1. A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than A. $100 per pound. B. $20 per pound. C. $80 per pound. D. $40 per pound. E. $60 per pound.

3. Productive efficiency refers to: A) the use of the least-cost method of production. B) the production of the product-mix most wanted by society. C) the full employment of all available resources. D) production at some point inside of the production possibilities curve. Price $1.60 1.00 .50 130 200 Quantity Supply 290 Demand

Dr Rafiu is planning to send his son to study Finance either at KFUPM or Imam Abdulrahman Bin Faisal University, ceteris paribus. When the session is about to start, the school fees of KFUPM increases while that of Imam Abdulrahman Bin Faisal University remain the same. So, Dr Rafiu decides to enroll his son at Imam Abdulrahman Bin Faisal University.    (a) What kind of goods can you classify the two universities from the perspective of Dr Rafiu? (b) What is the nature of elasticity facing Dr Rafiu (hint: elastic, inelastic, Unitary)

Claire and Don are farmers who produce beef and com. In a year, Claire can produce 40 tons of beef or 200 bushels of corn. In a year, Don can produce 20 tons of beef or 120 bushels of corn.. To maximize their total output of beef and corn A. Claire and Don each spend half of their time producing beef and the other half producing corn B. Don produces beef and corn while Claire produces nothing C. Claire produces beef and Don produces corn OD. Don produces beef and Claire produces com