Question 1

If your linear,two-good production possibilities graph has a slope steeper than -1:

Accepted Answer

A)  you would have to give up more than one unit of the good measured on the horizontal axis to gain an additional unit of the good measured on the vertical axis. 
B)  you would have to give up less than one unit of the good measured on the horizontal axis to gain an additional unit of the good measured on the vertical axis. 
C)  by specializing in the good measured on the horizontal axis you would be able to make more total units than you would if you specialized in the good measured on the vertical axis. 
D)  you have a comparative advantage in the good measured on the vertical axis. 
A)  you would have to give up more than one unit of the good measured on the horizontal axis to gain an additional unit of the good measured on the vertical axis. 
B)  you would have to give up less than one unit of the good measured on the horizontal axis to gain an additional unit of the good measured on the vertical axis. 
C)  by specializing in the good measured on the horizontal axis you would be able to make more total units than you would if you specialized in the good measured on the vertical axis. 
D)  you have a comparative advantage in the good measured on the vertical axis.

Question 2

If a given production combination is known to be attainable,then it must be:

Accepted Answer

A)  on the production possibilities curve. 
B)  an inefficient point. 
C)  an efficient point. 
D)  either an inefficient or efficient point. 
A)  on the production possibilities curve. 
B)  an inefficient point. 
C)  an efficient point. 
D)  either an inefficient or efficient point.

Question 3

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 4

Moe divides his time between studying Physics and studying Economics.He has discovered that he can earn grades as shown on this production possibilities curve.  
Refer to the figure above.If Moe moved from Point A to Point C,his grade in Physics would go down by ______________ his grade in economics.

Accepted Answer

A)  less than the increase in 
B)  more than the increase in 
C)  more than the decrease in 
D)  less than the decrease in 
A)  less than the increase in 
B)  more than the increase in 
C)  more than the decrease in 
D)  less than the decrease in

Question 5

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: $$\begin{array} { | l | l | l | } 
\hline & \text { Cars Sold } & \text { Trucks Sold } \
\hline \text { Larry } & 10 & 5 \
\hline \text { Joe } & 9 & 9 \
\hline \text { Ralph } & 3 & 12 \
\hline
\end{array}$$
________ has an absolute advantage in selling cars and __________ has an absolute advantage in selling trucks.

Accepted Answer

A)  Joe;Joe 
B)  Larry;Ralph 
C)  Ralph;Larry 
D)  Larry;Joe 
A)  Joe;Joe 
B)  Larry;Ralph 
C)  Ralph;Larry 
D)  Larry;Joe

Question 6

If Jane can produce 3 pairs of shoes hourly,while Bob can produce 2,then one can infer that the __________ advantage belongs to __________.

Accepted Answer

A)  absolute;Jane 
B)  comparative;Jane 
C)  comparative;Bob 
D)  comparative and absolute;Jane 
A)  absolute;Jane 
B)  comparative;Jane 
C)  comparative;Bob 
D)  comparative and absolute;Jane

Question 7

It was expected that consumers in _____ would benefit from reduced prices of goods that will be freely traded under the NAFTA.

Accepted Answer

A)  Canada 
B)  the United States 
C)  China 
D)  Mexico 
A)  Canada 
B)  the United States 
C)  China 
D)  Mexico

Question 8

According to the principle of increasing opportunity cost,expanding production requires using resources in which order?

Accepted Answer

A)  In random order. 
B)  Starting with the resource with the highest opportunity cost and progressing to the lower opportunity cost resources. 
C)  Starting with the resource closest to the average opportunity cost,then progressing to higher opportunity cost resources. 
D)  Starting with the resource with the lowest opportunity cost and proceeding to the higher opportunity cost resources. 
A)  In random order. 
B)  Starting with the resource with the highest opportunity cost and progressing to the lower opportunity cost resources. 
C)  Starting with the resource closest to the average opportunity cost,then progressing to higher opportunity cost resources. 
D)  Starting with the resource with the lowest opportunity cost and proceeding to the higher opportunity cost resources.

Question 9

When a government increases the cost of international trade,it is:

Accepted Answer

A)  helping domestic consumers. 
B)  hurting all domestic producers. 
C)  reducing the total amount of output available to domestic consumers. 
D)  keeping all domestic prices artificially low. 
A)  helping domestic consumers. 
B)  hurting all domestic producers. 
C)  reducing the total amount of output available to domestic consumers. 
D)  keeping all domestic prices artificially low.

If your linear,two-good production possibilities graph has a slope steeper than -1:

If a given production combination is known to be attainable,then it must be:

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

Moe divides his time between studying Physics and studying Economics.He has discovered that he can earn grades as shown on this production possibilities curve. Refer to the figure above.If Moe moved from Point A to Point C,his grade in Physics would go down by ______________ his grade in economics.

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: Cars Sold Trucks Sold Larry 10 5 Joe 9 9 Ralph 3 12 has an absolute advantage in selling cars and __ has an absolute advantage in selling trucks.

If Jane can produce 3 pairs of shoes hourly,while Bob can produce 2,then one can infer that the advantage belongs to .

It was expected that consumers in _____ would benefit from reduced prices of goods that will be freely traded under the NAFTA.

According to the principle of increasing opportunity cost,expanding production requires using resources in which order?

When a government increases the cost of international trade,it is:

Thinking Like an Economist

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Filters

Exam 2: Comparative Advantage

If your linear,two-good production possibilities graph has a slope steeper than -1:

If a given production combination is known to be attainable,then it must be:

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

Moe divides his time between studying Physics and studying Economics.He has discovered that he can earn grades as shown on this production possibilities curve. Refer to the figure above.If Moe moved from Point A to Point C,his grade in Physics would go down by ______________ his grade in economics.

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: Cars Sold Trucks Sold Larry 10 5 Joe 9 9 Ralph 3 12 ________ has an absolute advantage in selling cars and __________ has an absolute advantage in selling trucks.

If Jane can produce 3 pairs of shoes hourly,while Bob can produce 2,then one can infer that the __________ advantage belongs to __________.

It was expected that consumers in _____ would benefit from reduced prices of goods that will be freely traded under the NAFTA.

According to the principle of increasing opportunity cost,expanding production requires using resources in which order?

When a government increases the cost of international trade,it is:

Thinking Like an Economist

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Filters

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: Cars Sold Trucks Sold Larry 10 5 Joe 9 9 Ralph 3 12 has an absolute advantage in selling cars and __ has an absolute advantage in selling trucks.

If Jane can produce 3 pairs of shoes hourly,while Bob can produce 2,then one can infer that the advantage belongs to .