Question 1

Under a market system, the people with information about buyers' desires, production technology, and resources make the decisions.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots. Based on the table, Willy's opportunity cost of 1 apple is:

Accepted Answer

A)  1 carrot. 
B)  6 carrots. 
C)  4 carrots. 
D)  2/3 carrot. 
A)  1 carrot. 
B)  6 carrots. 
C)  4 carrots. 
D)  2/3 carrot. D

Question 4

When a specialized worker gains insights into a particular task that leads to better production methods it is called:

Accepted Answer

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

Question 5

Specialization in production will increase total output.

Accepted Answer

A) True 
 B)False

Question 6

If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour, and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour, then Tom has a comparative advantage in writing true/false questions.

Accepted Answer

A) True 
 B)False

Question 7

What are the three reasons Adam Smith said led to increase productivity with specialization and division of labor?

Accepted Answer

repetition

Question 8

In a market economy, what is the role of the government with regards to public goods?

Accepted Answer

A)  The government must take over the production of all goods in the market, public or private. 
B)  The government has to facilitate the collective decision making in the production of public goods. 
C)  The government must hold a referendum before any public good is produced. 
D)  The government must force the firms to produce all the public goods. 
A)  The government must take over the production of all goods in the market, public or private. 
B)  The government has to facilitate the collective decision making in the production of public goods. 
C)  The government must hold a referendum before any public good is produced. 
D)  The government must force the firms to produce all the public goods.

Question 9

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

Accepted Answer

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

Question 10

What is the difference between comparative and absolute advantage.

Accepted Answer

Comparative advantage is the a

Question 11

Recall Application 3, "The Shakers and the Market for Garden Seeds," to answer the following questions:
-According to the application, which of the following gave the Shakers an advantage over other farms in their agricultural operations?

Accepted Answer

A)  The size of their operations were smaller than that of other farms. 
B)  The Shakers had more productive land than other farms. 
C)  The size of their operations were larger than that of other farms. 
D)  The weather was more favorable in the areas where the Shakers operated their farms. 
A)  The size of their operations were smaller than that of other farms. 
B)  The Shakers had more productive land than other farms. 
C)  The size of their operations were larger than that of other farms. 
D)  The weather was more favorable in the areas where the Shakers operated their farms.

Question 12

People who develop new products and production processes increase their profitability by taking out _______  on their inventions.

Accepted Answer

The answer of People who develop new products and production...

Question 13

What is an export?

Accepted Answer

a product produced i

Question 14

The main reason why the government enforces contracts and maintains a legal system that punishes those who violate contracts is:

Accepted Answer

A)  to increase uncertainty. 
B)  to decrease imperfect competition. 
C)  to decrease imperfect information. 
D)  to facilitate exchange. 
A)  to increase uncertainty. 
B)  to decrease imperfect competition. 
C)  to decrease imperfect information. 
D)  to facilitate exchange.

Question 15

A centrally planned economy has a planning authority that decides:

Accepted Answer

A)  how the products are produced. 
B)  who receives the products. 
C)  what products to produce. 
D)  all of the above 
A)  how the products are produced. 
B)  who receives the products. 
C)  what products to produce. 
D)  all of the above

Question 16

Which of the following best defines a public good?

Accepted Answer

A)  A public good is a good that uses public funds to finance its production. 
B)  A public good is a good that is sold to other people in the market. 
C)  A public good is a good that requires government approval before it can be produced. 
D)  A public good is available for anyone to utilize, regardless on who pays and who doesn't. 
A)  A public good is a good that uses public funds to finance its production. 
B)  A public good is a good that is sold to other people in the market. 
C)  A public good is a good that requires government approval before it can be produced. 
D)  A public good is available for anyone to utilize, regardless on who pays and who doesn't.

Question 17

What is an import?

Accepted Answer

a product produced i

Question 18

A comparative advantage is the ability of one person or nation to produce a good at an opportunity cost that is lower than that of another person or nation.

Accepted Answer

A) True 
 B)False

Question 19

The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n):

Accepted Answer

A)  market advantage. 
B)  specialization advantage. 
C)  comparative advantage. 
D)  absolute advantage. 
A)  market advantage. 
B)  specialization advantage. 
C)  comparative advantage. 
D)  absolute advantage.

Question 20

_______ is another term for "offshoring."

Accepted Answer

A)  Importing 
B)  Exporting 
C)  Insourcing 
D)  Outsourcing 
A)  Importing 
B)  Exporting 
C)  Insourcing 
D)  Outsourcing

Under a market system, the people with information about buyers' desires, production technology, and resources make the decisions.

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

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots. Based on the table, Willy's opportunity cost of 1 apple is:

When a specialized worker gains insights into a particular task that leads to better production methods it is called:

Specialization in production will increase total output.

If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour, and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour, then Tom has a comparative advantage in writing true/false questions.

What are the three reasons Adam Smith said led to increase productivity with specialization and division of labor?

In a market economy, what is the role of the government with regards to public goods?

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

What is the difference between comparative and absolute advantage.

Recall Application 3, "The Shakers and the Market for Garden Seeds," to answer the following questions: -According to the application, which of the following gave the Shakers an advantage over other farms in their agricultural operations?

People who develop new products and production processes increase their profitability by taking out _______ on their inventions.

What is an export?

The main reason why the government enforces contracts and maintains a legal system that punishes those who violate contracts is:

A centrally planned economy has a planning authority that decides:

Which of the following best defines a public good?

What is an import?

A comparative advantage is the ability of one person or nation to produce a good at an opportunity cost that is lower than that of another person or nation.

The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n):

_______ is another term for "offshoring."

Introduction: What Is Economics

The Key Principles of Economics

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 3: Exchange and Markets

Under a market system, the people with information about buyers' desires, production technology, and resources make the decisions.

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

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots. Based on the table, Willy's opportunity cost of 1 apple is:

When a specialized worker gains insights into a particular task that leads to better production methods it is called:

Specialization in production will increase total output.

If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour, and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour, then Tom has a comparative advantage in writing true/false questions.

What are the three reasons Adam Smith said led to increase productivity with specialization and division of labor?

In a market economy, what is the role of the government with regards to public goods?

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

What is the difference between comparative and absolute advantage.

Recall Application 3, "The Shakers and the Market for Garden Seeds," to answer the following questions: -According to the application, which of the following gave the Shakers an advantage over other farms in their agricultural operations?

People who develop new products and production processes increase their profitability by taking out _______ on their inventions.

What is an export?

The main reason why the government enforces contracts and maintains a legal system that punishes those who violate contracts is:

A centrally planned economy has a planning authority that decides:

Which of the following best defines a public good?

What is an import?

A comparative advantage is the ability of one person or nation to produce a good at an opportunity cost that is lower than that of another person or nation.

The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n):

_______ is another term for "offshoring."

Introduction: What Is Economics

The Key Principles of Economics

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters