Week 1 Quiz

A concert ticket costs 60 dollars, and going means 4 hours away from a shift that pays 15 dollars an hour, which is the best alternative. What is the opportunity cost of the concert evening?

Select one.

• 60 dollars, the price of the ticket
• 120 dollars, the ticket plus the forgone pay
• 75 dollars, the ticket plus one hour of pay
• 240 dollars, the ticket price times the 4 hours

On the island frontier (illustrative), moving from (50, 30) to (60, 0), written (fish, coconuts), adds the last 10 fish. How many coconuts does each of those 10 fish cost?

Select one.

• 0.5 coconuts per fish
• 30 coconuts per fish
• One third of a coconut per fish
• 3 coconuts per fish

The island frontier (illustrative) gives 75 coconuts at 30 fish. How should you classify the combination of 30 fish and 50 coconuts?

Select one.

• Inside the frontier: attainable but wasteful, with 25 coconuts of effort idle
• On the frontier: efficient, since 30 fish is one of the combinations the island's table lists
• Outside the frontier: unattainable, because it lies below the curve
• Outside the frontier: unattainable, because it needs 25 more coconuts

The island frontier (illustrative) gives 55 coconuts at 40 fish. Which reading of the combination of 40 fish and 70 coconuts is accurate?

Select one.

• Inside the frontier, because 70 coconuts is fewer than the island's 105
• On the frontier, because the island can catch 40 fish in a day
• Outside the frontier, because it asks for 15 more coconuts than the island can gather
• Outside the frontier, because it asks for 15 more fish than the island can catch

On the island frontier (illustrative), the six steps of 10 fish cost 5, 10, 15, 20, 25, and then 30 coconuts. Why does the frontier bow outward rather than run as a straight line?

Select one.

• Because each fish costs the same number of coconuts, whatever the island catches
• Because the workers moved into fishing last are the best tree climbers, so each fish costs more
• Because the islanders like fish more than coconuts, so they pick more fish
• Because the frontier shows the combination the islanders want most of all

Which change on the island is growth, read on the production possibilities frontier?

Select one.

• Moving along the frontier from 30 fish and 75 coconuts to 40 fish and 55 coconuts
• Moving from inside, at 20 fish and 60 coconuts, up to 20 fish and 90 coconuts
• Moving along the frontier from 60 fish and no coconuts to 105 coconuts and no fish
• Better nets that shift the whole frontier outward, so the island can make more of both

What does the assumption ceteris paribus mean in an economic model?

Select one.

• Every influence the model leaves out is held constant while one thing changes
• Every influence in the model is allowed to change at the same time as the one being studied
• The model must describe every detail of a real economy to be useful
• The model's numbers are taken from real data rather than made up

Which of these questions belongs to microeconomics rather than macroeconomics?

Select one.

• Whether the overall price level across the country is rising
• How a single bike shop chooses how many repairs to schedule
• How many people across the whole economy are unemployed
• How much total output the whole economy produced

Select every positive statement in the list below.

Select every option that applies.

• Sending more island workers to fish lowers the island's coconut harvest.
• The island ought to catch more fish than it does.
• Longer library hours would increase the number of evening visitors.
• A fair city budget spends more on parks than on roads.
• Adding a bus route would cut commute times in the neighborhood.

In economics, a positive statement is one that describes a good or hopeful outcome, and a normative statement is one that describes a bad outcome.

True or false.

• True
• False