ECON 15A Lecture Notes - Lecture 4: Massachusetts Route 2

1. You are told that the economy is producing efficiently and has chosen to produce and consume 6 units of X and 16 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of X as: A) 2 B) 1/2 C) 1 D) 3/2 E) 2/3 F)3 G) 1/3 H) 4 1) 1/4 J) 8/3 K) 3/8 L) 5/2 M) 2/5 N) 4/3 0) 3/4 P) 6 Q) 1/6 R) 8 S) 1/8 T) none of the above

2. Now you are told that the economy is producing efficiently and has chosen to produce and consume 8 units of X. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of Y as: A) 2 B) 1/2 C) D) 3/2 E) 2/3 F) 3 G) 1/3 H) 4 1) 1/4 J) 8/3 K) 3/8 L) 5/2 M) 2/5 N) 4/3 0) 3/4 P) 6 Q) 1/6 R) 8 S) 1/8 T) none of the above

13. If the price of X is set at $24.00 per unit, the number of units of X purchased by this consumer each month will be: A) 1 B) 2 C) 3 D) 4 E) 5 F) 6 G) 7 H)8 1) 9 J) 10 K) 12 L) 14 M) 16 N) 18 0) 20 P) 22 Q) 24 R) 26 S) 28 T) 30 U) 36 V) 40 W) 44 X) 52 Y) 56 Z) none of the above