Question 1

Figure 2-1
  
-Refer to Figure 2-1.Point C is

Accepted Answer

A) technically efficient. 
B) unattainable with current resources. 
C)  inefficient in that not all resources are being used. 
D) is the equilibrium output combination. 
A) technically efficient. 
B) unattainable with current resources. 
C)  inefficient in that not all resources are being used. 
D) is the equilibrium output combination.

Question 2

To increase gas mileage, automobile manufacturers make cars small and light.Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage.These facts suggest that a negative relationship exists between safety and gas mileage.

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-10
   
Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora.Each country produces two goods, milk and honey.
-Refer to Figure 2-10.If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of milk?

Accepted Answer

A) Bora Bora 
B) They have the same advantage. 
C) Tahiti 
D) cannot be determined 
A) Bora Bora 
B) They have the same advantage. 
C) Tahiti 
D) cannot be determined

Question 4

In the circular flow model, producers

Accepted Answer

A) sell goods and services in the input market. 
B) and households spend earnings from resource sales on goods and services in the factor market. 
C) hire resources sold by households in the factor market. 
D) spend earnings from resource sales on goods and services in the product market. 
A) sell goods and services in the input market. 
B) and households spend earnings from resource sales on goods and services in the factor market. 
C) hire resources sold by households in the factor market. 
D) spend earnings from resource sales on goods and services in the product market.

Question 5

Figure 2-9
   
Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods, cotton and cashews.
-Refer to Figure 2-9.Which country has a comparative advantage in the production of cashews?

Accepted Answer

A) Indonesia 
B) They have equal productive abilities. 
C) Pakistan 
D) neither country 
A) Indonesia 
B) They have equal productive abilities. 
C) Pakistan 
D) neither country

Question 6

Figure 2-9
   
Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods, cotton and cashews.
-Refer to Figure 2-9.If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?

Accepted Answer

A) Indonesia 
B) They have the same advantage. 
C) Pakistan 
D) cannot be determined 
A) Indonesia 
B) They have the same advantage. 
C) Pakistan 
D) cannot be determined

Question 7

Table 2-2
Production choices for Billie's Bedroom Shop
  
-Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear

Accepted Answer

A) along Billie's production possibilities frontier. 
B) inside Billie's production possibilities frontier. 
C) outside Billie's production possibilities frontier. 
D) at the vertical intercept of Billie's production possibilities frontier. 
A) along Billie's production possibilities frontier. 
B) inside Billie's production possibilities frontier. 
C) outside Billie's production possibilities frontier. 
D) at the vertical intercept of Billie's production possibilities frontier.

Question 8

Table 2-8
   
Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2-8.What is China's opportunity cost of producing one pound of wheat?

Accepted Answer

A) 0.04 units of a digital camera 
B) 4 digital cameras 
C) 25 digital cameras 
D) 40 digital cameras 
A) 0.04 units of a digital camera 
B) 4 digital cameras 
C) 25 digital cameras 
D) 40 digital cameras

Question 9

Table 2-8
   
Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2-8.What is China's opportunity cost of producing one digital camera?

Accepted Answer

A) 0.04 pounds of wheat 
B) 4 pounds of wheat 
C) 25 pounds of wheat 
D) 40 pounds of wheat 
A) 0.04 pounds of wheat 
B) 4 pounds of wheat 
C) 25 pounds of wheat 
D) 40 pounds of wheat

Question 10

Figure 2-14
  
-Refer to Figure 2-14.Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store.

Accepted Answer

A) J and M 
B) J and G 
C) K and M 
D) K and G 
A) J and M 
B) J and G 
C) K and M 
D) K and G

Question 11

A decrease in population shifts the production possibilities frontier outwards over time.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of spending on factors of production in the circular flow model?

Accepted Answer

A) Carolina has her nails done before her 20th high school class reunion. 
B) Giorgio buys snow cones for his youth soccer team after each game. 
C) Stevie trades in his old cell phone for a newer model. 
D) Arlisha purchases a cotton candy machine for her concession stand at the state fair. 
A) Carolina has her nails done before her 20th high school class reunion. 
B) Giorgio buys snow cones for his youth soccer team after each game. 
C) Stevie trades in his old cell phone for a newer model. 
D) Arlisha purchases a cotton candy machine for her concession stand at the state fair.

Question 13

Table 2-8
   
Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2-8.What is South Korea's opportunity cost of producing one pound of wheat?

Accepted Answer

A) 60 digital cameras 
B) 20 digital cameras 
C) 5 digital cameras 
D) 0.05 units of a digital camera 
A) 60 digital cameras 
B) 20 digital cameras 
C) 5 digital cameras 
D) 0.05 units of a digital camera

Question 14

Figure 2-4
   
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents economic growth?

Accepted Answer

A) a, b, and c 
B) b and c only 
C) a only 
D) b only 
A) a, b, and c 
B) b and c only 
C) a only 
D) b only

Question 15

Table 2-6
   
Table 2-6 shows the output per week of two jewelers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-6.What is Serena's opportunity cost of making a necklace?

Accepted Answer

A) 2 necklaces 
B) 1/2 of a bracelet 
C) 1/2 of a necklace 
D) 3/4 of a bracelet 
A) 2 necklaces 
B) 1/2 of a bracelet 
C) 1/2 of a necklace 
D) 3/4 of a bracelet

Question 16

The attainable production points on a production possibilities curve are

Accepted Answer

A) the horizontal and vertical intercepts. 
B) the points along the production possibilities frontier. 
C) the points outside the area enclosed by the production possibilities frontier. 
D) the points along and inside the production possibility frontier. 
A) the horizontal and vertical intercepts. 
B) the points along the production possibilities frontier. 
C) the points outside the area enclosed by the production possibilities frontier. 
D) the points along and inside the production possibility frontier.

Question 17

Figure 2-6
  
-Refer to Figure 2-6.If the economy is currently producing at point D, what is the opportunity cost of moving to point B?

Accepted Answer

A) 8 thousand wrenches 
B) 23 thousand hammers 
C) 30 thousand wrenches 
D) 0 hammers 
A) 8 thousand wrenches 
B) 23 thousand hammers 
C) 30 thousand wrenches 
D) 0 hammers

Question 18

What is economic growth?

Accepted Answer

Economic growth refers to the

Figure 2-1 -Refer to Figure 2-1.Point C is

To increase gas mileage, automobile manufacturers make cars small and light.Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage.These facts suggest that a negative relationship exists between safety and gas mileage.

In the circular flow model, producers

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods, cotton and cashews. -Refer to Figure 2-9.Which country has a comparative advantage in the production of cashews?

Table 2-2 Production choices for Billie's Bedroom Shop -Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.What is China's opportunity cost of producing one pound of wheat?

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.What is China's opportunity cost of producing one digital camera?

Figure 2-14 -Refer to Figure 2-14.Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store.

A decrease in population shifts the production possibilities frontier outwards over time.

Which of the following is an example of spending on factors of production in the circular flow model?

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.What is South Korea's opportunity cost of producing one pound of wheat?

Table 2-6 Table 2-6 shows the output per week of two jewelers, Serena and Haley.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-6.What is Serena's opportunity cost of making a necklace?

The attainable production points on a production possibilities curve are

Figure 2-6 -Refer to Figure 2-6.If the economy is currently producing at point D, what is the opportunity cost of moving to point B?

What is economic growth?

Economics: Foundations and Models

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

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Exam 2: Trade-Offs, Comparative Advantage, and the Market System

Figure 2-1 -Refer to Figure 2-1.Point C is

To increase gas mileage, automobile manufacturers make cars small and light.Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage.These facts suggest that a negative relationship exists between safety and gas mileage.

In the circular flow model, producers

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods, cotton and cashews. -Refer to Figure 2-9.Which country has a comparative advantage in the production of cashews?

Table 2-2 Production choices for Billie's Bedroom Shop -Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.What is China's opportunity cost of producing one pound of wheat?

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.What is China's opportunity cost of producing one digital camera?

Figure 2-14 -Refer to Figure 2-14.Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store.

A decrease in population shifts the production possibilities frontier outwards over time.

Which of the following is an example of spending on factors of production in the circular flow model?

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.What is South Korea's opportunity cost of producing one pound of wheat?

Table 2-6 Table 2-6 shows the output per week of two jewelers, Serena and Haley.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-6.What is Serena's opportunity cost of making a necklace?

The attainable production points on a production possibilities curve are

Figure 2-6 -Refer to Figure 2-6.If the economy is currently producing at point D, what is the opportunity cost of moving to point B?

What is economic growth?

Economics: Foundations and Models

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters