the following combinations of pizzas and brownies expect for which one?
Pizzas
24
20
16
12
8
4
0
Brownies
0
2
4
6
8
10
12

If this country is able to trade at a rate of one pizza for one brownie, it could, after specializing and trading, consume all of the following combinations of pizzas and brownies expect for which one?
Pizzas
24
20
16
12
8
4
0
Brownies
0
2
4
6
8
10
12