TEST BANK FOR CHAPTER 1: Economic Models

19. The solution to the simultaneous equations
5X – Y = 10 and 10X + Y = 35 is
a. X
= 15, Y = 0.
b. X
= 3, Y = 5.
c. X
= 5, Y = 3.
d. None
of these.

20. Graphically,
the solution to a system of two independent linear equations is usually
a. the
average of the slopes.
b. the
average of the intercepts.
c. a
single point.
d. None
of these.

21. Let QD = -5P + 54 and QS
= P – 6. Equilibrium can be found at
a. Q
= 4; P = 10
b. Q
= 6; P = 10
c. P
= 6; Q = 0
d. Q
=.gif”>; P = 2

22. If the production possibilities frontier
can be expressed as 4X2 + Y2 = 16 then the point
X = 1; Y = 4 is
a. outside
the production possibilities frontier
b. on
the production possibilities frontier
c. inside
the production possibilities frontier
d. in
the wrong quadrant to be on the graph

23. If
the production possibilities frontier can be expressed as 4X2 + Y2
= 16 then the point X =.gif”>; Y = 2 is
a. outside the production possibilities frontier
b. on the production possibilities frontier
c. inside the production possibilities frontier
d. in the wrong quadrant to be on the graph

24. Suppose a production possibilities frontier
can be expressed as 9X2 + Y2 = 81 what is the opportunity
cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?
a. 45
b. .gif”>
c. .gif”> -.gif”>
d. 1

25. Suppose a production possibilities frontier
can be expressed as 9X2 + Y2 = 81 what is the opportunity
cost of going from 2 units of X to 3 units of X (in terms of units of Y)?
a. .gif”> c. 1
b. .gif”> d. 0

26. An increase in the technology used in the
production of only one of the two goods in a society will
a. eliminate
scarcity
b. move
the production possibilities frontier out in all directions
c. move
the production possibilities frontier in all directions
d. leave
one corner of the production possibilities frontier fixed and swing out from
the other

27. Suppose right (R) and left (L) shoes are
only useful if produced in equal proportion and societal happiness is expressed
as min(R,L). The contour lines would be
a. downward
sloping lines
b. upward
sloping lines
c. L-shaped
d. backward
L-shaped