Question 1

To say some person has a comparative advantage in the writing of an economics textbook means that

Accepted Answer

A)  she can write a textbook faster than anyone else. 
B)  she has the best word processing technology. 
C)  her book will have more features. 
D)  her book will be the easiest to read. 
E)  she has a low opportunity cost of writing an economics textbook. 
A)  she can write a textbook faster than anyone else. 
B)  she has the best word processing technology. 
C)  her book will have more features. 
D)  her book will be the easiest to read. 
E)  she has a low opportunity cost of writing an economics textbook. E

Question 2

For any efficient point with less than 10 computers and more than 120 calculators,Smith will __________ and Jones will __________.

Accepted Answer

A)  split his time between the two;only produce calculators 
B)  split his time between the two;split his time between the two 
C)  only produce calculators;only produce computers 
D)  only produce computers;only produce calculators 
E)  evenly divide his time between the two;evenly divide his time between the two 
A)  split his time between the two;only produce calculators 
B)  split his time between the two;split his time between the two 
C)  only produce calculators;only produce computers 
D)  only produce computers;only produce calculators 
E)  evenly divide his time between the two;evenly divide his time between the two A

Question 3

In a two-person economy,Little Joe can trap a maximum of 6 rabbits or catch 10 fish a week,while his father can trap 12 rabbits or catch 15 fish per week.If their family wants to consume 20 fish per week while maximizing their joint production,

Accepted Answer

A)  the father should specialize in producing only fish,and Little Joe should produce both fish and rabbits. 
B)  Little Joe should specialize in producing only fish,and his father should produce both fish and rabbits. 
C)  Little Joe should specialize in producing fish,and his father should produce rabbits. 
D)  Little Joe should specialize in producing only rabbits,and his father should produce fish. 
E)  each should produce both fish and rabbits. 
A)  the father should specialize in producing only fish,and Little Joe should produce both fish and rabbits. 
B)  Little Joe should specialize in producing only fish,and his father should produce both fish and rabbits. 
C)  Little Joe should specialize in producing fish,and his father should produce rabbits. 
D)  Little Joe should specialize in producing only rabbits,and his father should produce fish. 
E)  each should produce both fish and rabbits. B

Question 4

-Bobby Jo's opportunity cost of an extra bale of hemp is __________ and Mary Lou's is __________.

Accepted Answer

A)  0.33 fewer jugs of moonshine;0.29 fewer jugs of moonshine 
B)  3 fewer jugs of moonshine;3.5 fewer jugs of moonshine 
C)  3 fewer jugs of moonshine;0.29 fewer jugs of moonshine 
D)  0.33 fewer jugs of moonshine;3.5 fewer jugs of moonshine 
E)  27 fewer jugs of moonshine;14 fewer jugs of moonshine 
A)  0.33 fewer jugs of moonshine;0.29 fewer jugs of moonshine 
B)  3 fewer jugs of moonshine;3.5 fewer jugs of moonshine 
C)  3 fewer jugs of moonshine;0.29 fewer jugs of moonshine 
D)  0.33 fewer jugs of moonshine;3.5 fewer jugs of moonshine 
E)  27 fewer jugs of moonshine;14 fewer jugs of moonshine

Question 5

Based on the data,Smith has a(n)__________ advantage in __________ while Jones has a(n)__________ advantage in __________.

Accepted Answer

A)  comparative;calculators;absolute;calculators 
B)  absolute;calculators;absolute;computers 
C)  absolute;computers;comparative;computers 
D)  comparative;computers;comparative;calculators 
E)  comparative;calculators;comparative;calculators 
A)  comparative;calculators;absolute;calculators 
B)  absolute;calculators;absolute;computers 
C)  absolute;computers;comparative;computers 
D)  comparative;computers;comparative;calculators 
E)  comparative;calculators;comparative;calculators

Question 6

-Suppose the guitar store received a rush order for 26 electric guitars.The efficient allocation of labour resources would be to have __________ work on electric guitars.

Accepted Answer

A)  all three employees 
B)  Mark and Glenn 
C)  only Mark 
D)  Glenn and Dennis 
E)  only Dennis 
A)  all three employees 
B)  Mark and Glenn 
C)  only Mark 
D)  Glenn and Dennis 
E)  only Dennis

Question 7

Suppose Smith and Jones begin at the point of producing 0 computers and 220 calculators in one hour.If they wish to produce 2 computers and 200 calculators in one hour,then Smith will spend __________ and Jones will spend __________.

Accepted Answer

A)  30 minutes on each;30 minutes on each. 
B)  48 minutes on computers and 12 minutes on calculators;1 hour on calculators. 
C)  1 hour on calculators;10 minutes on computers and 50 minutes on calculators. 
D)  6 minutes on computers and 54 minutes on calculators;10 minutes on computers and 50 minutes on calculators. 
E)  12 minutes on computers and 48 minutes on calculators;1 hour on calculators. 
A)  30 minutes on each;30 minutes on each. 
B)  48 minutes on computers and 12 minutes on calculators;1 hour on calculators. 
C)  1 hour on calculators;10 minutes on computers and 50 minutes on calculators. 
D)  6 minutes on computers and 54 minutes on calculators;10 minutes on computers and 50 minutes on calculators. 
E)  12 minutes on computers and 48 minutes on calculators;1 hour on calculators.

Question 8

For Alex,the opportunity cost of cleaning one room is ___________ meal(s);for Lou the opportunity cost of cleaning one room is ___________ meal(s).

Accepted Answer

A)  1;4/5 
B)  1;5/4 
C)  1.5;2.5 
D)  5/3;4/3 
E)  3;5 
A)  1;4/5 
B)  1;5/4 
C)  1.5;2.5 
D)  5/3;4/3 
E)  3;5

Question 9

-The opportunity cost of an extra acoustic guitar for Mark is

Accepted Answer

A)  0.0625 fewer electric guitars. 
B)  8 fewer electric guitars. 
C)  16 fewer electric guitars. 
D)  20 fewer electric guitars. 
E)  30 fewer electric guitars. 
A)  0.0625 fewer electric guitars. 
B)  8 fewer electric guitars. 
C)  16 fewer electric guitars. 
D)  20 fewer electric guitars. 
E)  30 fewer electric guitars.

Question 10

The Principle of Increasing Opportunity Cost indicates that the proper sequence of resource usage to expand production is to

Accepted Answer

A)  randomly choose the resources. 
B)  start with the highest opportunity cost resource and progress to the lowest opportunity cost resources. 
C)  start with a lower opportunity cost resource,then a higher cost one,then a lower cost,etc. 
D)  start with the lowest opportunity cost resource and proceed to the highest opportunity cost resources. 
E)  start with the average opportunity cost resource and progress to lower opportunity cost resources. 
A)  randomly choose the resources. 
B)  start with the highest opportunity cost resource and progress to the lowest opportunity cost resources. 
C)  start with a lower opportunity cost resource,then a higher cost one,then a lower cost,etc. 
D)  start with the lowest opportunity cost resource and proceed to the highest opportunity cost resources. 
E)  start with the average opportunity cost resource and progress to lower opportunity cost resources.

Question 11

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Accepted Answer

A)  Joe would be used first,followed by Sam. 
B)  Sam would always be used. 
C)  Sam would be used first and then Joe. 
D)  the sequencing of Sam and Joe is irrelevant. 
E)  Joe would always be used. 
A)  Joe would be used first,followed by Sam. 
B)  Sam would always be used. 
C)  Sam would be used first and then Joe. 
D)  the sequencing of Sam and Joe is irrelevant. 
E)  Joe would always be used.

Question 12

Specialization of labour not only results in the ability to produce a larger quantity of goods due to innate differences in people's skills,but also in

Accepted Answer

A)  rigidly segmenting work. 
B)  switching back and forth among numerous tasks. 
C)  breaking a task down into mind-numbing repetitive tasks. 
D)  deepening skills through practice and experience. 
E)  eliminating the need to train and educate the workers to perform different tasks. 
A)  rigidly segmenting work. 
B)  switching back and forth among numerous tasks. 
C)  breaking a task down into mind-numbing repetitive tasks. 
D)  deepening skills through practice and experience. 
E)  eliminating the need to train and educate the workers to perform different tasks.

Question 13

Which of the following factors will cause the production possibilities curve to shift away from the origin?

Accepted Answer

A)  Enforcement of compulsory retirement at age 60,for all workers. 
B)  The termination of all work on Albertan oil sands projects. 
C)  A doubling of all university fees. 
D)  New,improved technology. 
E)  Increased interest rates,which cause a decrease in expenditure on capital goods. 
A)  Enforcement of compulsory retirement at age 60,for all workers. 
B)  The termination of all work on Albertan oil sands projects. 
C)  A doubling of all university fees. 
D)  New,improved technology. 
E)  Increased interest rates,which cause a decrease in expenditure on capital goods.

Question 14

In one 8-hour workday,Hector can produce 25 court appeals or 5 new lawsuits.If appeals are on the vertical axis,the slope of his production possibilities curve is

Accepted Answer

A)  -5. 
B)  5. 
C)  -2. 
D)  0.2. 
E)  -1. 
A)  -5. 
B)  5. 
C)  -2. 
D)  0.2. 
E)  -1.

Question 15

Which of the following statements is always true?

Accepted Answer

A)  Comparative advantage implies absolute advantage. 
B)  Absolute advantage implies comparative advantage. 
C)  Comparative advantage does not require absolute advantage. 
D)  Absolute advantage requires comparative advantage. 
E)  Comparative advantage requires absolute advantage. 
A)  Comparative advantage implies absolute advantage. 
B)  Absolute advantage implies comparative advantage. 
C)  Comparative advantage does not require absolute advantage. 
D)  Absolute advantage requires comparative advantage. 
E)  Comparative advantage requires absolute advantage.

Question 16

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3)is a(n)__________ point.

Accepted Answer

A)  unattainable 
B)  inefficient 
C)  inefficient but attainable 
D)  efficient 
E)  efficient and unattainable 
A)  unattainable 
B)  inefficient 
C)  inefficient but attainable 
D)  efficient 
E)  efficient and unattainable

Question 17

-Refer to the graph above.Given Vineetstan's production possibility curve,when moving from point B to point C the opportunity cost of reading articles in terms of listening to CDs is

Accepted Answer

A)  ½ CD. 
B)  2 CDs. 
C)  ⅔ CD. 
D)  3 CDs. 
E)  4 CDs. 
A)  ½ CD. 
B)  2 CDs. 
C)  ⅔ CD. 
D)  3 CDs. 
E)  4 CDs.

Question 18

Which of the following statements is NOT true about specialization?

Accepted Answer

A)  Total economic output is larger. 
B)  Worker skills are better matched with tasks. 
C)  Specialization focuses experience and increases the comparative advantage. 
D)  The variety of tasks associated with a particular job grows over time. 
E)  Down time due to switching tasks is lessened. 
A)  Total economic output is larger. 
B)  Worker skills are better matched with tasks. 
C)  Specialization focuses experience and increases the comparative advantage. 
D)  The variety of tasks associated with a particular job grows over time. 
E)  Down time due to switching tasks is lessened.

Question 19

-Which of the following statement is most appropriate for the given production possibilities curve?

Accepted Answer

A)  There is an increasing opportunity cost as Bo produces more fish. 
B)  There is an increasing opportunity cost as Bo produces less fish. 
C)  The opportunity cost for fish production is constant. 
D)  The opportunity cost for apple production is constant. 
E)  The opportunity cost for both fish and apple production is constant. 
A)  There is an increasing opportunity cost as Bo produces more fish. 
B)  There is an increasing opportunity cost as Bo produces less fish. 
C)  The opportunity cost for fish production is constant. 
D)  The opportunity cost for apple production is constant. 
E)  The opportunity cost for both fish and apple production is constant.

Question 20

Point F is __________ while point G is __________.

Accepted Answer

A)  unattainable;inefficient 
B)  inefficient;unattainable 
C)  inefficient;inefficient 
D)  efficient;inefficient 
E)  efficient;unattainable 
A)  unattainable;inefficient 
B)  inefficient;unattainable 
C)  inefficient;inefficient 
D)  efficient;inefficient 
E)  efficient;unattainable

To say some person has a comparative advantage in the writing of an economics textbook means that

For any efficient point with less than 10 computers and more than 120 calculators,Smith will and Jones will .

In a two-person economy,Little Joe can trap a maximum of 6 rabbits or catch 10 fish a week,while his father can trap 12 rabbits or catch 15 fish per week.If their family wants to consume 20 fish per week while maximizing their joint production,

-Bobby Jo's opportunity cost of an extra bale of hemp is and Mary Lou's is .

Based on the data,Smith has a(n) advantage in while Jones has a(n) advantage in .

-Suppose the guitar store received a rush order for 26 electric guitars.The efficient allocation of labour resources would be to have __________ work on electric guitars.

Suppose Smith and Jones begin at the point of producing 0 computers and 220 calculators in one hour.If they wish to produce 2 computers and 200 calculators in one hour,then Smith will spend and Jones will spend .

For Alex,the opportunity cost of cleaning one room is _ meal(s);for Lou the opportunity cost of cleaning one room is _ meal(s).

-The opportunity cost of an extra acoustic guitar for Mark is

The Principle of Increasing Opportunity Cost indicates that the proper sequence of resource usage to expand production is to

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Specialization of labour not only results in the ability to produce a larger quantity of goods due to innate differences in people's skills,but also in

Which of the following factors will cause the production possibilities curve to shift away from the origin?

In one 8-hour workday,Hector can produce 25 court appeals or 5 new lawsuits.If appeals are on the vertical axis,the slope of his production possibilities curve is

Which of the following statements is always true?

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3)is a(n)__________ point.

-Refer to the graph above.Given Vineetstan's production possibility curve,when moving from point B to point C the opportunity cost of reading articles in terms of listening to CDs is

Which of the following statements is NOT true about specialization?

-Which of the following statement is most appropriate for the given production possibilities curve?

Point F is while point G is .

Thinking Like an Economist

Supply and Demand: an Introduction

Demand: the Benefit Side of the Market

Perfectly Competitive Supply: the Cost Side of the Market

Efficiency and Exchange

The Quest for Profit and the Invisible Hand

Monopoly and Other Forms of Imperfect Competition

Thinking Strategically

Externalities and Property Rights

The Economics of Information

Labour Markets

The Economics of Public Policy

Public Goods and Taxation

Income Distribution

Filters

Exam 2: Comparative Advantage: the Basis for Exchange

To say some person has a comparative advantage in the writing of an economics textbook means that

For any efficient point with less than 10 computers and more than 120 calculators,Smith will __________ and Jones will __________.

In a two-person economy,Little Joe can trap a maximum of 6 rabbits or catch 10 fish a week,while his father can trap 12 rabbits or catch 15 fish per week.If their family wants to consume 20 fish per week while maximizing their joint production,

-Bobby Jo's opportunity cost of an extra bale of hemp is __________ and Mary Lou's is __________.

Based on the data,Smith has a(n)__________ advantage in __________ while Jones has a(n)__________ advantage in __________.

-Suppose the guitar store received a rush order for 26 electric guitars.The efficient allocation of labour resources would be to have __________ work on electric guitars.

Suppose Smith and Jones begin at the point of producing 0 computers and 220 calculators in one hour.If they wish to produce 2 computers and 200 calculators in one hour,then Smith will spend __________ and Jones will spend __________.

For Alex,the opportunity cost of cleaning one room is ___________ meal(s);for Lou the opportunity cost of cleaning one room is ___________ meal(s).

-The opportunity cost of an extra acoustic guitar for Mark is

The Principle of Increasing Opportunity Cost indicates that the proper sequence of resource usage to expand production is to

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Specialization of labour not only results in the ability to produce a larger quantity of goods due to innate differences in people's skills,but also in

Which of the following factors will cause the production possibilities curve to shift away from the origin?

In one 8-hour workday,Hector can produce 25 court appeals or 5 new lawsuits.If appeals are on the vertical axis,the slope of his production possibilities curve is

Which of the following statements is always true?

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3)is a(n)__________ point.

-Refer to the graph above.Given Vineetstan's production possibility curve,when moving from point B to point C the opportunity cost of reading articles in terms of listening to CDs is

Which of the following statements is NOT true about specialization?

-Which of the following statement is most appropriate for the given production possibilities curve?

Point F is __________ while point G is __________.

Thinking Like an Economist

Supply and Demand: an Introduction

Demand: the Benefit Side of the Market

Perfectly Competitive Supply: the Cost Side of the Market

Efficiency and Exchange

The Quest for Profit and the Invisible Hand

Monopoly and Other Forms of Imperfect Competition

Thinking Strategically

Externalities and Property Rights

The Economics of Information

Labour Markets

The Economics of Public Policy

Public Goods and Taxation

Income Distribution

Filters

For any efficient point with less than 10 computers and more than 120 calculators,Smith will and Jones will .

-Bobby Jo's opportunity cost of an extra bale of hemp is and Mary Lou's is .

Based on the data,Smith has a(n) advantage in while Jones has a(n) advantage in .

Suppose Smith and Jones begin at the point of producing 0 computers and 220 calculators in one hour.If they wish to produce 2 computers and 200 calculators in one hour,then Smith will spend and Jones will spend .

For Alex,the opportunity cost of cleaning one room is _ meal(s);for Lou the opportunity cost of cleaning one room is _ meal(s).

Point F is while point G is .