Question 1

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

Question 2

Refer to the accompanying figure to answer the next four questions.
  
-How is opportunity cost illustrated?

Accepted Answer

A)  a move from point A to point B 
B)  a move from point A to point C 
C)  a move from point C to point D 
D)  a move from point B to point C 
E)  a move from point D to point E 
A)  a move from point A to point B 
B)  a move from point A to point C 
C)  a move from point C to point D 
D)  a move from point B to point C 
E)  a move from point D to point E

Question 3

Over the last 20 years,countries such as India and China have:

Accepted Answer

A)  consumed heavily with little regard for the future. 
B)  invested heavily and enjoyed significant economic growth. 
C)  eliminated the problem of scarcity. 
D)  produced outside their production possibilities frontier (PPF). 
E)  produced wholly for current consumption. 
A)  consumed heavily with little regard for the future. 
B)  invested heavily and enjoyed significant economic growth. 
C)  eliminated the problem of scarcity. 
D)  produced outside their production possibilities frontier (PPF). 
E)  produced wholly for current consumption.

Question 4

What does it mean when society is operating inside the production possibilities frontier (PPF)?

Accepted Answer

The society is not fully utilizing all o

Question 5

Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the next four questions.
a.Graph A
   
b.Graph B
   
c.Graph C
   
d.Graph D
   
e.Graph E
  
-Suppose the printing press is invented.Which graph 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 6

Refer to the accompanying figure to answer the next four questions.
  
-Unemployed resources are evident at:

Accepted Answer

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

Question 7

Suppose that,on a particular Saturday,Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens.Their maximum output per day is listed in the following table,along with blanks where you can calculate the opportunity cost.At what terms of trade (relative price ratio) could they specialize and trade with one another so that both have more trees planted and mulch spread than they could accomplish on their own?

Accepted Answer

A)  12 trees planted per 12 cubic yards of mulch spread 
B)  10 trees planted per 12 cubic yards of mulch spread 
C)  9 trees planted per 12 cubic yards of mulch spread 
D)  7 trees planted per 12 cubic yards of mulch spread 
E)  5 trees planted per 12 cubic yards of mulch spread 
A)  12 trees planted per 12 cubic yards of mulch spread 
B)  10 trees planted per 12 cubic yards of mulch spread 
C)  9 trees planted per 12 cubic yards of mulch spread 
D)  7 trees planted per 12 cubic yards of mulch spread 
E)  5 trees planted per 12 cubic yards of mulch spread

Question 8

If Jim can sell paper at a lower opportunity cost than Dwight can,then:

Accepted Answer

A)  Jim has an absolute advantage in paper sales. 
B)  Dwight has an absolute advantage in paper sales. 
C)  Jim has a positive advantage in paper sales. 
D)  Jim has a comparative advantage in paper sales. 
E)  Dwight has a comparative advantage in paper sales. 
A)  Jim has an absolute advantage in paper sales. 
B)  Dwight has an absolute advantage in paper sales. 
C)  Jim has a positive advantage in paper sales. 
D)  Jim has a comparative advantage in paper sales. 
E)  Dwight has a comparative advantage in paper sales.

Question 9

Refer to the following figure to answer the next four questions.
  
-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

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

Refer to the accompanying figure to answer the next four questions. -How is opportunity cost illustrated?

Over the last 20 years,countries such as India and China have:

What does it mean when society is operating inside the production possibilities frontier (PPF)?

Refer to the accompanying figure to answer the next four questions. -Unemployed resources are evident at:

If Jim can sell paper at a lower opportunity cost than Dwight can,then:

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

The Five Foundations of Economics

The Market at Work: Supply and Demand

Price Controls

The Efficiency of Markets and the Costs of Taxation

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

The Price Level and Inflation

Savings, interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

Filters

Exam 2: Model Building and Gains From Trade

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

Refer to the accompanying figure to answer the next four questions. -How is opportunity cost illustrated?

Over the last 20 years,countries such as India and China have:

What does it mean when society is operating inside the production possibilities frontier (PPF)?

Refer to the accompanying figure to answer the next four questions. -Unemployed resources are evident at:

If Jim can sell paper at a lower opportunity cost than Dwight can,then:

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

The Five Foundations of Economics

The Market at Work: Supply and Demand

Price Controls

The Efficiency of Markets and the Costs of Taxation

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

The Price Level and Inflation

Savings, interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

Filters