Question 1

-The absolute advantage for electric guitars belongs to __________;for acoustic guitars,it belongs to __________.

Accepted Answer

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

Question 2

Based on their comparative advantages,Sam should specialize in producing __________ while Jenny should specialize in producing __________.

Accepted Answer

A)  shoes;pants 
B)  both;neither 
C)  neither;both 
D)  pants;shoes 
E)  pants;pants 
A)  shoes;pants 
B)  both;neither 
C)  neither;both 
D)  pants;shoes 
E)  pants;pants

Question 3

If Leslie can produce two pairs of pants in an hour while Eva can make one pair in an hour,then

Accepted Answer

A)  Leslie has a comparative advantage. 
B)  Eva has an absolute advantage. 
C)  Leslie has an absolute advantage. 
D)  Eva has a comparative advantage. 
E)  Leslie has a comparative disadvantage. 
A)  Leslie has a comparative advantage. 
B)  Eva has an absolute advantage. 
C)  Leslie has an absolute advantage. 
D)  Eva has a comparative advantage. 
E)  Leslie has a comparative disadvantage.

Question 4

Production possibilities curves are downward sloping,reflecting the principle of

Accepted Answer

A)  scarcity. 
B)  comparative advantage. 
C)  increasing opportunity cost. 
D)  absolute advantage. 
E)  low-hanging fruit. 
A)  scarcity. 
B)  comparative advantage. 
C)  increasing opportunity cost. 
D)  absolute advantage. 
E)  low-hanging fruit.

Question 5

Every point on the production possibilities curve is

Accepted Answer

A)  allocatively efficient. 
B)  productively efficient. 
C)  equally desirable. 
D)  an optimal level of output. 
E)  attainable even when we have some unemployed resources. 
A)  allocatively efficient. 
B)  productively efficient. 
C)  equally desirable. 
D)  an optimal level of output. 
E)  attainable even when we have some unemployed resources.

Question 6

Buffy's production possibilities curve has a __________ slope because producing 6 extra units of food means __________ weapons can be produced.

Accepted Answer

A)  positive;two more 
B)  negative;two fewer 
C)  negative;three fewer 
D)  negative;six fewer 
E)  negative;0.333 fewer 
A)  positive;two more 
B)  negative;two fewer 
C)  negative;three fewer 
D)  negative;six fewer 
E)  negative;0.333 fewer

Question 7

The fundamental reason that a production possibilities curve has a negative slope is that

Accepted Answer

A)  workers are inefficient. 
B)  resources are of low quality. 
C)  resources are fixed and therefore trade-offs must be made. 
D)  it has empirical support but why it is so is still a mystery. 
E)  comparative advantage exists. 
A)  workers are inefficient. 
B)  resources are of low quality. 
C)  resources are fixed and therefore trade-offs must be made. 
D)  it has empirical support but why it is so is still a mystery. 
E)  comparative advantage exists.

Question 8

-Which of the following statements is the most appropriate?

Accepted Answer

A)  The opportunity cost in terms of apples decreases as more and more fish are produced. 
B)  Bo prefers apples to fish. 
C)  Bo prefers fish to apples. 
D)  The existing resources are less and less suitable to fish production as more fish are produced. 
E)  Bo will produce relatively more apples than fish. 
A)  The opportunity cost in terms of apples decreases as more and more fish are produced. 
B)  Bo prefers apples to fish. 
C)  Bo prefers fish to apples. 
D)  The existing resources are less and less suitable to fish production as more fish are produced. 
E)  Bo will produce relatively more apples than fish.

Question 9

Any combination of goods that can be produced with currently available resources defines a(n)

Accepted Answer

A)  unattainable point. 
B)  efficient point. 
C)  inefficient point. 
D)  attainable and efficient point. 
E)  attainable point. 
A)  unattainable point. 
B)  efficient point. 
C)  inefficient point. 
D)  attainable and efficient point. 
E)  attainable point.

Question 10

Suppose Smith and Jones begin at the point of producing 16 computers and 0 calculators in one hour.If they wish to produce 14 computers and 40 calculators in one hour,then Smith will spend __________ and Jones will spend __________.

Accepted Answer

A)  1 hour on computers;40 minutes on computers and 20 minutes on calculators 
B)  1 hour on computers;20 minutes on computers and 40 minutes on calculators 
C)  30 minutes on each;30 minutes on each 
D)  45 minutes on computers and 15 on calculators;1 hour on calculators 
E)  1 hour on computers;50 minutes on computers and 10 minutes on calculators 
A)  1 hour on computers;40 minutes on computers and 20 minutes on calculators 
B)  1 hour on computers;20 minutes on computers and 40 minutes on calculators 
C)  30 minutes on each;30 minutes on each 
D)  45 minutes on computers and 15 on calculators;1 hour on calculators 
E)  1 hour on computers;50 minutes on computers and 10 minutes on calculators

Question 11

If a person has the lowest opportunity cost of producing a particular good,that person has a(n)

Accepted Answer

A)  comparative advantage. 
B)  absolute advantage. 
C)  comparative and absolute advantage. 
D)  absolute advantage and a possible comparative advantage. 
E)  relative advantage. 
A)  comparative advantage. 
B)  absolute advantage. 
C)  comparative and absolute advantage. 
D)  absolute advantage and a possible comparative advantage. 
E)  relative advantage.

Question 12

In terms of the production possibilities curve,productive efficiency is represented by

Accepted Answer

A)  a rightward shift in the PPC. 
B)  a leftward shift in the PPC. 
C)  all points on the PPC. 
D)  all points inside the PPC. 
E)  all points outside the PPC. 
A)  a rightward shift in the PPC. 
B)  a leftward shift in the PPC. 
C)  all points on the PPC. 
D)  all points inside the PPC. 
E)  all points outside the PPC.

Question 13

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

Accepted Answer

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

Question 14

When an economy is operating on its production possibilities curve,it is always

Accepted Answer

A)  both productively efficient and allocatively efficient. 
B)  productively efficient but may not be allocatively efficient. 
C)  allocatively efficient but may not be productively efficient. 
D)  experiencing growth. 
E)  increasing its standard of living. 
A)  both productively efficient and allocatively efficient. 
B)  productively efficient but may not be allocatively efficient. 
C)  allocatively efficient but may not be productively efficient. 
D)  experiencing growth. 
E)  increasing its standard of living.

Question 15

When it is impossible to reorganize economic resources so that at least one person is better off while nobody is worse off,we have attained

Accepted Answer

A)  allocative efficiency. 
B)  productive efficiency. 
C)  absolute advantage 
D)  comparative advantage. 
E)  a point outside the production possibilities curve. 
A)  allocative efficiency. 
B)  productive efficiency. 
C)  absolute advantage 
D)  comparative advantage. 
E)  a point outside the production possibilities curve.

Question 16

The slope of any production possibilities curve is __________ because __________.

Accepted Answer

A)  negative;production of one of the two goods is always insufficient 
B)  negative;to produce more of one good means less production of the other 
C)  constant;the trade-off in production never changes 
D)  positive;to produce more of one good means more production of the other 
E)  positive;to produce more of one good means less production of the other 
A)  negative;production of one of the two goods is always insufficient 
B)  negative;to produce more of one good means less production of the other 
C)  constant;the trade-off in production never changes 
D)  positive;to produce more of one good means more production of the other 
E)  positive;to produce more of one good means less production of the other

Question 17

Point G is a(n)__________ point in relation to the production possibilities curve.

Accepted Answer

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

Question 18

If a nation can produce a good more quickly than any other nation,that nation has a(n)

Accepted Answer

A)  comparative advantage. 
B)  total advantage. 
C)  relative advantage. 
D)  absolute advantage. 
E)  need to trade. 
A)  comparative advantage. 
B)  total advantage. 
C)  relative advantage. 
D)  absolute advantage. 
E)  need to trade.

Question 19

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of N that Teddy can produce is

Accepted Answer

A)  63. 
B)  21. 
C)  14. 
D)  7. 
E)  0. 
A)  63. 
B)  21. 
C)  14. 
D)  7. 
E)  0.

Question 20

Good W is on the vertical axis and good Z is on the horizontal axis of a production possibilities curve.A technological innovation that improved labour's productivity for W but had zero effect on labour's productivity for Z would cause the production possibilities curve to

Accepted Answer

A)  become steeper. 
B)  shift away from the origin. 
C)  become flatter. 
D)  shift towards the origin. 
E)  change in an unknowable way. 
A)  become steeper. 
B)  shift away from the origin. 
C)  become flatter. 
D)  shift towards the origin. 
E)  change in an unknowable way.

-The absolute advantage for electric guitars belongs to ;for acoustic guitars,it belongs to .

Based on their comparative advantages,Sam should specialize in producing while Jenny should specialize in producing .

If Leslie can produce two pairs of pants in an hour while Eva can make one pair in an hour,then

Production possibilities curves are downward sloping,reflecting the principle of

Every point on the production possibilities curve is

Buffy's production possibilities curve has a slope because producing 6 extra units of food means weapons can be produced.

The fundamental reason that a production possibilities curve has a negative slope is that

-Which of the following statements is the most appropriate?

Any combination of goods that can be produced with currently available resources defines a(n)

Suppose Smith and Jones begin at the point of producing 16 computers and 0 calculators in one hour.If they wish to produce 14 computers and 40 calculators in one hour,then Smith will spend and Jones will spend .

If a person has the lowest opportunity cost of producing a particular good,that person has a(n)

In terms of the production possibilities curve,productive efficiency is represented by

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

When an economy is operating on its production possibilities curve,it is always

When it is impossible to reorganize economic resources so that at least one person is better off while nobody is worse off,we have attained

The slope of any production possibilities curve is because .

Point G is a(n)__________ point in relation to the production possibilities curve.

If a nation can produce a good more quickly than any other nation,that nation has a(n)

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of N that Teddy can produce is

Good W is on the vertical axis and good Z is on the horizontal axis of a production possibilities curve.A technological innovation that improved labour's productivity for W but had zero effect on labour's productivity for Z would cause the production possibilities curve to

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 absolute advantage for electric guitars belongs to __________;for acoustic guitars,it belongs to __________.

Based on their comparative advantages,Sam should specialize in producing __________ while Jenny should specialize in producing __________.

If Leslie can produce two pairs of pants in an hour while Eva can make one pair in an hour,then

Production possibilities curves are downward sloping,reflecting the principle of

Every point on the production possibilities curve is

Buffy's production possibilities curve has a __________ slope because producing 6 extra units of food means __________ weapons can be produced.

The fundamental reason that a production possibilities curve has a negative slope is that

-Which of the following statements is the most appropriate?

Any combination of goods that can be produced with currently available resources defines a(n)

Suppose Smith and Jones begin at the point of producing 16 computers and 0 calculators in one hour.If they wish to produce 14 computers and 40 calculators in one hour,then Smith will spend __________ and Jones will spend __________.

If a person has the lowest opportunity cost of producing a particular good,that person has a(n)

In terms of the production possibilities curve,productive efficiency is represented by

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

When an economy is operating on its production possibilities curve,it is always

When it is impossible to reorganize economic resources so that at least one person is better off while nobody is worse off,we have attained

The slope of any production possibilities curve is __________ because __________.

Point G is a(n)__________ point in relation to the production possibilities curve.

If a nation can produce a good more quickly than any other nation,that nation has a(n)

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of N that Teddy can produce is

Good W is on the vertical axis and good Z is on the horizontal axis of a production possibilities curve.A technological innovation that improved labour's productivity for W but had zero effect on labour's productivity for Z would cause the production possibilities curve to

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

-The absolute advantage for electric guitars belongs to ;for acoustic guitars,it belongs to .

Based on their comparative advantages,Sam should specialize in producing while Jenny should specialize in producing .

Buffy's production possibilities curve has a slope because producing 6 extra units of food means weapons can be produced.

Suppose Smith and Jones begin at the point of producing 16 computers and 0 calculators in one hour.If they wish to produce 14 computers and 40 calculators in one hour,then Smith will spend and Jones will spend .

The slope of any production possibilities curve is because .