Rock climbing areas are often on public lands. These areas, which are often crowded, are classified ...

Rock climbing areas are often on public lands. These areas, which are often crowded, are classified as
 
  A) rival and excludable.
  B) non-rival and excludable.
  C) rival and non-excludable.
  D) non-rival and non-excludable.

---

Ques. 2

The vertical distance between a firm's total cost (TC) and its total variable cost (TVC) curves
 
  A) decreases as output decreases.
  B) is equal to the average variable cost, AVC.
  C) is equal to the total fixed cost, TFC.
  D) is equal to the marginal cost, MC.

---

Ques. 3

Which curve is the same as the market demand curve? Why are the curves the same?
 
  What will be an ideal response?

---

Ques. 4

In the 1980s, one of the most common sights in the socialist countries, such as the former Soviet Union and North Korea, were long lines for bread, sugar, and other necessities. These countries had price ceilings on these necessities.
 
  Some of the socialist nations, such as the former Soviet Union, have moved to a market economy by lifting the price ceilings, while others, such as North Korea, have retained their price ceilings. What prediction do you make about the presence (or absence) of long lines today in the former Soviet Union and North Korea? Explain your answer.

---

Ques. 5

If Mexico is currently operating at a point inside its production possibilities frontier, then there are unemployed resources in Mexico. Is this statement true or false? Briefly explain your answer.
 
  What will be an ideal response?

---

Ques. 6

Patty spends 10 a week on bagels and soda. The price of a bagel is 2 and the price of soda is 1 a can. Patty buys 2 bagels and 6 cans of soda. Her marginal utility from bagels is 20 units.
 
  The price of a bagel rises to 3 and the price of a can of soda rises to 1.50. Patty now buys ________ bagels and her marginal utility from bagels ________. She buys ________ cans of soda and her marginal utility from soda ________. A) fewer than 2; increases; fewer than 6; increases
  B) 2; is 20 units; 6; is 10 units
  C) fewer than 2; is 20 units; fewer than 6; is 10 units
  D) fewer than 2; decreases; fewer than 6; decreases

---

Ques. 7

Using the above figure, suppose there is a decrease in the number of suppliers. Then
 
  A) the equilibrium price will decrease below 25 per dozen roses.
  B) we cannot predict what will happen to equilibrium quantity.
  C) the equilibrium quantity will decrease below 10 dozen roses.
  D) both the equilibrium price and quantity will increase.

---

Ques. 8

The price elasticity of demand for movies is approximately 1 and 500,000 tickets are sold per day. If the average price of a movie ticket increases by 20 percent, the number of tickets sold each day decreases to ________.
 
  A) 400,000
  B) 300,000
  C) 420,000
  D) 475,000