2.7.1   You wish to place a heading above row 1. Briefly explain how you would go about doing this. (2)

Private charities offer numerous arts subsidies through grants and low-cost equipment to summer camps. Because of this, we expect that the equilibrium price of arts education will ________ and the equilibrium quantity of students will ________.

In a competitive market, the price of the product is

Suppose that Marie is buying bananas.  She decides that she would like to purchase three bananas at the price of $0.25/banana but not a fourth banana.  Which of the five foundations of economics best describes Marie’s thinking? Click to view larger image.

Which point on the graph below is unattainable because the economy does not have enough resources to produce it? Click to view larger image.

QUESTION 5 Answer the following questions 5.1 Why is Binary Code a base 2 number system? (1)

Which of the following is a type of incentive?

Sam has two options this weekend.  He could work at his job and earn $9/hour for three hours, or he could go to a show at the theater for that three hours.  A ticket to the theater costs $30. What is the opportunity cost of going to the theater?Click to view larger image.

Lower prices increase the marginal utility per dollar spent and cause consumers to buy more of a good. On the other hand, higher prices lower the marginal utility per dollar spent and cause consumers to buy less of a good. This is a way of restating ________ in terms of marginal utility.

The field of economics that studies the decisions of individuals and firms is called