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1) Refer to Figure Calculate the area of the triangle A.
a. $6.3 million
b. $3.15 million
c. $8.4 million
d. $2.1 million 2) You explain to your friend Haslina, who runs a catering service called "Meals in a Zip," about an economic theory that asserts that consumers will purchase less of a product at higher price than they will at lower prices. She contends that the theory is incorrect because over the past two years she has raised the price of her catered meals and yet has seen a brisk increase in sales. How would you respond to Haslina? a. I will explain to her that there are some omitted variables that have contributed to an increase in her sales such as changes in income.
b. Haslina is making the mistake of assuming that correlation implies causation.
c. I will explain to her that she confusing positive economic analysis with normative economic analysis.
d. Haslina is right; she has evidence to back her claim. The theory must be false. 3) In a production possibilities frontier model, a point inside the frontier is a. inefficient. Maximum output is not being obtained from available resources.
b. allocatively efficient.
c. allocatively inefficient.
d. productively efficient
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