AP Micro Econoimcs Unit 1 Homework

Assume the following utility schedule for Aaliyah’s ice cream consumption. If she consumes 6 units, what is the value of her total utility from consuming ice cream?

• 0

• 22

• 18

• 20

• -2

According to the law of diminishing marginal utility, which of the following is true?

• Total satisfaction decreases as more units of a good are consumed.

• When marginal utility is decreasing, total utility is decreasing

• The additional satisfaction received from consuming extra units of a good decreases as consumption of the good increases.

• The additional satisfaction received from consuming extra units of a good decreases as consumption of the good decreases

• The additional satisfaction received from consuming extra units of a good increases as consumption of the good increases

After graduating from high school, Maria chose to go to college, while Omar chose to work full-time. Which of the following best describes the opportunity costs for these decisions? 4MI15

• Maria’s opportunity cost includes the salary she could have earned if she had gone to work

• Omar’s opportunity cost is the tuition and expenses he would have paid for college.

• Omar’s opportunity cost is definitely greater than Maria’s.

• Maria’s opportunity cost is her living expenses while attending college.

• Omar’s opportunity cost is the salary he will earn from working.

In which of the following situations is a good NOT scarce? 4MI110

• There is a surplus of the good at some positive price.

• Consumer can purchase as much of the good as they want at its current market price.

• Large quantities of the good are available in the marketplace.

• Consumer give up nothing to obtain more of the good.

• There is a shortage of the good at some positive price.

The diagram above shows the production possibilities curve for Country Y. Which of the following statements is true?

• The opportunity cost of producing more machines is constant.

• If Country Y is producing at point C, it is using all its resources efficiently.

• The economy is not producing at its potential, since it is not producing at point D.

• Producing at point C is the most preferable, because butter is a nondurable good.

• Producing at point C is the most preferable, because butter is a nondurable good.

Cindy and Martin both sew t-shirts in a small factory. Using the same resources, Martin can sew twelve t-shirts and Cindy can sew nine t-shirts in one day. Which of the following can be concluded from the given information?

• Cindy has an absolute advantage in sewing t-shirts.

• Martin has a comparative advantage in sewing t-shirts.

• Martin has a higher opportunity cost of sewing t-shirts than Cindy does.

• Cindy has a comparative advantage in sewing t-shirts.

• Martin has an absolute advantage in sewing t-shirts.

A country produces computers and rice. If resources are fully employed and there is technological progress only in the production of rice, the opportunity costs of producing computers and rice will change in which of the following ways?

• Opportunity Cost of Computers: Increase, Opportunity Cost of Rice: Decrease

• Opportunity Cost of Computers: No change, Opportunity Cost of Rice: Decrease

• Opportunity Cost of Computers: Decrease, Opportunity Cost of Rice: Increase

• Opportunity Cost of Computers: Increase, Opportunity Cost of Rice: Increase

The study of economics is primarily concerned with which of the following?

• The development of the dynamics of group behavior

• The testing of hypotheses under controlled conditions

• The provision of conclusive answers to public policy issues

• The allocation of scarce resources, given unlimited wants

• The fair and equal treatment of all households

The study of economics exists because people are confronted with the basic problem of 4MI18.

• negative externality

• scarcity

• elasticity

• monopoly

• overabundance

According to the graph above, if a country is currently producing at point X, the opportunity cost of producing another consumer good is 4MI13.

• fewer than 20 capital goods

• 20 capital goods

• fewer than 20 consumer goods

• 20 consumer goods

• more than 20 capital goods