Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets that can be produced, when all resources are fully employed. Production PossibilitiesGood A B C D E
Based on the above information
A. there is no trade-off between smartphones and tablets.
B. the opportunity cost of producing 30 instead of 20 smartphones is 120 tablets.
C. the opportunity cost of producing 90 instead of 50 tablets is 50 smartphones.
D. the opportunity cost of producing 40 instead of 30 smartphones is 30 tablets.
Answer: D
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In the figure above, when income equals $20,000, what does consumption equal?
A) $0 B) $10,000 C) $20,000 D) impossible to tell
If variables with a multivariate normal distribution have covariances that equal zero, then
A) the correlation will most often be zero, but does not have to be. B) the variables are independent. C) you should use the ?2 distribution to calculate probabilities. D) the marginal distribution of each of the variables is no longer normal.
Elasticity
a. deals with percentage changes in price and quantity demanded. b. employs percentage changes calculated in terms of average values of the prices and quantities at issue. c. is generally stated in absolute value. d. All of the above are correct.
According to economist Jean-Pierre Dube, a 10 percent increase in the price of a twelve-pack of Mountain Dew will lead to a ______ percent increase in the sales of twelve-packs of Pepsi.
a. 10 b. 7.7 c. –5 d. –8.2