c. 2. The basic goal of economics is to control the effects of government action. determine how to distribute all that is produced in an economy. address the scarcity problem created because the population's desire for goods exceeds the ability to produce them. match limited resources to people's limited wants and needs. control tastes and wishes so that there will be enough resources to produce all the goods and services that people want. 5. Kelly is an architect, and she is trying to decide whether to hire Lawrence, a draftsman, to assist with her work. Kelly could hire Lawrence at $20 per hour, but it would take him three times as long to complete a task as it takes Kelly, Kelly is able to earn S90 per hour and has more architectural jobs than she is able to handle. Which of the following is true? Kelly should not hire Lawrence because it would be faster for her to do the work herself. b. Kelly should do the drafting work herself because she has the lower opportunity cost. c. Lawrence should be hired at the $20 per hour wage rate. Lawrence should be hired, but only if he is paid more than $30 per hour. Kelly should hire someone who earns minimum wage instead of Lawrence. 6. Why would economists find it surprising if the CEO of a large company does his or her own housework? The opportunity cost of a CEO's time is quite high because they have an abundance of time to spend on housework. The opportunity cost of a CEO's time is quite low because they have a scarcity of time to spend on housework The opportunity cost of a CEO's time is quite low because they have an abundance of time to spend on housework. The opportunity cost of a CEO's time is quite high because they have a scarcity of time to spend on housework. The opportunity cost of a CEO's time is equal to that of everyone else that works at the same company. Refer to these figure to answer the questions 12 and 13.. Apple Pies 16 14+- 12-+-- PPF N 18 Blueberry Pies 11 15 pies. 14. The opportunity cost of increasing production of apple pies from 14 to 16 pies is a. 2 blueberry 14 apple 7 blueberry 4 blueberry 16 blueberry a. 15. As we move from points N to M to L, the opportunity cost of additional apple pie decreases due to the law of increasing relative cost. increases due to the law of increasing relative cost. decreases due to the law of normative economics. increases due to the law of marginal analysis. decreases due to enhancements in technology. 23. In a typical demand curve, the price elastie portion of demand is found in the _region and the price inelastie portion of demand is found in the region of the graph. middle; lower lower; upper c. upper; lower middle; middle None of these choices are correct. 24. When the price of softballs is high, a in price will raise total revenue. When the price is low, the seller should the price to increase total revenue. decrease; raise b. rise; raise c. decrease; decrease rise; decrease decrease; not change d.. 25. When her income falls from $50,000 to $20,000, Arianna increases her monthly purchase of hamburger from 20 pounds to 35 pounds. From the midpoint method, Arianna's income elasticity of demand for hamburgers is -1.57 - 0.63 0.54. -0.85. 1.57
