Question 1

Which of the following statements describes the law of increasing costs?

Accepted Answer

A) As the economy's production level of any particular item decreases,its opportunity cost rises. 
B) As the economy's production level of any particular item increases,its opportunity cost rises. 
C) The prices of consumer goods always rise and never fall. 
D) If someone waits to make a purchase,she will pay a higher price. 
E) The total cost of production rises as output goes up. 
A) As the economy's production level of any particular item decreases,its opportunity cost rises. 
B) As the economy's production level of any particular item increases,its opportunity cost rises. 
C) The prices of consumer goods always rise and never fall. 
D) If someone waits to make a purchase,she will pay a higher price. 
E) The total cost of production rises as output goes up.

Question 2

What is true about an economic model?

Accepted Answer

A) It is built on a series of assumptions. 
B) It establishes cause and effect between variables. 
C) It can make predictions that can be tested with empirical data. 
D) It could also be called an economic theory. 
E) It is built on a series of assumptions,it establishes cause and effect between variables,it can make predictions that can be tested with empirical data,and it could also be called an economic theory. 
A) It is built on a series of assumptions. 
B) It establishes cause and effect between variables. 
C) It can make predictions that can be tested with empirical data. 
D) It could also be called an economic theory. 
E) It is built on a series of assumptions,it establishes cause and effect between variables,it can make predictions that can be tested with empirical data,and it could also be called an economic theory.

Question 3

The maximum production possible in Rome and in Cathay are as follows:
  
-If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what will be the output in each country?

Accepted Answer

A) 40 bread and 20 figs in Rome and 20 bread and 40 figs in Cathay. 
B) 40 bread and 0 figs in Rome and 20 bread and 0 figs in Cathay. 
C) 0 bread and 20 figs in Rome and 0 bread and 40 figs in Cathay. 
D) 20 bread and 10 figs in Rome and 10 bread and 20 figs in Cathay. 
A) 40 bread and 20 figs in Rome and 20 bread and 40 figs in Cathay. 
B) 40 bread and 0 figs in Rome and 20 bread and 0 figs in Cathay. 
C) 0 bread and 20 figs in Rome and 0 bread and 40 figs in Cathay. 
D) 20 bread and 10 figs in Rome and 10 bread and 20 figs in Cathay.

Question 4

Explain why voluntary trade is mutual beneficial.

Accepted Answer

Voluntary trade always benefit

Question 5

Define and give an example of the law of increasing costs.

Accepted Answer

The law of increasing costs states that

Question 6

What are the factors of production?

Accepted Answer

A) Land,labour,money,and enterprise. 
B) Land,labour,money,and capital. 
C) Land,labour,capital,and enterprise. 
D) Competition,command,custom,and cooperation. 
A) Land,labour,money,and enterprise. 
B) Land,labour,money,and capital. 
C) Land,labour,capital,and enterprise. 
D) Competition,command,custom,and cooperation.

Question 7

Which of the following statements is correct for a society that emphasizes the production of capital goods over that of consumer goods?

Accepted Answer

A) The society could enjoy the same quantity of capital goods and a larger quantity of consumer goods in the future. 
B) The society will have to save more now than a society that did not emphasize the production of capital goods. 
C) The society could enjoy the same quantity of consumer goods and a larger quantity of capital goods in the future. 
D) The society will grow faster than a society that emphasizes the production of consumer goods. 
E) The society will have to save less now than a society that did not emphasize the production of capital goods. 
A) The society could enjoy the same quantity of capital goods and a larger quantity of consumer goods in the future. 
B) The society will have to save more now than a society that did not emphasize the production of capital goods. 
C) The society could enjoy the same quantity of consumer goods and a larger quantity of capital goods in the future. 
D) The society will grow faster than a society that emphasizes the production of consumer goods. 
E) The society will have to save less now than a society that did not emphasize the production of capital goods.

Question 8

Allocative efficiency is also referred to as productivity.

Accepted Answer

A) True 
 B)False

Question 9

All of the following except one are included in the four Cs used,throughout history,by humankind to coordinate its economies.Which is the exception?

Accepted Answer

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

Question 10

What fundamental question is implied by the following statement: Should scarce resources be devoted to persuading people to quit smoking or to developing a less harmful form of tobacco?

Accepted Answer

A) What to produce? 
B) How to produce? 
C) For whom? 
D) How much competition? 
E) How much command? 
A) What to produce? 
B) How to produce? 
C) For whom? 
D) How much competition? 
E) How much command?

Question 11

The maximum production possible in Rome and in Cathay are as follows:
  
-If each country specializes in the production of what it does best and trades with the other,what is the combined output?

Accepted Answer

A) 20 bread and 20 figs. 
B) 30 bread and 30 figs. 
C) 40 bread and 40 figs. 
D) 60 bread and 60 figs. 
A) 20 bread and 20 figs. 
B) 30 bread and 30 figs. 
C) 40 bread and 40 figs. 
D) 60 bread and 60 figs.

Question 12

All of the following,except one,are factors of production.Which is the exception?

Accepted Answer

A) Labour. 
B) Capital. 
C) Land. 
D) Enterprise. 
E) Competition. 
A) Labour. 
B) Capital. 
C) Land. 
D) Enterprise. 
E) Competition.

Question 13

Is it more cost effective to remove snow from city highways with labour or capital? Explain.

Accepted Answer

It depends on the opportunity

Question 14

Refer to the table above to answer this question.If Aipotu is presently producing 100 beans,what is the cost of producing 50 more beans?

Accepted Answer

A) 100 rice 
B) 140 rice 
C) 180 rice 
D) 280 rice 
A) 100 rice 
B) 140 rice 
C) 180 rice 
D) 280 rice

Question 15

Refer to the table above to answer this question.If Aipotu is presently producing 100 rice,what is the cost of producing 80 more rice?

Accepted Answer

A) 10 beans 
B) 20 beans 
C) 60 beans 
D) 100 beans 
A) 10 beans 
B) 20 beans 
C) 60 beans 
D) 100 beans

Question 16

Refer to the table above to answer this question.If Aipotu produces 60 beans,how much rice can it produce?

Accepted Answer

A) 20 rice 
B) 100 rice 
C) 130 rice 
D) 280 rice 
A) 20 rice 
B) 100 rice 
C) 130 rice 
D) 280 rice

Question 17

The data below show the total production (in millions)of the only two goods produced in the countries of Carleton and Cumbria.
   a)What is the opportunity cost of a binocular in Carleton?
b)What is the opportunity cost of a camera in Cumbria?
c)If,before trade,each country was devoting half its resources to producing each product,what is the total amount they were both producing?
d)If the two countries were to specialize in producing the product they do best,what would be the total amount they could produce?
e)What are the total gains as a result of specialization?

Accepted Answer

a)1 1/2 cameras.
b)1 1/3 binoc

Question 18

Below are some production possibilities data for the mystical land of Ghandor.
  
-What is the definition of opportunity cost?

Accepted Answer

A) The amount of money spent on a good. 
B) The value of the next best alternative that is given up as a result of making a particular decision. 
C) The value of all the alternatives given up as a result of making a particular decision. 
D) The cost incurred in producing a good. 
A) The amount of money spent on a good. 
B) The value of the next best alternative that is given up as a result of making a particular decision. 
C) The value of all the alternatives given up as a result of making a particular decision. 
D) The cost incurred in producing a good.

Question 19

The fact that the typical movie theatre charges people for popcorn but does not charge them to use the restrooms is an example of which of the four Cs?

Accepted Answer

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

Question 20

Below are some production possibilities data for the mystical land of Ghandor.
  
-Which of the following is a microeconomic topic?

Accepted Answer

A) Inflation rates. 
B) Unemployment. 
C) Interest rate determination. 
D) Tax policies. 
E) Supply and demand analysis of a factor market. 
A) Inflation rates. 
B) Unemployment. 
C) Interest rate determination. 
D) Tax policies. 
E) Supply and demand analysis of a factor market.

Which of the following statements describes the law of increasing costs?

What is true about an economic model?

The maximum production possible in Rome and in Cathay are as follows: -If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what will be the output in each country?

Explain why voluntary trade is mutual beneficial.

Define and give an example of the law of increasing costs.

What are the factors of production?

Which of the following statements is correct for a society that emphasizes the production of capital goods over that of consumer goods?

Allocative efficiency is also referred to as productivity.

All of the following except one are included in the four Cs used,throughout history,by humankind to coordinate its economies.Which is the exception?

What fundamental question is implied by the following statement: Should scarce resources be devoted to persuading people to quit smoking or to developing a less harmful form of tobacco?

The maximum production possible in Rome and in Cathay are as follows: -If each country specializes in the production of what it does best and trades with the other,what is the combined output?

All of the following,except one,are factors of production.Which is the exception?

Is it more cost effective to remove snow from city highways with labour or capital? Explain.

Refer to the table above to answer this question.If Aipotu is presently producing 100 beans,what is the cost of producing 50 more beans?

Refer to the table above to answer this question.If Aipotu is presently producing 100 rice,what is the cost of producing 80 more rice?

Refer to the table above to answer this question.If Aipotu produces 60 beans,how much rice can it produce?

Below are some production possibilities data for the mystical land of Ghandor. -What is the definition of opportunity cost?

The fact that the typical movie theatre charges people for popcorn but does not charge them to use the restrooms is an example of which of the four Cs?

Below are some production possibilities data for the mystical land of Ghandor. -Which of the following is a microeconomic topic?

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

Which of the following statements describes the law of increasing costs?

What is true about an economic model?

The maximum production possible in Rome and in Cathay are as follows: -If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what will be the output in each country?

Explain why voluntary trade is mutual beneficial.

Define and give an example of the law of increasing costs.

What are the factors of production?

Which of the following statements is correct for a society that emphasizes the production of capital goods over that of consumer goods?

Allocative efficiency is also referred to as productivity.

All of the following except one are included in the four Cs used,throughout history,by humankind to coordinate its economies.Which is the exception?

What fundamental question is implied by the following statement: Should scarce resources be devoted to persuading people to quit smoking or to developing a less harmful form of tobacco?

The maximum production possible in Rome and in Cathay are as follows: -If each country specializes in the production of what it does best and trades with the other,what is the combined output?

All of the following,except one,are factors of production.Which is the exception?

Is it more cost effective to remove snow from city highways with labour or capital? Explain.

Refer to the table above to answer this question.If Aipotu is presently producing 100 beans,what is the cost of producing 50 more beans?

Refer to the table above to answer this question.If Aipotu is presently producing 100 rice,what is the cost of producing 80 more rice?

Refer to the table above to answer this question.If Aipotu produces 60 beans,how much rice can it produce?

Below are some production possibilities data for the mystical land of Ghandor. -What is the definition of opportunity cost?

The fact that the typical movie theatre charges people for popcorn but does not charge them to use the restrooms is an example of which of the four Cs?

Below are some production possibilities data for the mystical land of Ghandor. -Which of the following is a microeconomic topic?

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