1.

(01.01 MC) Why might salt be a resource with a high cost in one market and a very low cost in another market? (1 point)

	Trade could affect costs.
	Its supply could be scarce in one market and very great in another.
	The higher cost market might have a much lower demand for salt than its supply.
	The higher cost market might have no demand for salt.
	The lower cost market might have more trade-offs for salt harvesting.

2.

(01.02 LC) Which of the following is a basic question that must be answered in resource allocation? (1 point)

	How much education should workers have?
	What goods and services should be produced?
	What is a fair price for a particular good or service?
	How much should a good or service cost the consumer?
	What sort of technology should be used to produce goods?

3.

(01.03 LC) (1 point)

Price Supply P1 B E - - P2 P C H P3 D - - - - J K - - G L - Demand Q1 Q2 Q3 Quantity (units)Price Supply A P1 B E P2 C F - - P3 - - D ---- - - - Demand - - Q1 Q2 Q3 Quantity (units)Price MC ATC ATC Quantity (units)Price MC H AC M P, - - L N P2 - AR P - -. MR O Quantity Q1 Q2 (units)30 25 20 15 Marginal Product 10 5 0 5 2 5 6 7 8 9 10 Labor 10MSC S=MPC Price ($) D=MPB=MSB Quantity\fPrice ($) 5 S 4 3.5 + 3 2 D 360 540 Quantity