***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

The diagram below shows what could happen to the budget line if the consumer's income increases, and at the same time the price of good A increases.  (The dotted line is the new budget line after the changes.)

Abdul wants to buy socks and toothpaste.

Which would be his optimal bundle?

Just enter the letter of the bundle.

Artem is buying hammers and oranges.  He has a budget of $192.

Based on the budget line below, what is the price per hammer?

The table below shows information about a producer of coats.

Based on the table, what is the price per coat?

Katherine currently has a job at an accounting firm.  She earns $72,000 per year.  She has $190,000 in savings, which she has as bonds that earn 5% annual interest.

She is considering starting her own accounting firm.  It would cost her $122,000 to purchase the office equipment.  This equipment would depreciate 7% per year.  She would have to pay $16,000 per year to rent the office.  Labour costs would be $418,000 per year.  She estimates her annual revenue would be $722,000.

Calculate Katherine's economic profit if she starts her own firm.

***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

The sunk cost dilemma occurs when a person must determine how best to recover the sunk costs that they have incurred.

The table below shows the cost and revenue information for a firm.

What is the optimal quantity for the firm?

The graph below shows demand for a good.

Calculate the quantity effect if the seller lowers the price from $24 to $21.

Enter the absolute value.