Question 1

The fact that resources are not equally productive in all activities

Accepted Answer

A) implies that gains from specialization and trade are unlikely. 
B) implies a linear production possibilities frontier. 
C) follows from the law of demand. 
D) implies that an economy should not produce certain goods. 
E) implies that a production possibilities frontier will be bowed outward. 
A) implies that gains from specialization and trade are unlikely. 
B) implies a linear production possibilities frontier. 
C) follows from the law of demand. 
D) implies that an economy should not produce certain goods. 
E) implies that a production possibilities frontier will be bowed outward.

Question 2

Markets I.enable buyers and sellers to get information.
II.are defined by economists as geographical locations where trade occurs.
III.have evolved because they facilitate trade.
Which of the above statements are correct?

Accepted Answer

A) II and III only 
B) I, II and III 
C) III only 
D) I only 
E) I and III only 
A) II and III only 
B) I, II and III 
C) III only 
D) I only 
E) I and III only

Question 3

The production possibilities frontier shows

Accepted Answer

A) the effect of advancing technology on production possibilities. 
B) the maximum possible growth rate of output in an economy. 
C) combinations of goods and services that do not fully use available resources. 
D) the maximum quantity of resources available at any given time. 
E) the maximum level of production that can be attained. 
A) the effect of advancing technology on production possibilities. 
B) the maximum possible growth rate of output in an economy. 
C) combinations of goods and services that do not fully use available resources. 
D) the maximum quantity of resources available at any given time. 
E) the maximum level of production that can be attained.

Question 4

Use the information below to answer the following questions.
Fact 2.3.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in a hour.
-Given Fact 2.3.2, the opportunity cost of producing a unit of X is

Accepted Answer

A) 1 unit of Y for Agnes and 2 units of Y for Brenda. 
B) 1 hour for Agnes and 1/4 hour for Brenda. 
C) 1 hour for Agnes and 1/2 hour for Brenda. 
D) 1 unit of Y for Agnes and 1/2 unit of Y for Brenda. 
E) 1 hour for Agnes and 2 hours for Brenda. 
A) 1 unit of Y for Agnes and 2 units of Y for Brenda. 
B) 1 hour for Agnes and 1/4 hour for Brenda. 
C) 1 hour for Agnes and 1/2 hour for Brenda. 
D) 1 unit of Y for Agnes and 1/2 unit of Y for Brenda. 
E) 1 hour for Agnes and 2 hours for Brenda.

Question 5

A point inside a production possibilities frontier

Accepted Answer

A) is unattainable. 
B) indicates a point of production efficiency. 
C) is preferred to a point on the production possibilities frontier. 
D) indicates some wasted or misallocated resources. 
E) illustrates the idea of opportunity cost. 
A) is unattainable. 
B) indicates a point of production efficiency. 
C) is preferred to a point on the production possibilities frontier. 
D) indicates some wasted or misallocated resources. 
E) illustrates the idea of opportunity cost.

The fact that resources are not equally productive in all activities

Markets I.enable buyers and sellers to get information. II.are defined by economists as geographical locations where trade occurs. III.have evolved because they facilitate trade. Which of the above statements are correct?

The production possibilities frontier shows

Use the information below to answer the following questions. Fact 2.3.2 Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in a hour. -Given Fact 2.3.2, the opportunity cost of producing a unit of X is

A point inside a production possibilities frontier

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 2: The Economic Problem

The fact that resources are not equally productive in all activities

Markets I.enable buyers and sellers to get information. II.are defined by economists as geographical locations where trade occurs. III.have evolved because they facilitate trade. Which of the above statements are correct?

The production possibilities frontier shows

Use the information below to answer the following questions. Fact 2.3.2 Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in a hour. -Given Fact 2.3.2, the opportunity cost of producing a unit of X is

A point inside a production possibilities frontier

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters