Question 1

An opportunity cost of economic growth is

Accepted Answer

A)  the capital accumulation given up to increase present consumption. 
B)  the increased future consumption. 
C)  the present consumption given up to accumulate capital. 
D)  None of the above because there is no opportunity cost since if an economy grows, it can produce more of all goods. 
A)  the capital accumulation given up to increase present consumption. 
B)  the increased future consumption. 
C)  the present consumption given up to accumulate capital. 
D)  None of the above because there is no opportunity cost since if an economy grows, it can produce more of all goods. C

Question 2

According to the principle of comparative advantage, if the United States trades with Mexico, most likely,

Accepted Answer

A)  the United States will benefit and Mexico will lose. 
B)  the United States will lose and Mexico will benefit. 
C)  neither of the countries will benefit. 
D)  both countries will benefit. 
A)  the United States will benefit and Mexico will lose. 
B)  the United States will lose and Mexico will benefit. 
C)  neither of the countries will benefit. 
D)  both countries will benefit. D

Question 3

-The table above lists six points on the production possibilities frontier for cheese and DVDs. What is the opportunity cost of producing the 7th ton of cheese?

Accepted Answer

A)  16 DVDs 
B)  8 DVDs 
C)  20 DVDs 
D)  28 DVDs 
A)  16 DVDs 
B)  8 DVDs 
C)  20 DVDs 
D)  28 DVDs B

Question 4

-Which of the following is NOT a factor of production?

Accepted Answer

A)  mineral resources 
B)  money 
C)  a computer programmer 
D)  a commercial aircraft 
A)  mineral resources 
B)  money 
C)  a computer programmer 
D)  a commercial aircraft

Question 5

-All economic questions arise because

Accepted Answer

A)  of scarcity. 
B)  production possibilities are unlimited. 
C)  our wants are limited. 
D)  people are irrational. 
A)  of scarcity. 
B)  production possibilities are unlimited. 
C)  our wants are limited. 
D)  people are irrational.

Question 6

-Jen won $900 in a lottery. She has a choice between using the money to buy a sofa, a television, or going on a vacation. If she chooses to buy a television, the opportunity cost of this decision is

Accepted Answer

A)  zero because she won the money. 
B)  the sofa and the vacation trip. 
C)  the sofa, the vacation trip, and $900. 
D)  the sofa if that was her second choice. 
A)  zero because she won the money. 
B)  the sofa and the vacation trip. 
C)  the sofa, the vacation trip, and $900. 
D)  the sofa if that was her second choice.

Question 7

-The opportunity cost of a good is

Accepted Answer

A)  the income you forgo to get it. 
B)  the lowest valued alternative you give up to get it. 
C)  the highest valued alternative you give up to get it. 
D)  all alternatives you give up to get it. 
A)  the income you forgo to get it. 
B)  the lowest valued alternative you give up to get it. 
C)  the highest valued alternative you give up to get it. 
D)  all alternatives you give up to get it.

Question 8

-The table above lists six points on the production possibilities frontier for cheese and DVDs. Given this information, which of the following combinations is unattainable?

Accepted Answer

A)  2 tons of cheese and 56 thousand DVDs 
B)  8 tons of cheese and 21 thousand DVDs 
C)  6 tons of cheese and 34 thousand DVDs 
D)  7 tons of cheese and 20 thousand DVDs 
A)  2 tons of cheese and 56 thousand DVDs 
B)  8 tons of cheese and 21 thousand DVDs 
C)  6 tons of cheese and 34 thousand DVDs 
D)  7 tons of cheese and 20 thousand DVDs

Question 9

Country X devoted 70 percent of its resources to consumption, while Country Y devoted 80 percent to consumption. Other things being equal, you can predict that

Accepted Answer

A)  Country X's opportunity cost of economic growth is lower than Country Y's. 
B)  Country Y's rate of capital accumulation is higher than Country X's 
C)  Country Y's economy will grow faster than Country X's. 
D)  Country X's economy will grow faster than Country Y's. 
A)  Country X's opportunity cost of economic growth is lower than Country Y's. 
B)  Country Y's rate of capital accumulation is higher than Country X's 
C)  Country Y's economy will grow faster than Country X's. 
D)  Country X's economy will grow faster than Country Y's.

Question 10

-The table above lists six points on the production possibilities frontier for cheese and DVDs. From this information you can conclude that production is inefficient if this economy produces

Accepted Answer

A)  2 tons of cheese and 56 thousand DVDs. 
B)  8 tons of cheese and 21 thousand DVDs. 
C)  5 tons of cheese and 48 thousand DVDs. 
D)  7 tons of cheese and 20 thousand DVDs. 
A)  2 tons of cheese and 56 thousand DVDs. 
B)  8 tons of cheese and 21 thousand DVDs. 
C)  5 tons of cheese and 48 thousand DVDs. 
D)  7 tons of cheese and 20 thousand DVDs.

Question 11

Lizzie takes 20 seconds to stuff an envelope and 10 seconds to seal it. Arnold takes 15 seconds to stuff an envelope and 5 seconds to seal it. Lizzie has a comparative advantage in ________ and Arnold has a comparative advantage in ________.

Accepted Answer

A)  sealing envelopes; stuffing them 
B)  stuffing envelopes; sealing them 
C)  neither of these activities; both activities 
D)  both activities; neither of these activities 
A)  sealing envelopes; stuffing them 
B)  stuffing envelopes; sealing them 
C)  neither of these activities; both activities 
D)  both activities; neither of these activities

An opportunity cost of economic growth is

According to the principle of comparative advantage, if the United States trades with Mexico, most likely,

-The table above lists six points on the production possibilities frontier for cheese and DVDs. What is the opportunity cost of producing the 7th ton of cheese?

-Which of the following is NOT a factor of production?

-All economic questions arise because

-Jen won $900 in a lottery. She has a choice between using the money to buy a sofa, a television, or going on a vacation. If she chooses to buy a television, the opportunity cost of this decision is

-The opportunity cost of a good is

-The table above lists six points on the production possibilities frontier for cheese and DVDs. Given this information, which of the following combinations is unattainable?

Country X devoted 70 percent of its resources to consumption, while Country Y devoted 80 percent to consumption. Other things being equal, you can predict that

-The table above lists six points on the production possibilities frontier for cheese and DVDs. From this information you can conclude that production is inefficient if this economy produces

Lizzie takes 20 seconds to stuff an envelope and 10 seconds to seal it. Arnold takes 15 seconds to stuff an envelope and 5 seconds to seal it. Lizzie has a comparative advantage in and Arnold has a comparative advantage in .

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

Exam 21: Extension A: Review

An opportunity cost of economic growth is

According to the principle of comparative advantage, if the United States trades with Mexico, most likely,

-The table above lists six points on the production possibilities frontier for cheese and DVDs. What is the opportunity cost of producing the 7th ton of cheese?

-Which of the following is NOT a factor of production?

-All economic questions arise because

-Jen won $900 in a lottery. She has a choice between using the money to buy a sofa, a television, or going on a vacation. If she chooses to buy a television, the opportunity cost of this decision is

-The opportunity cost of a good is

-The table above lists six points on the production possibilities frontier for cheese and DVDs. Given this information, which of the following combinations is unattainable?

Country X devoted 70 percent of its resources to consumption, while Country Y devoted 80 percent to consumption. Other things being equal, you can predict that

-The table above lists six points on the production possibilities frontier for cheese and DVDs. From this information you can conclude that production is inefficient if this economy produces

Lizzie takes 20 seconds to stuff an envelope and 10 seconds to seal it. Arnold takes 15 seconds to stuff an envelope and 5 seconds to seal it. Lizzie has a comparative advantage in ________ and Arnold has a comparative advantage in ________.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

Lizzie takes 20 seconds to stuff an envelope and 10 seconds to seal it. Arnold takes 15 seconds to stuff an envelope and 5 seconds to seal it. Lizzie has a comparative advantage in and Arnold has a comparative advantage in .