1Isaac has four potential jobs to consider, each with different salary offers From highest to lowest, the salaries are: $47,500, $46,000, $45,000, and $42,000 Based on the information provided, if Isaac accepts the highest-paying position, what is his opportunity cost of this position?
a$46,000
b$42,000
c$47,500
d$133,000
e$1,500
2Consider the scenario to answer the following questions: Two friends, Monica and Chandler, enjoy baking bread and making apple pies Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie
What is Monica’s opportunity cost of baking 1 loaf of bread?
a4 pies
b2 pies
c1 pie
d1 loaf of bread
e1/2 loaf of bread
3When an economy shifts away from production of consumer goods and toward production of capital goods, for the average worker this trade-off means
aa higher standard of living
blonger work hours
ca lower savings rate (as a percentage of income)
dmore leisure time
emore disposable income
4Dawn’s family runs a business selling white paper used in photocopiers Dawn notices that she is under intense pressure to lower prices Why is this occurring?
aPrices are falling because fewer people are photocopying
bPrices are falling because although there are many companies that make and sell paper, there are only a few customers that purchase large amounts of paper
cPrices are falling because there are only a few companies that sell and make paper, but there are many different kinds of customers who buy paper
dPrices are falling because there are many companies who make and sell paper and different kinds of customers for this paper
ePrices are falling because some companies make and sell more paper than others
5As the owner of a business, Talia has allowed her employees to do their work on one computer screen while watching movies on a second computer screen She has noticed, however, that her employees are distracted by being able to watch movies while at work How would an economist describe this situation?
aAs people watch movies, they become less productive and efficient and there is a leftward movement along the supply curve
bAs people watch movies, they become less productive and efficient and there is a rightward movement along the supply curve
cAs people watch movies, they become less productive and efficient and there is a rightward shift of the supply curve
dAs people watch movies, they become less productive and efficient and there is a leftward shift of the supply curve
eAs people watch movies, they become less productive and efficient and there is a rightward shift of and movement along the supply curve
6Trade-offs occur in all of the following scenarios EXCEPT
aa student has two exams on the following day and must divide study time between the classes
ba couple chooses between two equally appealing vacation destinations for the following weekend
ca shopper wants to buy two equally appealing shirts totaling $50, and has $35 to spend on each
da caterer selects from two potential jobs, both paying $2,500 on a Saturday night
econsumers are often forced to make a compromise between quality and price
7 Laura leaves her job as an accountant, where she earns $80,000 per year, to start her own business After the first year, her business earns a profit of $60,000 How would an economist describe the profitability of Laura’s career change?
a Laura had a profit of $140,000
bLaura had a loss of $20,000
cLaura had a profit of$20,000
dLaura had a profit of$60,000
eLaura had a loss of $80,000