Question 1

Of the labelled points,______________ are attainable.

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 2

Having a comparative advantage in a particular task means that you

Accepted Answer

A)  are better at it than other people. 
B)  give up more to accomplish that task than do others. 
C)  give up less to accomplish that task than do others. 
D)  have specialized in that task,while others have not 
E)  have more resources than others. 
A)  are better at it than other people. 
B)  give up more to accomplish that task than do others. 
C)  give up less to accomplish that task than do others. 
D)  have specialized in that task,while others have not 
E)  have more resources than others.

Question 3

A concave (bowed out from the origin)production possibilities curve would indicate

Accepted Answer

A)  decreasing opportunity costs. 
B)  that the slope is getting smaller in absolute value. 
C)  a large economy with many workers. 
D)  a small economy with a handful of workers. 
E)  constant opportunity costs. 
A)  decreasing opportunity costs. 
B)  that the slope is getting smaller in absolute value. 
C)  a large economy with many workers. 
D)  a small economy with a handful of workers. 
E)  constant opportunity costs.

Question 4

While there exists the potential for specialization to go too far,it is equally true that

Accepted Answer

A)  these fears are overstated by the media. 
B)  any work is mind numbing and distasteful. 
C)  failure to specialize has significant costs. 
D)  less specialization means higher wages. 
E)  less specialization would improve conversation at parties. 
A)  these fears are overstated by the media. 
B)  any work is mind numbing and distasteful. 
C)  failure to specialize has significant costs. 
D)  less specialization means higher wages. 
E)  less specialization would improve conversation at parties.

Question 5

Given the production possibility tables for First and Second Bakeries presented below,what must be true?

Accepted Answer

A)  First Bakery has a comparative advantage in the production of both goods. 
B)  Second Bakery has a comparative advantage in the production of pies. 
C)  First Bakery has a comparative advantage in the production of pies. 
D)  Neither bakery has a comparative advantage. 
E)  Neither bakery has an absolute advantagE. 
A)  First Bakery has a comparative advantage in the production of both goods. 
B)  Second Bakery has a comparative advantage in the production of pies. 
C)  First Bakery has a comparative advantage in the production of pies. 
D)  Neither bakery has a comparative advantage. 
E)  Neither bakery has an absolute advantagE.

Question 6

-The opportunity cost of an extra acoustic guitar for Glenn is

Accepted Answer

A)  0.8 fewer electric guitars. 
B)  7 fewer electric guitars. 
C)  0.14 more electric guitars. 
D)  equal to Glenn's opportunity cost of an extra electric guitar. 
E)  8 fewer electric guitars. 
A)  0.8 fewer electric guitars. 
B)  7 fewer electric guitars. 
C)  0.14 more electric guitars. 
D)  equal to Glenn's opportunity cost of an extra electric guitar. 
E)  8 fewer electric guitars.

Question 7

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Accepted Answer

A)  Joe would be used first,followed by Sam. 
B)  Sam would always be used. 
C)  Sam would be used first and then Joe. 
D)  the sequencing of Sam and Joe is irrelevant. 
E)  Joe would always be used. 
A)  Joe would be used first,followed by Sam. 
B)  Sam would always be used. 
C)  Sam would be used first and then Joe. 
D)  the sequencing of Sam and Joe is irrelevant. 
E)  Joe would always be used.

Question 8

Increased specialization in the production of goods

Accepted Answer

A)  always increases economic surplus. 
B)  never increases economic surplus. 
C)  has benefits,but no costs. 
D)  has costs,but no benefits. 
E)  has costs and benefits. 
A)  always increases economic surplus. 
B)  never increases economic surplus. 
C)  has benefits,but no costs. 
D)  has costs,but no benefits. 
E)  has costs and benefits.

Question 9

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (11,5)is a(n)__________ point.

Accepted Answer

A)  unattainable 
B)  inefficient 
C)  inefficient but attainable 
D)  efficient 
E)  efficient and unattainable 
A)  unattainable 
B)  inefficient 
C)  inefficient but attainable 
D)  efficient 
E)  efficient and unattainable

Question 10

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3)is a(n)__________ point.

Accepted Answer

A)  unattainable 
B)  inefficient 
C)  inefficient but attainable 
D)  efficient 
E)  efficient and unattainable 
A)  unattainable 
B)  inefficient 
C)  inefficient but attainable 
D)  efficient 
E)  efficient and unattainable

Question 11

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.
  
-The opportunity cost of an extra calculator for Smith is __________ and for Jones it is __________.

Accepted Answer

A)  0.10 computers;0.05 computers 
B)  10 computers;6 computers 
C)  1 computer;0.5 computers 
D)  0.6 computers;1.2 computers 
E)  0.05 computers;0.10 computers 
A)  0.10 computers;0.05 computers 
B)  10 computers;6 computers 
C)  1 computer;0.5 computers 
D)  0.6 computers;1.2 computers 
E)  0.05 computers;0.10 computers

Question 12

In general,it is true that

Accepted Answer

A)  more specialization is always better. 
B)  less specialization is always better. 
C)  specialization imposes costs as well as benefits. 
D)  more specialization is always worse. 
E)  less specialization is always worsE. 
A)  more specialization is always better. 
B)  less specialization is always better. 
C)  specialization imposes costs as well as benefits. 
D)  more specialization is always worse. 
E)  less specialization is always worsE.

Question 13

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

Accepted Answer

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

Question 14

Point A on a production possibilities curve,where bicycles are on the vertical axis and tricycles on the horizontal axis,represents a combination of 10 bicycles and 4 tricycles,and point B represents 6 bicycles and 6 tricycles.The absolute value of the slope of the production possibilities curve between points A and B equals

Accepted Answer

A)  2. 
B)  4. 
C)  ½. 
D)  ¼. 
E)  6. 
A)  2. 
B)  4. 
C)  ½. 
D)  ¼. 
E)  6.

Question 15

The slope of an individual's production possibilities curve

Accepted Answer

A)  decreases as more units of a particular good are produced. 
B)  is negative and constant along the entire curve. 
C)  is positive and constant along the entire curve. 
D)  varies as the amount of output changes. 
E)  is the same for all individuals. 
A)  decreases as more units of a particular good are produced. 
B)  is negative and constant along the entire curve. 
C)  is positive and constant along the entire curve. 
D)  varies as the amount of output changes. 
E)  is the same for all individuals.

Question 16

Application of the Principle of Comparative Advantage leads to

Accepted Answer

A)  greater and greater specialization of labour and other factors of production. 
B)  reduced specialization of labour. 
C)  societies where everyone can do a little of everything. 
D)  lower total output. 
E)  misallocation of resources. 
A)  greater and greater specialization of labour and other factors of production. 
B)  reduced specialization of labour. 
C)  societies where everyone can do a little of everything. 
D)  lower total output. 
E)  misallocation of resources.

Question 17

As one progresses from a one-person economy to a large,multi-person economy,the shape of production possibilities curve changes from

Accepted Answer

A)  downward sloping to upwards sloping. 
B)  linear to convex (bowed into the origin). 
C)  concave (bowed out from the origin)to linear. 
D)  convex (bowed into the origin)to concave (bowed out from the origin). 
E)  linear to concave (bowed out from the origin). 
A)  downward sloping to upwards sloping. 
B)  linear to convex (bowed into the origin). 
C)  concave (bowed out from the origin)to linear. 
D)  convex (bowed into the origin)to concave (bowed out from the origin). 
E)  linear to concave (bowed out from the origin).

Question 18

The following table describes Buffy's abilities to produce either weapons or food each hour.
  
-The absolute value of the slope of Buffy's production possibilities curve (with weapons on the vertical axis)is

Accepted Answer

A)  4. 
B)  3. 
C)  6. 
D)  2. 
E)  0.333. 
A)  4. 
B)  3. 
C)  6. 
D)  2. 
E)  0.333.

Question 19

An isolated economy

Accepted Answer

A)  is less likely than an easily accessible economy to take advantage of specialization. 
B)  is more likely than an easily accessible economy to take advantage of specialization. 
C)  is equally likely to take advantage of specialization when compared to an easily accessible economy. 
D)  would gain no advantage from specialization. 
E)  has easy access to large markets. 
A)  is less likely than an easily accessible economy to take advantage of specialization. 
B)  is more likely than an easily accessible economy to take advantage of specialization. 
C)  is equally likely to take advantage of specialization when compared to an easily accessible economy. 
D)  would gain no advantage from specialization. 
E)  has easy access to large markets.

Question 20

-Based on their comparative advantages,Sam should specialize in producing __________ while Jenny should specialize in producing __________.

Accepted Answer

A)  shoes;pants 
B)  both;neither 
C)  neither;both 
D)  pants;shoes 
E)  pants;pants 
A)  shoes;pants 
B)  both;neither 
C)  neither;both 
D)  pants;shoes 
E)  pants;pants

Of the labelled points,______________ are attainable.

Having a comparative advantage in a particular task means that you

A concave (bowed out from the origin)production possibilities curve would indicate

While there exists the potential for specialization to go too far,it is equally true that

Given the production possibility tables for First and Second Bakeries presented below,what must be true?

-The opportunity cost of an extra acoustic guitar for Glenn is

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Increased specialization in the production of goods

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (11,5)is a(n)__________ point.

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3)is a(n)__________ point.

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. -The opportunity cost of an extra calculator for Smith is and for Jones it is .

In general,it is true that

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

The slope of an individual's production possibilities curve

Application of the Principle of Comparative Advantage leads to

As one progresses from a one-person economy to a large,multi-person economy,the shape of production possibilities curve changes from

The following table describes Buffy's abilities to produce either weapons or food each hour. -The absolute value of the slope of Buffy's production possibilities curve (with weapons on the vertical axis)is

An isolated economy

-Based on their comparative advantages,Sam should specialize in producing while Jenny should specialize in producing .

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

Of the labelled points,______________ are attainable.

Having a comparative advantage in a particular task means that you

A concave (bowed out from the origin)production possibilities curve would indicate

While there exists the potential for specialization to go too far,it is equally true that

Given the production possibility tables for First and Second Bakeries presented below,what must be true?

-The opportunity cost of an extra acoustic guitar for Glenn is

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Increased specialization in the production of goods

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (11,5)is a(n)__________ point.

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3)is a(n)__________ point.

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. -The opportunity cost of an extra calculator for Smith is __________ and for Jones it is __________.

In general,it is true that

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

The slope of an individual's production possibilities curve

Application of the Principle of Comparative Advantage leads to

As one progresses from a one-person economy to a large,multi-person economy,the shape of production possibilities curve changes from

The following table describes Buffy's abilities to produce either weapons or food each hour. -The absolute value of the slope of Buffy's production possibilities curve (with weapons on the vertical axis)is

An isolated economy

-Based on their comparative advantages,Sam should specialize in producing __________ while Jenny should specialize in producing __________.

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

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. -The opportunity cost of an extra calculator for Smith is and for Jones it is .

-Based on their comparative advantages,Sam should specialize in producing while Jenny should specialize in producing .