Question

11-.	It takes approximately _______ years and _______ to bring a new drug to the market.
	A)	12; $1 billion
	B)	2; $100,000
	C)	4; $5 million
	D)	6; $20 billion

12-.	When the opportunity cost of a choice increases:
	A)	individuals are more likely to choose that same option.
	B)	individuals are less likely to choose that same option.
	C)	the marginal benefits of that choice increase, as well.
	D)	the marginal benefits of that choice decrease.

13-.	As the FDA uses ______ time and resources to ensure the safety of new drugs, _________.
	A)	more; more people will die from taking unsafe drugs
	B)	less; fewer people will die waiting for access to life-saving medicine
	C)	more; fewer people will die waiting for access to life-saving medicine
	D)	less; fewer people will die from taking unsafe drugs

14-.	How is the unemployment rate related to the opportunity cost of college?
	A)	As the unemployment rate increases, the opportunity cost of attending college falls because fewer opportunities for employment exist.
	B)	As the unemployment rate decreases, the opportunity cost of attending college falls since it becomes easier to pay for tuition when employed.
	C)	As the unemployment rate increases, the opportunity cost of attending college increases because fewer people are giving up the opportunity of working to attend college.
	D)	As the unemployment rate increases, the opportunity cost of attending college increases because more people are giving up the opportunity of working to attend college.
15-.	What is meant by the term “marginal revolution”?
	A)	the public disdain at the institution of marginal tax rates
	B)	the transformation in economic thought that occurred with the discovery of marginal thinking
	C)	the institution of the death penalty for drug dealers
	D)	the effect of policies on crime

Answer 1

11.

A

It is 12 years and almost 1 billion dollar investment that help bring a new drug to the market.

12.

B

Higher opportunity cost makes people to change their choice and opt for the one whose opportunity cost is low.

13.

B

AS the Fed quickly takes decisions, then life saving drugs will be more readily available to people and lesser number of lives will be lost.

14.

A

The opportunity cost of attending college is the salary foregone in jobs. But increase in unemployment, means less jobs and opportunity cost of attending college decreases as person may be unemployed and salary will be zero.

15.

B