ECO2305 Microeconomics TT1.V1 D. Meloche FIGURE 2-1 24 20 12 A producfion pos/bi
ID: 1121444 • Letter: E
Question
ECO2305 Microeconomics TT1.V1 D. Meloche FIGURE 2-1 24 20 12 A producfion pos/bilties 0 45 10 Cakes 15. Refer to Figure 2-1. Which of the following statements best describes a movement from Point C to Point D? a. Inputs are reallocated without affecting overall levels of production. b. The sacrifice of four cupcakes is required to obtain one cake c. Unemployment increases. d. The sacrifice of one cake is required to obtain four cupcakes. 16. Refer to Figure 2-1. Which of the following statements best describes the opportunity cost of producing an additional cake as the economy moves down along the production possibilities curve? a. It increases b. It remains constant c. It decreases. d. It equals zero. 17. Ammar is an accountant and also an excellent typist. He can type 120 words per minute but he has all the accounting work he can handle at $75 per hour. Ammar's friend Leo sells furniture earning $25 per hour. Leo would like some typing work but can only type only 60 words per minute. What is the most efficient scenario? a. Ammar should do all the typing because he is faster b. Leo should do the typing as long as his earnings are more than $25 and less than $37.50 per hour. c. Unless Leo can match Ammar's typing speed, he should remain a salesperson. d. Leo should do the typing, and Ammar should pay him $20 per hour. ido't have clas today, I would save the $8 campus parking fee and spend four hours at tunity 6est of attending class today?Explanation / Answer
15. movement from point C to point D describes that to increase consumption of cake by one unit, 4 units of cupcakes needs to be sacrificed.
OPTION B
16. Here, Opportunity cost remains constant along the production possibilities curve. OPTION B
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