Question 1

The three fundamental questions in economics are what,how,and how many.

Accepted Answer

A) True 
 B)False

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.What is the opportunity cost of one more tonne of butter as output changes from point b to a?

Accepted Answer

A) 2 guns. 
B) 4 guns. 
C) 10 guns. 
D) 6 guns. 
A) 2 guns. 
B) 4 guns. 
C) 10 guns. 
D) 6 guns.

Question 3

"Factors of production" is a term that can be used interchangeably with:

Accepted Answer

A) Models. 
B) Consumer goods. 
C) Either resources or inputs. 
D) Technologies. 
A) Models. 
B) Consumer goods. 
C) Either resources or inputs. 
D) Technologies.

Question 4

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks.
  
-Refer to the graph above to answer this question.What is the opportunity cost of producing the first 700 quarks?

Accepted Answer

A) It is 6 quirks. 
B) It is 10 quirks. 
C) It is 14 quirks. 
D) The answer cannot be determined from the information given. 
A) It is 6 quirks. 
B) It is 10 quirks. 
C) It is 14 quirks. 
D) The answer cannot be determined from the information given.

Question 5

What is the difference between a positive and a normative statement?

Accepted Answer

Positive statements are assertions about

Question 6

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks.
  
-Refer to the graph above to answer this question.If this society chooses to produce 10 quirks,what is the maximum quantity of quarks it can produce?

Accepted Answer

A) 500 quarks. 
B) 800 quarks. 
C) No quarks. 
D) 600 quarks. 
A) 500 quarks. 
B) 800 quarks. 
C) No quarks. 
D) 600 quarks.

Question 7

The following table shows the production possibilities for the country of Erewhon:
  
-Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 4 more units of wine?

Accepted Answer

A) 2/3 of a unit of cheese 
B) 1 ½ units of cheese 
C) 6 units of cheese 
D) 8 units of cheese 
A) 2/3 of a unit of cheese 
B) 1 ½ units of cheese 
C) 6 units of cheese 
D) 8 units of cheese

Question 8

Which of the following is an alternative for the term,"factors of production"?

Accepted Answer

A) Methods of organizing an economy. 
B) Ways of coordinating an economy. 
C) Productive resources or inputs. 
D) Goods and services. 
A) Methods of organizing an economy. 
B) Ways of coordinating an economy. 
C) Productive resources or inputs. 
D) Goods and services.

Question 9

Why do economists feel that their discipline is relevant?

Accepted Answer

A) It is able to predict the future very well. 
B) It is a value-free study. 
C) Its methodology is so different from other social sciences. 
D) The scope and range of subjects that it addresses is very wide. 
A) It is able to predict the future very well. 
B) It is a value-free study. 
C) Its methodology is so different from other social sciences. 
D) The scope and range of subjects that it addresses is very wide.

Question 10

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 11

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 12

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 13

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

Accepted Answer

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

Question 14

What is the difference between productive and allocative efficiency?

Accepted Answer

Productive efficiency refers to 'the pro

Question 15

Discuss the pros and cons of economic growth.

Accepted Answer

Pros
· Greater income which allowing con

Question 16

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 17

The following table shows the production possibilities for producing rice and beans in the country of Aipotu:
  
-Refer to the table above to answer this question.If Aipotu produces 240 rice,how many beans can it produce?

Accepted Answer

A) 30 beans 
B) 60 beans 
C) 100 beans 
D) 130 beans 
A) 30 beans 
B) 60 beans 
C) 100 beans 
D) 130 beans

Question 18

The following table shows the production possibilities for producing rice and beans in the country of Aipotu:
  
-Refer to the table above to answer this question.What is the total cost of producing 100 beans?

Accepted Answer

A) 40 rice 
B) 60 rice 
C) 120 rice 
D) 180 rice 
A) 40 rice 
B) 60 rice 
C) 120 rice 
D) 180 rice

Question 19

Given the following production possibility curve.
   a)What is the per unit opportunity cost from point A to point B?
b)What is the per unit opportunity cost from point B to point C?
c)What is the per unit opportunity cost from point C to point D?
d)What is the per unit opportunity cost from point D to point E?

Accepted Answer

a)The per unit opportunity cost from poi

Question 20

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.

The three fundamental questions in economics are what,how,and how many.

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 one more tonne of butter as output changes from point b to a?

"Factors of production" is a term that can be used interchangeably with:

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. -Refer to the graph above to answer this question.What is the opportunity cost of producing the first 700 quarks?

What is the difference between a positive and a normative statement?

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. -Refer to the graph above to answer this question.If this society chooses to produce 10 quirks,what is the maximum quantity of quarks it can produce?

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 4 more units of wine?

Which of the following is an alternative for the term,"factors of production"?

Why do economists feel that their discipline is relevant?

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

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

What is the difference between productive and allocative efficiency?

Discuss the pros and cons of economic growth.

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?

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: -Refer to the table above to answer this question.If Aipotu produces 240 rice,how many beans can it produce?

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: -Refer to the table above to answer this question.What is the total cost of producing 100 beans?

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?

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 1: The Economic Problem

The three fundamental questions in economics are what,how,and how many.

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 one more tonne of butter as output changes from point b to a?

"Factors of production" is a term that can be used interchangeably with:

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. -Refer to the graph above to answer this question.What is the opportunity cost of producing the first 700 quarks?

What is the difference between a positive and a normative statement?

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. -Refer to the graph above to answer this question.If this society chooses to produce 10 quirks,what is the maximum quantity of quarks it can produce?

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 4 more units of wine?

Which of the following is an alternative for the term,"factors of production"?

Why do economists feel that their discipline is relevant?

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

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

What is the difference between productive and allocative efficiency?

Discuss the pros and cons of economic growth.

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?

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: -Refer to the table above to answer this question.If Aipotu produces 240 rice,how many beans can it produce?

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: -Refer to the table above to answer this question.What is the total cost of producing 100 beans?

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?

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters