TABLE 1-1 -Refer to Table 1-1. a Student Has Only a Few

question 57

Multiple Choice

TABLE 1-1

-Refer to Table 1-1. A student has only a few hours to prepare for two different exams this afternoon. The above table shows alternative possible exam scores with three alternative uses of the student's time. What is the opportunity cost of scoring a 94 on the economics exam rather than a 77?

• A) 8 points on the history exam
• B) 14 points on the history exam
• C) 15 points on the history exam
• D) 17 points on the history exam

Calculate effects of subsidies on market prices to achieve a new market equilibrium.

Understand the relationship between supply and demand functions.

Calculate equilibrium quantities given changes in supply and demand.

Analyze the effect of external interventions such as taxes and subsidies on market dynamics.

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Definitions:

Mutually Exclusive

Events that cannot occur at the same time, meaning the occurrence of one event makes it impossible for the other event to occur.

Exhaustive

Pertaining to a comprehensive or complete method or approach that leaves no aspect unexplored or unaddressed.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of another.

Intersection of Events

The set containing all the outcomes that are common to two or more events in probability and statistics.