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) Resource allocation is determined by which of the following? (1 point)

	What are the most advantageous terms of trade?
	When does marginal cost equal marginal benefit?
	Which economy enjoys a lower opportunity cost for this good?
	What is essential knowledge to pass on to the next generation?
	What goods and services should be produced?

3.

(01.03 LC) (1 point)

\fDemand for Product Z 12 10 4, 10 8 8.8 Price (Dollars) 6 16.6 4 24.4 2 30.2 0 0 5 10 15 20 25 30 35 Quantity (Pounds)\fPrice Supply A P1 B E P2 C P3 - D Demand - - - Quantity Q1 Q2 Q3 (units)Price MC ATC ATC Quantity (units)10 Long Run Average Total Costs 6 A D Cost A B w C 2 1 2 3 4 5 6 7 Output 8 9 10Use the graph to answer the question below. The quantity is measured in thousands of units. (1 point) 350 MC :40 - 'l'C AVC :30 no P n V' :10 A o 1 2 3 4 s e 7 s 9 I0 Price MC H AC M L N P, AR P, - - L - . . .. MR - O Quantity Q1 Q2 (units)30 25- 20- 15 Marginal Product 10 5 0 5 6 7 8 9 10 Labor 10MSC S=MPC Price ($) D=MPB=MSB Quantity