Question 1

The giving up of a good or activity in order to obtain some other good or activity is called:

Accepted Answer

A)  a tradeoff. 
B)  a cost analysis. 
C)  a random choice. 
D)  an opportunity cost. 
E)  a sunk cost. 
A)  a tradeoff. 
B)  a cost analysis. 
C)  a random choice. 
D)  an opportunity cost. 
E)  a sunk cost.

Question 2

A point lying inside the production possibilities curve [PPC] is not an attainable combination.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following will result in an outward shift of the production possibilities curve [PPC]?

Accepted Answer

A)  A decrease in the quantity of resources 
B)  An improvement in the quality of resources 
C)  A fall in education standards 
D)  An unsustainable growth in population 
E)  An increase in unemployment rate 
A)  A decrease in the quantity of resources 
B)  An improvement in the quality of resources 
C)  A fall in education standards 
D)  An unsustainable growth in population 
E)  An increase in unemployment rate

Question 4

Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis). A movement up along the production possibilities curve [PPC] will imply:

Accepted Answer

A)  an increase in wheat production. 
B)  an increase in both wheat and wine production. 
C)  a decline in both wheat and wine production. 
D)  an increase in wine production. 
E)  no change in either wheat or wine production. 
A)  an increase in wheat production. 
B)  an increase in both wheat and wine production. 
C)  a decline in both wheat and wine production. 
D)  an increase in wine production. 
E)  no change in either wheat or wine production.

Question 5

A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?

Accepted Answer

A)  The secretary has an absolute advantage in typing. 
B)  The surgeon should do her own typing to save money. 
C)  The surgeon should fire the assistant and work weekends and evenings to stay up on her typing. 
D)  The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing. 
E)  The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing. 
A)  The secretary has an absolute advantage in typing. 
B)  The surgeon should do her own typing to save money. 
C)  The surgeon should fire the assistant and work weekends and evenings to stay up on her typing. 
D)  The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing. 
E)  The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing.

Question 6

Individuals, firms, and nations should specialize in those activities which have the highest marginal cost.

Accepted Answer

A) True 
 B)False

Question 7

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.?Table 2.4
  
-Refer to Table 2.4. If the countries were to engage in trade, what would be the most Ohio would be willing to pay for 1 chili?

Accepted Answer

A)  4 cookies 
B)  8 cookies 
C)    of a cookie 
D)    of a cookie 
E)  6 cookies 
A)  4 cookies 
B)  8 cookies 
C)    of a cookie 
D)    of a cookie 
E)  6 cookies

The giving up of a good or activity in order to obtain some other good or activity is called:

A point lying inside the production possibilities curve [PPC] is not an attainable combination.

Which of the following will result in an outward shift of the production possibilities curve [PPC]?

Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis). A movement up along the production possibilities curve [PPC] will imply:

A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?

Individuals, firms, and nations should specialize in those activities which have the highest marginal cost.

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.?Table 2.4 -Refer to Table 2.4. If the countries were to engage in trade, what would be the most Ohio would be willing to pay for 1 chili?

The Wealth of Nations: Ownership and Economic Freedom

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters

Exam 2: Scarcity and Opportunity Costs

The giving up of a good or activity in order to obtain some other good or activity is called:

A point lying inside the production possibilities curve [PPC] is not an attainable combination.

Which of the following will result in an outward shift of the production possibilities curve [PPC]?

Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis). A movement up along the production possibilities curve [PPC] will imply:

A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?

Individuals, firms, and nations should specialize in those activities which have the highest marginal cost.

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.?Table 2.4 -Refer to Table 2.4. If the countries were to engage in trade, what would be the most Ohio would be willing to pay for 1 chili?

The Wealth of Nations: Ownership and Economic Freedom

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters