Economics 1021A/B Study Guide - Midterm Guide: Government Budget Balance, Marginal Cost, Marginal Utility

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: P Ferguson

Document Summary

Instructions: tilt" examillation begins at 4:00 p. m. and ends at 6:00 p. m. Note: questions are printed at the back of each page r------ (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) (cid:0) l\fultiple choice. Choose the one ajternatiye that best completes the statement or answers the question. October 4,2008: in a world characterized by scarcity. B-2 r--- -: on a diagram of a production possibilities frontier, the opportunity cost of the good measured cm me- x-axis is represented by, a point on the vertical axis. Bj me x-axis intercept: a point on the horizontal axis, a ray through the origin, the- slope of the production possibilities frontier. Use thefigure below to 0l1511"er the/ollowilig question. a. Figutf: 1: rdcr [0 the production possibilities frontier in figure 1. Thc opporrunity cost of inereasmg produuion of good y is &"teates[ when we move from: b to a, e to d. C)ctob: dto c, the opportunity cost is me same in eaeh case. r-