Exam 5: Using Economics to Understand the World Around You

Scenario 4-1 In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B. -Which of the following is a step that economist​s take in order to examine a real-world issue?

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. -To say that "there is a scarcity of gold" means that:

​Figure 5.2. The figure shows the supply and demand curves of a firm. -Which of the following is a possible outcome of a minimum wage imposed by a government?​

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. -The market process ensures that, when all transactions are voluntary, resources get allocated to ​the use where they are valued the most.

Scenario 4-1 In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B. -Which of the following is likely to cause an outward shift of a production possibility curve?​

​Figure 5.2. The figure shows the supply and demand curves of a firm. -Refer to figure 5.2. A shift in the supply curve from S to S₁​leads to:

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. -Refer to figure 5.1. Suppose the country represented in the figure is a low income country. ​Given a voluntary choice, the country will choose to be:

​Figure 5.2. The figure shows the supply and demand curves of a firm. -Which of the following possibly determines the allocation of goods and services in a free market?​

​Figure 5.2. The figure shows the supply and demand curves of a firm. -Which of the following helps in determining whether health care cost rises because of government policy, or because of demand rising faster than supply?​

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. -Which of the following is ​a possible cause of an increase in profit from the sale of goods and services?

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. -Refer to figure 5.3. Which of the following is a possible outcome of a fall in the wage rate from $6 to $4?​

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. -Refer to figure 5.1. A fall in the gross domestic product of the country will lead to:​

​Figure 5.2. The figure shows the supply and demand curves of a firm. -Refer to figure 5.2. Which of the following is true?​

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. -The term self-interest, as viewed by economists, means that:

​Figure 5.2. The figure shows the supply and demand curves of a firm. -Which of the following is a possible cause of an increase in the demand for health care?​

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. -Refer to figure 5.3. Suppose the government imposes a minimum wage of $8. Which of the following is a possible outcome of the imposition of a minimum wage above the equilibrium wage rate?​

​Figure 5.2. The figure shows the supply and demand curves of a firm. -​Which of the following is true?

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. -To examine a real-world issue, economists look at the real-world results to see how they differ from those of a free market.​

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. -The lowest of the federal or state minimum wage levels prevails in each state.​

Scenario 4-1 In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B. -Which of the following is a possible advantage of a free market condition?​