Question 1

-In the above figure,Jill's opportunity cost of producing 1 gallon of soda is ________ of bottled water.

Accepted Answer

A) 2 gallons 
B) 1/2 of a gallon 
C) 4 gallons 
D) 1 gallon 
E) 1/4 of a gallon 
A) 2 gallons 
B) 1/2 of a gallon 
C) 4 gallons 
D) 1 gallon 
E) 1/4 of a gallon

Question 2

Points inside the PPF are all

Accepted Answer

A) unattainable and have fully employed resources. 
B) attainable and have fully employed resources. 
C) unattainable and have some unemployed resources. 
D) attainable and have some unemployed resources. 
E) unaffordable. 
A) unattainable and have fully employed resources. 
B) attainable and have fully employed resources. 
C) unattainable and have some unemployed resources. 
D) attainable and have some unemployed resources. 
E) unaffordable.

Question 3

-The table above shows the production possibilities for an economy.The opportunity cost of a loaf of bread is ________ when moving from possibility B to possibility C.

Accepted Answer

A) 1/2 of a book 
B) 2 books 
C) 200 books 
D) 100 loaves of bread 
E) 1 loaf of bread 
A) 1/2 of a book 
B) 2 books 
C) 200 books 
D) 100 loaves of bread 
E) 1 loaf of bread

Question 4

What economic concepts are represented in the production possibilities model?

Accepted Answer

There are a large number of economic con

Question 5

-The above figure shows the production possibility frontier for a country.What is the opportunity cost per ton of rice to move from point B to point D?

Accepted Answer

A) 1000 bottles of wine 
B) 500 bottles of wine 
C) 2 bottles of wine 
D) 1/2 of a bottle of wine 
E) None of the above answers is correct. 
A) 1000 bottles of wine 
B) 500 bottles of wine 
C) 2 bottles of wine 
D) 1/2 of a bottle of wine 
E) None of the above answers is correct.

Question 6

The gains from trade include:
I.lower prices from competition.
Ii.greater output from specialization.
Iii.greater variety of goods and services available.

Accepted Answer

A) i and iii only 
B) ii and iii only 
C) i and ii only 
D) i,ii,and iii 
E) ii only 
A) i and iii only 
B) ii and iii only 
C) i and ii only 
D) i,ii,and iii 
E) ii only

Question 7

-The table above presents the production possibilities frontier for a nation.Using the information in the table,moving from possibility C to B means that

Accepted Answer

A) 4 units of capital goods are given up to get 55 units of consumption goods. 
B) 2 units of capital goods are given up to get 55 additional units of consumption goods. 
C) 4 units of capital goods are given up to get 10 additional units of consumption goods. 
D) 4 units of capital goods are given up to get 45 units of consumption goods. 
E) 2 units of capital goods are given up to get 10 additional units of consumption goods. 
A) 4 units of capital goods are given up to get 55 units of consumption goods. 
B) 2 units of capital goods are given up to get 55 additional units of consumption goods. 
C) 4 units of capital goods are given up to get 10 additional units of consumption goods. 
D) 4 units of capital goods are given up to get 45 units of consumption goods. 
E) 2 units of capital goods are given up to get 10 additional units of consumption goods.

Question 8

While moving on the production possibilities frontier,if the opportunity cost of producing one good is 1/2,the opportunity cost of producing the other good (in the same range)is

Accepted Answer

A) 1/2. 
B) 1/4. 
C) 2. 
D) 4. 
E) An amount that cannot be calculated without more information. 
A) 1/2. 
B) 1/4. 
C) 2. 
D) 4. 
E) An amount that cannot be calculated without more information.

Question 9

"If Mexico is currently operating at a point beyond its production possibilities frontier,then there are unemployed or misallocated resources in Mexico." Is this statement true or false? Briefly explain your answer.

Accepted Answer

The statement is false.It is false on tw

Question 10

-In the table above,Jack's comparative advantage is producing ________ and Jill's comparative advantage is producing ________.

Accepted Answer

A) clothing;food 
B) clothing and food;nothing 
C) nothing;clothing and food 
D) food;clothing 
E) clothing;clothing 
A) clothing;food 
B) clothing and food;nothing 
C) nothing;clothing and food 
D) food;clothing 
E) clothing;clothing

Question 11

Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Based on these data,

Accepted Answer

A) Cindy has a comparative advantage at producing tacos. 
B) Scott has a comparative advantage at producing tacos. 
C) Cindy and Scott have the same comparative advantage in producing tacos. 
D) neither Cindy nor Scott has a comparative advantage in producing tacos. 
E) Cindy and Scott have the same comparative advantage in producing pizzas. 
A) Cindy has a comparative advantage at producing tacos. 
B) Scott has a comparative advantage at producing tacos. 
C) Cindy and Scott have the same comparative advantage in producing tacos. 
D) neither Cindy nor Scott has a comparative advantage in producing tacos. 
E) Cindy and Scott have the same comparative advantage in producing pizzas.

Question 12

The opportunity cost of one more slice of pizza in terms of sodas is the

Accepted Answer

A) number of pizza slices we have to give up in order to get one extra soda. 
B) number of sodas we have to give up in order to get one extra pizza slice. 
C) total number of sodas that we have divided by the total number of pizza slices that we have. 
D) total number of pizza slices that we have divided by the total number of sodas that we have. 
E) price of a pizza slice minus the price of a soda. 
A) number of pizza slices we have to give up in order to get one extra soda. 
B) number of sodas we have to give up in order to get one extra pizza slice. 
C) total number of sodas that we have divided by the total number of pizza slices that we have. 
D) total number of pizza slices that we have divided by the total number of sodas that we have. 
E) price of a pizza slice minus the price of a soda.

Question 13

A country has a comparative advantage in the production of a good if it can

Accepted Answer

A) produce more of the good than another country. 
B) produce more of the good most efficiently. 
C) produce the good on and remain on its production possibilities frontier. 
D) tradeoff producing the good for another good. 
E) produce the good at the lowest opportunity cost. 
A) produce more of the good than another country. 
B) produce more of the good most efficiently. 
C) produce the good on and remain on its production possibilities frontier. 
D) tradeoff producing the good for another good. 
E) produce the good at the lowest opportunity cost.

Question 14

David takes 10 minutes to process a customer,and 20 minutes to stock the shelves.Danny takes 15 minutes to process a customer,and 15 minutes to stock the shelves.Which of the following statements is true?

Accepted Answer

A) David has an absolute advantage in performing both tasks. 
B) Danny has an absolute advantage in performing both tasks. 
C) David has a comparative advantage in processing customers but not in stocking shelves. 
D) Danny has a comparative advantage in processing customers but not in stocking shelves. 
E) Danny has a comparative advantage in processing customers and in stocking shelves. 
A) David has an absolute advantage in performing both tasks. 
B) Danny has an absolute advantage in performing both tasks. 
C) David has a comparative advantage in processing customers but not in stocking shelves. 
D) Danny has a comparative advantage in processing customers but not in stocking shelves. 
E) Danny has a comparative advantage in processing customers and in stocking shelves.

Question 15

-The table above gives four production possibilities for airplanes and cruise ships.In possibility A,how many resources are devoted to the production of airplanes?

Accepted Answer

A) 0 
B) few 
C) most 
D) all 
E) It is impossible to tell without more information about the prices of airplanes and cruise ships. 
A) 0 
B) few 
C) most 
D) all 
E) It is impossible to tell without more information about the prices of airplanes and cruise ships.

Question 16

-The above figure shows the production possibility frontier for a country.What is the opportunity cost to move from point D to point E?

Accepted Answer

A) 6 thousand bottles of wine 
B) 15 thousand bottles of wine 
C) 6 tons of rice 
D) 9 thousand bottles of wine 
E) Nothing,it is a free lunch. 
A) 6 thousand bottles of wine 
B) 15 thousand bottles of wine 
C) 6 tons of rice 
D) 9 thousand bottles of wine 
E) Nothing,it is a free lunch.

Question 17

"Comparative advantage" is defined as a situation in which one person can produce

Accepted Answer

A) more of all goods than another person. 
B) more of a good than another person. 
C) a good for a lower dollar cost than another person. 
D) a good for a lower opportunity cost than another person. 
E) all goods for lower opportunity costs than another person. 
A) more of all goods than another person. 
B) more of a good than another person. 
C) a good for a lower dollar cost than another person. 
D) a good for a lower opportunity cost than another person. 
E) all goods for lower opportunity costs than another person.

Question 18

Production possibilities frontiers usually curve out and away from the origin.The implication is

Accepted Answer

A) that as resources are used to produce one good,fewer resources are available to produce another good. 
B) that the opportunity cost of producing a good goes down as more of that good is produced. 
C) technological change is present. 
D) that the opportunity cost of producing a good stays the same regardless of how much of that good is produced. 
E) some resources are better at producing one good while other resources are better at producing alternative goods. 
A) that as resources are used to produce one good,fewer resources are available to produce another good. 
B) that the opportunity cost of producing a good goes down as more of that good is produced. 
C) technological change is present. 
D) that the opportunity cost of producing a good stays the same regardless of how much of that good is produced. 
E) some resources are better at producing one good while other resources are better at producing alternative goods.

Question 19

Why is the production possibilities frontier bowed out?

Accepted Answer

The production possibilities frontier is

Question 20

-Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas.Hotels are a capital good that,once built,will help produce still more consumption goods.If Puerto Rico produces more hotels than Hawaii,

Accepted Answer

A) Hawaii's PPF will shift outward further than Puerto Rico's PPF. 
B) Hawaii's PPF will shift inward. 
C) Puerto Rico's PPF will not shift. 
D) Puerto Rico's and Hawaii's PPF will shift outward by the same amount. 
E) Puerto Rico's PPF will shift outward further than Hawaii's PPF. 
A) Hawaii's PPF will shift outward further than Puerto Rico's PPF. 
B) Hawaii's PPF will shift inward. 
C) Puerto Rico's PPF will not shift. 
D) Puerto Rico's and Hawaii's PPF will shift outward by the same amount. 
E) Puerto Rico's PPF will shift outward further than Hawaii's PPF.

-In the above figure,Jill's opportunity cost of producing 1 gallon of soda is ________ of bottled water.

Points inside the PPF are all

-The table above shows the production possibilities for an economy.The opportunity cost of a loaf of bread is ________ when moving from possibility B to possibility C.

What economic concepts are represented in the production possibilities model?

-The above figure shows the production possibility frontier for a country.What is the opportunity cost per ton of rice to move from point B to point D?

The gains from trade include: I.lower prices from competition. Ii.greater output from specialization. Iii.greater variety of goods and services available.

-The table above presents the production possibilities frontier for a nation.Using the information in the table,moving from possibility C to B means that

While moving on the production possibilities frontier,if the opportunity cost of producing one good is 1/2,the opportunity cost of producing the other good (in the same range)is

"If Mexico is currently operating at a point beyond its production possibilities frontier,then there are unemployed or misallocated resources in Mexico." Is this statement true or false? Briefly explain your answer.

-In the table above,Jack's comparative advantage is producing and Jill's comparative advantage is producing .

Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Based on these data,

The opportunity cost of one more slice of pizza in terms of sodas is the

A country has a comparative advantage in the production of a good if it can

David takes 10 minutes to process a customer,and 20 minutes to stock the shelves.Danny takes 15 minutes to process a customer,and 15 minutes to stock the shelves.Which of the following statements is true?

-The table above gives four production possibilities for airplanes and cruise ships.In possibility A,how many resources are devoted to the production of airplanes?

-The above figure shows the production possibility frontier for a country.What is the opportunity cost to move from point D to point E?

"Comparative advantage" is defined as a situation in which one person can produce

Production possibilities frontiers usually curve out and away from the origin.The implication is

Why is the production possibilities frontier bowed out?

Getting Started

The Usand Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 3: The Economic Problem

-In the above figure,Jill's opportunity cost of producing 1 gallon of soda is ________ of bottled water.

Points inside the PPF are all

-The table above shows the production possibilities for an economy.The opportunity cost of a loaf of bread is ________ when moving from possibility B to possibility C.

What economic concepts are represented in the production possibilities model?

-The above figure shows the production possibility frontier for a country.What is the opportunity cost per ton of rice to move from point B to point D?

The gains from trade include: I.lower prices from competition. Ii.greater output from specialization. Iii.greater variety of goods and services available.

-The table above presents the production possibilities frontier for a nation.Using the information in the table,moving from possibility C to B means that

While moving on the production possibilities frontier,if the opportunity cost of producing one good is 1/2,the opportunity cost of producing the other good (in the same range)is

"If Mexico is currently operating at a point beyond its production possibilities frontier,then there are unemployed or misallocated resources in Mexico." Is this statement true or false? Briefly explain your answer.

-In the table above,Jack's comparative advantage is producing ________ and Jill's comparative advantage is producing ________.

Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Based on these data,

The opportunity cost of one more slice of pizza in terms of sodas is the

A country has a comparative advantage in the production of a good if it can

David takes 10 minutes to process a customer,and 20 minutes to stock the shelves.Danny takes 15 minutes to process a customer,and 15 minutes to stock the shelves.Which of the following statements is true?

-The table above gives four production possibilities for airplanes and cruise ships.In possibility A,how many resources are devoted to the production of airplanes?

-The above figure shows the production possibility frontier for a country.What is the opportunity cost to move from point D to point E?

"Comparative advantage" is defined as a situation in which one person can produce

Production possibilities frontiers usually curve out and away from the origin.The implication is

Why is the production possibilities frontier bowed out?

Getting Started

The Usand Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

-In the table above,Jack's comparative advantage is producing and Jill's comparative advantage is producing .