Question 1

-The figure above shows a nation's production possibilities frontier. In the figure, point A shows

Accepted Answer

A) the maximum quantity of pizza that can be produced. 
B) the minimum quantity of pizza that the society must produce. 
C) an unattainable point. 
D) an attainable point with unemployed resources. 
E) More information is needed to determine which of the above answers is correct. 
A) the maximum quantity of pizza that can be produced. 
B) the minimum quantity of pizza that the society must produce. 
C) an unattainable point. 
D) an attainable point with unemployed resources. 
E) More information is needed to determine which of the above answers is correct.

Question 2

Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,

Accepted Answer

A) Cindy has a comparative advantage at producing tacos. 
B) Scott has a comparative advantage at producing tacos. 
C) Cindy and Scott have the same comparative advantage in producing tacos. 
D) neither Cindy nor Scott has a comparative advantage in producing tacos. 
E) Cindy and Scott have the same comparative advantage in producing pizzas. 
A) Cindy has a comparative advantage at producing tacos. 
B) Scott has a comparative advantage at producing tacos. 
C) Cindy and Scott have the same comparative advantage in producing tacos. 
D) neither Cindy nor Scott has a comparative advantage in producing tacos. 
E) Cindy and Scott have the same comparative advantage in producing pizzas.

Question 3

-Omar and John can fix computers or write computer programs. The table above shows the number of computers they can fix and the lines of code they can write in a day.
a. Who, if anyone, has the absolute advantage?
b. Who has the comparative advantage in fixing computers?
 Why?
c. Who has the comparative advantage in writing programs?
 Why?

Accepted Answer

a. Omar has an absolute advantage in fix

Question 4

Which of the following is the best definition of economic growth?

Accepted Answer

A) The investment in capital and consumption goods by an economy. 
B) The opportunity cost of capital. 
C) The opportunity cost of consumption. 
D) Increased development of land and entrepreneurship. 
E) The sustained expansion of production possibilities. 
A) The investment in capital and consumption goods by an economy. 
B) The opportunity cost of capital. 
C) The opportunity cost of consumption. 
D) Increased development of land and entrepreneurship. 
E) The sustained expansion of production possibilities.

Question 5

-The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

Accepted Answer

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A. 
B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A. 
C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A. 
D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A. 
E) More information is needed to determine how the two opportunity costs compare. 
A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A. 
B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A. 
C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A. 
D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A. 
E) More information is needed to determine how the two opportunity costs compare.

Question 6

-The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The table shows that

Accepted Answer

A) Bear achieves production efficiency only at its production point A. 
B) Anaconda achieves production efficiency only at its production point A. 
C) Anaconda has a comparative advantage in the production of corn. 
D) Bear has an absolute advantage in the production of both goods. 
E) Both answers A and B are correct. 
A) Bear achieves production efficiency only at its production point A. 
B) Anaconda achieves production efficiency only at its production point A. 
C) Anaconda has a comparative advantage in the production of corn. 
D) Bear has an absolute advantage in the production of both goods. 
E) Both answers A and B are correct.

Question 7

The United States can use all its resources to produce 250 DVDs or 500 shoes. China can use all of its resources to produce 30 DVDs or 300 shoes. The opportunity cost of producing a DVD in the United States is

Accepted Answer

A) 2 shoes. 
B) 1/2 of a shoe. 
C) 20 shoes. 
D) 500 shoes. 
E) 1 DVD. 
A) 2 shoes. 
B) 1/2 of a shoe. 
C) 20 shoes. 
D) 500 shoes. 
E) 1 DVD.

Question 8

3.5 Chapter Figures
  
-The figure above shows a production possibilities frontier. In the figure, when the economy moves from point E to point D, what is the opportunity cost of a DVD?

Accepted Answer

A) 0.25 cell phones 
B) 0.5 cell phones 
C) 1 cell phone 
D) 4 cell phones 
E) zero 
A) 0.25 cell phones 
B) 0.5 cell phones 
C) 1 cell phone 
D) 4 cell phones 
E) zero

Question 9

Consider a production possibility frontier with books and tables. A combination of 1000 books and 500 tables is on the frontier. Which of the following are true?
i. Production of 700 books and 400 tables is attainable but inefficient.
ii. Production of 1000 books and 600 tables is unattainable.
iii. Production of 500 books and 1000 tables is inside the frontier.

Accepted Answer

A) i and ii 
B) i, ii and iii 
C) i and iii 
D) ii and iii 
E) i only 
A) i and ii 
B) i, ii and iii 
C) i and iii 
D) ii and iii 
E) i only

Question 10

-The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is

Accepted Answer

A) 4 gallons of ice cream for a gallon of milk. 
B) 3 gallons of ice cream for a gallon of milk. 
C) 1 gallon of ice cream for a gallon of milk. 
D) 1/3 of a gallon of ice cream for a gallon of milk. 
E) zero because at point A zero milk is being produced. 
A) 4 gallons of ice cream for a gallon of milk. 
B) 3 gallons of ice cream for a gallon of milk. 
C) 1 gallon of ice cream for a gallon of milk. 
D) 1/3 of a gallon of ice cream for a gallon of milk. 
E) zero because at point A zero milk is being produced.

Question 11

For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?

Accepted Answer

A) Gamma 
B) Beta 
C) Both have the comparative advantage in the production of steel. 
D) Neither country has the comparative advantage in the production of steel. 
E) More information is needed to determine which of the two nations has the comparative advantage. 
A) Gamma 
B) Beta 
C) Both have the comparative advantage in the production of steel. 
D) Neither country has the comparative advantage in the production of steel. 
E) More information is needed to determine which of the two nations has the comparative advantage.

Question 12

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation's production possibilities frontier?

Accepted Answer

A) no impact at all 
B) The level of unemployment would decrease so the production possibilities frontier would shift outward. 
C) The nation would move to a new position on its production possibilities frontier but the frontier itself would not shift. 
D) The production possibilities frontier would shift inward. 
E) The number of young workers would increase so the production possibilities frontier would shift outward. 
A) no impact at all 
B) The level of unemployment would decrease so the production possibilities frontier would shift outward. 
C) The nation would move to a new position on its production possibilities frontier but the frontier itself would not shift. 
D) The production possibilities frontier would shift inward. 
E) The number of young workers would increase so the production possibilities frontier would shift outward.

Question 13

"Comparative advantage" is defined as a situation in which one person can produce

Accepted Answer

A) more of all goods than another person. 
B) more of a good than another person. 
C) a good for a lower dollar cost than another person. 
D) a good for a lower opportunity cost than another person. 
E) all goods for lower opportunity costs than another person. 
A) more of all goods than another person. 
B) more of a good than another person. 
C) a good for a lower dollar cost than another person. 
D) a good for a lower opportunity cost than another person. 
E) all goods for lower opportunity costs than another person.

Question 14

When drawing a production possibilities frontier, which of the following is held constant?

Accepted Answer

A) the amount of money in the economy 
B) the available factors of production and the state of technology 
C) the prices of goods and services 
D) the quantity of the goods and services that are produced 
E) None of the above because nothing is held constant when drawing the production possibilities frontier. 
A) the amount of money in the economy 
B) the available factors of production and the state of technology 
C) the prices of goods and services 
D) the quantity of the goods and services that are produced 
E) None of the above because nothing is held constant when drawing the production possibilities frontier.

Question 15

Which of the following statements is correct?
I. As the economy grows, the opportunity costs of economic growth decrease.
Ii. Economic growth has no opportunity cost.
Iii. The opportunity cost of economic growth is current consumption forgone.

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i and ii 
A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i and ii

Question 16

-In the table above, how many jackets must Mark forgo for every dress he makes?

Accepted Answer

A) 1 jacket 
B) 16 jackets 
C) 2/3 of a jacket 
D) 1 1/2 jackets 
E) 24 dresses 
A) 1 jacket 
B) 16 jackets 
C) 2/3 of a jacket 
D) 1 1/2 jackets 
E) 24 dresses

Question 17

$$\begin{array} { l | c c c } 
& \begin{array} { l } 
\text { Potatoes } \
\text { (pounds) }
\end{array} & \begin{array} { l } 
\text { Tomatoes } \
\text { (pounds) }
\end{array} \
\hline \text { Huey } & 12 & \text { or } & 8 \
\text { Steve } & 6 & \text { or } & 2
\end{array}$$
-Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, Huey's opportunity cost of producing one pound of tomatoes is

Accepted Answer

A) 1.5 pounds of potatoes. 
B) 0.66 pound of potatoes. 
C) 0, because he has an absolute advantage in it. 
D) 0, because he has a comparative advantage in it. 
E) 1.0 pound of potatoes. 
A) 1.5 pounds of potatoes. 
B) 0.66 pound of potatoes. 
C) 0, because he has an absolute advantage in it. 
D) 0, because he has a comparative advantage in it. 
E) 1.0 pound of potatoes.

Question 18

-The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?

Accepted Answer

A) 1000 bottles of wine 
B) 500 bottles of wine 
C) 2 bottles of wine 
D) 1/2 of a bottle of wine 
E) None of the above answers is correct. 
A) 1000 bottles of wine 
B) 500 bottles of wine 
C) 2 bottles of wine 
D) 1/2 of a bottle of wine 
E) None of the above answers is correct.

Question 19

When all of the available factors of production are being efficiently employed, the

Accepted Answer

A) economy is producing at a point within its PPF. 
B) economy is producing at a point on its PPF. 
C) economy is producing at a point beyond its PPF. 
D) PPF disappears. 
E) opportunity cost of changing production is infinite. 
A) economy is producing at a point within its PPF. 
B) economy is producing at a point on its PPF. 
C) economy is producing at a point beyond its PPF. 
D) PPF disappears. 
E) opportunity cost of changing production is infinite.

Question 20

-The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the

Accepted Answer

A) country would need to acquire more resources and/or more advanced technology. 
B) production of compact cars would need to decrease. 
C) production of SUVs would need to decrease. 
D) country would need to use its resources more efficiently. 
E) country would need to determine that compact cars and SUVs are equally important to it. 
A) country would need to acquire more resources and/or more advanced technology. 
B) production of compact cars would need to decrease. 
C) production of SUVs would need to decrease. 
D) country would need to use its resources more efficiently. 
E) country would need to determine that compact cars and SUVs are equally important to it.

-The figure above shows a nation's production possibilities frontier. In the figure, point A shows

Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,

Which of the following is the best definition of economic growth?

-The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

-The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The table shows that

The United States can use all its resources to produce 250 DVDs or 500 shoes. China can use all of its resources to produce 30 DVDs or 300 shoes. The opportunity cost of producing a DVD in the United States is

3.5 Chapter Figures -The figure above shows a production possibilities frontier. In the figure, when the economy moves from point E to point D, what is the opportunity cost of a DVD?

-The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is

For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation's production possibilities frontier?

"Comparative advantage" is defined as a situation in which one person can produce

When drawing a production possibilities frontier, which of the following is held constant?

Which of the following statements is correct? I. As the economy grows, the opportunity costs of economic growth decrease. Ii. Economic growth has no opportunity cost. Iii. The opportunity cost of economic growth is current consumption forgone.

-In the table above, how many jackets must Mark forgo for every dress he makes?

Potatoes (pounds) Tomatoes (pounds) Huey 12 or 8 Steve 6 or 2 -Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, Huey's opportunity cost of producing one pound of tomatoes is

-The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?

When all of the available factors of production are being efficiently employed, the

-The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the

Getting Started

The Us and Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 3: The Economic Problem

-The figure above shows a nation's production possibilities frontier. In the figure, point A shows

Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,

Which of the following is the best definition of economic growth?

-The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

-The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The table shows that

The United States can use all its resources to produce 250 DVDs or 500 shoes. China can use all of its resources to produce 30 DVDs or 300 shoes. The opportunity cost of producing a DVD in the United States is

3.5 Chapter Figures -The figure above shows a production possibilities frontier. In the figure, when the economy moves from point E to point D, what is the opportunity cost of a DVD?

-The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is

For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation's production possibilities frontier?

"Comparative advantage" is defined as a situation in which one person can produce

When drawing a production possibilities frontier, which of the following is held constant?

Which of the following statements is correct? I. As the economy grows, the opportunity costs of economic growth decrease. Ii. Economic growth has no opportunity cost. Iii. The opportunity cost of economic growth is current consumption forgone.

-In the table above, how many jackets must Mark forgo for every dress he makes?

Potatoes (pounds) Tomatoes (pounds) Huey 12 or 8 Steve 6 or 2 -Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, Huey's opportunity cost of producing one pound of tomatoes is

-The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?

When all of the available factors of production are being efficiently employed, the

-The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the

Getting Started

The Us and Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters