Question 1

Why has India's economy grown faster than the United States' in recent years?

Accepted Answer

A)  India production has focused more on consumer goods. 
B)  India has lowered its population growth rate. 
C)  India has attained a higher standard of living than the United States. 
D)  India's production has focused more on capital goods. 
E)  India has placed more focus on its citizens' immediate needs. 
A)  India production has focused more on consumer goods. 
B)  India has lowered its population growth rate. 
C)  India has attained a higher standard of living than the United States. 
D)  India's production has focused more on capital goods. 
E)  India has placed more focus on its citizens' immediate needs.

Question 2

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called

Accepted Answer

A)  a production possibilities frontier (PPF). 
B)  a supply curve. 
C)  opportunity cost. 
D)  a consumer demand curve. 
E)  absolute advantage. 
A)  a production possibilities frontier (PPF). 
B)  a supply curve. 
C)  opportunity cost. 
D)  a consumer demand curve. 
E)  absolute advantage.

Question 3

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 Monica's opportunity cost of baking 1 pie?

Accepted Answer

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

Question 4

The figure depicts a shift in a society's production possibilities frontier (PPF)for the manufacture of trains and planes: train-manufacturing capacity expands while plane-manufacturing capacity shrinks. Refer to this figure to answer the following questions.
 
-Which point ceases to represent a production possibility?

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

Question 5

The usual purpose of an experiment is to

Accepted Answer

A)  test a model that is based on a hypothesis. 
B)  turn a hypothesis into a theory. 
C)  observe an interesting phenomenon. 
D)  construct a model based on a hypothesis. 
E)  formulate a hypothesis that explains a phenomenon. 
A)  test a model that is based on a hypothesis. 
B)  turn a hypothesis into a theory. 
C)  observe an interesting phenomenon. 
D)  construct a model based on a hypothesis. 
E)  formulate a hypothesis that explains a phenomenon.

Question 6

Which scenario represents economic contraction?

Accepted Answer

A)  an outward shift of the PPF 
B)  an inward shift of the PPF 
C)  upward movement along the PPF 
D)  downward movement along the PPF 
E)  straightening of the curve of the PPF 
A)  an outward shift of the PPF 
B)  an inward shift of the PPF 
C)  upward movement along the PPF 
D)  downward movement along the PPF 
E)  straightening of the curve of the PPF

Question 7

How can a person who is "better" or more efficient (in that he or she has an absolute advantage in the production of various goods on the PPF)at producing several things be made even better off by specialization and trade?

Accepted Answer

It sometimes seems counterintuitive that

Question 8

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 stromboli?

Accepted Answer

A)  1/2 pizza 
B)  2/3 pizza 
C)  2 pizzas 
D)  2 stromboli 
E)  25 pizzas 
A)  1/2 pizza 
B)  2/3 pizza 
C)  2 pizzas 
D)  2 stromboli 
E)  25 pizzas

Question 9

One has an absolute advantage in producing something whenever

Accepted Answer

A)  one enjoys producing that good. 
B)  one can produce more of it than someone else using the same quantity of resources. 
C)  one's opportunity cost is constant. 
D)  one's opportunity cost is lower than that of other producers. 
E)  one has specific training in the production of that good. 
A)  one enjoys producing that good. 
B)  one can produce more of it than someone else using the same quantity of resources. 
C)  one's opportunity cost is constant. 
D)  one's opportunity cost is lower than that of other producers. 
E)  one has specific training in the production of that good.

Question 10

Which of the following is a normative statement?

Accepted Answer

A)  The sky is blue. 
B)  The sky is green with pink polka dots. 
C)  Points on the production possibilities frontier (PPF)are efficient. 
D)  Points outside the production possibilities frontier (PPF)are unattainable with current resources. 
E)  We should strive to push the production possibilities frontier (PPF)outward. 
A)  The sky is blue. 
B)  The sky is green with pink polka dots. 
C)  Points on the production possibilities frontier (PPF)are efficient. 
D)  Points outside the production possibilities frontier (PPF)are unattainable with current resources. 
E)  We should strive to push the production possibilities frontier (PPF)outward.

Question 11

For what kind of society does a shift away from the production of capital goods and toward the production of consumer goods make sense?

Accepted Answer

A)  a society with a scarcity of natural resources 
B)  a society with a high unemployment rate 
C)  a society with a low per-capita income 
D)  a society with a large per-capita stock of capital goods 
E)  a society with a large population 
A)  a society with a scarcity of natural resources 
B)  a society with a high unemployment rate 
C)  a society with a low per-capita income 
D)  a society with a large per-capita stock of capital goods 
E)  a society with a large population

Question 12

The figure depicts a shift in a society's production possibilities frontier (PPF)for the manufacture of trains and planes: train-manufacturing capacity expands while plane-manufacturing capacity shrinks. Refer to this figure to answer the following questions.
 
-Which point represents a new production possibility?

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

Question 13

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 Monica'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 14

Explain why,in the figure,a country might rather be at point B than at point A.

Accepted Answer

The curve represents a production possib

Question 15

use the Table below  to answer the following questions :
 
-Given the same quantity of resources,what is Jay-Z's opportunity cost of producing a New York pizza?

Accepted Answer

A)  5/2 Philly cheesesteaks 
B)  1/3 Philly cheesesteak 
C)  3 Philly cheesesteaks 
D)  120/125 New York pizza 
E)  4/5 New York pizza 
A)  5/2 Philly cheesesteaks 
B)  1/3 Philly cheesesteak 
C)  3 Philly cheesesteaks 
D)  120/125 New York pizza 
E)  4/5 New York pizza

Question 16

use the figure above to answer the following questions : 
-In the figure,point A is

Accepted Answer

A)  an efficient point. 
B)  unattainable with current resources. 
C)  an inefficient point. 
D)  the equilibrium. 
E)  the point where society would prefer to consume. 
A)  an efficient point. 
B)  unattainable with current resources. 
C)  an inefficient point. 
D)  the equilibrium. 
E)  the point where society would prefer to consume.

Question 17

Economic growth is,by definition,an increase in the

Accepted Answer

A)  ability to produce goods. 
B)  number of participants in the workforce. 
C)  demand for goods. 
D)  average citizen's standard of living. 
E)  average worker's salary. 
A)  ability to produce goods. 
B)  number of participants in the workforce. 
C)  demand for goods. 
D)  average citizen's standard of living. 
E)  average worker's salary.

Question 18

Someone has a comparative advantage in producing a good whenever

Accepted Answer

A)  one enjoys producing that good. 
B)  one can produce more of the good than someone else using the same resources. 
C)  one's opportunity cost is constant. 
D)  one's opportunity cost of producing that good is lower than that of other producers. 
E)  one has specific training in the production of that good. 
A)  one enjoys producing that good. 
B)  one can produce more of the good than someone else using the same resources. 
C)  one's opportunity cost is constant. 
D)  one's opportunity cost of producing that good is lower than that of other producers. 
E)  one has specific training in the production of that good.

Question 19

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 sculpture?

Accepted Answer

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

Question 20

If Lola can produce more output from a set amount of resources than Kevin,________ has a(n)________ advantage.

Accepted Answer

A)  Lola; comparative 
B)  Kevin; comparative 
C)  Lola; absolute 
D)  Kevin; absolute 
E)  Lola; normative 
A)  Lola; comparative 
B)  Kevin; comparative 
C)  Lola; absolute 
D)  Kevin; absolute 
E)  Lola; normative

Why has India's economy grown faster than the United States' in recent years?

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called

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 Monica's opportunity cost of baking 1 pie?

The usual purpose of an experiment is to

Which scenario represents economic contraction?

How can a person who is "better" or more efficient (in that he or she has an absolute advantage in the production of various goods on the PPF)at producing several things be made even better off by specialization and trade?

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 stromboli?

One has an absolute advantage in producing something whenever

Which of the following is a normative statement?

For what kind of society does a shift away from the production of capital goods and toward the production of consumer goods make sense?

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 Monica's opportunity cost of baking 1 loaf of bread?

Explain why,in the figure,a country might rather be at point B than at point A.

use the Table below to answer the following questions : -Given the same quantity of resources,what is Jay-Z's opportunity cost of producing a New York pizza?

use the figure above to answer the following questions : -In the figure,point A is

Economic growth is,by definition,an increase in the

Someone has a comparative advantage in producing a good whenever

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 sculpture?

If Lola can produce more output from a set amount of resources than Kevin, has a(n) advantage.

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

Why has India's economy grown faster than the United States' in recent years?

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called

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 Monica's opportunity cost of baking 1 pie?

The usual purpose of an experiment is to

Which scenario represents economic contraction?

How can a person who is "better" or more efficient (in that he or she has an absolute advantage in the production of various goods on the PPF)at producing several things be made even better off by specialization and trade?

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 stromboli?

One has an absolute advantage in producing something whenever

Which of the following is a normative statement?

For what kind of society does a shift away from the production of capital goods and toward the production of consumer goods make sense?

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 Monica's opportunity cost of baking 1 loaf of bread?

Explain why,in the figure,a country might rather be at point B than at point A.

use the Table below to answer the following questions : -Given the same quantity of resources,what is Jay-Z's opportunity cost of producing a New York pizza?

use the figure above to answer the following questions : -In the figure,point A is

Economic growth is,by definition,an increase in the

Someone has a comparative advantage in producing a good whenever

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 sculpture?

If Lola can produce more output from a set amount of resources than Kevin,________ has a(n)________ advantage.

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

If Lola can produce more output from a set amount of resources than Kevin, has a(n) advantage.