Question 1

Increasing opportunity cost is due to

Accepted Answer

A)  ever increasing taxes. 
B)  the fact that resources are not equally suited for different types of production. 
C)  the fact that it is more difficult to use resources efficiently the more society produces. 
D)  firms' needs to earn more and more profits. 
A)  ever increasing taxes. 
B)  the fact that resources are not equally suited for different types of production. 
C)  the fact that it is more difficult to use resources efficiently the more society produces. 
D)  firms' needs to earn more and more profits.

Question 2

Using the production possibilities frontier model, unemployment is described as producing at a point

Accepted Answer

A)  inside the PPF curve. 
B)  on the exact middle of the PPF curve. 
C)  outside the PPF curve. 
D)  on either end of the PPF curve. 
A)  inside the PPF curve. 
B)  on the exact middle of the PPF curve. 
C)  outside the PPF curve. 
D)  on either end of the PPF curve.

Question 3

-The table above shows the production possibilities frontier for the nation of Isolanda.
a) Find the marginal cost of a pound of fish using the above PPF.
b) How does the marginal cost of a pound of fish change as more fish are caught?

Accepted Answer

a) @#IMG-DLM& The table above shows the marginal c

Question 4

Production efficiency can be defined as

Accepted Answer

A)  being able to produce more of one good only if less of another is produced. 
B)  producing outside the production possibilities frontier. 
C)  minimizing opportunity cost. 
D)  providing for the immediate needs of the greatest proportion of the population. 
A)  being able to produce more of one good only if less of another is produced. 
B)  producing outside the production possibilities frontier. 
C)  minimizing opportunity cost. 
D)  providing for the immediate needs of the greatest proportion of the population.

Question 5

Marginal benefit is the

Accepted Answer

A)  dollars sacrificed to purchase a good or service. 
B)  amount of one good or service that a person gains when another good or service is consumed. 
C)  benefit that a person receives from consuming one more unit of a good or service. 
D)  minimum amount a person is willing to pay for one more unit of a good or service. 
A)  dollars sacrificed to purchase a good or service. 
B)  amount of one good or service that a person gains when another good or service is consumed. 
C)  benefit that a person receives from consuming one more unit of a good or service. 
D)  minimum amount a person is willing to pay for one more unit of a good or service.

Question 6

Which of the following does NOT help organize trade?

Accepted Answer

A)  markets 
B)  property rights 
C)  the production possibilities frontier 
D)  None of the above because all these answers given help organize trade. 
A)  markets 
B)  property rights 
C)  the production possibilities frontier 
D)  None of the above because all these answers given help organize trade.

Question 7

Marginal benefit curves slope

Accepted Answer

A)  downward, but marginal cost curves slope upward. 
B)  upward and so do marginal cost curves. 
C)  upward, but marginal cost curves slope downward. 
D)  downward and so do marginal cost curves. 
A)  downward, but marginal cost curves slope upward. 
B)  upward and so do marginal cost curves. 
C)  upward, but marginal cost curves slope downward. 
D)  downward and so do marginal cost curves.

Question 8

Once a country has a comparative advantage in the production of a good

Accepted Answer

A)  the country loses its absolute advantage in the production of the good. 
B)  other countries can equal but not gain a comparative advantage in the production of the good. 
C)  other countries might be able to gain the comparative advantage in that good through a process called learning- by- doing. 
D)  None of the above answers is correct. 
A)  the country loses its absolute advantage in the production of the good. 
B)  other countries can equal but not gain a comparative advantage in the production of the good. 
C)  other countries might be able to gain the comparative advantage in that good through a process called learning- by- doing. 
D)  None of the above answers is correct.

Question 9

-In the figure above, the opportunity cost of moving from point C to point D is

Accepted Answer

A)  the increase in production in the education sector. 
B)  the loss in production in the health care sector. 
C)  the loss in production in the education sector. 
D)  zero. 
A)  the increase in production in the education sector. 
B)  the loss in production in the health care sector. 
C)  the loss in production in the education sector. 
D)  zero.

Question 10

-According to the figure above, the opportunity cost of producing another computer is

Accepted Answer

A)  higher at A. 
B)  higher at B. 
C)  the same at every point along the frontier. 
D)  different at most points along the frontier but equal at points A and B because they are equally distant from the axes. 
A)  higher at A. 
B)  higher at B. 
C)  the same at every point along the frontier. 
D)  different at most points along the frontier but equal at points A and B because they are equally distant from the axes.

Question 11

-Two countries, Alpha and Beta, have identical production possibilities frontiers. If Alpha produces at point a and Beta produces at point b, then .

Accepted Answer

A)  Beta's future consumption will be greater than Alpha's 
B)  Alpha consumes less than Beta today, but it will grow faster than Beta 
C)  Beta's economic growth rate will exceed Alpha's 
D)  Alpha's and Beta's economic growth rates will be the same 
A)  Beta's future consumption will be greater than Alpha's 
B)  Alpha consumes less than Beta today, but it will grow faster than Beta 
C)  Beta's economic growth rate will exceed Alpha's 
D)  Alpha's and Beta's economic growth rates will be the same

Question 12

How do property rights help organize production and trade?

Accepted Answer

Property rights are necessary in order f

Question 13

Which of the following describes comparative advantage?

Accepted Answer

A)  Firm A can produce a good at a cost of $3 and Firm B can produce the good at a cost of $4. 
B)  Jane can type 50 words per minute and Joe can type 60 words per minute. 
C)  To produce a bushel of wheat Farmer John must give up 2 bushels of corn whereas Farmer Ben must give up 3 bushels of corn. 
D)  Company A can produce 4 boxes of cereal in a day whereas Company B can produce 5 boxes of cereal in a day. 
A)  Firm A can produce a good at a cost of $3 and Firm B can produce the good at a cost of $4. 
B)  Jane can type 50 words per minute and Joe can type 60 words per minute. 
C)  To produce a bushel of wheat Farmer John must give up 2 bushels of corn whereas Farmer Ben must give up 3 bushels of corn. 
D)  Company A can produce 4 boxes of cereal in a day whereas Company B can produce 5 boxes of cereal in a day.

Question 14

Production efficiency is achieved when

Accepted Answer

A)  the ability is gained to produce goods and services that are desired beyond the PPF boundary 
B)  all goods and services desired by consumers can be produced in the economy 
C)  producing one more unit of one good cannot occur without producing less of some other good. 
D)  producing inside the production possibilities frontier 
A)  the ability is gained to produce goods and services that are desired beyond the PPF boundary 
B)  all goods and services desired by consumers can be produced in the economy 
C)  producing one more unit of one good cannot occur without producing less of some other good. 
D)  producing inside the production possibilities frontier

Question 15

-In the figure above, at the allocatively efficient level of computer production consumers are willing to give up

Accepted Answer

A)  more than 3 televisions per computer. 
B)  3 televisions per computer. 
C)  between 0 and 3 televisions per computer. 
D)  0 televisions per computer. 
A)  more than 3 televisions per computer. 
B)  3 televisions per computer. 
C)  between 0 and 3 televisions per computer. 
D)  0 televisions per computer.

Question 16

Over time, India has become an important source of call center services used by U.S. firms and their customers. This change in India's ability to staff and operate these call centers reflects
i. learning- by- doing
ii. absolute advantage
iii. dynamic comparative advantage

Accepted Answer

A)  i and ii only. 
B)  i and iii only. 
C)  iii only. 
D)  ii and iii. 
A)  i and ii only. 
B)  i and iii only. 
C)  iii only. 
D)  ii and iii.

Question 17

-Jean can either type her term paper or create Web pages during the limited time she has available. The table above shows her PPF.
a) Can Jean type 90 pages and create 2 Web pages?
b) Use the above numbers to calculate the opportunity cost of a typed page as she increases her time typing and decreases time creating a Web page.

Accepted Answer

a) Jean cannot type 90 pages and create

Question 18

Sam's production possibilities frontier has good A on the horizontal axis and good B on the vertical axis. If Sam is producing at a point inside his frontier, then he

Accepted Answer

A)  values good A more than good B. 
B)  values good B more than good A. 
C)  can increase production of both goods with no increase in resources. 
D)  is fully using all his resources. 
A)  values good A more than good B. 
B)  values good B more than good A. 
C)  can increase production of both goods with no increase in resources. 
D)  is fully using all his resources.

Question 19

-In the above figure, which point represents an attainable but inefficient production point?

Accepted Answer

A)  Point D 
B)  Point L 
C)  Point C 
D)  Point N 
A)  Point D 
B)  Point L 
C)  Point C 
D)  Point N

Question 20

-The figure above shows Roger's production possibilities frontier. Point a is an point and production is .

Accepted Answer

A)  attainable; inefficient 
B)  attainable; efficient 
C)  unattainable; inefficient 
D)  unattainable; efficient 
A)  attainable; inefficient 
B)  attainable; efficient 
C)  unattainable; inefficient 
D)  unattainable; efficient

Increasing opportunity cost is due to

Using the production possibilities frontier model, unemployment is described as producing at a point

-The table above shows the production possibilities frontier for the nation of Isolanda. a) Find the marginal cost of a pound of fish using the above PPF. b) How does the marginal cost of a pound of fish change as more fish are caught?

Production efficiency can be defined as

Marginal benefit is the

Which of the following does NOT help organize trade?

Marginal benefit curves slope

Once a country has a comparative advantage in the production of a good

-In the figure above, the opportunity cost of moving from point C to point D is

-According to the figure above, the opportunity cost of producing another computer is

-Two countries, Alpha and Beta, have identical production possibilities frontiers. If Alpha produces at point a and Beta produces at point b, then .

How do property rights help organize production and trade?

Which of the following describes comparative advantage?

Production efficiency is achieved when

-In the figure above, at the allocatively efficient level of computer production consumers are willing to give up

Over time, India has become an important source of call center services used by U.S. firms and their customers. This change in India's ability to staff and operate these call centers reflects i. learning- by- doing ii. absolute advantage iii. dynamic comparative advantage

Sam's production possibilities frontier has good A on the horizontal axis and good B on the vertical axis. If Sam is producing at a point inside his frontier, then he

-In the above figure, which point represents an attainable but inefficient production point?

-The figure above shows Roger's production possibilities frontier. Point a is an point and production is .

What Is Economics

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 2: The Economic Problem

Increasing opportunity cost is due to

Using the production possibilities frontier model, unemployment is described as producing at a point

-The table above shows the production possibilities frontier for the nation of Isolanda. a) Find the marginal cost of a pound of fish using the above PPF. b) How does the marginal cost of a pound of fish change as more fish are caught?

Production efficiency can be defined as

Marginal benefit is the

Which of the following does NOT help organize trade?

Marginal benefit curves slope

Once a country has a comparative advantage in the production of a good

-In the figure above, the opportunity cost of moving from point C to point D is

-According to the figure above, the opportunity cost of producing another computer is

-Two countries, Alpha and Beta, have identical production possibilities frontiers. If Alpha produces at point a and Beta produces at point b, then .

How do property rights help organize production and trade?

Which of the following describes comparative advantage?

Production efficiency is achieved when

-In the figure above, at the allocatively efficient level of computer production consumers are willing to give up

Over time, India has become an important source of call center services used by U.S. firms and their customers. This change in India's ability to staff and operate these call centers reflects i. learning- by- doing ii. absolute advantage iii. dynamic comparative advantage

Sam's production possibilities frontier has good A on the horizontal axis and good B on the vertical axis. If Sam is producing at a point inside his frontier, then he

-In the above figure, which point represents an attainable but inefficient production point?

-The figure above shows Roger's production possibilities frontier. Point a is an point and production is .

What Is Economics

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters