Multiple Choice
| Question | Form A | Form B | Form C | Form D | Form E |
|---|---|---|---|---|---|
| 1 | D | A | D | C | D |
| 2 | C | A | D | D | D |
| 3 | A | B | B | B | A |
| 4 | A | B | D | B | C |
| 5 | A | D | A | D | D |
| 6 | B | A | C | D | B |
| 7 | D | C | A | B | A |
| 8 | B | B | B | A | A |
| 9 | B | B | B | A | C |
| 10 | B | D | A | A | B |
| 11 | A | B | B | A | D |
| 12 | D | D | B | C | B |
| 13 | A | C | A | B | B |
| 14 | A | B | A | B | B |
| 15 | D | B | C | D | D |
| 16 | B | A | D | B | B |
| 17 | B | D | B | A | B |
| 18 | B | D | B | B | A |
| 19 | D | A | D | D | A |
| 20 | C | A | A | A | A |
Problem 21
This problem is the same on all forms.
Part A:
In an hour, Juan produces 6 computers or 3 disk drive. The opportunity
cost of one computer is the ratio 3 disk drive/6 computers = 1/2 disk drive per computer.
Part B:
In an hour, Sara produces 4 computers or 4 disk drives. The opportunity
cost of one computer is the ratio 4 disk drive/4 computers = 1 disk drive per computer.
Part C:
Mutually beneficial trade is possibly at any relative price between the two
opportunity costs: no more that 1 disk driver per computer, and no less than
1/2 disk drive per computer.
Problem 22
This problem is the same on all forms.
Part A:
At the quota of 32, the supply price is $18 and the demand price is $28.
The suppliers change as much as they can, which is $28, clearing the market.
Part B:
Consumer's surplus is the standard triangle. The area is
1/2 x (40-28)$/book x 32 books = $192.
Part C:
Producer's surplus is trickier. It's best to think of
producer's surplus as a triangle (from $6 to $18) plus a rectangle
from $18 to $28). The triangle has area 1/2 x (18-6) x 32 = $192.
The rectangle has area (28-18) x 32 = $320, yielding a producer's
surplus of $512.