Question 1

For a phenomenon to be investigated by means of experiments,the phenomenon must

Accepted Answer

A)  involve human beings. 
B)  have observable effects. 
C)  have occurred in the past. 
D)  be well understood. 
E)  be quantitatively measurable. 
A)  involve human beings. 
B)  have observable effects. 
C)  have occurred in the past. 
D)  be well understood. 
E)  be quantitatively measurable. B

Question 2

When the opportunity cost of producing a good rises as someone produces more of it,one experiences

Accepted Answer

A)  normative economics. 
B)  increasing relative costs. 
C)  downward-sloping demand. 
D)  inferior goods. 
E)  increasing marginal utility. 
A)  normative economics. 
B)  increasing relative costs. 
C)  downward-sloping demand. 
D)  inferior goods. 
E)  increasing marginal utility. B

Question 3

Variables that are controlled for in a model are called

Accepted Answer

A)  normative statements. 
B)  positive statements. 
C)  endogenous factors. 
D)  exogenous factors. 
E)  the scientific method. 
A)  normative statements. 
B)  positive statements. 
C)  endogenous factors. 
D)  exogenous factors. 
E)  the scientific method. C

Question 4

According to the figure,a new technology that makes it easier to peel,core,and prepare apples will cause

Accepted Answer

A)  the entire production possibilities frontier (PPF)to shift outward. 
B)  the entire production possibilities frontier (PPF)to shift inward. 
C)  the production possibilities frontier (PPF)to rotate outward to a larger maximum quantity of apple pies with no change in maximum blueberry pies. 
D)  the production possibilities frontier (PPF)to rotate outward to a larger maximum quantity of blueberry pies with no change in maximum apple pies. 
E)  the production possibilities frontier (PPF)to stay exactly the same because there is no change in resources. 
A)  the entire production possibilities frontier (PPF)to shift outward. 
B)  the entire production possibilities frontier (PPF)to shift inward. 
C)  the production possibilities frontier (PPF)to rotate outward to a larger maximum quantity of apple pies with no change in maximum blueberry pies. 
D)  the production possibilities frontier (PPF)to rotate outward to a larger maximum quantity of blueberry pies with no change in maximum apple pies. 
E)  the production possibilities frontier (PPF)to stay exactly the same because there is no change in resources.

Question 5

The opportunity cost of every investment in capital goods is

Accepted Answer

A)  current consumption (consumer goods). 
B)  future consumption (capital goods today). 
C)  absolute advantage. 
D)  comparative advantage. 
E)  scarcity. 
A)  current consumption (consumer goods). 
B)  future consumption (capital goods today). 
C)  absolute advantage. 
D)  comparative advantage. 
E)  scarcity.

Question 6

Greater investment in capital goods today leads to

Accepted Answer

A)  greater growth in the production possibilities frontier (PPF)in the future. 
B)  greater consumption today. 
C)  the end of scarcity. 
D)  less opportunity cost. 
E)  scarcity. 
A)  greater growth in the production possibilities frontier (PPF)in the future. 
B)  greater consumption today. 
C)  the end of scarcity. 
D)  less opportunity cost. 
E)  scarcity.

Question 7

Mikhail and Stefan are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Use this table to answer the following questions.
  
-What is Mikhail's opportunity cost of a painting?

Accepted Answer

A)  1/2 painting 
B)  1/2 sculpture 
C)  3 paintings 
D)  2 sculptures 
E)  2 paintings 
A)  1/2 painting 
B)  1/2 sculpture 
C)  3 paintings 
D)  2 sculptures 
E)  2 paintings

Question 8

use the figures below  to answer the following questions : the production possibilities frontier (PPF)curves,which compare the ancient production of agricultural products to art and literature
A.   B.   C.   D.   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 9

Wilbur and Orville Wright's testing of wing designs in a wind tunnel is an example of using

Accepted Answer

A)  observations to construct models. 
B)  hypotheses to test observations. 
C)  a theory to formulate hypotheses. 
D)  models to collect data. 
E)  data to make predictions. 
A)  observations to construct models. 
B)  hypotheses to test observations. 
C)  a theory to formulate hypotheses. 
D)  models to collect data. 
E)  data to make predictions.

Question 10

use the figure below  to answer the following questions
 
-What is the most preferred consumption point for a carbohydrate-loving society?

Accepted Answer

A)  point B 
B)  point C 
C)  point D 
D)  point E 
E)  point F 
A)  point B 
B)  point C 
C)  point D 
D)  point E 
E)  point F

Question 11

Is there an opportunity cost to increased investment in capital goods today?

Accepted Answer

A)  Yes,increased production of capital goods means fewer consumer goods today. 
B)  Yes,increased production of capital goods today means less economic growth in the future. 
C)  No,increased production of capital goods today does not mean fewer consumer goods today. 
D)  No,increased production of capital goods today guarantees more consumption today. 
E)  No,if society is producing at an efficient point on the production possibilities frontier (PPF),then there is no opportunity cost to investment in capital goods. 
A)  Yes,increased production of capital goods means fewer consumer goods today. 
B)  Yes,increased production of capital goods today means less economic growth in the future. 
C)  No,increased production of capital goods today does not mean fewer consumer goods today. 
D)  No,increased production of capital goods today guarantees more consumption today. 
E)  No,if society is producing at an efficient point on the production possibilities frontier (PPF),then there is no opportunity cost to investment in capital goods.

Question 12

Which of the following is a positive statement?

Accepted Answer

A)  Winters in Arkansas are too cold. 
B)  Everyone should work in a bank to understand the true value of money. 
C)  Harvard University is the top education institution in the country. 
D)  On average,people save 15 percent when they switch to GEICO. 
E)  Everyone ought to have a life insurance policy. 
A)  Winters in Arkansas are too cold. 
B)  Everyone should work in a bank to understand the true value of money. 
C)  Harvard University is the top education institution in the country. 
D)  On average,people save 15 percent when they switch to GEICO. 
E)  Everyone ought to have a life insurance policy.

Question 13

What is DiNozzo's opportunity cost for solving a crime?

Accepted Answer

A)  20 solved crimes 
B)  30 solved crimes 
C)  5 solved crimes 
D)  1/20 of a boat 
E)  1/10 of a boat 
A)  20 solved crimes 
B)  30 solved crimes 
C)  5 solved crimes 
D)  1/20 of a boat 
E)  1/10 of a boat

Question 14

Explain how trading of goods creates value without creating any new goods.

Accepted Answer

A trade enables each party to obtain som

Question 15

Two friends,Monica and Chandler,enjoy baking bread and making apple pies.Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie.Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-What is Chandler's opportunity cost of baking 1 loaf of bread?

Accepted Answer

A)  4 pies 
B)  2 pies 
C)  1 pie 
D)  1 loaf of bread 
E)  1/2 loaf of bread 
A)  4 pies 
B)  2 pies 
C)  1 pie 
D)  1 loaf of bread 
E)  1/2 loaf of bread

Question 16

The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called

Accepted Answer

A)  exogenous factors. 
B)  ceteris paribus. 
C)  normative analysis. 
D)  positive analysis. 
E)  faulty assumptions. 
A)  exogenous factors. 
B)  ceteris paribus. 
C)  normative analysis. 
D)  positive analysis. 
E)  faulty assumptions.

Question 17

use the figure below  to answer the following questions : the accompanying figure  
  
-The inefficient point(s)is/are

Accepted Answer

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

Question 18

Which faulty assumption by banks led to the Great Recession that began in 2007?

Accepted Answer

A)  that inflation would always remain low 
B)  that the U.S.government would always pay its debts 
C)  that stock prices would never drop 
D)  that the dollar would always be strong against other currencies 
E)  that real estate prices would always rise 
A)  that inflation would always remain low 
B)  that the U.S.government would always pay its debts 
C)  that stock prices would never drop 
D)  that the dollar would always be strong against other currencies 
E)  that real estate prices would always rise

Question 19

Suppose that during Coco's afternoon shift working at the library,she could either reshelve books or process interlibrary loan (ILL)requests.Draw a production possibilities frontier (PPF)that describes Coco's production trade-offs.Her production of each of these goods is subject to increasing relative costs in production,so be sure that the graph reflects this fact.
Now suppose that a new online request system increases Coco's efficiency at processing ILL requests but does not affect her reshelving ability.Show,on the same graph,how this new innovation changes the PPF.

Accepted Answer

The answer of Suppose that during Coco's afternoon shift working...

Question 20

use the figure below  to answer the following questions : the figure depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli.
  
-What is Bo's opportunity cost of making 1 pizza?

Accepted Answer

A)  50 stromboli 
B)  20 stromboli 
C)  2.5 stromboli 
D)  2 stromboli 
E)  1.5 stromboli 
A)  50 stromboli 
B)  20 stromboli 
C)  2.5 stromboli 
D)  2 stromboli 
E)  1.5 stromboli

For a phenomenon to be investigated by means of experiments,the phenomenon must

When the opportunity cost of producing a good rises as someone produces more of it,one experiences

Variables that are controlled for in a model are called

According to the figure,a new technology that makes it easier to peel,core,and prepare apples will cause

The opportunity cost of every investment in capital goods is

Greater investment in capital goods today leads to

Mikhail and Stefan are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Use this table to answer the following questions. -What is Mikhail's opportunity cost of a painting?

Wilbur and Orville Wright's testing of wing designs in a wind tunnel is an example of using

use the figure below to answer the following questions -What is the most preferred consumption point for a carbohydrate-loving society?

Is there an opportunity cost to increased investment in capital goods today?

Which of the following is a positive statement?

What is DiNozzo's opportunity cost for solving a crime?

Explain how trading of goods creates value without creating any new goods.

Two friends,Monica and Chandler,enjoy baking bread and making apple pies.Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie.Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie. -What is Chandler's opportunity cost of baking 1 loaf of bread?

The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called

use the figure below to answer the following questions : the accompanying figure -The inefficient point(s)is/are

Which faulty assumption by banks led to the Great Recession that began in 2007?

use the figure below to answer the following questions : the figure depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli. -What is Bo's opportunity cost of making 1 pizza?

Five Foundations of Economics

The Market at Work: Supply and Demand

Elasticity

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters

Exam 2: Model Building and Gains From Trade

For a phenomenon to be investigated by means of experiments,the phenomenon must

When the opportunity cost of producing a good rises as someone produces more of it,one experiences

Variables that are controlled for in a model are called

According to the figure,a new technology that makes it easier to peel,core,and prepare apples will cause

The opportunity cost of every investment in capital goods is

Greater investment in capital goods today leads to

Mikhail and Stefan are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Use this table to answer the following questions. -What is Mikhail's opportunity cost of a painting?

Wilbur and Orville Wright's testing of wing designs in a wind tunnel is an example of using

use the figure below to answer the following questions -What is the most preferred consumption point for a carbohydrate-loving society?

Is there an opportunity cost to increased investment in capital goods today?

Which of the following is a positive statement?

What is DiNozzo's opportunity cost for solving a crime?

Explain how trading of goods creates value without creating any new goods.

Two friends,Monica and Chandler,enjoy baking bread and making apple pies.Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie.Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie. -What is Chandler's opportunity cost of baking 1 loaf of bread?

The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called

use the figure below to answer the following questions : the accompanying figure -The inefficient point(s)is/are

Which faulty assumption by banks led to the Great Recession that began in 2007?

use the figure below to answer the following questions : the figure depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli. -What is Bo's opportunity cost of making 1 pizza?

Five Foundations of Economics

The Market at Work: Supply and Demand

Elasticity

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters