Question 1

Absolute advantage is when one producer has greater productivity compared to another producing the same product.

Accepted Answer

A) True 
 B)False

Question 2

A product produced in a foreign country and purchase by residents of the home country is an import.

Accepted Answer

A) True 
 B)False

Question 3

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)  Sharon has an absolute advantage in producing both goods. 
B)  Sharon has an absolute advantage in producing fish but not coconuts. 
C)  Sharon has an absolute advantage in producing coconuts but not fish. 
D)  Sharon does not have an absolute advantage in producing either good. 
A)  Sharon has an absolute advantage in producing both goods. 
B)  Sharon has an absolute advantage in producing fish but not coconuts. 
C)  Sharon has an absolute advantage in producing coconuts but not fish. 
D)  Sharon does not have an absolute advantage in producing either good.

Question 4

Which of the following is not a public good?

Accepted Answer

A)  national defense 
B)  levees 
C)  a hamburger 
D)  space exploration 
A)  national defense 
B)  levees 
C)  a hamburger 
D)  space exploration

Question 5

An example of a public good is:

Accepted Answer

A)  national defense 
B)  an apple. 
C)  a seat in a bus. 
D)  Pay- Per- View broadcasts. 
A)  national defense 
B)  an apple. 
C)  a seat in a bus. 
D)  Pay- Per- View broadcasts.

Question 6

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

Accepted Answer

A)  trying to create new jobs for the unemployed. 
B)  trying to reduce economic uncertainty. 
C)  trying to increase economic uncertainty. 
D)  encouraging workers to look for jobs in the government sector. 
A)  trying to create new jobs for the unemployed. 
B)  trying to reduce economic uncertainty. 
C)  trying to increase economic uncertainty. 
D)  encouraging workers to look for jobs in the government sector.

Question 7

When people exchange things, trading what they have for what they want, it is called a _______economy.

Accepted Answer

The answer of When people exchange things, trading what they...

Question 8

The more times a worker performs a particular task, the more proficient the worker becomes at that task. This is called:

Accepted Answer

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

Question 9

Why does the government's role of enforcing contracts facilitate exchange?

Accepted Answer

A)  Enforcing contracts guarantees sellers that the government will bail them out in case the buyer does not fulfill his end of the contract. 
B)  Enforcing contracts guarantees consumers that the government will bail them out in case the seller does not fulfill his end of the contract. 
C)  Enforcing contracts allows people to trade with confidence that the contracts they enter will be met. 
D)  Enforcing the contract effectively makes the government the seller's partner in the business. 
A)  Enforcing contracts guarantees sellers that the government will bail them out in case the buyer does not fulfill his end of the contract. 
B)  Enforcing contracts guarantees consumers that the government will bail them out in case the seller does not fulfill his end of the contract. 
C)  Enforcing contracts allows people to trade with confidence that the contracts they enter will be met. 
D)  Enforcing the contract effectively makes the government the seller's partner in the business.

Question 10

In order to have reliable information about commercial enterprises and to encourage other people to invest their time and money_______ have been established to ensure universal understanding.

Accepted Answer

The answer of In order to have reliable information about...

Question 11

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions:
-According to the application, the price of virtual coins increased when:

Accepted Answer

A)  gold farming was banned by the company that runs the "World of Warcraft." 
B)  gold farming became more prevalent in China. 
C)  gold farming was introduced by the company that runs the "World of Warcraft." 
D)  gold farming was encouraged by the company that runs the "World of Warcraft." 
A)  gold farming was banned by the company that runs the "World of Warcraft." 
B)  gold farming became more prevalent in China. 
C)  gold farming was introduced by the company that runs the "World of Warcraft." 
D)  gold farming was encouraged by the company that runs the "World of Warcraft."

Question 12

In a market system, prices:

Accepted Answer

A)  are unfair. 
B)  are too high. 
C)  signal the relative scarcity of a product. 
D)  all of the above. 
A)  are unfair. 
B)  are too high. 
C)  signal the relative scarcity of a product. 
D)  all of the above.

Question 13

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions:
-According to the application, the sale of virtual gold coins were done by online gamers who had:

Accepted Answer

A)  valued the gold coins the most. 
B)  a high opportunity cost of their time. 
C)  difficulty in collecting the gold coins. 
D)  a low opportunity cost of their time. 
A)  valued the gold coins the most. 
B)  a high opportunity cost of their time. 
C)  difficulty in collecting the gold coins. 
D)  a low opportunity cost of their time.

Question 14

What are some of the sources of market failure?

Accepted Answer

people not bearing the full co

Question 15

When the government filed a lawsuit against Microsoft in 1998 alleging that Microsoft illegally bundled Internet Explorer in its operating software, the government's objective was to:

Accepted Answer

A)  reduce uncertainty. 
B)  combat pollution. 
C)  reduce imperfect information. 
D)  foster competition. 
A)  reduce uncertainty. 
B)  combat pollution. 
C)  reduce imperfect information. 
D)  foster competition.

Absolute advantage is when one producer has greater productivity compared to another producing the same product.

A product produced in a foreign country and purchase by residents of the home country is an import.

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?

Which of the following is not a public good?

An example of a public good is:

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

When people exchange things, trading what they have for what they want, it is called a _______economy.

The more times a worker performs a particular task, the more proficient the worker becomes at that task. This is called:

Why does the government's role of enforcing contracts facilitate exchange?

In order to have reliable information about commercial enterprises and to encourage other people to invest their time and money_______ have been established to ensure universal understanding.

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions: -According to the application, the price of virtual coins increased when:

In a market system, prices:

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions: -According to the application, the sale of virtual gold coins were done by online gamers who had:

What are some of the sources of market failure?

When the government filed a lawsuit against Microsoft in 1998 alleging that Microsoft illegally bundled Internet Explorer in its operating software, the government's objective was to:

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

Absolute advantage is when one producer has greater productivity compared to another producing the same product.

A product produced in a foreign country and purchase by residents of the home country is an import.

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?

Which of the following is not a public good?

An example of a public good is:

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

When people exchange things, trading what they have for what they want, it is called a _______economy.

The more times a worker performs a particular task, the more proficient the worker becomes at that task. This is called:

Why does the government's role of enforcing contracts facilitate exchange?

In order to have reliable information about commercial enterprises and to encourage other people to invest their time and money_______ have been established to ensure universal understanding.

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions: -According to the application, the price of virtual coins increased when:

In a market system, prices:

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions: -According to the application, the sale of virtual gold coins were done by online gamers who had:

What are some of the sources of market failure?

When the government filed a lawsuit against Microsoft in 1998 alleging that Microsoft illegally bundled Internet Explorer in its operating software, the government's objective was to:

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