Question 1

All of the following are evidences of specialization except:

Accepted Answer

A) a carpenter who builds an entire bedroom set without any help from others. 
B) a restaurant that provides continental and oriental food in all its outlets. 
C) the credits at the end of a movie. 
D) professional mourners in Taiwan. 
E) online sellers. 
A) a carpenter who builds an entire bedroom set without any help from others. 
B) a restaurant that provides continental and oriental food in all its outlets. 
C) the credits at the end of a movie. 
D) professional mourners in Taiwan. 
E) online sellers.

Question 2

If Robin has an absolute advantage in both gardening and baking when compared to Robert,then:

Accepted Answer

A) Robin cannot benefit by trading with Robert. 
B) Robin can benefit by specializing in gardening if Robert specializes in baking. 
C) Robin can benefit by specializing in baking if Robert specializes in gardening. 
D) Robin and Robert may benefit from trading,but there is insufficient information to determine who should specialize in what. 
E) neither Robin nor Robert can benefit from trading with the other. 
A) Robin cannot benefit by trading with Robert. 
B) Robin can benefit by specializing in gardening if Robert specializes in baking. 
C) Robin can benefit by specializing in baking if Robert specializes in gardening. 
D) Robin and Robert may benefit from trading,but there is insufficient information to determine who should specialize in what. 
E) neither Robin nor Robert can benefit from trading with the other.

Question 3

The production possibilities frontier represents all desirable combinations of outputs.

Accepted Answer

A) True 
 B)False

Question 4

The U.S.economy is best characterized as a:

Accepted Answer

A) barter economy. 
B) command economy. 
C) mercantile economy. 
D) mixed economy. 
E) traditional economy. 
A) barter economy. 
B) command economy. 
C) mercantile economy. 
D) mixed economy. 
E) traditional economy.

Question 5

​  
-The figure below shows the production possibilities frontier for capital goods and consumption goods.Current production at _____ would lead to the largest outward shift in the production possibilities frontier in a later year _____.

Accepted Answer

A) Point a;because this point represents a greater consumption level than point b 
B) Point b;because this point represents greater total production than the other two points 
C) Point c;because this point represents a greater consumption level than the other two points 
D) Point b;because this point represents greater production of capital than point c 
E) Point c;because this point represents greater production of capital than the other two points 
A) Point a;because this point represents a greater consumption level than point b 
B) Point b;because this point represents greater total production than the other two points 
C) Point c;because this point represents a greater consumption level than the other two points 
D) Point b;because this point represents greater production of capital than point c 
E) Point c;because this point represents greater production of capital than the other two points

Question 6

The bowed-out shape of the production possibilities frontier indicates increasing opportunity costs.

Accepted Answer

A) True 
 B)False

Question 7

Points outside the production possibilities frontier represent:

Accepted Answer

A) unemployment of resources. 
B) inefficient use of resources. 
C) combinations that are attainable only if all resources are used fully and efficiently. 
D) currently unattainable combinations of outputs. 
E) the only currently attainable combinations from which society must choose. 
A) unemployment of resources. 
B) inefficient use of resources. 
C) combinations that are attainable only if all resources are used fully and efficiently. 
D) currently unattainable combinations of outputs. 
E) the only currently attainable combinations from which society must choose.

Question 8

If one person has an absolute advantage in producing both of two goods,then that person:

Accepted Answer

A) must also have a comparative advantage in both goods. 
B) cannot benefit from trade. 
C) cannot have a comparative advantage in either good. 
D) will have a comparative advantage in only one good. 
E) should specialize in the production of both goods. 
A) must also have a comparative advantage in both goods. 
B) cannot benefit from trade. 
C) cannot have a comparative advantage in either good. 
D) will have a comparative advantage in only one good. 
E) should specialize in the production of both goods.

Question 9

A command economic system does not need to be concerned with what to produce,how to produce things,or who will get the goods and services produced.

Accepted Answer

A) True 
 B)False

Question 10

Barter is:

Accepted Answer

A) illegal in the United States. 
B) an efficient system of exchange. 
C) most useful when there is much specialization and international trade. 
D) only possible if money is used as a medium of exchange. 
E) the direct exchange of goods without the use of money. 
A) illegal in the United States. 
B) an efficient system of exchange. 
C) most useful when there is much specialization and international trade. 
D) only possible if money is used as a medium of exchange. 
E) the direct exchange of goods without the use of money.

Question 11

Bill trades a ginger snap for a chocolate chip cookie.This is an example of:

Accepted Answer

A) barter. 
B) specialization. 
C) absolute advantage. 
D) privatization. 
E) the division of labor. 
A) barter. 
B) specialization. 
C) absolute advantage. 
D) privatization. 
E) the division of labor.

Question 12

The following figure shows the production possibilities frontier for Good A and Good B.In the figure below,point e represents:

Accepted Answer

A) an attainable combination of Good A and Good B. 
B) an unattainable combination of Good A and Good B. 
C) the combination of Good A and Good B that the economy will produce. 
D) one possible efficient combination of Good A and Good B. 
E) the only unattainable combination of Good A and Good B. 
A) an attainable combination of Good A and Good B. 
B) an unattainable combination of Good A and Good B. 
C) the combination of Good A and Good B that the economy will produce. 
D) one possible efficient combination of Good A and Good B. 
E) the only unattainable combination of Good A and Good B.

Question 13

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning,then:

Accepted Answer

A) Jeremy has a comparative advantage in cooking and Margaret has a comparative advantage in cleaning. 
B) Jeremy has a comparative advantage in cleaning and Margaret has a comparative advantage in cooking. 
C) Margaret has a comparative advantage in cleaning,but we can conclude nothing about Jeremy. 
D) Jeremy has a comparative advantage in cooking,but we can conclude nothing about Margaret. 
E) we can conclude nothing about comparative advantage. 
A) Jeremy has a comparative advantage in cooking and Margaret has a comparative advantage in cleaning. 
B) Jeremy has a comparative advantage in cleaning and Margaret has a comparative advantage in cooking. 
C) Margaret has a comparative advantage in cleaning,but we can conclude nothing about Jeremy. 
D) Jeremy has a comparative advantage in cooking,but we can conclude nothing about Margaret. 
E) we can conclude nothing about comparative advantage.

Question 14

The figure below shows the production possibilities frontier for Good A and Good B.In the figure below,if all the economy's resources are used efficiently to produce only good A,then the economy will be at point:

Accepted Answer

A) g. 
B) b. 
C) h. 
D) i. 
E) e. 
A) g. 
B) b. 
C) h. 
D) i. 
E) e.

Question 15

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Maria's opportunity cost of typing one page is:

Accepted Answer

A) 4 loads of laundry. 
B) 6 loads of laundry. 
C) 3/2 of a load of laundry. 
D) 2/3 of a load of laundry. 
E) impossible to compute without additional information. 
A) 4 loads of laundry. 
B) 6 loads of laundry. 
C) 3/2 of a load of laundry. 
D) 2/3 of a load of laundry. 
E) impossible to compute without additional information.

Question 16

The production possibilities frontier will shift if there is a change in:

Accepted Answer

A) technology. 
B) unemployment. 
C) product prices. 
D) society's preferences for commodities. 
E) the quantities of the two goods being produced. 
A) technology. 
B) unemployment. 
C) product prices. 
D) society's preferences for commodities. 
E) the quantities of the two goods being produced.

Question 17

It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one.

Accepted Answer

A) True 
 B)False

Question 18

Each point along a nation's production possibilities frontier represents efficient use of all resources.

Accepted Answer

A) True 
 B)False

Question 19

An economic system:

Accepted Answer

A) must answer the three economic questions to the satisfaction of everyone in society. 
B) must not allow some members of society to gain an unfair advantage when answering the three economic questions. 
C) must choose pure capitalism to adequately answer the three economic questions. 
D) is a set of social institutions and mechanisms organized to answer society's three primary economic questions. 
E) can address problems of scarcity only by embracing the social institution of private property. 
A) must answer the three economic questions to the satisfaction of everyone in society. 
B) must not allow some members of society to gain an unfair advantage when answering the three economic questions. 
C) must choose pure capitalism to adequately answer the three economic questions. 
D) is a set of social institutions and mechanisms organized to answer society's three primary economic questions. 
E) can address problems of scarcity only by embracing the social institution of private property.

Question 20

The figure given below shows the production possibilities frontier for mufflers and socks.If society moves from point c to point d,then society:

Accepted Answer

A) gains 100 socks. 
B) loses 30 mufflers. 
C) is worse off after the change in production. 
D) is not operating efficiently. 
E) experiences some unemployment of resources. 
A) gains 100 socks. 
B) loses 30 mufflers. 
C) is worse off after the change in production. 
D) is not operating efficiently. 
E) experiences some unemployment of resources.

All of the following are evidences of specialization except:

If Robin has an absolute advantage in both gardening and baking when compared to Robert,then:

The production possibilities frontier represents all desirable combinations of outputs.

The U.S.economy is best characterized as a:

-The figure below shows the production possibilities frontier for capital goods and consumption goods.Current production at _ would lead to the largest outward shift in the production possibilities frontier in a later year _.

The bowed-out shape of the production possibilities frontier indicates increasing opportunity costs.

Points outside the production possibilities frontier represent:

If one person has an absolute advantage in producing both of two goods,then that person:

A command economic system does not need to be concerned with what to produce,how to produce things,or who will get the goods and services produced.

Barter is:

Bill trades a ginger snap for a chocolate chip cookie.This is an example of:

The following figure shows the production possibilities frontier for Good A and Good B.In the figure below,point e represents:

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning,then:

The figure below shows the production possibilities frontier for Good A and Good B.In the figure below,if all the economy's resources are used efficiently to produce only good A,then the economy will be at point:

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Maria's opportunity cost of typing one page is:

The production possibilities frontier will shift if there is a change in:

It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one.

Each point along a nation's production possibilities frontier represents efficient use of all resources.

An economic system:

The figure given below shows the production possibilities frontier for mufflers and socks.If society moves from point c to point d,then society:

The Art and Science of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 2: Some Tools of Economic Analysis

All of the following are evidences of specialization except:

If Robin has an absolute advantage in both gardening and baking when compared to Robert,then:

The production possibilities frontier represents all desirable combinations of outputs.

The U.S.economy is best characterized as a:

​ -The figure below shows the production possibilities frontier for capital goods and consumption goods.Current production at _____ would lead to the largest outward shift in the production possibilities frontier in a later year _____.

The bowed-out shape of the production possibilities frontier indicates increasing opportunity costs.

Points outside the production possibilities frontier represent:

If one person has an absolute advantage in producing both of two goods,then that person:

A command economic system does not need to be concerned with what to produce,how to produce things,or who will get the goods and services produced.

Barter is:

Bill trades a ginger snap for a chocolate chip cookie.This is an example of:

The following figure shows the production possibilities frontier for Good A and Good B.In the figure below,point e represents:

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning,then:

The figure below shows the production possibilities frontier for Good A and Good B.In the figure below,if all the economy's resources are used efficiently to produce only good A,then the economy will be at point:

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Maria's opportunity cost of typing one page is:

The production possibilities frontier will shift if there is a change in:

It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one.

Each point along a nation's production possibilities frontier represents efficient use of all resources.

An economic system:

The figure given below shows the production possibilities frontier for mufflers and socks.If society moves from point c to point d,then society:

The Art and Science of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

-The figure below shows the production possibilities frontier for capital goods and consumption goods.Current production at _ would lead to the largest outward shift in the production possibilities frontier in a later year _.