Unit 1 check

Unit 1 check: Basic Economic Concepts

10 questions from 6 lessons in Unit 1. Answer each one, and if you miss, follow the link back to where it is taught, then try again. Your score counts first tries.

Question 1 · from 1.1 · Decide and justify

A mountain spring flows into the square of a village of 50 people. It runs day and night with far more water than the villagers ever collect, and anyone may take as much as they like. Is the spring's water scarce for the villagers?

Which reason supports your choice?

Question 2 · from 1.2 · Calculate

Using all of its resources, an island can produce 40 fish and 300 coconuts a week (point P) or 60 fish and 220 coconuts a week (point Q). Moving from P to Q, what is the opportunity cost of one additional fish, in coconuts?

Your answer

Question 3 · from 1.3 · Decide and justify

Pell, a country, can produce 20 tons of fish or 40 tons of rice in a year, at a constant opportunity cost. On its own it chose 10 tons of fish and 20 tons of rice. Then it produced only rice, 40 tons, and traded 16 tons of rice to another country for 10 tons of fish. Pell now has 10 tons of fish and 24 tons of rice. Could Pell have produced this combination on its own?

Which reason supports your choice?

Question 4 · from 1.4 · Decide and justify

A popular shopping website reports that TV prices will drop sharply next month, when new models arrive. Today's TV prices have not changed. What happens to the demand for TVs this month?

Which reason supports your choice?

Setup for question 5

Two new situations. Work each one with the at-one-price test before you answer.

Question 5 · from 1.5 · Calculate

Mesa Clayworks, a pottery studio, offered 200 mugs a month at $30 a mug and 260 mugs a month at $40. Then the price of clay rose, and now it offers 150 mugs a month at $30 and 210 at $40. At a price of $40, how many fewer mugs a month does the studio offer than before the clay price rose?

Your answer mugs

Setup for question 6

In Halden, a fictional city, private garages sell monthly parking permits downtown, and the price is set by the market. The table is the market schedule for Halden's parking permits.

Halden's market for monthly parking permits
Price per month	Quantity demanded	Quantity supplied
$60	900	300
$80	800	500
$100	700	700
$120	600	900
$140	500	1,100

Question 6 · from 1.6 · Multiple choice

If the price of a Halden parking permit is $80 a month, what does the market have, and which way do market forces move the price?

Question 7 · from 1.1 · Sort it

Tap a resource, then tap the kind of economic resource it is.

Land

Labor

Capital

Question 8 · from 1.2 · Sketch the graph

A country makes only wheat and steel. Its land and workers are specialized, so every extra 10 thousand tons of steel costs more wheat than the 10 thousand tons before it. Sketch its PPC: the most wheat it can grow for each amount of steel from 0 to 50 thousand tons. The first point is fixed at 100 thousand tons of wheat, the most it can grow when it makes no steel.

Drag a point up or down, or tap it and use the arrow keys. Only the shape is checked.

Question 9 · from 1.3 · Sort it

Kiri gives up 0.5 bushel of pears to grow one bushel of apples. Tova gives up 2.5 bushels of pears to grow one bushel of apples. Kiri specializes in apples, Tova in pears, and Kiri trades apples to Tova for pears. Tap an offer, then tap whether it leaves both of them better off than growing both fruits themselves.

Both are better off

At least one is not better off

Setup for question 10

Neither of these appears earlier in the lesson. For each one, ask first whether the good's own price changed, then which curve moves and which way.

Question 10 · from 1.4 · Spot the error

The price of gasoline rises from $3.00 to $4.50 a gallon and stays there. A student writes four lines about the market for gasoline and the market for large pickup trucks, which burn a lot of gasoline. Tap the first line that goes wrong.

0 of 10 answered.