Question 1

If a given production combination is efficient, then it must be:

Accepted Answer

A) above the production possibilities curve. 
B) on the production possibilities curve. 
C) either an attainable or unattainable point. 
D) below the production possibilities curve. 
A) above the production possibilities curve. 
B) on the production possibilities curve. 
C) either an attainable or unattainable point. 
D) below the production possibilities curve.

Question 2

In general, individuals and nations should specialize in producing those goods for which they have a(n):

Accepted Answer

A) absolute advantage. 
B) comparative advantage. 
C) absolutely comparative advantage. 
D) absolute advantage and a comparative advantage. 
A) absolute advantage. 
B) comparative advantage. 
C) absolutely comparative advantage. 
D) absolute advantage and a comparative advantage.

Question 3

Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos.Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis.The opportunity cost of a cup of coffee is:

Accepted Answer

A) 3 cappuccinos. 
B) 9 cappuccinos. 
C) 1/3 of a cappuccino. 
D) 6 cappuccinos. 
A) 3 cappuccinos. 
B) 9 cappuccinos. 
C) 1/3 of a cappuccino. 
D) 6 cappuccinos.

Question 4

Working efficiently, Jordan can write 3 essays and outline 4 chapters each week.It must be true that:

Accepted Answer

A) 6 essays and 0 chapter outlines would be unattainable. 
B) 2 essays and 3 chapter outlines would be efficient. 
C) 3 essays and 5 chapter outlines would be unattainable. 
D) 4 essays and 3 chapter outlines would be both attainable and efficient. 
A) 6 essays and 0 chapter outlines would be unattainable. 
B) 2 essays and 3 chapter outlines would be efficient. 
C) 3 essays and 5 chapter outlines would be unattainable. 
D) 4 essays and 3 chapter outlines would be both attainable and efficient.

Question 5

The textbook notes that the last time a major league batter hit .400 was in 1941.This is because:

Accepted Answer

A) the average quality of batters has fallen. 
B) the league imposes harsh penalties for steroid use. 
C) specialization by pitchers, infielders, and outfielders has made it harder for batters to hit. 
D) baseball diamonds have become larger. 
A) the average quality of batters has fallen. 
B) the league imposes harsh penalties for steroid use. 
C) specialization by pitchers, infielders, and outfielders has made it harder for batters to hit. 
D) baseball diamonds have become larger.

Question 6

Outsourcing is a term increasingly used to refer to the act of:

Accepted Answer

A) hiring illegal immigrants. 
B) importing raw materials into the United States from other countries. 
C) exporting final goods to other countries. 
D) replacing relatively expensive American workers with low­wage workers overseas. 
A) hiring illegal immigrants. 
B) importing raw materials into the United States from other countries. 
C) exporting final goods to other countries. 
D) replacing relatively expensive American workers with low­wage workers overseas.

Question 7

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table:   Based on last month's data, Ralph's opportunity cost of selling a truck is selling:

Accepted Answer

A) 4 cars. 
B) 1/3 of a car. 
C) 3 cars. 
D) 1/4 of a car. 
A) 4 cars. 
B) 1/3 of a car. 
C) 3 cars. 
D) 1/4 of a car.

Question 8

The United States was unable to maintain its dominance in the production of televisions because:

Accepted Answer

A) the highly technical skills necessary to produce televisions are greater in other countries. 
B) the raw materials necessary to build televisions became scarce in the United States. 
C) the product designs evolved too rapidly for engineers in the United States to keep up. 
D) automated techniques allowed production to be outsourced to countries with less­skilled workers. 
A) the highly technical skills necessary to produce televisions are greater in other countries. 
B) the raw materials necessary to build televisions became scarce in the United States. 
C) the product designs evolved too rapidly for engineers in the United States to keep up. 
D) automated techniques allowed production to be outsourced to countries with less­skilled workers.

Question 9

If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an:

Accepted Answer

A) inefficient point. 
B) efficient point. 
C) unattainable point. 
D) undesirable point. 
A) inefficient point. 
B) efficient point. 
C) unattainable point. 
D) undesirable point.

Question 10

Refer to the figure below.If this economy were currently operating at point D, then in order to make more movies:

Accepted Answer

A) the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. 
B) the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk. 
C) no productive resources would need to switch from making milk to movies because point D is already efficient. 
D) no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage. 
A) the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. 
B) the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk. 
C) no productive resources would need to switch from making milk to movies because point D is already efficient. 
D) no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage.

Question 11

The slope of a production possibilities curve is ______ because ______.

Accepted Answer

A) negative; producing more of one good requires producing less of the other 
B) negative; producing less of one good requires producing less of the other 
C) positive; producing more of one good requires producing more of the other 
D) positive; producing more of one good requires producing less of the other 
A) negative; producing more of one good requires producing less of the other 
B) negative; producing less of one good requires producing less of the other 
C) positive; producing more of one good requires producing more of the other 
D) positive; producing more of one good requires producing less of the other

If a given production combination is efficient, then it must be:

In general, individuals and nations should specialize in producing those goods for which they have a(n):

Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos.Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis.The opportunity cost of a cup of coffee is:

Working efficiently, Jordan can write 3 essays and outline 4 chapters each week.It must be true that:

The textbook notes that the last time a major league batter hit .400 was in 1941.This is because:

Outsourcing is a term increasingly used to refer to the act of:

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: Based on last month's data, Ralph's opportunity cost of selling a truck is selling:

The United States was unable to maintain its dominance in the production of televisions because:

If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an:

Refer to the figure below.If this economy were currently operating at point D, then in order to make more movies:

The slope of a production possibilities curve is because .

Thinking Like an Economist

Spending, Income, and GDP

Inflation and the Price Level

Wages and Unemployment

Economic Growth

Saving, Capital Formation, and Financial Markets

Money, Prices, and the Financial System

Short-Term Economic Fluctuations

Spending, Output, and Fiscal Policy

Monetary Policy and the Federal Reserve

Aggregate Demand, Aggregate Supply, and Business Cycles

Macroeconomic Policy

Exchange Rates, International Trade, and Capital Flows

Filters

Exam 2: Comparative Advantage

If a given production combination is efficient, then it must be:

In general, individuals and nations should specialize in producing those goods for which they have a(n):

Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos.Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis.The opportunity cost of a cup of coffee is:

Working efficiently, Jordan can write 3 essays and outline 4 chapters each week.It must be true that:

The textbook notes that the last time a major league batter hit .400 was in 1941.This is because:

Outsourcing is a term increasingly used to refer to the act of:

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: Based on last month's data, Ralph's opportunity cost of selling a truck is selling:

The United States was unable to maintain its dominance in the production of televisions because:

If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an:

Refer to the figure below.If this economy were currently operating at point D, then in order to make more movies:

The slope of a production possibilities curve is ______ because ______.

Thinking Like an Economist

Spending, Income, and GDP

Inflation and the Price Level

Wages and Unemployment

Economic Growth

Saving, Capital Formation, and Financial Markets

Money, Prices, and the Financial System

Short-Term Economic Fluctuations

Spending, Output, and Fiscal Policy

Monetary Policy and the Federal Reserve

Aggregate Demand, Aggregate Supply, and Business Cycles

Macroeconomic Policy

Exchange Rates, International Trade, and Capital Flows

Filters

The slope of a production possibilities curve is because .