Question 1

At the most basic level,the benefit of specialization is

Accepted Answer

A)  greater total output. 
B)  greater interest in work. 
C)  less job related stress. 
D)  less diversity in output. 
E)  less detailed knowledgE. 
A)  greater total output. 
B)  greater interest in work. 
C)  less job related stress. 
D)  less diversity in output. 
E)  less detailed knowledgE.

Question 2

Any combination of goods that can be produced with currently available resources defines a(n)

Accepted Answer

A)  unattainable point. 
B)  efficient point. 
C)  inefficient point. 
D)  attainable and efficient point. 
E)  attainable point. 
A)  unattainable point. 
B)  efficient point. 
C)  inefficient point. 
D)  attainable and efficient point. 
E)  attainable point.

Question 3

Which of the following statements best describes the given production possibilities curve?

Accepted Answer

A)  The market price of butter must be higher than the market price for guns. 
B)  The market price of guns must be higher than the market price for butter. 
C)  It is more profitable for Becky to produce guns than butter. 
D)  It is more profitable for Becky to produce butter than guns. 
E)  The opportunity cost for one additional gun is always constant. 
A)  The market price of butter must be higher than the market price for guns. 
B)  The market price of guns must be higher than the market price for butter. 
C)  It is more profitable for Becky to produce guns than butter. 
D)  It is more profitable for Becky to produce butter than guns. 
E)  The opportunity cost for one additional gun is always constant.

Question 4

Which of the following factors will NOT cause a production possibilities curve to shift away from the origin?

Accepted Answer

A)  New,improved technology. 
B)  Access to additional productive resources. 
C)  Easier access to university education. 
D)  Enforcement of compulsory retirement at age 60,for all workers. 
E)  Increased expenditure on capital investment. 
A)  New,improved technology. 
B)  Access to additional productive resources. 
C)  Easier access to university education. 
D)  Enforcement of compulsory retirement at age 60,for all workers. 
E)  Increased expenditure on capital investment.

Question 5

-Jenny's opportunity cost of producing an extra pair of pants is

Accepted Answer

A)  1 pair of shoes. 
B)  2/3 pairs of shoes. 
C)  3/2 pairs of shoes. 
D)  2 pairs of shoes. 
E)  3 pairs of shoes. 
A)  1 pair of shoes. 
B)  2/3 pairs of shoes. 
C)  3/2 pairs of shoes. 
D)  2 pairs of shoes. 
E)  3 pairs of shoes.

Question 6

-Sam's opportunity cost of producing an extra pair of shoes is

Accepted Answer

A)  3/4 pairs of pants. 
B)  4/5 pairs of pants. 
C)  1 pair of pants. 
D)  5/4 pairs of pants. 
E)  4/3 pairs of pants. 
A)  3/4 pairs of pants. 
B)  4/5 pairs of pants. 
C)  1 pair of pants. 
D)  5/4 pairs of pants. 
E)  4/3 pairs of pants.

Question 7

An increase in the amount spent on new factories and equipment would cause the production possibilities curve to

Accepted Answer

A)  become steeper. 
B)  shift away from the origin. 
C)  become flatter. 
D)  shift towards the origin. 
E)  change in an unpredictable way. 
A)  become steeper. 
B)  shift away from the origin. 
C)  become flatter. 
D)  shift towards the origin. 
E)  change in an unpredictable way.

Question 8

The following table describes Buffy's abilities to produce either weapons or food each hour.
  
-Buffy's production possibilities curve has a __________ slope because producing 6 extra units of food means __________ weapons can be produced.

Accepted Answer

A)  positive;two more 
B)  negative;two fewer 
C)  negative;three fewer 
D)  negative;six fewer 
E)  negative;0.333 fewer 
A)  positive;two more 
B)  negative;two fewer 
C)  negative;three fewer 
D)  negative;six fewer 
E)  negative;0.333 fewer

Question 9

-Refer to the graph above.The graph indicates that,as more rye is produced,the opportunity cost of producing rye

Accepted Answer

A)  increases. 
B)  remains constant. 
C)  decreases. 
D)  eventually becomes infinite. 
E)  is zero. 
A)  increases. 
B)  remains constant. 
C)  decreases. 
D)  eventually becomes infinite. 
E)  is zero.

Question 10

When each individual concentrates on performing the tasks and producing the goods for which she or he has the lowest opportunity cost,they are producing in accordance with the Principle of

Accepted Answer

A)  Increasing Opportunity Cost. 
B)  Decreasing Opportunity Cost. 
C)  Comparative Advantage. 
D)  Scarcity. 
E)  Low-Hanging Fruit. 
A)  Increasing Opportunity Cost. 
B)  Decreasing Opportunity Cost. 
C)  Comparative Advantage. 
D)  Scarcity. 
E)  Low-Hanging Fruit.

Question 11

Production possibilities curves are downward sloping,reflecting the principle of

Accepted Answer

A)  scarcity. 
B)  comparative advantage. 
C)  increasing opportunity cost. 
D)  absolute advantage. 
E)  low-hanging fruit. 
A)  scarcity. 
B)  comparative advantage. 
C)  increasing opportunity cost. 
D)  absolute advantage. 
E)  low-hanging fruit.

Question 12

-Refer to the graph above.Given Vineetstan's production possibility curve of listening to CDs or reading magazine articles in one week,when moving from point A to point B,the opportunity cost of listening to each CD in terms of reading articles is

Accepted Answer

A)  ½ article. 
B)  1 article. 
C)  2 articles. 
D)  3 articles. 
E)  4 articles. 
A)  ½ article. 
B)  1 article. 
C)  2 articles. 
D)  3 articles. 
E)  4 articles.

Question 13

-The absolute advantage for electric guitars belongs to __________;for acoustic guitars,it belongs to __________.

Accepted Answer

A)  Mark;Dennis 
B)  Mark;Glenn 
C)  Glenn;Dennis 
D)  Dennis;Mark 
E)  Dennis;Glenn 
A)  Mark;Dennis 
B)  Mark;Glenn 
C)  Glenn;Dennis 
D)  Dennis;Mark 
E)  Dennis;Glenn

Question 14

The slope of the production possibilities curve must be

Accepted Answer

A)  constant. 
B)  positive. 
C)  decreasing. 
D)  increasing. 
E)  negativE. 
A)  constant. 
B)  positive. 
C)  decreasing. 
D)  increasing. 
E)  negativE.

Question 15

Specialization of labour not only results in the ability to produce a larger quantity of goods due to innate differences in people's skills,but also in

Accepted Answer

A)  rigidly segmenting work. 
B)  switching back and forth among numerous tasks. 
C)  breaking a task down into mind-numbing repetitive tasks. 
D)  deepening skills through practice and experience. 
E)  eliminating the need to train and educate the workers to perform different tasks. 
A)  rigidly segmenting work. 
B)  switching back and forth among numerous tasks. 
C)  breaking a task down into mind-numbing repetitive tasks. 
D)  deepening skills through practice and experience. 
E)  eliminating the need to train and educate the workers to perform different tasks.

Question 16

Of the labelled points,______________ are efficient.

Accepted Answer

A)  F and G 
B)  B,C,and D 
C)  A,C,and E 
D)  A,B,C,D,E,and F 
E)  A,B,C,D,and E 
A)  F and G 
B)  B,C,and D 
C)  A,C,and E 
D)  A,B,C,D,E,and F 
E)  A,B,C,D,and E

Question 17

When an economy is operating on its production possibilities curve,it is always

Accepted Answer

A)  both productively efficient and allocatively efficient. 
B)  productively efficient but may not be allocatively efficient. 
C)  allocatively efficient but may not be productively efficient. 
D)  experiencing growth. 
E)  increasing its standard of living. 
A)  both productively efficient and allocatively efficient. 
B)  productively efficient but may not be allocatively efficient. 
C)  allocatively efficient but may not be productively efficient. 
D)  experiencing growth. 
E)  increasing its standard of living.

Question 18

The introduction of new and more productive technology into the workplace will generally cause the production possibilities curve to

Accepted Answer

A)  become steeper. 
B)  shift away from the origin. 
C)  become flatter. 
D)  shift towards the origin. 
E)  change in an unpredictable way. 
A)  become steeper. 
B)  shift away from the origin. 
C)  become flatter. 
D)  shift towards the origin. 
E)  change in an unpredictable way.

Question 19

Lou and Alex live together and share household chores.They like to cook some meals ahead and eat leftovers.Suppose that in one hour Lou and Alex can do the following:
  
-Alex and Lou have worked out an efficient arrangement.Under that arrangement,

Accepted Answer

A)  Alex and Lou each spend a half hour on cooking and a half hour on cleaning. 
B)  Alex spends all of his time on cleaning,while Lou does all the cooking. 
C)  Lou does all of the cleaning and half of the cooking. 
D)  Lou spends all of his time on cleaning,while Alex does all the cooking 
E)  Lou does all of the cooking and half of the cleaning. 
A)  Alex and Lou each spend a half hour on cooking and a half hour on cleaning. 
B)  Alex spends all of his time on cleaning,while Lou does all the cooking. 
C)  Lou does all of the cleaning and half of the cooking. 
D)  Lou spends all of his time on cleaning,while Alex does all the cooking 
E)  Lou does all of the cooking and half of the cleaning.

Question 20

The psychological cost of specialization is likely to affect

Accepted Answer

A)  all workers to the same degree. 
B)  very few workers. 
C)  a factory worker less than a brain surgeon. 
D)  a factory worker more than a brain surgeon. 
E)  a factory worker and a brain surgeon equally. 
A)  all workers to the same degree. 
B)  very few workers. 
C)  a factory worker less than a brain surgeon. 
D)  a factory worker more than a brain surgeon. 
E)  a factory worker and a brain surgeon equally.

At the most basic level,the benefit of specialization is

Any combination of goods that can be produced with currently available resources defines a(n)

Which of the following statements best describes the given production possibilities curve?

Which of the following factors will NOT cause a production possibilities curve to shift away from the origin?

-Jenny's opportunity cost of producing an extra pair of pants is

-Sam's opportunity cost of producing an extra pair of shoes is

An increase in the amount spent on new factories and equipment would cause the production possibilities curve to

The following table describes Buffy's abilities to produce either weapons or food each hour. -Buffy's production possibilities curve has a slope because producing 6 extra units of food means weapons can be produced.

-Refer to the graph above.The graph indicates that,as more rye is produced,the opportunity cost of producing rye

When each individual concentrates on performing the tasks and producing the goods for which she or he has the lowest opportunity cost,they are producing in accordance with the Principle of

Production possibilities curves are downward sloping,reflecting the principle of

-Refer to the graph above.Given Vineetstan's production possibility curve of listening to CDs or reading magazine articles in one week,when moving from point A to point B,the opportunity cost of listening to each CD in terms of reading articles is

-The absolute advantage for electric guitars belongs to ;for acoustic guitars,it belongs to .

The slope of the production possibilities curve must be

Specialization of labour not only results in the ability to produce a larger quantity of goods due to innate differences in people's skills,but also in

Of the labelled points,______________ are efficient.

When an economy is operating on its production possibilities curve,it is always

The introduction of new and more productive technology into the workplace will generally cause the production possibilities curve to

Lou and Alex live together and share household chores.They like to cook some meals ahead and eat leftovers.Suppose that in one hour Lou and Alex can do the following: -Alex and Lou have worked out an efficient arrangement.Under that arrangement,

The psychological cost of specialization is likely to affect

Measuring Macroeconomic Performance: Output and Prices

Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

Short-Term Economic Fluctuations

Spending and Output in the Short Run

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters

Exam 2: Measuring Macroeconomic Performance: Saving and Wealth

At the most basic level,the benefit of specialization is

Any combination of goods that can be produced with currently available resources defines a(n)

Which of the following statements best describes the given production possibilities curve?

Which of the following factors will NOT cause a production possibilities curve to shift away from the origin?

-Jenny's opportunity cost of producing an extra pair of pants is

-Sam's opportunity cost of producing an extra pair of shoes is

An increase in the amount spent on new factories and equipment would cause the production possibilities curve to

The following table describes Buffy's abilities to produce either weapons or food each hour. -Buffy's production possibilities curve has a __________ slope because producing 6 extra units of food means __________ weapons can be produced.

-Refer to the graph above.The graph indicates that,as more rye is produced,the opportunity cost of producing rye

When each individual concentrates on performing the tasks and producing the goods for which she or he has the lowest opportunity cost,they are producing in accordance with the Principle of

Production possibilities curves are downward sloping,reflecting the principle of

-Refer to the graph above.Given Vineetstan's production possibility curve of listening to CDs or reading magazine articles in one week,when moving from point A to point B,the opportunity cost of listening to each CD in terms of reading articles is

-The absolute advantage for electric guitars belongs to __________;for acoustic guitars,it belongs to __________.

The slope of the production possibilities curve must be

Specialization of labour not only results in the ability to produce a larger quantity of goods due to innate differences in people's skills,but also in

Of the labelled points,______________ are efficient.

When an economy is operating on its production possibilities curve,it is always

The introduction of new and more productive technology into the workplace will generally cause the production possibilities curve to

Lou and Alex live together and share household chores.They like to cook some meals ahead and eat leftovers.Suppose that in one hour Lou and Alex can do the following: -Alex and Lou have worked out an efficient arrangement.Under that arrangement,

The psychological cost of specialization is likely to affect

Measuring Macroeconomic Performance: Output and Prices

Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

Short-Term Economic Fluctuations

Spending and Output in the Short Run

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters

The following table describes Buffy's abilities to produce either weapons or food each hour. -Buffy's production possibilities curve has a slope because producing 6 extra units of food means weapons can be produced.

-The absolute advantage for electric guitars belongs to ;for acoustic guitars,it belongs to .