In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the ...

In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of Y is
 
  A) 1/2 unit of X per unit of Y.
  B) 2/3 unit of X per unit of Y.
  C) 2 units of X per unit of Y.
  D) 3 units of X per unit of Y.

---

Ques. 2

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.
 
  A) increases; falls
  B) decreases; might rise, fall, or not change
  C) decreases; rises
  D) increases; might rise, fall, or not change

---

Ques. 3

The table above shows Tom's total utility from milkshakes and sodas. A milkshake costs 2.00. What is the marginal utility per dollar spent when the eighth milkshake is purchased?
 
  A) 32 units per dollar
  B) 20 units per dollar
  C) 16 units per dollar
  D) 10 units per dollar

---

Ques. 4

What happens in the foreign exchange market if the U.S. interest rate increases? What is the effect on the exchange rate?
 
  What will be an ideal response?

---

Ques. 5

Suppose the money growth rate is 3 percent, velocity is constant, and real GDP is growing at 2 percent. What is the inflation rate?
 
  A) 1 percent
  B) 5 percent
  C) 3 percent
  D) 6 percent

---

Ques. 6

The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would
 
  A) intersect the horizontal axis at 100 percent.
  B) bow outward more to the right than does the Lorenz curve for income.
  C) lie parallel to the line of equality.
  D) become flatter as one moves from left to right.

---

Ques. 7

The motel whose costs are given in the table above has total fixed costs equal to
 
  A) 0.
  B) 100.
  C) 200.
  D) 201.