Question 1

If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns.

Accepted Answer

A) True 
 B)False

Question 2

The term 'property rights' refers to

Accepted Answer

A)  the physical possession of a house or any other property which the owner legally purchased. 
B)  the ability to exercise control over one's own resources within the confines of the law. 
C)  the government's right to appropriate land from wealthy land owners to redistribute to peasants. 
D)  the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud. 
A)  the physical possession of a house or any other property which the owner legally purchased. 
B)  the ability to exercise control over one's own resources within the confines of the law. 
C)  the government's right to appropriate land from wealthy land owners to redistribute to peasants. 
D)  the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud.

Question 3

The production possibility frontier model shows that

Accepted Answer

A)  if consumers decide to buy more of a product, its price will increase. 
B)  a market economy is more efficient in producing goods and services than is a centrally planned economy. 
C)  economic growth can only be achieved by free market economies. 
D)  if all resources are fully and efficiently utilised, more of one good can be produced only by producing less of another good. 
A)  if consumers decide to buy more of a product, its price will increase. 
B)  a market economy is more efficient in producing goods and services than is a centrally planned economy. 
C)  economic growth can only be achieved by free market economies. 
D)  if all resources are fully and efficiently utilised, more of one good can be produced only by producing less of another good.

Question 4

In economics, the term 'free market' refers to a market where products are traded but not sold.

Accepted Answer

A) True 
 B)False

Question 5

-Refer to Table 2-8. Scotland has a comparative advantage in the production of

Accepted Answer

A)  both products. 
B)  guitars. 
C)  motorcycles. 
D)  neither product. 
A)  both products. 
B)  guitars. 
C)  motorcycles. 
D)  neither product.

Question 6

-Refer to Table 2-8. If the two countries specialise and trade, who should export guitars?

Accepted Answer

A)  There is no basis for trade between the two countries. 
B)  Ireland 
C)  Scotland 
D)  They should both be exporting guitars. 
A)  There is no basis for trade between the two countries. 
B)  Ireland 
C)  Scotland 
D)  They should both be exporting guitars.

Question 7

An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776, was written by

Accepted Answer

A)  John Maynard Keynes. 
B)  Karl Marx. 
C)  Alfred Marshall. 
D)  Adam Smith. 
A)  John Maynard Keynes. 
B)  Karl Marx. 
C)  Alfred Marshall. 
D)  Adam Smith.

Question 8

-Refer to Table 2-7. Which of the following statements is true?

Accepted Answer

A)  Horace has a comparative advantage in both tasks. 
B)  Tammi has a comparative advantage in both tasks. 
C)  Horace has a comparative advantage in grooming dogs and Tammi in bathing cats. 
D)  Horace has a comparative advantage in bathing cats and Tammi in grooming dogs. 
A)  Horace has a comparative advantage in both tasks. 
B)  Tammi has a comparative advantage in both tasks. 
C)  Horace has a comparative advantage in grooming dogs and Tammi in bathing cats. 
D)  Horace has a comparative advantage in bathing cats and Tammi in grooming dogs.

Question 9

A decrease in population shifts the production possibility frontier outwards over time.

Accepted Answer

A) True 
 B)False

Question 10

-Refer to Table 2-5. What is Fred's opportunity cost of making a pogo stick?

Accepted Answer

A)  1/3 unicycle 
B)  3 unicycles 
C)  6/7 pogo stick 
D)  1/2 unicycle 
A)  1/3 unicycle 
B)  3 unicycles 
C)  6/7 pogo stick 
D)  1/2 unicycle

Question 11

In a free market there are significant restrictions on how a good or service can be produced or sold.

Accepted Answer

A) True 
 B)False

Question 12

Crude oil is not an example of a factor of production, but when crude oil is processed into petrol, it is a factor of production.

Accepted Answer

A) True 
 B)False

If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns.

The term 'property rights' refers to

The production possibility frontier model shows that

In economics, the term 'free market' refers to a market where products are traded but not sold.

-Refer to Table 2-8. Scotland has a comparative advantage in the production of

-Refer to Table 2-8. If the two countries specialise and trade, who should export guitars?

An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776, was written by

-Refer to Table 2-7. Which of the following statements is true?

A decrease in population shifts the production possibility frontier outwards over time.

-Refer to Table 2-5. What is Fred's opportunity cost of making a pogo stick?

In a free market there are significant restrictions on how a good or service can be produced or sold.

Crude oil is not an example of a factor of production, but when crude oil is processed into petrol, it is a factor of production.

Economics Foundations and Models

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 2: Choices and Trade - Offs in the Market

If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns.

The term 'property rights' refers to

The production possibility frontier model shows that

In economics, the term 'free market' refers to a market where products are traded but not sold.

-Refer to Table 2-8. Scotland has a comparative advantage in the production of

-Refer to Table 2-8. If the two countries specialise and trade, who should export guitars?

An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776, was written by

-Refer to Table 2-7. Which of the following statements is true?

A decrease in population shifts the production possibility frontier outwards over time.

-Refer to Table 2-5. What is Fred's opportunity cost of making a pogo stick?

In a free market there are significant restrictions on how a good or service can be produced or sold.

Crude oil is not an example of a factor of production, but when crude oil is processed into petrol, it is a factor of production.

Economics Foundations and Models

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters