Question 1

When a producer is trying to answer the economic question about how to produce a good, what is she trying to make sure happens?

Accepted Answer

A)  that she operates on her production possibilities frontier 
B)  that her production possibilities frontier is linear 
C)  that her production possibilities frontier is concave 
D)  that she shifts her production possibilities frontier inward 
A)  that she operates on her production possibilities frontier 
B)  that her production possibilities frontier is linear 
C)  that her production possibilities frontier is concave 
D)  that she shifts her production possibilities frontier inward

Question 2

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing radishes?
​

Accepted Answer

A)  $800 
B)  $1,000 
C)  $1,300 
D)  $2,300 
A)  $800 
B)  $1,000 
C)  $1,300 
D)  $2,300

Question 3

Economic growth is represented on a production possibilities frontier (PPF) as a:

Accepted Answer

A)  shift in of the PPF. 
B)  shift out of the PPF. 
C)  change in the shape of the PPF. 
D)  decrease in the slope of the PPF. 
A)  shift in of the PPF. 
B)  shift out of the PPF. 
C)  change in the shape of the PPF. 
D)  decrease in the slope of the PPF.

Question 4

Use the figure The Production Possibilities Frontier II. Which points on the PPF are efficient?
​
Figure: The Production Possibilities Frontier II
​

Accepted Answer

A)  R and T only 
B)  R, T, and V 
C)  R, T, S, U, and V 
D)  V only 
A)  R and T only 
B)  R, T, and V 
C)  R, T, S, U, and V 
D)  V only

Question 5

Use the table How Pam Likes to Spend Her Time. Pam's preferences are ranked 1 to 4 from her favorite activity (1) to her least favorite activity (4). What is her opportunity cost of going to the gym?
​

Accepted Answer

A)  the value that she puts on going to the gym 
B)  the value of all of the other options combined 
C)  the value that she puts on washing her car 
D)  the value that she puts on going to swim meets 
A)  the value that she puts on going to the gym 
B)  the value of all of the other options combined 
C)  the value that she puts on washing her car 
D)  the value that she puts on going to swim meets

Question 6

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the lowest?
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  H 
B)  I 
C)  L 
D)  K 
A)  H 
B)  I 
C)  L 
D)  K

Question 7

Use the table Galena's Value of Farm Production. The values of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing carrots?
​

Accepted Answer

A)  $800 
B)  $100 
C)  $1,300 
D)  $2,300 
A)  $800 
B)  $100 
C)  $1,300 
D)  $2,300

Question 8

Use the table Possible Output Combinations Using All Available Resources II. What is the shape of the production possibilities frontier (PPF) for these combinations of output?
​

Accepted Answer

A)  convex 
B)  concave 
C)  linear 
D)  vertical 
A)  convex 
B)  concave 
C)  linear 
D)  vertical

Question 9

Use the figure The Production Possibilities Frontier for Bouvia II. What must have changed to generate the change shown?
​
​
Figure: The Production Possibilities Frontier for Bouvia II
   ​

Accepted Answer

There are more resou

Question 10

Use the figure The Production Possibilities Frontier III. An increase in the resources available to this economy occurs if there is a change in output from point:
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  I to point K. 
B)  I to point L. 
C)  J to point I. 
D)  J to point H. 
A)  I to point K. 
B)  I to point L. 
C)  J to point I. 
D)  J to point H.

Question 11

What is true if an economy produces a combination of goods that is inside its production possibilities frontier (PPF)?

Accepted Answer

A)  This combination is not using resources efficiently. 
B)  More of one good cannot be produced without giving up some of the other good. 
C)  The economy is growing. 
D)  It is impossible to produce at a point inside the PPF. 
A)  This combination is not using resources efficiently. 
B)  More of one good cannot be produced without giving up some of the other good. 
C)  The economy is growing. 
D)  It is impossible to produce at a point inside the PPF.

Question 12

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the highest?
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  H 
B)  I 
C)  J 
D)  K 
A)  H 
B)  I 
C)  J 
D)  K

Question 13

Which of the following is an example of positive economics?

Accepted Answer

A)  The unemployment rate is 3.9 percent. 
B)  The unemployment rate is too high, and Congress must take measures to lower it. 
C)  The minimum wage of $7.50 per hour is too low and must be increased. 
D)  The city of Portland should take measures to reduce the homelessness of military veterans. 
A)  The unemployment rate is 3.9 percent. 
B)  The unemployment rate is too high, and Congress must take measures to lower it. 
C)  The minimum wage of $7.50 per hour is too low and must be increased. 
D)  The city of Portland should take measures to reduce the homelessness of military veterans.

Question 14

Use the figure The Production Possibilities Frontier I. If this economy is currently producing a combination of output represented by point D, what is the opportunity cost of producing one more television?
​
Figure: The Production Possibilities Frontier I

Accepted Answer

A)  three lamps 
B)  one lamp 
C)  one-third of a lamp 
D)  nine lamps 
A)  three lamps 
B)  one lamp 
C)  one-third of a lamp 
D)  nine lamps

Question 15

Use the figure The Production Possibilities Frontier for Bouvia I. If there is a technological improvement in the production of potatoes, how would this curve change? How does this affect the opportunity cost of producing windmills?
​
Figure: The Production Possibilities Frontier for Bouvia I

Accepted Answer

The PPF would rotate upward along the po

Question 16

Which of the following is an example of positive economics?

Accepted Answer

A)  The city of Madison should take measures to reduce the unemployment rate. 
B)  The inflation rate is too high, and the central bank must take measures to lower it. 
C)  The minimum wage must be abolished. 
D)  A higher gasoline tax will reduce gasoline consumption and improve air quality in our cities. 
A)  The city of Madison should take measures to reduce the unemployment rate. 
B)  The inflation rate is too high, and the central bank must take measures to lower it. 
C)  The minimum wage must be abolished. 
D)  A higher gasoline tax will reduce gasoline consumption and improve air quality in our cities.

Question 17

______ is the study of choice and scarcity at the level of the individual decision makers.

Accepted Answer

A)  Microeconomics 
B)  Labor economics 
C)  Macroeconomics 
D)  International economics 
A)  Microeconomics 
B)  Labor economics 
C)  Macroeconomics 
D)  International economics

Question 18

Use the figure The Production Possibilities Frontier III. Which points on the production possibilities frontier are efficient?
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  H, I, and L 
B)  J, I, and L 
C)  H and I only 
D)  G, H, I, and K 
A)  H, I, and L 
B)  J, I, and L 
C)  H and I only 
D)  G, H, I, and K

Question 19

Which of the following is a macroeconomic topic?

Accepted Answer

A)  The gasoline tax in Oregon is one of the highest in the United States. 
B)  Real gross domestic product in the United States decreased by about 1.5 percent between 2009 and 2010. 
C)  The cost of medical care in the United States is much higher than identical care in Canada. 
D)  If the government subsidizes vaccinations, fewer children will contract smallpox. 
A)  The gasoline tax in Oregon is one of the highest in the United States. 
B)  Real gross domestic product in the United States decreased by about 1.5 percent between 2009 and 2010. 
C)  The cost of medical care in the United States is much higher than identical care in Canada. 
D)  If the government subsidizes vaccinations, fewer children will contract smallpox.

Question 20

Which Latin phrase meaning "other things remaining unchanged" is used as an assumption to help simplify economic models?

Accepted Answer

A)  Caveat emptor. 
B)  ceteris paribus 
C)  ad valorem 
D)  Quod erat demonstradum. 
A)  Caveat emptor. 
B)  ceteris paribus 
C)  ad valorem 
D)  Quod erat demonstradum.

When a producer is trying to answer the economic question about how to produce a good, what is she trying to make sure happens?

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing radishes?

Economic growth is represented on a production possibilities frontier (PPF) as a:

Use the figure The Production Possibilities Frontier II. Which points on the PPF are efficient? Figure: The Production Possibilities Frontier II

Use the table How Pam Likes to Spend Her Time. Pam's preferences are ranked 1 to 4 from her favorite activity (1) to her least favorite activity (4). What is her opportunity cost of going to the gym?

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the lowest? Figure: The Production Possibilities Frontier III

Use the table Galena's Value of Farm Production. The values of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing carrots?

Use the table Possible Output Combinations Using All Available Resources II. What is the shape of the production possibilities frontier (PPF) for these combinations of output?

Use the figure The Production Possibilities Frontier for Bouvia II. What must have changed to generate the change shown? Figure: The Production Possibilities Frontier for Bouvia II

Use the figure The Production Possibilities Frontier III. An increase in the resources available to this economy occurs if there is a change in output from point: Figure: The Production Possibilities Frontier III

What is true if an economy produces a combination of goods that is inside its production possibilities frontier (PPF)?

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the highest? Figure: The Production Possibilities Frontier III

Which of the following is an example of positive economics?

Use the figure The Production Possibilities Frontier I. If this economy is currently producing a combination of output represented by point D, what is the opportunity cost of producing one more television? Figure: The Production Possibilities Frontier I

Use the figure The Production Possibilities Frontier for Bouvia I. If there is a technological improvement in the production of potatoes, how would this curve change? How does this affect the opportunity cost of producing windmills? Figure: The Production Possibilities Frontier for Bouvia I

Which of the following is an example of positive economics?

______ is the study of choice and scarcity at the level of the individual decision makers.

Use the figure The Production Possibilities Frontier III. Which points on the production possibilities frontier are efficient? Figure: The Production Possibilities Frontier III

Which of the following is a macroeconomic topic?

Which Latin phrase meaning "other things remaining unchanged" is used as an assumption to help simplify economic models?

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 1: Foundations of Economics

When a producer is trying to answer the economic question about how to produce a good, what is she trying to make sure happens?

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing radishes? ​

Economic growth is represented on a production possibilities frontier (PPF) as a:

Use the figure The Production Possibilities Frontier II. Which points on the PPF are efficient? ​ Figure: The Production Possibilities Frontier II ​

Use the table How Pam Likes to Spend Her Time. Pam's preferences are ranked 1 to 4 from her favorite activity (1) to her least favorite activity (4). What is her opportunity cost of going to the gym? ​

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the lowest? ​ Figure: The Production Possibilities Frontier III

Use the table Galena's Value of Farm Production. The values of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing carrots? ​

Use the table Possible Output Combinations Using All Available Resources II. What is the shape of the production possibilities frontier (PPF) for these combinations of output? ​

Use the figure The Production Possibilities Frontier for Bouvia II. What must have changed to generate the change shown? ​ ​ Figure: The Production Possibilities Frontier for Bouvia II ​

Use the figure The Production Possibilities Frontier III. An increase in the resources available to this economy occurs if there is a change in output from point: ​ Figure: The Production Possibilities Frontier III

What is true if an economy produces a combination of goods that is inside its production possibilities frontier (PPF)?

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the highest? ​ Figure: The Production Possibilities Frontier III

Which of the following is an example of positive economics?

Use the figure The Production Possibilities Frontier I. If this economy is currently producing a combination of output represented by point D, what is the opportunity cost of producing one more television? ​ Figure: The Production Possibilities Frontier I

Use the figure The Production Possibilities Frontier for Bouvia I. If there is a technological improvement in the production of potatoes, how would this curve change? How does this affect the opportunity cost of producing windmills? ​ Figure: The Production Possibilities Frontier for Bouvia I

Which of the following is an example of positive economics?

______ is the study of choice and scarcity at the level of the individual decision makers.

Use the figure The Production Possibilities Frontier III. Which points on the production possibilities frontier are efficient? ​ Figure: The Production Possibilities Frontier III

Which of the following is a macroeconomic topic?

Which Latin phrase meaning "other things remaining unchanged" is used as an assumption to help simplify economic models?

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing radishes?

Use the figure The Production Possibilities Frontier II. Which points on the PPF are efficient? Figure: The Production Possibilities Frontier II

Use the table How Pam Likes to Spend Her Time. Pam's preferences are ranked 1 to 4 from her favorite activity (1) to her least favorite activity (4). What is her opportunity cost of going to the gym?

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the lowest? Figure: The Production Possibilities Frontier III

Use the table Galena's Value of Farm Production. The values of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing carrots?

Use the table Possible Output Combinations Using All Available Resources II. What is the shape of the production possibilities frontier (PPF) for these combinations of output?

Use the figure The Production Possibilities Frontier for Bouvia II. What must have changed to generate the change shown? Figure: The Production Possibilities Frontier for Bouvia II

Use the figure The Production Possibilities Frontier III. An increase in the resources available to this economy occurs if there is a change in output from point: Figure: The Production Possibilities Frontier III

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing sunglasses the highest? Figure: The Production Possibilities Frontier III

Use the figure The Production Possibilities Frontier I. If this economy is currently producing a combination of output represented by point D, what is the opportunity cost of producing one more television? Figure: The Production Possibilities Frontier I

Use the figure The Production Possibilities Frontier for Bouvia I. If there is a technological improvement in the production of potatoes, how would this curve change? How does this affect the opportunity cost of producing windmills? Figure: The Production Possibilities Frontier for Bouvia I

Use the figure The Production Possibilities Frontier III. Which points on the production possibilities frontier are efficient? Figure: The Production Possibilities Frontier III