Question : 108) Suppose your expenses for this term as follows: tuition: : 1387307

108) Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational supplies: $1,000. Further, during the term, you can only work part-time and earn $8,000 instead of your full-time salary of $20,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

A) $11,000

B) $17,000

C) $23,000

D) $29,000

109) The opportunity cost of going to an outdoor music festival is

A) the enjoyment you receive from going to the festival.

B) the value of the time spent at the festival.

C) equal to the highest value of an alternative use of the time and money spent on the festival.

D) zero because there is no overhead costs for an outdoor festival.

E) the cost of the festival ticket only.

110) ________ exists because unlimited wants exceed the limited resources available to fulfill those wants.

A) Scarcity

B) Productive efficiency

C) The command economy

D) Economic growth

111) To compete in the automobile market, Tesla must make many strategic decisions such as whether to introduce a new car model, how to sell and service its cars, and where to advertise. At Tesla’s Fremont, California plant, managers must decide on the monthly production quantities of their S and X models. In making this decision, the managers

A) face no trade-off because the Fremont plant only produces these two models of the many Tesla models produced worldwide.

B) face a trade-off, because producing more of one model means producing less of the others.

C) will choose to only produce the quantity of S and X models where marginal cost equals zero.

D) will always decide on production quantities in which revenues are maximized.

112) The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

A) marginal cost

B) opportunity cost

C) normative economics

D) entrepreneurship

113) The production possibilities frontier shows

A) the various products that can be produced now and in the future.

B) the maximum attainable combinations of two products that may be produced in a particular time period with available resources.

C) what an equitable distribution of products among citizens would be.

D) what people want firms to produce in a particular time period.

114) ________ shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.

A) Comparative advantage

B) Absolute advantage

C) The mixed market system

D) The production possibilities frontier model

115) The production possibilities frontier model assumes all of the following except

A) labor, capital, land and natural resources are fixed in quantity.

B) the economy produces only two products.

C) any level of the two products that the economy produces is currently possible.

D) the level of technology is fixed and unchanging.

116) The ________ production points on a production possibility curve are the points along and inside the production possibility frontier.

A) attainable

B) unattainable

C) productively efficient

D) allocatively efficient

117) The unattainable points in a production possibilities diagram are

A) the points within the production possibilities frontier.

B) the points along the production possibilities frontier.

C) the points of the horizontal and vertical intercepts.

D) the points outside the production possibilities frontier.