Question 1

-In the figure above, the marginal cost of the second computer is

Accepted Answer

A)   2 television sets per computer.
B)   3 television sets per computer.
C)   5 television sets per computer.
D)   30 television sets per computer.E) A) and C)
F) A) and B)

Question 2

-The opportunity cost of moving from point a to point b in the above figure is

Accepted Answer

A)   zero.
B)   3/2 pairs of socks per sweater.
C)   3 pairs of socks.
D)   2 sweaters.E) B) and D)
F) All of the above

Question 3

-In the above figure, when 2000 bicycles are produced each month, we can see that

Accepted Answer

A)   the marginal benefit from another bicycle is greater than the marginal cost of another bicycle.
B)   more bicycles should be produced to reach the allocatively efficient level of output.
C)   the economy is very efficient at the production of bicycles because the marginal benefit exceeds the marginal cost.
D)   Both answers A and B are correct.E) A) and D)
F) B) and C)

Question 4

-In the above figure, if 4000 bicycles are produced per month

Accepted Answer

A)   marginal benefit is greater than marginal cost.
B)   fewer bicycles should be produced to reach the allocatively efficient level of output.
C)   the marginal cost of production is 2 bottles of soda per bicycle.
D)   Both answers A and B are correct.E) A) and B)
F) A) and C)

Question 5

Blue Violet's Sweet Pansy's
production possibilities production possibilities
 
-Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities.

Accepted Answer

A)   Blue Violet has a comparative advantage in teapots.
B)   Sweet Pansy has a comparative advantage in teapots.
C)   Both have a comparative advantage in teapots.
D)   Sweet Pansy has an absolute advantage in teapots.E) A) and B)
F) A) and C)

Question 6

A person who has an absolute advantage in the production of all goods will

Accepted Answer

A)   also have a comparative advantage in the production of all goods.
B)   not be able to gain from specialization and exchange.
C)   have a production possibilities frontier with a constant slope.
D)   have a comparative advantage in the production of some goods but not in the production of others.E) A) and D)
F) A) and C)

Question 7

-The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?

Accepted Answer

In China, to produce 8 cloths has an opp...

Question 8

-The table above shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone. If ________ pizzas are produced, the quantity of soda that people are willing to give up to get an additional pizza is more than the quantity of soda that they must give up to get that additional pizza.

Accepted Answer

A)   any quantity other than 40
B)   40
C)   more than 40
D)   fewer than 40E) B) and D)
F) A) and B)

Question 9

The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. As you move down toward the right along the PPF, the marginal cost of

Accepted Answer

A)   shoes decreases.
B)   shoes increases.
C)   shirts increases.
D)   shoes and shirts is equal at the midpoint between the vertical and horizontal axis.E) A) and B)
F) C) and D)

Question 10

The rights of an owner to use and exchange property are

Accepted Answer

A)   capitalist rights.
B)   socialist rights.
C)   property rights.
D)   money rights.E) A) and B)
F) A) and C)

Question 11

A PPF bows outward because

Accepted Answer

A)   not all resources are equally productive in all activities.
B)   consumers prefer about equal amounts of the different goods.
C)   entrepreneurial talent is more abundant than human capital.
D)   resources are used inefficiently.E) A) and B)
F) B) and C)

Question 12

-Refer to the above figure. Mario is self-sufficient and so is Mia. Each produces 6 dishes of pasta and 4 pizzas. Mario and Mia decide to specialize and trade. After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and Mario's opportunity cost of a pizza has ________.

Accepted Answer

A)   decreased, decreased
B)   decreased, increased
C)   increased, increased
D)   increased, decreasedE) All of the above
F) None of the above

Question 13

If an economy is operating at a point inside the production possibilities frontier, then

Accepted Answer

A)   society's resources are being inefficiently utilized.
B)   the PPF curve will shift inward.
C)   society's resources are being used to produce too many consumer goods.
D)   economic policy must retard further growth of the economy.E) B) and C)
F) B) and D)

Question 14

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or 1 computer in an hour. The opportunity cost of 20 cameras in terms of computers in Germany is

Accepted Answer

A)   10 computers per camera.
B)   2 computers per camera.
C)   1 computer per camera.
D)   1/20 of a computer per camera.E) A) and B)
F) B) and C)

Question 15

Scarcity is represented on a production possibilities frontier figure by

Accepted Answer

A)   the amount of the good on the horizontal axis forgone.
B)   the fact that there are only two goods in the diagram.
C)   technological progress.
D)   the fact there are attainable and unattainable points.E) A) and D)
F) A) and C)

Question 16

Comparative advantage is

Accepted Answer

A)   the ability to perform an activity at a lower opportunity cost than anyone else.
B)   the ability to perform an activity at a higher opportunity cost than anyone else.
C)   the ability to perform an activity at a zero opportunity cost.
D)   another name for absolute advantage.E) All of the above
F) None of the above

Question 17

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

Accepted Answer

A)   making the production possibilities frontier more bowed out.
B)   making the production possibilities frontier less bowed out.
C)   shifting the production possibilities frontier outward.
D)   shifting the production possibilities frontier inward.E) None of the above
F) B) and D)

Question 18

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or one computer in an hour. Germany wishes to purchase computers from the United States in exchange for cameras. What is the maximum number of cameras per computer that Germany would be willing to pay the United States?

Accepted Answer

A)   10 cameras per computer
B)   20 cameras per computer
C)   1 camera per computer
D)   2 cameras per computerE) A) and B)
F) None of the above

Question 19

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has ________ advantage in producing ________.

Accepted Answer

A)   an absolute; shoes
B)   a comparative; shoes
C)   an absolute; bookshelves
D)   a comparative; bookshelvesE) B) and D)
F) A) and D)

Question 20

A computer software program is most strongly an example of

Accepted Answer

A)   real property.
B)   fiat property.
C)   intellectual property.
D)   vicarious property.E) B) and C)
F) None of the above

Exam 2: The Economic Problem

Comparative advantage is

Correct Answer
verified

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has advantage in producing .

Correct Answer
verified

-The opportunity cost of moving from point a to point b in the above figure is

Correct Answer
verified

The rights of an owner to use and exchange property are

Correct Answer
verified

-In the figure above, the marginal cost of the second computer is

Correct Answer
verified

A PPF bows outward because

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. As you move down toward the right along the PPF, the marginal cost of

Correct Answer
verified

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

Correct Answer
verified

Blue Violet's Sweet Pansy's production possibilities production possibilities -Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities.

Correct Answer
verified

-In the above figure, when 2000 bicycles are produced each month, we can see that

Correct Answer
verified

If an economy is operating at a point inside the production possibilities frontier, then

Correct Answer
verified

-In the above figure, if 4000 bicycles are produced per month

Correct Answer
verified

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or 1 computer in an hour. The opportunity cost of 20 cameras in terms of computers in Germany is

Correct Answer
verified

Scarcity is represented on a production possibilities frontier figure by

Correct Answer
verified

-The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?

Correct Answer
verified
In China, to produce 8 cloths has an opp...
View Answer

A computer software program is most strongly an example of

Correct Answer
verified

A person who has an absolute advantage in the production of all goods will

Correct Answer
verified

Exam 2: The Economic Problem

Comparative advantage is

Correct AnswerverifiedShow Answer

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has ________ advantage in producing ________.

Correct AnswerverifiedShow Answer

-The opportunity cost of moving from point a to point b in the above figure is

Correct AnswerverifiedShow Answer

The rights of an owner to use and exchange property are

Correct AnswerverifiedShow Answer

-In the figure above, the marginal cost of the second computer is

Correct AnswerverifiedShow Answer

A PPF bows outward because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. As you move down toward the right along the PPF, the marginal cost of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Blue Violet's Sweet Pansy's production possibilities production possibilities -Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities.

Correct AnswerverifiedShow Answer

-In the above figure, when 2000 bicycles are produced each month, we can see that

Correct AnswerverifiedShow Answer

If an economy is operating at a point inside the production possibilities frontier, then

Correct AnswerverifiedShow Answer

-In the above figure, if 4000 bicycles are produced per month

Correct AnswerverifiedShow Answer

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or 1 computer in an hour. The opportunity cost of 20 cameras in terms of computers in Germany is

Correct AnswerverifiedShow Answer

Scarcity is represented on a production possibilities frontier figure by

Correct AnswerverifiedShow Answer

-The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?

Correct AnswerverifiedIn China, to produce 8 cloths has an opp...View AnswerShow Answer

A computer software program is most strongly an example of

Correct AnswerverifiedShow Answer

A person who has an absolute advantage in the production of all goods will

Correct AnswerverifiedShow Answer

Correct Answer
verified

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has advantage in producing .

Correct Answer
verified

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Correct Answer
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Correct Answer
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Correct Answer
verified
In China, to produce 8 cloths has an opp...
View Answer

Correct Answer
verified

Correct Answer
verified