Question 1

Refer to the accompanying figure to answer the questions that follow.
  
-The inefficient point(s)is (are):

Accepted Answer

A) point A. 
B) points C and D. 
C) point C. 
D) point D. 
E) points B,C,and E. 
A) point A. 
B) points C and D. 
C) point C. 
D) point D. 
E) points B,C,and E. A

Question 2

Refer to the following table to answer the questions that follow.
  
-Which statement best describes the opportunity cost evident in the production possibilities frontier (PPF)for the accompanying figure?

Accepted Answer

A) The law of increasing relative cost applies because the PPF is a straight line. 
B) The law of increasing relative cost applies because the PPF is bowed outward. 
C) The opportunity cost is constant because the PPF is a straight line. 
D) The opportunity cost is constant because the PPF is bowed outward. 
E) The opportunity cost decreases because the line has negative slope. 
A) The law of increasing relative cost applies because the PPF is a straight line. 
B) The law of increasing relative cost applies because the PPF is bowed outward. 
C) The opportunity cost is constant because the PPF is a straight line. 
D) The opportunity cost is constant because the PPF is bowed outward. 
E) The opportunity cost decreases because the line has negative slope. C

Question 3

When testing a paper airplane on your campus quad,which of the following would be an exogenous factor?

Accepted Answer

A) the weight of the paper used in making the plane 
B) the ratio of wingspan to plane length 
C) the height of the body of the plane 
D) the level of wind encountered 
E) the number of folds in the wings 
A) the weight of the paper used in making the plane 
B) the ratio of wingspan to plane length 
C) the height of the body of the plane 
D) the level of wind encountered 
E) the number of folds in the wings D

Question 4

Refer to the following figure to answer the questions that follow.
  
-Which point in the corresponding figure shows that productive resources are not fully employed?

Accepted Answer

A) point A 
B) point B 
C) point C 
D) point D 
E) point E 
A) point A 
B) point B 
C) point C 
D) point D 
E) point E

Question 5

Refer to the following figure for the questions that follow.
  
-The opportunity cost of increasing production of blueberry pies from 7 to 11 pies is:

Accepted Answer

A) 2 blueberry pies. 
B) 14 apple pies. 
C) 7 blueberry pies. 
D) 4 apple pies. 
E) 2 apple pies. 
A) 2 blueberry pies. 
B) 14 apple pies. 
C) 7 blueberry pies. 
D) 4 apple pies. 
E) 2 apple pies.

Question 6

Use these production possibilities frontier (PPF)curves,which compare the ancient production of agricultural products to art and literature,to answer the questions that follow.

-Suppose the plow is invented and agricultural productivity greatly increases.Which of the following graphs best depicts how this would affect the PPF?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
E) Graph E 
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
E) Graph E

Question 7

Why do economists use models?

Accepted Answer

A) Models are used to add complexity to a simple world. 
B) Models allow us to study a simplified version of a complex world. 
C) Models allow us to control exogenous factors. 
D) Models make the world harder to understand. 
E) Models allow us to examine more factors than what actually exists in our world. 
A) Models are used to add complexity to a simple world. 
B) Models allow us to study a simplified version of a complex world. 
C) Models allow us to control exogenous factors. 
D) Models make the world harder to understand. 
E) Models allow us to examine more factors than what actually exists in our world.

Question 8

Refer to the following table to answer the questions that follow.
  
-Given the same quantity of resources,what is Jay-Z's opportunity cost of producing a New York pizza?

Accepted Answer

A) 5/2 Philly cheesesteaks 
B) 1/3 Philly cheesesteak 
C) 3 Philly cheesesteaks 
D) 120/125 New York pizza 
E) 4/5 New York pizza 
A) 5/2 Philly cheesesteaks 
B) 1/3 Philly cheesesteak 
C) 3 Philly cheesesteaks 
D) 120/125 New York pizza 
E) 4/5 New York pizza

Question 9

You have an absolute advantage in producing something whenever:

Accepted Answer

A) you enjoy producing that good. 
B) you can produce more of it than someone else can using the same quantity of resources. 
C) your opportunity cost is constant. 
D) your opportunity cost is lower than that of other producers. 
E) you have specific training in the production of that good. 
A) you enjoy producing that good. 
B) you can produce more of it than someone else can using the same quantity of resources. 
C) your opportunity cost is constant. 
D) your opportunity cost is lower than that of other producers. 
E) you have specific training in the production of that good.

Question 10

You can see that the opportunity cost of moving from point B to point D is different from the opportunity cost of moving from point D to point C because:

Accepted Answer

A) apples are bigger than blueberries. 
B) the slope of the production possibilities frontier (PPF)is different in each of the two segments. 
C) they are all efficient points. 
D) they are all attainable points. 
E) the opportunity cost is constant along the PPF. 
A) apples are bigger than blueberries. 
B) the slope of the production possibilities frontier (PPF)is different in each of the two segments. 
C) they are all efficient points. 
D) they are all attainable points. 
E) the opportunity cost is constant along the PPF.

Question 11

A society that is producing its maximum combination of goods and using all available resources for production:

Accepted Answer

A) has minimized its opportunity cost. 
B) has maximized its opportunity cost. 
C) is operating on its production possibilities frontier (PPF). 
D) is operating outside its production possibilities frontier (PPF). 
E) has eliminated scarcity. 
A) has minimized its opportunity cost. 
B) has maximized its opportunity cost. 
C) is operating on its production possibilities frontier (PPF). 
D) is operating outside its production possibilities frontier (PPF). 
E) has eliminated scarcity.

Question 12

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF)?

Accepted Answer

A) It will cause the PPF to shift inward. 
B) It will cause the PPF to shift outward. 
C) It will move society to a point farther inside the PPF. 
D) It will move society outward to a point closer to or on the PPF. 
E) It will push society to a point outside its PPF. 
A) It will cause the PPF to shift inward. 
B) It will cause the PPF to shift outward. 
C) It will move society to a point farther inside the PPF. 
D) It will move society outward to a point closer to or on the PPF. 
E) It will push society to a point outside its PPF.

Question 13

Consider the following scenario to answer the questions that follow: Two friends,Rachel and Joey,enjoy baking bread and making apple pies.Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie.Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-What is Joey's opportunity cost of baking 1 pie?

Accepted Answer

A) 4 pies 
B) 2 pies 
C) 1 pie 
D) 1 loaf of bread 
E) 1/2 loaf of bread 
A) 4 pies 
B) 2 pies 
C) 1 pie 
D) 1 loaf of bread 
E) 1/2 loaf of bread

Question 14

When the opportunity cost of producing a good rises as you produce more of it,you experience:

Accepted Answer

A) normative economics. 
B) increasing relative costs. 
C) downward-sloping demand. 
D) inferior goods. 
E) increasing marginal utility. 
A) normative economics. 
B) increasing relative costs. 
C) downward-sloping demand. 
D) inferior goods. 
E) increasing marginal utility.

Question 15

The figures below depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli.Refer to these figures to answer the questions that follow.
  
-What is Pam's opportunity cost of making 1 stromboli?

Accepted Answer

A) 30 pizzas 
B) 20 stromboli 
C) 2 pizzas 
D) 1.5 pizzas 
E) 2/3 pizza 
A) 30 pizzas 
B) 20 stromboli 
C) 2 pizzas 
D) 1.5 pizzas 
E) 2/3 pizza

Question 16

Consider the following scenario.Two friends,Rachel and Joey,enjoy baking bread and making apple pies.Rachel takes two hours to bake one loaf of bread and one hour to make one pie.Joey takes four hours to bake one loaf of bread and four hours to make one pie.If Rachel and Joey decide to specialize in order to maximize their combined output,who should produce what?

Accepted Answer

A) Joey should specialize in making pies because he has an absolute advantage. 
B) Rachel should specialize in making pies and Joey should specialize in making bread. 
C) Joey should specialize in making pies and Rachel should specialize in making bread. 
D) Rachel should specialize in making bread and pies because she has a comparative advantage in both. 
E) Rachel should not specialize because she is better at producing both. 
A) Joey should specialize in making pies because he has an absolute advantage. 
B) Rachel should specialize in making pies and Joey should specialize in making bread. 
C) Joey should specialize in making pies and Rachel should specialize in making bread. 
D) Rachel should specialize in making bread and pies because she has a comparative advantage in both. 
E) Rachel should not specialize because she is better at producing both.

Question 17

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called:

Accepted Answer

A) a production possibilities frontier (PPF). 
B) a supply curve. 
C) opportunity cost. 
D) a consumer demand curve. 
E) absolute advantage. 
A) a production possibilities frontier (PPF). 
B) a supply curve. 
C) opportunity cost. 
D) a consumer demand curve. 
E) absolute advantage.

Question 18

Mrs.Abel has a comparative advantage in producing cabbage if,in comparison to Mrs.Bee,Mrs.Abel can grow cabbage:

Accepted Answer

A) with less labor. 
B) with fewer inputs. 
C) at a lower equilibrium. 
D) at a lower opportunity cost. 
E) with less technology. 
A) with less labor. 
B) with fewer inputs. 
C) at a lower equilibrium. 
D) at a lower opportunity cost. 
E) with less technology.

Question 19

The figures below depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between building wooden boats and solving crimes.Refer to these figures to answer the questions that follow.
  
-What is DiNozzo's opportunity cost for solving a crime?

Accepted Answer

A) 20 solved crimes 
B) 30 solved crimes 
C) 5 solved crimes 
D) 1/20 of a boat 
E) 1/10 of a boat 
A) 20 solved crimes 
B) 30 solved crimes 
C) 5 solved crimes 
D) 1/20 of a boat 
E) 1/10 of a boat

Question 20

Suppose that,during your afternoon shift working at the library,you could either reshelve books or process interlibrary loan (ILL)requests.Draw a production possibilities frontier (PPF)that describes your production trade-offs.Your production of each of these goods is subject to increasing relative costs in production,so be sure that your graph reflects this fact.
Now suppose that a new online request system increases your efficiency at processing ILL requests but does not affect your reshelving ability.Show,on the same graph,how this new innovation changes the PPF.

Accepted Answer

The answer of Suppose that,during your afternoon shift working at...

Refer to the accompanying figure to answer the questions that follow. -The inefficient point(s)is (are):

Refer to the following table to answer the questions that follow. -Which statement best describes the opportunity cost evident in the production possibilities frontier (PPF)for the accompanying figure?

When testing a paper airplane on your campus quad,which of the following would be an exogenous factor?

Refer to the following figure to answer the questions that follow. -Which point in the corresponding figure shows that productive resources are not fully employed?

Refer to the following figure for the questions that follow. -The opportunity cost of increasing production of blueberry pies from 7 to 11 pies is:

Why do economists use models?

Refer to the following table to answer the questions that follow. -Given the same quantity of resources,what is Jay-Z's opportunity cost of producing a New York pizza?

You have an absolute advantage in producing something whenever:

You can see that the opportunity cost of moving from point B to point D is different from the opportunity cost of moving from point D to point C because:

A society that is producing its maximum combination of goods and using all available resources for production:

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF)?

When the opportunity cost of producing a good rises as you produce more of it,you experience:

The figures below depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli.Refer to these figures to answer the questions that follow. -What is Pam's opportunity cost of making 1 stromboli?

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called:

Mrs.Abel has a comparative advantage in producing cabbage if,in comparison to Mrs.Bee,Mrs.Abel can grow cabbage:

The figures below depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between building wooden boats and solving crimes.Refer to these figures to answer the questions that follow. -What is DiNozzo's opportunity cost for solving a crime?

The Five Foundations of Economics

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters

Exam 2: Model Building and Gains From Trade

Refer to the accompanying figure to answer the questions that follow. -The inefficient point(s)is (are):

Refer to the following table to answer the questions that follow. -Which statement best describes the opportunity cost evident in the production possibilities frontier (PPF)for the accompanying figure?

When testing a paper airplane on your campus quad,which of the following would be an exogenous factor?

Refer to the following figure to answer the questions that follow. -Which point in the corresponding figure shows that productive resources are not fully employed?

Refer to the following figure for the questions that follow. -The opportunity cost of increasing production of blueberry pies from 7 to 11 pies is:

Why do economists use models?

Refer to the following table to answer the questions that follow. -Given the same quantity of resources,what is Jay-Z's opportunity cost of producing a New York pizza?

You have an absolute advantage in producing something whenever:

You can see that the opportunity cost of moving from point B to point D is different from the opportunity cost of moving from point D to point C because:

A society that is producing its maximum combination of goods and using all available resources for production:

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF)?

When the opportunity cost of producing a good rises as you produce more of it,you experience:

The figures below depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli.Refer to these figures to answer the questions that follow. -What is Pam's opportunity cost of making 1 stromboli?

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called:

Mrs.Abel has a comparative advantage in producing cabbage if,in comparison to Mrs.Bee,Mrs.Abel can grow cabbage:

The figures below depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between building wooden boats and solving crimes.Refer to these figures to answer the questions that follow. -What is DiNozzo's opportunity cost for solving a crime?

The Five Foundations of Economics

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters