1.Isaac has four potential jobs to consider, each with different salary offers. From highest to lowest, the salaries are: $47,500, $46,000, $45,000, and $42,000. Based on the information provided, if Isaac accepts the highest-paying position, what is his opportunity cost of this position?a.$46,000b.$42,000c.$47,500d.$133,000e.$1,5002.Consider the scenario to answer the following questions: Two friends, Monica and Chandler, enjoy baking bread and making apple pies. Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie.What is Monica’s opportunity cost of baking 1 loaf of bread?a.4 piesb.2 piesc.1 pied.1 loaf of breade.1/2 loaf of bread3.When an economy shifts away from production of consumer goods and toward production of capital goods, for the average worker this trade-off meansa.a higher standard of living.b.longer work hours.c.a lower savings rate (as a percentage of income).d.more leisure time.e.more disposable income.4.Dawn’s family runs a business selling white paper used in photocopiers. Dawn notices that she is under intense pressure to lower prices. Why is this occurring?a.Prices are falling because fewer people are photocopying.b.Prices are falling because although there are many companies that make and sell paper, there are only a few customers that purchase large amounts of paper.c.Prices are falling because there are only a few companies that sell and make paper, but there are many different kinds of customers who buy paper.d.Prices are falling because there are many companies who make and sell paper and different kinds of customers for this paper.e.Prices are falling because some companies make and sell more paper than others.5.As the owner of a business, Talia has allowed her employees to do their work on one computer screen while watching movies on a second computer screen. She has noticed, however, that her employees are distracted by being able to watch movies while at work. How would an economist describe this situation?a.As people watch movies, they become less productive and efficient and there is a leftward movement along the supply curve.b.As people watch movies, they become less productive and efficient and there is a rightward movement along the supply curve.c.As people watch movies, they become less productive and efficient and there is a rightward shift of the supply curve.d.As people watch movies, they become less productive and efficient and there is a leftward shift of the supply curve.e.As people watch movies, they become less productive and efficient and there is a rightward shift of and movement along the supply curve.6.Trade-offs occur in all of the following scenarios EXCEPTa.a student has two exams on the following day and must divide study time between the classes.b.a couple chooses between two equally appealing vacation destinations for the following weekend.c.a shopper wants to buy two equally appealing shirts totaling $50, and has $35 to spend on each.d.a caterer selects from two potential jobs, both paying $2,500 on a Saturday night.e.consumers are often forced to make a compromise between quality and price.7. Laura leaves her job as an accountant, where she earns $80,000 per year, to start her own business. After the first year, her business earns a profit of $60,000. How would an economist describe the profitability of Laura’s career change?a. Laura had a profit of $140,000.b.Laura had a loss of $20,000.c.Laura had a profit of$20,000d.Laura had a profit of$60,000e.Laura had a loss of $80,000
