Author: Anonymous

The problem of scarce resources:

Which of the following is true when the price of a good is zero?

Suppose you drink more tea because the price of coffee has increased. This is indicative of: 

The following table shows John’s total utility derived from billiards and bowling games. Assume John has $30 to spend on a game of billiards and/or a game of bowling. A game of billiards costs him $4, and a game of bowling costs him $2. Which of the following is John’s utility-maximizing combination of the games of billiards and the games of bowling?​Table 6.5​​QuantityTotal UtilityGames of billiardsGames of bowling00011007021801303240180427221052882186292222​

If demand decreases and supply increases in a market that is initially in equilibrium, then: 

The figure given below shows the production possibilities frontier for Good A and Good B. In the figure given below, which of the following points represents an inefficient use of the economy’s resources?​Figure 2.2​

If a good is offered free of charge, one would:

The following graph shows the demand curves for three consumers in the market, represented by D, D’, and D’’. At a price of $30, the market quantity demanded for the good will be _____ units.​Figure 6.10

The figure given below shows the production possibilities frontier for education and food production. Which of the following would cause the production possibilities frontier to shift from AA to BA?

John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?​