Question 1

The slope of the production possibilities curve must be

Accepted Answer

A)  constant. 
B)  positive. 
C)  decreasing. 
D)  increasing. 
E)  negative. 
A)  constant. 
B)  positive. 
C)  decreasing. 
D)  increasing. 
E)  negative.

Question 2

The production possibilities curve shows

Accepted Answer

A)  the relationship between inputs and output. 
B)  the minimum amount of one good that can be produced for every possible production level of the other good. 
C)  a positive relationship. 
D)  the maximum production of one good for every possible production level of the other good. 
E)  how increasing the production of one good allows production of the other good to also increase. 
A)  the relationship between inputs and output. 
B)  the minimum amount of one good that can be produced for every possible production level of the other good. 
C)  a positive relationship. 
D)  the maximum production of one good for every possible production level of the other good. 
E)  how increasing the production of one good allows production of the other good to also increase.

Question 3

An isolated economy has ____________ possibilities for specialization when compared to the possibilities available to an easily accessible economy.

Accepted Answer

A)  fewer 
B)  more 
C)  the same number of 
D)  no 
E)  an indeterminate number of 
A)  fewer 
B)  more 
C)  the same number of 
D)  no 
E)  an indeterminate number of

Question 4

A point on Joseph's production possibilities curve represents 6 music CDs and 2 videos produced in a week.A combination of 4 music CDs and 2 videos is an

Accepted Answer

A)  efficient and attainable point. 
B)  efficient but not attainable point. 
C)  attainable and inefficient point. 
D)  unattainable point. 
E)  unattainable and inefficient point. 
A)  efficient and attainable point. 
B)  efficient but not attainable point. 
C)  attainable and inefficient point. 
D)  unattainable point. 
E)  unattainable and inefficient point.

Question 5

Of the labelled points,______________ are attainable.

Accepted Answer

A)  F and G 
B)  B,C,and D 
C)  A,C,and E 
D)  A,B,C,D,E,and F 
E)  A,B,C,D,and E 
A)  F and G 
B)  B,C,and D 
C)  A,C,and E 
D)  A,B,C,D,E,and F 
E)  A,B,C,D,and E

Question 6

Jenny's opportunity cost of producing an extra pair of shoes is

Accepted Answer

A)  1/3 pairs of pants. 
B)  1/2 pairs of pants. 
C)  2/3 pairs of pants. 
D)  1 pair of pants. 
E)  3/2 pairs of pants. 
A)  1/3 pairs of pants. 
B)  1/2 pairs of pants. 
C)  2/3 pairs of pants. 
D)  1 pair of pants. 
E)  3/2 pairs of pants.

Question 7

Which of the following statements is true?

Accepted Answer

A)  An unattainable point is inefficient. 
B)  An efficient point may or may not be attainable. 
C)  An inefficient point must be unattainable. 
D)  An efficient point must be attainable. 
E)  An attainable point must be efficient. 
A)  An unattainable point is inefficient. 
B)  An efficient point may or may not be attainable. 
C)  An inefficient point must be unattainable. 
D)  An efficient point must be attainable. 
E)  An attainable point must be efficient.

Question 8

The reason a family doctor would send one of his patients to a surgeon to remove a tumour is because the surgeon has

Accepted Answer

A)  an absolute advantage in providing treatment. 
B)  a comparative advantage in providing treatment due to inborn talent and training. 
C)  a comparative advantage in providing treatment due to cultural differences. 
D)  an arrangement with the family doctor to share the fees for unnecessary surgeries. 
E)  a better bedside manner. 
A)  an absolute advantage in providing treatment. 
B)  a comparative advantage in providing treatment due to inborn talent and training. 
C)  a comparative advantage in providing treatment due to cultural differences. 
D)  an arrangement with the family doctor to share the fees for unnecessary surgeries. 
E)  a better bedside manner.

Question 9

Jane can produce 50 pizzas or 100 hamburgers per day,while Sam can produce 30 pizzas or 90 hamburgers per day.Jane has an absolute advantage in the production of

Accepted Answer

A)  pizzas,but not hamburgers,and has a comparative advantage in the production of pizzas. 
B)  hamburgers,but not pizzas,and has a comparative advantage in the production of hamburgers. 
C)  hamburgers and pizzas,as well as a comparative advantage in the production of hamburgers. 
D)  hamburgers and pizzas,as well as a comparative advantage in the production of pizzas. 
E)  hamburgers and pizzas,as well as a comparative advantage in the production of hamburgers and pizzas. 
A)  pizzas,but not hamburgers,and has a comparative advantage in the production of pizzas. 
B)  hamburgers,but not pizzas,and has a comparative advantage in the production of hamburgers. 
C)  hamburgers and pizzas,as well as a comparative advantage in the production of hamburgers. 
D)  hamburgers and pizzas,as well as a comparative advantage in the production of pizzas. 
E)  hamburgers and pizzas,as well as a comparative advantage in the production of hamburgers and pizzas.

Question 10

As the store moves from producing only electric guitars to only acoustic guitars,the sequence of workers will be _________ first,then ________ and finally ________.

Accepted Answer

A)  Mark;Dennis;Glenn 
B)  Dennis;Glenn;Mark 
C)  Glenn;Dennis;Mark 
D)  Mark;Glenn;Dennis 
E)  Dennis;Mark;Glenn 
A)  Mark;Dennis;Glenn 
B)  Dennis;Glenn;Mark 
C)  Glenn;Dennis;Mark 
D)  Mark;Glenn;Dennis 
E)  Dennis;Mark;Glenn

Question 11

An existing comparative advantage can be increased by specialization because

Accepted Answer

A)  less production time is used by switching from one task to another. 
B)  repetition results in boredom. 
C)  the variety of tasks will rise. 
D)  small tasks will be merged into larger tasks. 
E)  workers will start shirking their tasks. 
A)  less production time is used by switching from one task to another. 
B)  repetition results in boredom. 
C)  the variety of tasks will rise. 
D)  small tasks will be merged into larger tasks. 
E)  workers will start shirking their tasks.

Question 12

If all three employees were initially working on electric guitars,but one acoustic guitar needed to be built,__________ should be assigned the task.

Accepted Answer

A)  Glenn or Dennis 
B)  Mark or Glenn 
C)  Mark 
D)  Glenn 
E)  Dennis 
A)  Glenn or Dennis 
B)  Mark or Glenn 
C)  Mark 
D)  Glenn 
E)  Dennis

Question 13

If there were decreasing opportunity costs,then the slope of the production possibilities curve would be

Accepted Answer

A)  increasing as one moves down the curve. 
B)  constant as one moves down the curve. 
C)  decreasing as one moves down the curve. 
D)  positive. 
E)  infinite. 
A)  increasing as one moves down the curve. 
B)  constant as one moves down the curve. 
C)  decreasing as one moves down the curve. 
D)  positive. 
E)  infinite.

Question 14

-Refer to the graph above.The graph indicates that,as more eggs are produced,the opportunity cost of producing eggs

Accepted Answer

A)  increases 
B)  remains constant. 
C)  decreases. 
D)  is not defined. 
E)  is zero. 
A)  increases 
B)  remains constant. 
C)  decreases. 
D)  is not defined. 
E)  is zero.

Question 15

An isolated economy

Accepted Answer

A)  is less likely than an easily accessible economy to take advantage of specialization. 
B)  is more likely than an easily accessible economy to take advantage of specialization. 
C)  is equally likely to take advantage of specialization when compared to an easily accessible economy. 
D)  would gain no advantage from specialization. 
E)  has easy access to large markets. 
A)  is less likely than an easily accessible economy to take advantage of specialization. 
B)  is more likely than an easily accessible economy to take advantage of specialization. 
C)  is equally likely to take advantage of specialization when compared to an easily accessible economy. 
D)  would gain no advantage from specialization. 
E)  has easy access to large markets.

Question 16

Suppose that a further increase in specialization allows a country to increase total output by 10% but,afterward,it was discovered that work absenteeism increased by 30%.This is likely an example of

Accepted Answer

A)  modern production. 
B)  too much specialization. 
C)  too little specialization. 
D)  inefficiencies caused by labour unions. 
E)  worker laziness. 
A)  modern production. 
B)  too much specialization. 
C)  too little specialization. 
D)  inefficiencies caused by labour unions. 
E)  worker laziness.

Question 17

Application of the Principle of Comparative Advantage leads to

Accepted Answer

A)  greater and greater specialization of labour and other factors of production. 
B)  reduced specialization of labour. 
C)  societies where everyone can do a little of everything. 
D)  lower total output. 
E)  misallocation of resources. 
A)  greater and greater specialization of labour and other factors of production. 
B)  reduced specialization of labour. 
C)  societies where everyone can do a little of everything. 
D)  lower total output. 
E)  misallocation of resources.

Question 18

For a nation that finds it has a comparative advantage in producing good Z,it is likely that the size of the comparative advantage will

Accepted Answer

A)  decline due to competition. 
B)  grow as production experience increases. 
C)  remain constant. 
D)  decline as production experience increases. 
E)  change in unpredictable ways. 
A)  decline due to competition. 
B)  grow as production experience increases. 
C)  remain constant. 
D)  decline as production experience increases. 
E)  change in unpredictable ways.

Question 19

The slope of an individual's production possibilities curve

Accepted Answer

A)  decreases as more units of a particular good are produced. 
B)  is negative and constant along the entire curve. 
C)  is positive and constant along the entire curve. 
D)  varies as the amount of output changes. 
E)  is the same for all individuals. 
A)  decreases as more units of a particular good are produced. 
B)  is negative and constant along the entire curve. 
C)  is positive and constant along the entire curve. 
D)  varies as the amount of output changes. 
E)  is the same for all individuals.

Question 20

If the production possibilities curve is smoothly bowed out (concave to the origin),the underlying economy is probably a

Accepted Answer

A)  single-person model. 
B)  two-person model. 
C)  half-person model. 
D)  three-person model. 
E)  multi-person model. 
A)  single-person model. 
B)  two-person model. 
C)  half-person model. 
D)  three-person model. 
E)  multi-person model.

The slope of the production possibilities curve must be

The production possibilities curve shows

An isolated economy has ____________ possibilities for specialization when compared to the possibilities available to an easily accessible economy.

A point on Joseph's production possibilities curve represents 6 music CDs and 2 videos produced in a week.A combination of 4 music CDs and 2 videos is an

Of the labelled points,______________ are attainable.

Jenny's opportunity cost of producing an extra pair of shoes is

Which of the following statements is true?

The reason a family doctor would send one of his patients to a surgeon to remove a tumour is because the surgeon has

Jane can produce 50 pizzas or 100 hamburgers per day,while Sam can produce 30 pizzas or 90 hamburgers per day.Jane has an absolute advantage in the production of

As the store moves from producing only electric guitars to only acoustic guitars,the sequence of workers will be _ first,then and finally .

An existing comparative advantage can be increased by specialization because

If all three employees were initially working on electric guitars,but one acoustic guitar needed to be built,__________ should be assigned the task.

If there were decreasing opportunity costs,then the slope of the production possibilities curve would be

-Refer to the graph above.The graph indicates that,as more eggs are produced,the opportunity cost of producing eggs

An isolated economy

Suppose that a further increase in specialization allows a country to increase total output by 10% but,afterward,it was discovered that work absenteeism increased by 30%.This is likely an example of

Application of the Principle of Comparative Advantage leads to

For a nation that finds it has a comparative advantage in producing good Z,it is likely that the size of the comparative advantage will

The slope of an individual's production possibilities curve

If the production possibilities curve is smoothly bowed out (concave to the origin),the underlying economy is probably a

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

The slope of the production possibilities curve must be

The production possibilities curve shows

An isolated economy has ____________ possibilities for specialization when compared to the possibilities available to an easily accessible economy.

A point on Joseph's production possibilities curve represents 6 music CDs and 2 videos produced in a week.A combination of 4 music CDs and 2 videos is an

Of the labelled points,______________ are attainable.

Jenny's opportunity cost of producing an extra pair of shoes is

Which of the following statements is true?

The reason a family doctor would send one of his patients to a surgeon to remove a tumour is because the surgeon has

Jane can produce 50 pizzas or 100 hamburgers per day,while Sam can produce 30 pizzas or 90 hamburgers per day.Jane has an absolute advantage in the production of

As the store moves from producing only electric guitars to only acoustic guitars,the sequence of workers will be _________ first,then ________ and finally ________.

An existing comparative advantage can be increased by specialization because

If all three employees were initially working on electric guitars,but one acoustic guitar needed to be built,__________ should be assigned the task.

If there were decreasing opportunity costs,then the slope of the production possibilities curve would be

-Refer to the graph above.The graph indicates that,as more eggs are produced,the opportunity cost of producing eggs

An isolated economy

Suppose that a further increase in specialization allows a country to increase total output by 10% but,afterward,it was discovered that work absenteeism increased by 30%.This is likely an example of

Application of the Principle of Comparative Advantage leads to

For a nation that finds it has a comparative advantage in producing good Z,it is likely that the size of the comparative advantage will

The slope of an individual's production possibilities curve

If the production possibilities curve is smoothly bowed out (concave to the origin),the underlying economy is probably a

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

As the store moves from producing only electric guitars to only acoustic guitars,the sequence of workers will be _ first,then and finally .