Question 1

Below are some production possibilities data for the mystical land of Ghandor.
  
-What do most of the disagreements among economists involve?

Accepted Answer

A) The appropriate goals and policies for the economy. 
B) Generalizing about facts. 
C) Gathering data. 
D) The use of statistics. 
E) The use of mathematics. 
A) The appropriate goals and policies for the economy. 
B) Generalizing about facts. 
C) Gathering data. 
D) The use of statistics. 
E) The use of mathematics.

Question 2

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter.
  
-Refer to Figure 1.13 to answer this question.If new technology increased the output of guns by 50 percent,how many guns could be produced if 6 tonnes of butter were produced?

Accepted Answer

A) 18 guns. 
B) 20 guns. 
C) 15 guns. 
D) 10 guns. 
E) 0 guns. 
A) 18 guns. 
B) 20 guns. 
C) 15 guns. 
D) 10 guns. 
E) 0 guns.

Question 3

All of the following statements,except one,are positive statements.Which is the exception?

Accepted Answer

A) Increasing cigarette taxes will result in higher prices. 
B) The government must increase the tax on cigarettes. 
C) Higher price for cigarettes will decrease the quantity demanded. 
D) The price of cigarettes is higher in Canada than in Russia. 
A) Increasing cigarette taxes will result in higher prices. 
B) The government must increase the tax on cigarettes. 
C) Higher price for cigarettes will decrease the quantity demanded. 
D) The price of cigarettes is higher in Canada than in Russia.

Question 4

What is the difference between a factor of production and factor price? Give an example of each.

Accepted Answer

Factor of production is a productive res

Question 5

Which pair of the four Cs would play the dominant role in a simple hunter/gatherer society such as that of the San people of the Kalahari Desert?

Accepted Answer

A) Commercialization and competition. 
B) Cooperation and custom. 
C) Competition and cooperation. 
D) Command and competition. 
A) Commercialization and competition. 
B) Cooperation and custom. 
C) Competition and cooperation. 
D) Command and competition.

Question 6

Below is a production possibilities curve for a large tract of prairie farm land.
  
-Refer to the graph above to answer this question.Given the shape of the PP curve,which of the following statements is correct?

Accepted Answer

A) The law of increasing costs doesn't apply. 
B) The resources being used to produce rye and wheat are very similar. 
C) The two goods being produced are very similar. 
D) Opportunity costs are constant. 
E) It is better for the economy to product rye. 
A) The law of increasing costs doesn't apply. 
B) The resources being used to produce rye and wheat are very similar. 
C) The two goods being produced are very similar. 
D) Opportunity costs are constant. 
E) It is better for the economy to product rye.

Question 7

Below are some production possibilities data for the mystical land of Ghandor.
  
-Who said: "The ideas of economists,both when they are right and when they are wrong,are more powerful than is commonly understood"?

Accepted Answer

A) Sayre and Morris. 
B) Adam Smith. 
C) Pierre Trudeau. 
D) John Maynard Keynes. 
A) Sayre and Morris. 
B) Adam Smith. 
C) Pierre Trudeau. 
D) John Maynard Keynes.

Question 8

Below are some production possibilities data for the mystical land of Ghandor.
  
-All of the following except one would be included in a definition of economics.Which is the exception?

Accepted Answer

A) Choice. 
B) Resources. 
C) Unlimited wants. 
D) Scarcity. 
E) Paradigm. 
A) Choice. 
B) Resources. 
C) Unlimited wants. 
D) Scarcity. 
E) Paradigm.

Question 9

Below are some production possibilities data for the mystical land of Lhanor.
  
-Refer to the information above to answer this question.Which of the following statements is correct if Lhanor is currently producing 10 Kaldors and 24 Bouldings?

Accepted Answer

A) All resources must be fully employed. 
B) 18 more units of Bouldings could be produced. 
C) This combination of goods is not possible. 
D) Graphically,Lhanor is operating inside its PP curve. 
A) All resources must be fully employed. 
B) 18 more units of Bouldings could be produced. 
C) This combination of goods is not possible. 
D) Graphically,Lhanor is operating inside its PP curve.

Question 10

Which of the following is the factor payment received for the ability to give practical applications to ideas?

Accepted Answer

A) Rent. 
B) Interest. 
C) Wages. 
D) Profit. 
E) Capital. 
A) Rent. 
B) Interest. 
C) Wages. 
D) Profit. 
E) Capital.

Question 11

Opportunity cost is the value of the next-best alternative that is given up as a result of making a particular choice.

Accepted Answer

A) True 
 B)False

Question 12

All of the following statements,except one,are normative statements.Which is the exception?

Accepted Answer

A) The taxes on gasoline should be lower. 
B) Lowering the taxes on gasoline would decrease the price at the pump. 
C) It is wrong for the government to tax gasoline. 
D) The government is trying to mislead people about the tax on gasoline. 
A) The taxes on gasoline should be lower. 
B) Lowering the taxes on gasoline would decrease the price at the pump. 
C) It is wrong for the government to tax gasoline. 
D) The government is trying to mislead people about the tax on gasoline.

Question 13

Below is a production possibilities curve for a large tract of prairie farm land.
  
-Refer to the graph above to answer this question.If 150 units of rye are currently being produced,what is the cost of producing 50 more units of rye?

Accepted Answer

A) 25 units of wheat. 
B) 50 units of wheat. 
C) 100 units of wheat. 
D) 400 units of wheat. 
E) Cannot be determined. 
A) 25 units of wheat. 
B) 50 units of wheat. 
C) 100 units of wheat. 
D) 400 units of wheat. 
E) Cannot be determined.

Question 14

Which of the following refers to the concept of specialization?

Accepted Answer

A) Different individuals value goods differently. 
B) Some individuals are richer than others. 
C) Different nations have different opportunity costs of producing goods. 
D) Some nations are richer than others. 
A) Different individuals value goods differently. 
B) Some individuals are richer than others. 
C) Different nations have different opportunity costs of producing goods. 
D) Some nations are richer than others.

Question 15

Below are some production possibilities data for the mystical land of Ghandor.
  
-Refer to the above information to answer this question.Which of the above are microeconomic concepts?

Accepted Answer

A) 1,3 and 5. 
B) 1,5 and 6. 
C) 2,5 and 6. 
D) 3,5 and 6. 
A) 1,3 and 5. 
B) 1,5 and 6. 
C) 2,5 and 6. 
D) 3,5 and 6.

Question 16

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter.
  
-Refer to Figure 1.13 to answer this question.What is the opportunity cost of producing the first 2 tonnes of butter?

Accepted Answer

A) 2 guns. 
B) 18 guns. 
C) 20 guns. 
D) The answer cannot be determined from the information given. 
A) 2 guns. 
B) 18 guns. 
C) 20 guns. 
D) The answer cannot be determined from the information given.

Question 17

Below is a production possibilities curve for a large tract of prairie farm land.
  
-Refer to the graph above to answer this question.What is the total cost of producing 300 units of rye?

Accepted Answer

A) 0 units of wheat. 
B) 0.5 units of wheat. 
C) 2 units of wheat. 
D) 600 units of wheat. 
A) 0 units of wheat. 
B) 0.5 units of wheat. 
C) 2 units of wheat. 
D) 600 units of wheat.

Question 18

All of the following,except one,are typically macroeconomic topics.Which is the exception?

Accepted Answer

A) Unemployment. 
B) Interest rates. 
C) Taxation policies. 
D) Marginal utility. 
E) National income. 
A) Unemployment. 
B) Interest rates. 
C) Taxation policies. 
D) Marginal utility. 
E) National income.

Question 19

Gwen had only $10 yesterday.She was uncertain whether to go out for lunch or to buy beer.In the end,she bought beer.Which of the following statements is correct?

Accepted Answer

A) The choice of the beer and not lunch is an example of constant costs. 
B) The cost of buying beer is less than lunch. 
C) The opportunity cost of beer is lunch. 
D) The opportunity cost of beer is $10. 
A) The choice of the beer and not lunch is an example of constant costs. 
B) The cost of buying beer is less than lunch. 
C) The opportunity cost of beer is lunch. 
D) The opportunity cost of beer is $10.

Question 20

Which type of economy would involve a central governing body making all of the fundamental economic decisions?

Accepted Answer

A) Cooperation. 
B) Command. 
C) Custom. 
D) Competition. 
E) Consumer. 
A) Cooperation. 
B) Command. 
C) Custom. 
D) Competition. 
E) Consumer.

Below are some production possibilities data for the mystical land of Ghandor. -What do most of the disagreements among economists involve?

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter. -Refer to Figure 1.13 to answer this question.If new technology increased the output of guns by 50 percent,how many guns could be produced if 6 tonnes of butter were produced?

All of the following statements,except one,are positive statements.Which is the exception?

What is the difference between a factor of production and factor price? Give an example of each.

Which pair of the four Cs would play the dominant role in a simple hunter/gatherer society such as that of the San people of the Kalahari Desert?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.Given the shape of the PP curve,which of the following statements is correct?

Below are some production possibilities data for the mystical land of Ghandor. -Who said: "The ideas of economists,both when they are right and when they are wrong,are more powerful than is commonly understood"?

Below are some production possibilities data for the mystical land of Ghandor. -All of the following except one would be included in a definition of economics.Which is the exception?

Below are some production possibilities data for the mystical land of Lhanor. -Refer to the information above to answer this question.Which of the following statements is correct if Lhanor is currently producing 10 Kaldors and 24 Bouldings?

Which of the following is the factor payment received for the ability to give practical applications to ideas?

Opportunity cost is the value of the next-best alternative that is given up as a result of making a particular choice.

All of the following statements,except one,are normative statements.Which is the exception?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.If 150 units of rye are currently being produced,what is the cost of producing 50 more units of rye?

Which of the following refers to the concept of specialization?

Below are some production possibilities data for the mystical land of Ghandor. -Refer to the above information to answer this question.Which of the above are microeconomic concepts?

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter. -Refer to Figure 1.13 to answer this question.What is the opportunity cost of producing the first 2 tonnes of butter?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the total cost of producing 300 units of rye?

All of the following,except one,are typically macroeconomic topics.Which is the exception?

Gwen had only $10 yesterday.She was uncertain whether to go out for lunch or to buy beer.In the end,she bought beer.Which of the following statements is correct?

Which type of economy would involve a central governing body making all of the fundamental economic decisions?

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 1: The Economic Problem

Below are some production possibilities data for the mystical land of Ghandor. -What do most of the disagreements among economists involve?

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter. -Refer to Figure 1.13 to answer this question.If new technology increased the output of guns by 50 percent,how many guns could be produced if 6 tonnes of butter were produced?

All of the following statements,except one,are positive statements.Which is the exception?

What is the difference between a factor of production and factor price? Give an example of each.

Which pair of the four Cs would play the dominant role in a simple hunter/gatherer society such as that of the San people of the Kalahari Desert?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.Given the shape of the PP curve,which of the following statements is correct?

Below are some production possibilities data for the mystical land of Ghandor. -Who said: "The ideas of economists,both when they are right and when they are wrong,are more powerful than is commonly understood"?

Below are some production possibilities data for the mystical land of Ghandor. -All of the following except one would be included in a definition of economics.Which is the exception?

Below are some production possibilities data for the mystical land of Lhanor. -Refer to the information above to answer this question.Which of the following statements is correct if Lhanor is currently producing 10 Kaldors and 24 Bouldings?

Which of the following is the factor payment received for the ability to give practical applications to ideas?

Opportunity cost is the value of the next-best alternative that is given up as a result of making a particular choice.

All of the following statements,except one,are normative statements.Which is the exception?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.If 150 units of rye are currently being produced,what is the cost of producing 50 more units of rye?

Which of the following refers to the concept of specialization?

Below are some production possibilities data for the mystical land of Ghandor. -Refer to the above information to answer this question.Which of the above are microeconomic concepts?

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter. -Refer to Figure 1.13 to answer this question.What is the opportunity cost of producing the first 2 tonnes of butter?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the total cost of producing 300 units of rye?

All of the following,except one,are typically macroeconomic topics.Which is the exception?

Gwen had only $10 yesterday.She was uncertain whether to go out for lunch or to buy beer.In the end,she bought beer.Which of the following statements is correct?

Which type of economy would involve a central governing body making all of the fundamental economic decisions?

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters