University:
Michigan State University
Course:
EC 301 | Intermediate Microeconomics
Academic year:

2020
Views:

113

Pages:

2
Author:

Accinkiquicpqw

1. Suppose a nation is currently producing at a point inside its production possibilities frontier. What do we know? a. The nation is producing beyond its capacity b. The nation is producing an efficient combination of goods. *c. The nation is not using all available resources and is inefficient. d. The nation is experiencing an influx of immigrants 2. The model that economists use for illustrating the process of individual choice in a situation of scarcity is the ___________, sometimes also called the opportunity set, a diagram which shows what choices are possible. *a. budget constraint b. consumption set c. original budget d. income cap 3. Refer to Figure 2-4. An economy is operating at full employment, and then workers in the bread industry are laid off. This change is portrayed in the movement from: a. G to F b. A to B *c. C to F d. B to E 4. Refer to Figure 2.10. At Point C in the production possibilities graph shown, the economy __________. a. can produce more Services without reducing the production of Goods. *b. experiences full employment. c. is using its resources in efficiently. d. can produce more Goods without reducing the production of Services. 5. Table 2.10 shows the total utility for units of tacos consumed. What is the total utility of consuming 2 units of tacos? a. 1480 *b. 910 c. 500 d. 1240