Question 1

-In the figure above,at the allocatively efficient level of computer production the marginal cost of producing a computer is

Accepted Answer

A)  0 televisions per computer. 
B)  between 0 and 3 televisions per computer. 
C)  3 televisions per computer. 
D)  more than 3 televisions per computer. 
A)  0 televisions per computer. 
B)  between 0 and 3 televisions per computer. 
C)  3 televisions per computer. 
D)  more than 3 televisions per computer.

Question 2

Which of the following is NOT illustrated by a production possibilities frontier?

Accepted Answer

A)  scarcity 
B)  opportunity cost 
C)  necessity for choice 
D)  who gets the goods 
A)  scarcity 
B)  opportunity cost 
C)  necessity for choice 
D)  who gets the goods

Question 3

A tradeoff is

Accepted Answer

A)  represented by a point inside a PPF. 
B)  represented by a point outside a PPF. 
C)  a constraint that requires giving up one thing to get another. 
D)  a transaction at a price either above or below the equilibrium price. 
A)  represented by a point inside a PPF. 
B)  represented by a point outside a PPF. 
C)  a constraint that requires giving up one thing to get another. 
D)  a transaction at a price either above or below the equilibrium price.

Question 4

At one point along a PPF,50 tons of coffee and 100 tons of bananas are produced.At another point along the same PPF,30 tons of coffee and 140 tons of bananas are produced.The opportunity cost of a ton of coffee between these points is

Accepted Answer

A)  7/5 of a ton of bananas per ton of coffee. 
B)  1/2 of a ton of bananas per ton of coffee. 
C)  5/7 of a ton of bananas per ton of coffee. 
D)  2 tons of bananas per ton of coffee. 
A)  7/5 of a ton of bananas per ton of coffee. 
B)  1/2 of a ton of bananas per ton of coffee. 
C)  5/7 of a ton of bananas per ton of coffee. 
D)  2 tons of bananas per ton of coffee.

Question 5

Jane produces only corn and cloth.Taking account of her preferences for corn and cloth

Accepted Answer

A)  makes her production possibilities frontier straighter. 
B)  makes her production possibilities frontier steeper. 
C)  makes her production possibilities frontier flatter. 
D)  does not affect her production possibilities frontier. 
A)  makes her production possibilities frontier straighter. 
B)  makes her production possibilities frontier steeper. 
C)  makes her production possibilities frontier flatter. 
D)  does not affect her production possibilities frontier.

Question 6

Opportunity cost is represented on the production possibilities frontier by

Accepted Answer

A)  attainable and unattainable points. 
B)  efficient and inefficient points. 
C)  the amount of good Y forgone when more of good X is produced. 
D)  technological progress. 
A)  attainable and unattainable points. 
B)  efficient and inefficient points. 
C)  the amount of good Y forgone when more of good X is produced. 
D)  technological progress.

Question 7

Allocative efficiency occurs when

Accepted Answer

A)  we cannot produce more of any good without giving up some other good that we value more highly. 
B)  we cannot produce more of any one good without giving up some other good. 
C)  marginal benefit exceeds marginal cost. 
D)  opportunity costs are decreasing. 
A)  we cannot produce more of any good without giving up some other good that we value more highly. 
B)  we cannot produce more of any one good without giving up some other good. 
C)  marginal benefit exceeds marginal cost. 
D)  opportunity costs are decreasing.

Question 8

Compare and contrast production efficiency and allocative efficiency.

Accepted Answer

Production efficiency means that we are

Question 9

Opportunity cost is best defined as

Accepted Answer

A)  the amount of money that an individual is willing to pay to purchase a good that means a great deal to that person. 
B)  the amount of money lost by one individual in an exchange process so that another individual might gain. 
C)  the highest-valued alternative that is forgone when choosing among various alternatives. 
D)  a situation in which one individual cannot have an absolute advantage over another individual in the production of all goods. 
A)  the amount of money that an individual is willing to pay to purchase a good that means a great deal to that person. 
B)  the amount of money lost by one individual in an exchange process so that another individual might gain. 
C)  the highest-valued alternative that is forgone when choosing among various alternatives. 
D)  a situation in which one individual cannot have an absolute advantage over another individual in the production of all goods.

Question 10

Are all points inside the production possibilities frontier unattainable?

Accepted Answer

No,all points within the produ

Question 11

$$\begin{array} { | c | c | c | } 
\hline & \begin{array} { c } 
\text { U.S. production } \
\text { possibilities }
\end{array} & \begin{array} { c } 
\text { France's production } \
\text { possibilities }
\end{array} \
\hline \text { Steel } & 100 & 25 \
\hline \text { Concrete } & 200 & 100 \
\hline
\end{array}$$
-Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.The opportunity cost of producing a unit of X is

Accepted Answer

A)  1 unit of Y per unit of X for Agnes and 2 units of Y per unit of X for Brenda. 
B)  1 unit of Y per unit of X for Agnes and 1/2 unit of Y per unit of X for Brenda. 
C)  1 hour for Agnes and 1/2 hour for Brenda. 
D)  1 hour for Agnes and 2 hours for Brenda. 
A)  1 unit of Y per unit of X for Agnes and 2 units of Y per unit of X for Brenda. 
B)  1 unit of Y per unit of X for Agnes and 1/2 unit of Y per unit of X for Brenda. 
C)  1 hour for Agnes and 1/2 hour for Brenda. 
D)  1 hour for Agnes and 2 hours for Brenda.

Question 12

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves.Alice should specialize in the production of

Accepted Answer

A)  shoes. 
B)  bookshelves. 
C)  either shoes or bookshelves. 
D)  neither shoes nor bookshelves. 
A)  shoes. 
B)  bookshelves. 
C)  either shoes or bookshelves. 
D)  neither shoes nor bookshelves.

Question 13

-The opportunity cost of moving from point a to point b in the above figure is ________.

Accepted Answer

A)  zero 
B)  3/2 pairs of socks per sweater 
C)  3 pairs of socks 
D)  2 sweaters 
A)  zero 
B)  3/2 pairs of socks per sweater 
C)  3 pairs of socks 
D)  2 sweaters

Question 14

-A PPF,such as the one above,that bows outward illustrates

Accepted Answer

A)  decreasing opportunity cost. 
B)  increasing opportunity cost. 
C)  that technology is improving. 
D)  that productivity is falling. 
A)  decreasing opportunity cost. 
B)  increasing opportunity cost. 
C)  that technology is improving. 
D)  that productivity is falling.

Question 15

$$\begin{array} { | c | c | c | } 
\hline \text { Point } & \text { Production of } X & \text { Production of } Y \
\hline \text { A } & 0 & 40 \
\hline \text { B } & 3 & 36 \
\hline \text { C } & 6 & 28 \
\hline \text { D } & 9 & 16 \
\hline \text { E } & 12 & 0 \
\hline
\end{array}$$
-The above table shows production combinations on a country's production possibilities frontier.Which of the following points signifies efficient production?

Accepted Answer

A)  0 units of good X and 40 units of good Y 
B)  3 units of good X and 25 units of good Y 
C)  10 units of good X and 16 units of good Y 
D)  12 units of good X and 1 unit of good Y 
A)  0 units of good X and 40 units of good Y 
B)  3 units of good X and 25 units of good Y 
C)  10 units of good X and 16 units of good Y 
D)  12 units of good X and 1 unit of good Y

Question 16

One of the largest categories of exports from the United States is now pop culture: movies,music,TV programming,and videos.A direct conclusion from this information is that,compared to other countries,the United States has

Accepted Answer

A)  lower wages for producers of pop culture. 
B)  higher wages for producers of pop culture. 
C)  an absolute advantage in producing pop culture. 
D)  a comparative advantage in producing pop culture. 
A)  lower wages for producers of pop culture. 
B)  higher wages for producers of pop culture. 
C)  an absolute advantage in producing pop culture. 
D)  a comparative advantage in producing pop culture.

Question 17

Country A Country B
 $$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Good } X \
\text { (units of } X \text { ) }
\end{array} & \begin{array} { c } 
\text { Good } Y \
\text { (units of } Y \text { ) }
\end{array} & \begin{array} { c } 
\text { Good } X \
\text { (units of } X \text { ) }
\end{array} & \begin{array} { c } 
\text { Good } Y \
\text { (units of } Y \text { ) }
\end{array} \
\hline 0 & 16 & 0 & 12 \
\hline 2 & 12 & 2 & 9 \
\hline 4 & 8 & 4 & 6 \
\hline 6 & 4 & 6 & 3 \
\hline 8 & 0 & 8 & 0 \
\hline
\end{array}$$
-In the table above,country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y.The opportunity cost of producing more of

Accepted Answer

A)  good X is the same for both countries. 
B)  good Y is the same for both countries. 
C)  good X is lower in country A. 
D)  good Y is lower in country A. 
A)  good X is the same for both countries. 
B)  good Y is the same for both countries. 
C)  good X is lower in country A. 
D)  good Y is lower in country A.

Question 18

The marginal benefit of a good or service

Accepted Answer

A)  increases as more is consumed. 
B)  decreases as more is consumed 
C)  remains constant as more is consumed. 
D)  decreases as less is consumed 
A)  increases as more is consumed. 
B)  decreases as more is consumed 
C)  remains constant as more is consumed. 
D)  decreases as less is consumed

Question 19

At one point along a PPF,10 pizzas and 7 sandwiches can be produced.At another point along the same PPF,9 pizzas and 10 sandwiches can be produced.The opportunity cost of a pizza between these points is ________ per pizza.

Accepted Answer

A)  7/10 of a sandwich 
B)  10/7 of a sandwich 
C)  1/3 of a sandwich 
D)  3 sandwiches 
A)  7/10 of a sandwich 
B)  10/7 of a sandwich 
C)  1/3 of a sandwich 
D)  3 sandwiches

Question 20

-Refer to the production possibilities frontier in the figure above.Production point ________ represents an ________ production point.

Accepted Answer

A)  b; unattainable. 
B)  c; unattainable. 
C)  e; inefficient. 
D)  c; inefficient. 
A)  b; unattainable. 
B)  c; unattainable. 
C)  e; inefficient. 
D)  c; inefficient.

-In the figure above,at the allocatively efficient level of computer production the marginal cost of producing a computer is

Which of the following is NOT illustrated by a production possibilities frontier?

A tradeoff is

At one point along a PPF,50 tons of coffee and 100 tons of bananas are produced.At another point along the same PPF,30 tons of coffee and 140 tons of bananas are produced.The opportunity cost of a ton of coffee between these points is

Jane produces only corn and cloth.Taking account of her preferences for corn and cloth

Opportunity cost is represented on the production possibilities frontier by

Allocative efficiency occurs when

Compare and contrast production efficiency and allocative efficiency.

Opportunity cost is best defined as

Are all points inside the production possibilities frontier unattainable?

U.S. production possibilities France's production possibilities Steel 100 25 Concrete 200 100 -Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.The opportunity cost of producing a unit of X is

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves.Alice should specialize in the production of

-The opportunity cost of moving from point a to point b in the above figure is ________.

-A PPF,such as the one above,that bows outward illustrates

Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 -The above table shows production combinations on a country's production possibilities frontier.Which of the following points signifies efficient production?

One of the largest categories of exports from the United States is now pop culture: movies,music,TV programming,and videos.A direct conclusion from this information is that,compared to other countries,the United States has

The marginal benefit of a good or service

At one point along a PPF,10 pizzas and 7 sandwiches can be produced.At another point along the same PPF,9 pizzas and 10 sandwiches can be produced.The opportunity cost of a pizza between these points is ________ per pizza.

-Refer to the production possibilities frontier in the figure above.Production point represents an production point.

What Is Economics

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 2: The Economic Problem

-In the figure above,at the allocatively efficient level of computer production the marginal cost of producing a computer is

Which of the following is NOT illustrated by a production possibilities frontier?

A tradeoff is

At one point along a PPF,50 tons of coffee and 100 tons of bananas are produced.At another point along the same PPF,30 tons of coffee and 140 tons of bananas are produced.The opportunity cost of a ton of coffee between these points is

Jane produces only corn and cloth.Taking account of her preferences for corn and cloth

Opportunity cost is represented on the production possibilities frontier by

Allocative efficiency occurs when

Compare and contrast production efficiency and allocative efficiency.

Opportunity cost is best defined as

Are all points inside the production possibilities frontier unattainable?

U.S. production possibilities France's production possibilities Steel 100 25 Concrete 200 100 -Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.The opportunity cost of producing a unit of X is

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves.Alice should specialize in the production of

-The opportunity cost of moving from point a to point b in the above figure is ________.

-A PPF,such as the one above,that bows outward illustrates

Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 -The above table shows production combinations on a country's production possibilities frontier.Which of the following points signifies efficient production?

One of the largest categories of exports from the United States is now pop culture: movies,music,TV programming,and videos.A direct conclusion from this information is that,compared to other countries,the United States has

The marginal benefit of a good or service

At one point along a PPF,10 pizzas and 7 sandwiches can be produced.At another point along the same PPF,9 pizzas and 10 sandwiches can be produced.The opportunity cost of a pizza between these points is ________ per pizza.

-Refer to the production possibilities frontier in the figure above.Production point ________ represents an ________ production point.

What Is Economics

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

-Refer to the production possibilities frontier in the figure above.Production point represents an production point.