Question 1

A market failure could be caused by:

Accepted Answer

A) imperfect production. 
B) many firms competing against each other for customers. 
C) profit. 
D) imperfect competition. 
A) imperfect production. 
B) many firms competing against each other for customers. 
C) profit. 
D) imperfect competition.

Question 2

Which of the following tend to reduce economic uncertainty?

Accepted Answer

A) unemployment insurance 
B) health insurance 
C) social security 
D) All of the above are correct. 
A) unemployment insurance 
B) health insurance 
C) social security 
D) All of the above are correct.

Question 3

A product produced overseas and sold in another country is an export.

Accepted Answer

A) True 
 B)False

Question 4

According to the Application,which good does Latvia have absolute advantage on?

Accepted Answer

A) timber 
B) grain 
C) milk 
D) none of the above. 
A) timber 
B) grain 
C) milk 
D) none of the above.

Question 5

An example of a market failure due to a firm fully bearing the costs of its production decision is:

Accepted Answer

A) a levee. 
B) pollution. 
C) profit. 
D) imperfect information. 
A) a levee. 
B) pollution. 
C) profit. 
D) imperfect information.

Question 6

When the government provides its citizens an unemployment insurance program,it is providing its citizens:

Accepted Answer

A) a social safety net. 
B) a public good. 
C) a new job. 
D) uncertainty. 
A) a social safety net. 
B) a public good. 
C) a new job. 
D) uncertainty.

Question 7

If a person has a comparative advantage in some activity,she must have an absolute advantage in that activity as well.

Accepted Answer

A) True 
 B)False

Question 8

When there is imperfect competition,the role of government is to take control of production.

Accepted Answer

A) True 
 B)False

Question 9

A product produced in the home country and sold in another country is an export.

Accepted Answer

A) True 
 B)False

Question 10

A rich nation will trade with a poor nation because the:

Accepted Answer

A) rich nation has the absolute advantage in all products. 
B) poor nation has the absolute advantage in all products. 
C) poor nation has the comparative advantage in a product. 
D) rich nation has the comparative advantage in all products. 
A) rich nation has the absolute advantage in all products. 
B) poor nation has the absolute advantage in all products. 
C) poor nation has the comparative advantage in a product. 
D) rich nation has the comparative advantage in all products.

Question 11

Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Rose's opportunity cost of producing 1 coconut is:

Accepted Answer

A) 1/3 fish. 
B) 1 1/2 fish. 
C) 3 fish. 
D) 6 fish. 
A) 1/3 fish. 
B) 1 1/2 fish. 
C) 3 fish. 
D) 6 fish.

Question 12

Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Sharon's opportunity cost of producing 1 coconut is:

Accepted Answer

A) 3/4 fish. 
B) 1 1/3 fish. 
C) 3 fish. 
D) 4 fish. 
A) 3/4 fish. 
B) 1 1/3 fish. 
C) 3 fish. 
D) 4 fish.

Question 13

During World War II before there was trade among camps,items not consumed by the majority of the camp (such as coffee in British camps and beef in Sikh camps)were:

Accepted Answer

A) more expensive than in other camps. 
B) scarcer than in other camps. 
C) cheaper than in other camps. 
D) not provided to the prisoners. 
A) more expensive than in other camps. 
B) scarcer than in other camps. 
C) cheaper than in other camps. 
D) not provided to the prisoners.

Question 14

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that:

Accepted Answer

A) Willy has both an absolute and comparative advantage in apple production. 
B) Willy has both an absolute and comparative advantage in carrot production. 
C) Willy has neither an absolute nor comparative advantage in apple production. 
D) Willy has neither an absolute nor a comparative advantage in carrot production. 
A) Willy has both an absolute and comparative advantage in apple production. 
B) Willy has both an absolute and comparative advantage in carrot production. 
C) Willy has neither an absolute nor comparative advantage in apple production. 
D) Willy has neither an absolute nor a comparative advantage in carrot production.

Question 15

A specialized worker does not spend time switching from one task to another.This is called:

Accepted Answer

A) continuity. 
B) innovation. 
C) functionality. 
D) repetition. 
A) continuity. 
B) innovation. 
C) functionality. 
D) repetition.

Question 16

If the banking industry is unable to review a borrower's credit history,then the market will experience a bank failure caused by:

Accepted Answer

A) imperfect information. 
B) public goods. 
C) perfect information. 
D) imperfect competition. 
A) imperfect information. 
B) public goods. 
C) perfect information. 
D) imperfect competition.

Question 17

According to the application,country's civil liberty includes which of the following?

Accepted Answer

A) freedom of expression 
B) right to own property 
C) freedom of religion 
D) All of the above are part of a country's civil liberty. 
A) freedom of expression 
B) right to own property 
C) freedom of religion 
D) All of the above are part of a country's civil liberty.

Question 18

According to the application,why is a government's efficiency improved with stronger civil liberties?

Accepted Answer

A) Stronger civil liberties encourage corruption. 
B) Stronger civil liberties force the government to hand out more subsidies. 
C) Stronger civil liberties encourage citizen participation and government accountability. 
D) All of the above are correct. 
A) Stronger civil liberties encourage corruption. 
B) Stronger civil liberties force the government to hand out more subsidies. 
C) Stronger civil liberties encourage citizen participation and government accountability. 
D) All of the above are correct.

Question 19

Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Which of the following is true?

Accepted Answer

A) Rose has a comparative advantage in producing coconuts but not fish. 
B) Rose has a comparative advantage in producing fish but not coconuts. 
C) Rose has a comparative advantage in producing both goods. 
D) Rose does not have a comparative advantage in producing either good. 
A) Rose has a comparative advantage in producing coconuts but not fish. 
B) Rose has a comparative advantage in producing fish but not coconuts. 
C) Rose has a comparative advantage in producing both goods. 
D) Rose does not have a comparative advantage in producing either good.

Question 20

Among the roles of the government in a market economy is to:

Accepted Answer

A) enforce property rights. 
B) own the means of production. 
C) determine what is produced. 
D) all of the above 
A) enforce property rights. 
B) own the means of production. 
C) determine what is produced. 
D) all of the above

A market failure could be caused by:

Which of the following tend to reduce economic uncertainty?

A product produced overseas and sold in another country is an export.

According to the Application,which good does Latvia have absolute advantage on?

An example of a market failure due to a firm fully bearing the costs of its production decision is:

When the government provides its citizens an unemployment insurance program,it is providing its citizens:

If a person has a comparative advantage in some activity,she must have an absolute advantage in that activity as well.

When there is imperfect competition,the role of government is to take control of production.

A product produced in the home country and sold in another country is an export.

A rich nation will trade with a poor nation because the:

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Rose's opportunity cost of producing 1 coconut is:

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Sharon's opportunity cost of producing 1 coconut is:

During World War II before there was trade among camps,items not consumed by the majority of the camp (such as coffee in British camps and beef in Sikh camps)were:

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that:

A specialized worker does not spend time switching from one task to another.This is called:

If the banking industry is unable to review a borrower's credit history,then the market will experience a bank failure caused by:

According to the application,country's civil liberty includes which of the following?

According to the application,why is a government's efficiency improved with stronger civil liberties?

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Which of the following is true?

Among the roles of the government in a market economy is to:

Introduction: What Is Economics

The Key Principles of Economics

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 3: Exchange and Markets

A market failure could be caused by:

Which of the following tend to reduce economic uncertainty?

A product produced overseas and sold in another country is an export.

According to the Application,which good does Latvia have absolute advantage on?

An example of a market failure due to a firm fully bearing the costs of its production decision is:

When the government provides its citizens an unemployment insurance program,it is providing its citizens:

If a person has a comparative advantage in some activity,she must have an absolute advantage in that activity as well.

When there is imperfect competition,the role of government is to take control of production.

A product produced in the home country and sold in another country is an export.

A rich nation will trade with a poor nation because the:

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Rose's opportunity cost of producing 1 coconut is:

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Sharon's opportunity cost of producing 1 coconut is:

During World War II before there was trade among camps,items not consumed by the majority of the camp (such as coffee in British camps and beef in Sikh camps)were:

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that:

A specialized worker does not spend time switching from one task to another.This is called:

If the banking industry is unable to review a borrower's credit history,then the market will experience a bank failure caused by:

According to the application,country's civil liberty includes which of the following?

According to the application,why is a government's efficiency improved with stronger civil liberties?

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Which of the following is true?

Among the roles of the government in a market economy is to:

Introduction: What Is Economics

The Key Principles of Economics

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters