Question 1

Figure 2-8
  
-Refer to Figure 2-8. In the circular flow diagram,economic agents M represent

Accepted Answer

A)  households. 
B)  product markets. 
C)  firms. 
D)  factor markets. 
A)  households. 
B)  product markets. 
C)  firms. 
D)  factor markets.

Question 2

Suppose there is some unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

Accepted Answer

A)  It is not possible to achieve this unless technology advances. 
B)  It can increase output without giving up another good by employing more resources. 
C)  It will have to increase resource supplies. 
D)  It will have to give up production and consumption of some other good. 
A)  It is not possible to achieve this unless technology advances. 
B)  It can increase output without giving up another good by employing more resources. 
C)  It will have to increase resource supplies. 
D)  It will have to give up production and consumption of some other good.

Question 3

The production possibilities frontier shows

Accepted Answer

A)  the various products that can be produced now and in the future. 
B)  the maximum attainable combinations of two products that may be produced in a particular time period with available resources. 
C)  what an equitable distribution of products among citizens would be. 
D)  what people want firms to produce in a particular time period. 
A)  the various products that can be produced now and in the future. 
B)  the maximum attainable combinations of two products that may be produced in a particular time period with available resources. 
C)  what an equitable distribution of products among citizens would be. 
D)  what people want firms to produce in a particular time period.

Question 4

An increase in population shifts the production possibility frontier inwards over time.

Accepted Answer

A) True 
 B)False

Question 5

List the four broad categories of factors of production.

Accepted Answer

labor,capital,natura

Question 6

Which of the following countries does not come close to the free market benchmark?

Accepted Answer

A)  the United States 
B)  Japan 
C)  Cuba 
D)  France 
A)  the United States 
B)  Japan 
C)  Cuba 
D)  France

Question 7

Suppose your expenses for this term are as follows: tuition: $5,000,room and board: $3,000,books and other educational supplies: $500.Further,during the term,you can only work part-time and earn $4,000 instead of your full-time salary of $10,000.What is the opportunity cost of going to college this term,assuming that your room and board expenses would be the same even if you did not go to college?

Accepted Answer

A)  $5,500 
B)  $8,500 
C)  $11,500 
D)  $14,500 
A)  $5,500 
B)  $8,500 
C)  $11,500 
D)  $14,500

Question 8

A guild is

Accepted Answer

A)  a group of independent producers competing with each other. 
B)  an organization of producers that limits the amount of a good produced. 
C)  a group of nations who agree not to compete with each other. 
D)  a nation that is a free market benchmark. 
A)  a group of independent producers competing with each other. 
B)  an organization of producers that limits the amount of a good produced. 
C)  a group of nations who agree not to compete with each other. 
D)  a nation that is a free market benchmark.

Question 9

Suppose in the United States,the opportunity cost of producing a motor engine is 4 auto bodies. In Canada,the opportunity cost of producing a motor engine is 2 auto bodies.
a.What is the opportunity cost of producing an auto body for the United States?
b.What is the opportunity cost of producing an auto body for Canada?
c.Which country has a comparative advantage in the production of auto bodies?
d.Which country has a comparative advantage in the production of motor engines?

Accepted Answer

a.For the United States,the opportunity

Question 10

The opportunity cost of taking an on-line history class is

Accepted Answer

A)  the knowledge and enjoyment you receive from taking the class. 
B)  the value of the time spent on line. 
C)  equal to the highest value of an alternative use of the time and money spent on the class. 
D)  zero because there is no classroom time involved if you are enrolled in the course. 
E)  the cost of tuition and fees only. 
A)  the knowledge and enjoyment you receive from taking the class. 
B)  the value of the time spent on line. 
C)  equal to the highest value of an alternative use of the time and money spent on the class. 
D)  zero because there is no classroom time involved if you are enrolled in the course. 
E)  the cost of tuition and fees only.

Question 11

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 advancements in technology with respect to both plastic production and food production?

Accepted Answer

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

Question 12

Table 2-4
   
Table 2-4 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-4.What is Finland's opportunity cost of producing one cell phone?

Accepted Answer

A)  0.25 board feet of lumber 
B)  4 board feet of lumber 
C)  12 board feet of lumber 
D)  16 board feet of lumber 
A)  0.25 board feet of lumber 
B)  4 board feet of lumber 
C)  12 board feet of lumber 
D)  16 board feet of lumber

Question 13

The circular flow model demonstrates

Accepted Answer

A)  the role of the government in overseeing the market system. 
B)  the roles played by households and firms in the market system. 
C)  how shortages and surpluses are eliminated in a market. 
D)  how demand and supply for goods and services are brought into equilibrium. 
A)  the role of the government in overseeing the market system. 
B)  the roles played by households and firms in the market system. 
C)  how shortages and surpluses are eliminated in a market. 
D)  how demand and supply for goods and services are brought into equilibrium.

Figure 2-8 -Refer to Figure 2-8. In the circular flow diagram,economic agents M represent

Suppose there is some unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

The production possibilities frontier shows

An increase in population shifts the production possibility frontier inwards over time.

List the four broad categories of factors of production.

Which of the following countries does not come close to the free market benchmark?

A guild is

The opportunity cost of taking an on-line history class is

Table 2-4 Table 2-4 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-4.What is Finland's opportunity cost of producing one cell phone?

The circular flow model demonstrates

Economics: Foundations and Models

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

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

Figure 2-8 -Refer to Figure 2-8. In the circular flow diagram,economic agents M represent

Suppose there is some unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

The production possibilities frontier shows

An increase in population shifts the production possibility frontier inwards over time.

List the four broad categories of factors of production.

Which of the following countries does not come close to the free market benchmark?

A guild is

The opportunity cost of taking an on-line history class is

Table 2-4 Table 2-4 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-4.What is Finland's opportunity cost of producing one cell phone?

The circular flow model demonstrates

Economics: Foundations and Models

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters