Question 1

If output of a good or service is zero in a market system,then we know that

Accepted Answer

A) the market system has failed. 
B) the government must be preventing the production and sale of the good. 
C) the good is a demerit good. 
D) the lowest cost of producing the good is greater than the highest price consumers are willing and able to pay. 
A) the market system has failed. 
B) the government must be preventing the production and sale of the good. 
C) the good is a demerit good. 
D) the lowest cost of producing the good is greater than the highest price consumers are willing and able to pay.

Question 2

An economic system in which individuals own productive resources,and those individuals can use the resources in whatever manner they choose,subject to common protective legal rules,is known as ________.

Accepted Answer

The answer of An economic system in which individuals own...

Question 3

Explain allocative efficiency.Does allocative efficiency imply that using the fastest production processes or most high-tech equipment is best? Explain.

Accepted Answer

Allocative efficiency means producing th

Question 4

Explain why trade between two countries can be profitable for both even if one is better than the other in producing all goods and services.

Accepted Answer

Comparative advantage,not absolute,makes

Question 5

If a production possibilities curve for books and magazines is a straight line,then the

Accepted Answer

A) opportunity cost of increasing book production stays constant regardless of the quantity produced. 
B) opportunity cost of increasing book production continues to decline as total production increases. 
C) opportunity cost of increasing book production is independent of the shape of the curve. 
D) opportunity cost of increasing book production continues to increase as total production increases. 
A) opportunity cost of increasing book production stays constant regardless of the quantity produced. 
B) opportunity cost of increasing book production continues to decline as total production increases. 
C) opportunity cost of increasing book production is independent of the shape of the curve. 
D) opportunity cost of increasing book production continues to increase as total production increases.

Question 6

In pure market capitalism,the movement of resources would

Accepted Answer

A) be dictated by the government. 
B) follow the lure of profits. 
C) follows labour union directives. 
D) not apply. 
A) be dictated by the government. 
B) follow the lure of profits. 
C) follows labour union directives. 
D) not apply.

Question 7

Figure 2-4  
-Between points b and c in Figure 2-4,the (average)opportunity cost of another metre of cloth is ________.

Accepted Answer

1.25 tonne

Question 8

A point located inside a society's production possibilities curve represents

Accepted Answer

A) an unattainable combination of outputs. 
B) an under-utilization of productive resources. 
C) a technically superior output combination. 
D) an output combination which satisfies the needs of the population. 
A) an unattainable combination of outputs. 
B) an under-utilization of productive resources. 
C) a technically superior output combination. 
D) an output combination which satisfies the needs of the population.

Question 9

A point outside a production possibilities curve shows

Accepted Answer

A) that resources are not being used efficiently. 
B) that resources are being used very efficiently. 
C) that opportunity costs are constant. 
D) an output combination attainable only if society gets more resources or technological change occurs. 
A) that resources are not being used efficiently. 
B) that resources are being used very efficiently. 
C) that opportunity costs are constant. 
D) an output combination attainable only if society gets more resources or technological change occurs.

Question 10

Figure 2-1  
-In Figure 2-1,point A is undesirable because

Accepted Answer

A) it represents an inefficient use of resources. 
B) the opportunity costs of health care are too high. 
C) too much health care is being produced. 
D) point E is a more realistic option in this economy. 
A) it represents an inefficient use of resources. 
B) the opportunity costs of health care are too high. 
C) too much health care is being produced. 
D) point E is a more realistic option in this economy.

Question 11

Productive efficiency is correctly defined as

Accepted Answer

A) producing outside the production possibilities boundary. 
B) providing for the immediate needs of the greatest proportion of the population. 
C) minimizing opportunity cost. 
D) producing the maximum output possible with given technology and resources. 
A) producing outside the production possibilities boundary. 
B) providing for the immediate needs of the greatest proportion of the population. 
C) minimizing opportunity cost. 
D) producing the maximum output possible with given technology and resources.

Question 12

If you are able to earn $20,000 a year teaching,$25,000 a year typing,$30,000 a year driving a cab,and $40,000 a year as a chef,you have a comparative advantage in ________.

Accepted Answer

The answer of If you are able to earn $20,000...

Question 13

Explain the differences between a command economy,a pure capitalist economy and a mixed economy.

Accepted Answer

In a pure capitalist economy,answers to

Question 14

The idea of comparative advantage is based directly on

Accepted Answer

A) the concept of opportunity cost. 
B) the idea of absolute advantage. 
C) using workers with the most diverse sets of skills. 
D) the concept of technical progress. 
A) the concept of opportunity cost. 
B) the idea of absolute advantage. 
C) using workers with the most diverse sets of skills. 
D) the concept of technical progress.

Question 15

Economic growth can be pictured in a production possibilities curve diagram by

Accepted Answer

A) an inward shift of the production possibilities curve. 
B) an outward shift of the production possibilities curve. 
C) an increasingly bowed out production possibilities curve. 
D) a production possibilities curve that is less bowed out. 
A) an inward shift of the production possibilities curve. 
B) an outward shift of the production possibilities curve. 
C) an increasingly bowed out production possibilities curve. 
D) a production possibilities curve that is less bowed out.

Question 16

"The United States can't gain from trading with Canada,because their economy is so big that they can produce all goods more efficiently than Canada." Is this a valid claim? Explain .

Accepted Answer

It is not valid.It may be the case that

Question 17

The principle of comparative advantage implies that it is desirable to choose the activity that

Accepted Answer

A) is inside the production possibilities frontier. 
B) does not demand any specialization. 
C) has the lowest opportunity cost. 
D) has a high opportunity cost. 
A) is inside the production possibilities frontier. 
B) does not demand any specialization. 
C) has the lowest opportunity cost. 
D) has a high opportunity cost.

Question 18

Technology is defined in economics as

Accepted Answer

A) output beyond the production possibilities boundary. 
B) the utilization of the most advanced machinery. 
C) society's pool of applied knowledge concerning how goods and services can be produced. 
D) the most advanced computer hardware and software. 
A) output beyond the production possibilities boundary. 
B) the utilization of the most advanced machinery. 
C) society's pool of applied knowledge concerning how goods and services can be produced. 
D) the most advanced computer hardware and software.

Question 19

Figure 2-2  
-In Table 2-1,the opportunity cost of each additional computer in terms of televisions given up

Accepted Answer

A) falls as more computers are produced. 
B) increases as more computers are produced. 
C) is meaningless because the cost of computers cannot be expressed in terms of televisions. 
D) remains constant. 
A) falls as more computers are produced. 
B) increases as more computers are produced. 
C) is meaningless because the cost of computers cannot be expressed in terms of televisions. 
D) remains constant.

Question 20

Figure 2-4  
-In Figure 2-4,which of the following would NOT be a means by which society might move to point h?

Accepted Answer

A) an improvement in technology. 
B) an increase in quantity of capital. 
C) an increase in quantity of labour. 
D) more efficient use of current resources. 
A) an improvement in technology. 
B) an increase in quantity of capital. 
C) an increase in quantity of labour. 
D) more efficient use of current resources.

If output of a good or service is zero in a market system,then we know that

An economic system in which individuals own productive resources,and those individuals can use the resources in whatever manner they choose,subject to common protective legal rules,is known as ________.

Explain allocative efficiency.Does allocative efficiency imply that using the fastest production processes or most high-tech equipment is best? Explain.

Explain why trade between two countries can be profitable for both even if one is better than the other in producing all goods and services.

If a production possibilities curve for books and magazines is a straight line,then the

In pure market capitalism,the movement of resources would

Figure 2-4 -Between points b and c in Figure 2-4,the (average)opportunity cost of another metre of cloth is ________.

A point located inside a society's production possibilities curve represents

A point outside a production possibilities curve shows

Figure 2-1 -In Figure 2-1,point A is undesirable because

Productive efficiency is correctly defined as

If you are able to earn $20,000 a year teaching,$25,000 a year typing,$30,000 a year driving a cab,and $40,000 a year as a chef,you have a comparative advantage in ________.

Explain the differences between a command economy,a pure capitalist economy and a mixed economy.

The idea of comparative advantage is based directly on

Economic growth can be pictured in a production possibilities curve diagram by

"The United States can't gain from trading with Canada,because their economy is so big that they can produce all goods more efficiently than Canada." Is this a valid claim? Explain .

The principle of comparative advantage implies that it is desirable to choose the activity that

Technology is defined in economics as

Figure 2-2 -In Table 2-1,the opportunity cost of each additional computer in terms of televisions given up

Figure 2-4 -In Figure 2-4,which of the following would NOT be a means by which society might move to point h?

The Nature of Economics

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 2: Production Possibilities and Economic Systems

If output of a good or service is zero in a market system,then we know that

An economic system in which individuals own productive resources,and those individuals can use the resources in whatever manner they choose,subject to common protective legal rules,is known as ________.

Explain allocative efficiency.Does allocative efficiency imply that using the fastest production processes or most high-tech equipment is best? Explain.

Explain why trade between two countries can be profitable for both even if one is better than the other in producing all goods and services.

If a production possibilities curve for books and magazines is a straight line,then the

In pure market capitalism,the movement of resources would

Figure 2-4 -Between points b and c in Figure 2-4,the (average)opportunity cost of another metre of cloth is ________.

A point located inside a society's production possibilities curve represents

A point outside a production possibilities curve shows

Figure 2-1 -In Figure 2-1,point A is undesirable because

Productive efficiency is correctly defined as

If you are able to earn $20,000 a year teaching,$25,000 a year typing,$30,000 a year driving a cab,and $40,000 a year as a chef,you have a comparative advantage in ________.

Explain the differences between a command economy,a pure capitalist economy and a mixed economy.

The idea of comparative advantage is based directly on

Economic growth can be pictured in a production possibilities curve diagram by

"The United States can't gain from trading with Canada,because their economy is so big that they can produce all goods more efficiently than Canada." Is this a valid claim? Explain .

The principle of comparative advantage implies that it is desirable to choose the activity that

Technology is defined in economics as

Figure 2-2 -In Table 2-1,the opportunity cost of each additional computer in terms of televisions given up

Figure 2-4 -In Figure 2-4,which of the following would NOT be a means by which society might move to point h?

The Nature of Economics

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters