Question 1

All of the following are examples of specialization except for _____

Accepted Answer

A)  a director who intends to make a film without any help from writers, editors, and others. 
B)  a restaurant that provides continental food in all its outlets. 
C)  the credits at the end of a movie. 
D)  professional mourners in Taiwan. 
E)  websites that sell musical bowls. 
A)  a director who intends to make a film without any help from writers, editors, and others. 
B)  a restaurant that provides continental food in all its outlets. 
C)  the credits at the end of a movie. 
D)  professional mourners in Taiwan. 
E)  websites that sell musical bowls.

Question 2

A straight-line possibilities frontier indicates that _____

Accepted Answer

A)  the slope of the line is equal to −1. 
B)  resources are not being used efficiently. 
C)  resources are unemployed. 
D)  society is not using the latest technology. 
E)  resources are equally adaptable to the production of either product. 
A)  the slope of the line is equal to −1. 
B)  resources are not being used efficiently. 
C)  resources are unemployed. 
D)  society is not using the latest technology. 
E)  resources are equally adaptable to the production of either product.

Question 3

The division of labor _____

Accepted Answer

A)  reduces the number of stages in the production process. 
B)  allows tasks to be performed more efficiently. 
C)  makes people work less efficiently. 
D)  means that there are fewer departments in an organization. 
E)  reduces the scale of production and increases the cost of production. 
A)  reduces the number of stages in the production process. 
B)  allows tasks to be performed more efficiently. 
C)  makes people work less efficiently. 
D)  means that there are fewer departments in an organization. 
E)  reduces the scale of production and increases the cost of production.

Question 4

Exhibit 2.3
​  
-Refer to Exhibit 2.3, which shows the production possibilities frontier for education and food. The opportunity cost of moving from point c to point b is _____

Accepted Answer

A)  3 units of food. 
B)  22 units of education. 
C)  1 unit of food. 
D)  12 units of education. 
E)  62 units of education. 
A)  3 units of food. 
B)  22 units of education. 
C)  1 unit of food. 
D)  12 units of education. 
E)  62 units of education.

Question 5

The law of increasing opportunity cost explains why _____

Accepted Answer

A)  opportunity cost is constant along the production possibilities frontier. 
B)  the production possibilities frontier is downward sloping. 
C)  the production possibilities frontier is curved. 
D)  efficient points lie along the production possibilities frontier. 
E)  technology remains constant along the production possibilities frontier. 
A)  opportunity cost is constant along the production possibilities frontier. 
B)  the production possibilities frontier is downward sloping. 
C)  the production possibilities frontier is curved. 
D)  efficient points lie along the production possibilities frontier. 
E)  technology remains constant along the production possibilities frontier.

Question 6

Table 2.1
 $$\begin{array}{l}
\text { Table } 2.1\
\begin{array} { | l | l | l | l | l | l | } 
\hline \text { Item } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Movie } & \$ 0 & 10 & 20 & 30 & 40 \
\hline \text { Restaurant } & \$ 40 & 30 & 20 & 10 & 0 \
\hline
\end{array}
\end{array}$$
-Refer to Table 2.1. You can spend $40 on going to the movies or eating at a restaurant, or both. If you decide to spend all your money at the restaurant, how much can you spend at the movies?

Accepted Answer

A)  $40 
B)  $30 
C)  $20 
D)  $10 
E)  $0 
A)  $40 
B)  $30 
C)  $20 
D)  $10 
E)  $0

Question 7

John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?

Accepted Answer

A)  Harry has a comparative advantage in ironing. 
B)  Harry has a comparative advantage in typing. 
C)  Harry has an absolute advantage in typing. 
D)  Harry has an absolute advantage in ironing. 
E)  Neither can gain from specialization and exchange. 
A)  Harry has a comparative advantage in ironing. 
B)  Harry has a comparative advantage in typing. 
C)  Harry has an absolute advantage in typing. 
D)  Harry has an absolute advantage in ironing. 
E)  Neither can gain from specialization and exchange.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Suppose you have purchased a nonrefundable plane ticket. At the last moment, you cannot take the trip but can still sell the ticket. The cost of sending the ticket to someone through overnight mail is $20, and you have to spend $10 on a courier to get the ticket to the post office for overnight delivery. If you paid $700 for the ticket, which of the following is the minimum amount you should accept for the ticket?

Accepted Answer

A)  $700, because that is what the ticket costs 
B)  $720, because that is the sum of the cost of the ticket and the cost of sending it to the buyer 
C)  $730, because that is the sum of the cost of the ticket and the cost of sending it to the buyer 
D)  More than $730, so that you can make a profit 
E)  $30, because the $700 is a sunk cost 
A)  $700, because that is what the ticket costs 
B)  $720, because that is the sum of the cost of the ticket and the cost of sending it to the buyer 
C)  $730, because that is the sum of the cost of the ticket and the cost of sending it to the buyer 
D)  More than $730, so that you can make a profit 
E)  $30, because the $700 is a sunk cost

All of the following are examples of specialization except for _____

A straight-line possibilities frontier indicates that _____

The division of labor _____

Exhibit 2.3 -Refer to Exhibit 2.3, which shows the production possibilities frontier for education and food. The opportunity cost of moving from point c to point b is _____

The law of increasing opportunity cost explains why _____

Table 2.1 Table 2.1 Item A B C D E Movie \ 0 10 20 30 40 Restaurant \ 40 30 20 10 0 -Refer to Table 2.1. You can spend $40 on going to the movies or eating at a restaurant, or both. If you decide to spend all your money at the restaurant, how much can you spend at the movies?

John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?

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

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.

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.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 2: Economic Tools and Economic Systems.

All of the following are examples of specialization except for _____

A straight-line possibilities frontier indicates that _____

The division of labor _____

Exhibit 2.3 ​ -Refer to Exhibit 2.3, which shows the production possibilities frontier for education and food. The opportunity cost of moving from point c to point b is _____

The law of increasing opportunity cost explains why _____

Table 2.1 Table 2.1 Item A B C D E Movie \ 0 10 20 30 40 Restaurant \ 40 30 20 10 0 -Refer to Table 2.1. You can spend $40 on going to the movies or eating at a restaurant, or both. If you decide to spend all your money at the restaurant, how much can you spend at the movies?

John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?

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

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.

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.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exhibit 2.3 -Refer to Exhibit 2.3, which shows the production possibilities frontier for education and food. The opportunity cost of moving from point c to point b is _____