EC 202 Study Guide - Midterm Guide: Absolute Advantage, Demand Curve, Opportunity Cost

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orchidhorse832

15 May 2017

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Understand and be able to calculate opportunity cost. Marginal analysis: be able to calculate marginal benefits or marginal costs: Understand production possibilities curve (ppf) and be able to identify inefficient points and efficient points, also using the ppf to calculate the opportunity costs of trade-offs. Be able to calculate opportunity cost and determine the comparative advantage for each trading partner: Suppose it takes craig 10 minutes to make coffee and 20 minutes to bake a cake, and it takes. Edmond 15 minutes to make coffee and 30 minutes to bake a cake. Understand how demand curve shifts (i. e. income increases and inferior good) Understand how supply curve shifts (i. e. when wages goes up) Understand gross domestic product (gdp) and how its calculated (i. e. capital goods, inventory and etc. ) Be able to calculate real and nominal gdp: Calculate both nominal gdp and real gdp for 2012 and 2015, use 2012 as the base year.

Related Questions

The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in this area is $10. Total cost includes all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table.

Total Hourly Output and Sales of Pizzas	Total Hourly Cost ($)	Total Revenue ($)	Total Economic Profit ($)	Marginal Cost ($)	Marginal Revenue ($)
0	6	0	0	-	-
1	10	10	0
2	12	20	8
3	13	30	17
4	15	40	25
5	19	50	31
6	25	60	35
7	33	70	37
8	43	80	37
9	55	90	35
10	71	100	29

How I calculate this?

coralpig724

Can you solve them and tell me if youre sure 100% 100% 100%

Question 1 (1 point)

If two variables move together but are otherwise unrelated, we have

Question 1 options:

a fallacy of composition.

an econometric model.

a spurious correlation.

an efficiency problem.

evidence of a weak correlation but strong causation.

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Question 2 (1 point)

The Latin expression "ceteris paribus": is essential in ______.

Question 2 options:

collecting data.

identifying sunk costs.

evaluating theories.

recognizing scarcity.

developing spurious relationships.

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Question 3 (1 point)

Opportunity cost is best defined as

Question 3 options:

marginal cost minus marginal benefit.

the time spent on an economic activity.

the value of the best forgone alternative.

the monetary cost of an economic decision.

marginal cost plus marginal benefit.

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Question 4 (1 point)

A cost that cannot be recovered at the time a decision is being made is termed a(n)

Question 4 options:

marginal cost.

scarcity cost.

sunk cost.

average cost.

opportunity cost.

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Question 5 (1 point)

If the marginal costs of 1, 2, and 3 hours of talking on the phone are $50, $75, and $105, then the total costs are

Question 5 options:

$50, $150, and $315.

$50, $41.67, and $115.

$50, 125, and $230.

$50, $175, and $405.

impossible to calculate with information given.

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Question 6 (1 point)

In general, individuals should specialize in producing those goods for which they

Question 6 options:

can produce more quickly than others.

can produce less quickly than others.

have the lowest opportunity cost compared to others.

have the highest opportunity cost compared to others.

have an average opportunity cost.

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Question 7 (1 point)

The extra benefit that comes from an extra unit of activity is called the _________ of the activity.

Question 7 options:

benefit

marginal benefit

marginal cost

average benefit

reservation benefit

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Question 8 (1 point)

The marginal benefit of an activity is the

Question 8 options:

same as the total benefits of the activity.

total benefit divided by the level of the activity.

change in the activity divided by the change in benefits.

extra benefit associated with an extra unit of the activity.

total benefit divided by the change in the level of the activity.

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Question 9 (1 point)

The fundamental problem that is studied in economics is that

Question 9 options:

consumers have limited wants in the face of unlimited resources.

markets should function without government interference.

Canada is too wealthy.

consumers have unlimited wants in the face of limited resources.

there are unlimited resources.

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Question 10 (1 point)

The range of topics, or issues, that fit within the definition of economics is

Question 10 options:

limited to market activities, e.g., buying soap.

limited to individuals and firms.

extremely wide, requiring only the ideas of choice and scarcity.

limited to governments and nations.

very limited.

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Question 11 (1 point)

When economists make predictions using the framework of a given economic model, it is usually based on

Question 11 options:

personal experiences.

important relationships between particular variables.

mathematical abstractions.

political implications.

the profit-maximizing objective.

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Question 12 (1 point)

The cost of spending an evening partying instead of studying economics is

Question 12 options:

the resulting decrease in the test score in Economics.

the time spent at the party.

the score of the test.

the cost of the textbook.

university tuition.

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Question 13 (1 point)

As one progresses from a one-person economy to a large, multi-person economy, the shape of production possibilities curve changes from

Question 13 options:

downward sloping to upwards sloping.

linear to convex (bowed into the origin).

concave (bowed out from the origin) to linear.

convex (bowed into the origin) to concave (bowed out from the origin).

linear to concave (bowed out from the origin).

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Question 14 (1 point)

Which is NOT a sunk cost?

Question 14 options:

Monthly rent of $1,000 contractually specified in a one-year lease.

An insurance premium of $50 per year, paid last month.

An attorney's retainer of $50,000 per year.

A worker's wage of $15 per hour.

A non-refundable deposit for a tender.

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Question 15 (1 point)

"We should support government intervention because the market produces undesirable outcomes" is an example of

Question 15 options:

positive economics.

normative economics.

comparative economics.

negative economics.

formative economics.

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amberchimpanzee966

1) Which of the following inputs can be changed in the short run?

2) In a perfectly competitive market:

price is always equal to marginal revenue.

price is always greater than marginal revenue.

price is always greater than marginal cost.

price is always equal to marginal cost.

3) The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.

Number of Workers	Total Output (units)	Variable Costs ($)	Fixed Costs ($)
0	0	0	150
1	25	10	150
2	55	20	150
3	86	30	150
4	110	40	150
5	130	50	150
6	145	60	150
7	155	70	150
8	160	80	150

Refer to the table above. Suppose that the only variable input that the firm uses is labor. What is the wage paid to a worker in the firm?

4) A firm produces 200 units of a good when it employs 7 workers. The marginal product of the eighth worker is 46 units. If the eighth worker is hired, the firm's total product will increase to:

EC 202 Study Guide - Midterm Guide: Absolute Advantage, Demand Curve, Opportunity Cost

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