Question 1

-Based on the above table, as the production of pizza increases, the opportunity cost of pizza in terms of forgone cases of soda

Accepted Answer

A)   increases.
B)   decreases.
C)   does not change.
D)   initially increases then decreases.

Question 2

Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________ for Abe than for Zeb.

Accepted Answer

A)   higher; lower
B)   lower; higher
C)   higher; higher
D)   lower; lower

Question 3

The marginal benefit of a good or service

Accepted Answer

A)   increases as more is consumed.
B)   decreases as more is consumed.
C)   remains constant as more is consumed.
D)   decreases as less is consumed.

Question 4

"The United States is more productive in most activities than are most of other countries because it has an absolute advantage in the production of most goods and services. Therefore we should restrict international trade as it only benefits other countries at the expense of the United States." Comment on this statement.

Accepted Answer

The United States may be more productive...

Question 5

-In the figure above, Joe is producing at point A. Joe's opportunity cost of producing one shirt is

Accepted Answer

A)   5/3 of a pair of pants per shirt.
B)   3/5 of a pair of pants per shirt.
C)   5 pairs of pants per shirt.
D)   2 pairs of pants per shirt.

Question 6

In an hour, Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies. ________ advantage in making pizzas.

Accepted Answer

A)   Andy has an absolute
B)   Andy has a comparative
C)   Chris has a comparative
D)   None of the above answers is correct.

Question 7

-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table,

Accepted Answer

A)   France has a comparative advantage in the production of concrete.
B)   the United States has a comparative advantage in the production of concrete.
C)   France has an absolute advantage in the production of concrete.
D)   the United States has a comparative advantage in the production of both goods.

Question 8

If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed

Accepted Answer

A)   no matter what..
B)   as long as the consumer can afford to pay for it.
C)   if the total benefit of the good is greater than its total cost.
D)   if the marginal benefit of the good is greater than its marginal cost.

Question 9

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.

Question 10

-In the figure above, Jill is producing at point A. Jill's opportunity cost producing one pair of pants is

Accepted Answer

A)   2 shirts per pair of pants.
B)   3 shirts per pair of pants.
C)   3/5 of a shirt per pair of pants.
D)   5/3 of a shirt per pair of pants.

Question 11

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 computer

Question 12

To obtain the gains available from comparative advantage, individuals or countries must do more than specialize; they must also

Accepted Answer

A)   save.
B)   invest.
C)   engage in research and development.
D)   trade.

Question 13

2, a country would grow slowest by producing at point A)  A. B)  B. C)  C. D)  D." class="answers-bank-image d-inline" rel="preload" >
-In the above figure, once on PPF2, a country would grow slowest by producing at point

Accepted Answer

A)   A.
B)   B.
C)   C.
D)   D.

Question 14

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.

Question 15

-Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved

Accepted Answer

A)   the highest marginal benefit.
B)   production efficiency.
C)   the lowest marginal cost.
D)   the highest opportunity cost.

Question 16

The production possibilities frontier itself illustrates

Accepted Answer

A)   all goods that can be produced by an economy.
B)   the combination of goods and services that can be produced efficiently.
C)   all goods and services that are desired but cannot be produced due to scarce resources.
D)   all possible production of capital goods.

Question 17

Over the past several decades, the United States has devoted a greater fraction of its resources to consumption than Hong Kong, which is why the U.S. economy grew faster than Hong Kong's economy.

Accepted Answer

A) True 
 B)False

Question 18

2 - F1 additional food by moving from point A to point B, it will A)  have to find additional workers, because the country already is operating on its production possibilities frontier. B)  be unable to do so until additional technological progress is made. C)  have to sacrifice C1 - C2 clothing in order to free the resources necessary to produce the additional food. D)  require that all the unemployed resources in the country be put to work." class="answers-bank-image d-inline" rel="preload" >
-The figure above illustrates that if this country wishes to have F2 - F1 additional food by moving from point A to point B, it will

Accepted Answer

A)   have to find additional workers, because the country already is operating on its production possibilities frontier.
B)   be unable to do so until additional technological progress is made.
C)   have to sacrifice C1 - C2 clothing in order to free the resources necessary to produce the additional food.
D)   require that all the unemployed resources in the country be put to work.

Question 19

Suppose that when NBC produces 1 new drama series in a season it gives up the chance to produce 3 new reality shows. This means that

Accepted Answer

A)   the opportunity cost of a new drama series is 1/3 of a new reality show.
B)   the opportunity cost of a 1 new reality show is 1/3 of a new drama series.
C)   NBC has a comparative advantage in producing new drama series.
D)   NBC has a comparative advantage in producing new reality shows.

Exam 2: The Economic Problem

To obtain the gains available from comparative advantage, individuals or countries must do more than specialize; they must also

Correct Answer
verified

-Based on the above table, as the production of pizza increases, the opportunity cost of pizza in terms of forgone cases of soda

Correct Answer
verified

In an hour, Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies. ________ advantage in making pizzas.

Correct Answer
verified

-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table,

Correct Answer
verified

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

Correct Answer
verified

If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed

Correct Answer
verified

Over the past several decades, the United States has devoted a greater fraction of its resources to consumption than Hong Kong, which is why the U.S. economy grew faster than Hong Kong's economy.

Correct Answer
verified

-The figure above illustrates that if this country wishes to have F₂ - F₁ additional food by moving from point A to point B, it will

Correct Answer
verified

A PPF bows outward because

Correct Answer
verified

-Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved

Correct Answer
verified

The production possibilities frontier itself illustrates

Correct Answer
verified

The marginal benefit of a good or service

Correct Answer
verified

Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish is for Abe than for Zeb, and the opportunity cost of fruit is for Abe than for Zeb.

Correct Answer
verified

Correct Answer
verified
The United States may be more productive...
View Answer

-In the figure above, Joe is producing at point A. Joe's opportunity cost of producing one shirt is

Correct Answer
verified

Correct Answer
verified

Suppose that when NBC produces 1 new drama series in a season it gives up the chance to produce 3 new reality shows. This means that

Correct Answer
verified

-In the figure above, Jill is producing at point A. Jill's opportunity cost producing one pair of pants is

Correct Answer
verified

-In the above figure, once on PPF₂, a country would grow slowest by producing at point

Correct Answer
verified

Exam 2: The Economic Problem

To obtain the gains available from comparative advantage, individuals or countries must do more than specialize; they must also

Correct AnswerverifiedShow Answer

-Based on the above table, as the production of pizza increases, the opportunity cost of pizza in terms of forgone cases of soda

Correct AnswerverifiedShow Answer

In an hour, Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies. ________ advantage in making pizzas.

Correct AnswerverifiedShow Answer

-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed

Correct AnswerverifiedShow Answer

Over the past several decades, the United States has devoted a greater fraction of its resources to consumption than Hong Kong, which is why the U.S. economy grew faster than Hong Kong's economy.

Correct AnswerverifiedShow Answer

-The figure above illustrates that if this country wishes to have F2 - F1 additional food by moving from point A to point B, it will

Correct AnswerverifiedShow Answer

A PPF bows outward because

Correct AnswerverifiedShow Answer

-Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved

Correct AnswerverifiedShow Answer

The production possibilities frontier itself illustrates

Correct AnswerverifiedShow Answer

The marginal benefit of a good or service

Correct AnswerverifiedShow Answer

Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________ for Abe than for Zeb.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe United States may be more productive...View AnswerShow Answer

-In the figure above, Joe is producing at point A. Joe's opportunity cost of producing one shirt is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that when NBC produces 1 new drama series in a season it gives up the chance to produce 3 new reality shows. This means that

Correct AnswerverifiedShow Answer

-In the figure above, Jill is producing at point A. Jill's opportunity cost producing one pair of pants is

Correct AnswerverifiedShow Answer

-In the above figure, once on PPF2, a country would grow slowest by producing at point

Correct AnswerverifiedShow Answer

Correct Answer
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-The figure above illustrates that if this country wishes to have F₂ - F₁ additional food by moving from point A to point B, it will

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish is for Abe than for Zeb, and the opportunity cost of fruit is for Abe than for Zeb.

Correct Answer
verified

Correct Answer
verified
The United States may be more productive...
View Answer

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Correct Answer
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Correct Answer
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-In the above figure, once on PPF₂, a country would grow slowest by producing at point

Correct Answer
verified