Question 1

-In the above figure,the farmer faces a trade-off between beans and wheat equal to

Accepted Answer

A) one-to-one. 
B) three-to-one. 
C) one-to-two. 
D) one-to-four. 
A) one-to-one. 
B) three-to-one. 
C) one-to-two. 
D) one-to-four.

Question 2

Trading off capital goods for increasing amounts of consumer goods today will most likely result in

Accepted Answer

A) increased long-term growth. 
B) decreased long-term growth. 
C) decreased prices in consumer goods. 
D) increases in the quantity of consumer goods. 
A) increased long-term growth. 
B) decreased long-term growth. 
C) decreased prices in consumer goods. 
D) increases in the quantity of consumer goods.

Question 3

Opportunity cost

Accepted Answer

A) can only be measured as a paid cost. 
B) is always the value of the next best forgone opportunity. 
C) does not exist since there are no receipts. 
D) is always the lowest valued alternative. 
A) can only be measured as a paid cost. 
B) is always the value of the next best forgone opportunity. 
C) does not exist since there are no receipts. 
D) is always the lowest valued alternative.

Question 4

Division of labor means that

Accepted Answer

A) the labor market in the United States is geographically segmented. 
B) some employees join labor unions and others do not. 
C) management and labor are always in conflict. 
D) the production process is divided into smaller tasks. 
A) the labor market in the United States is geographically segmented. 
B) some employees join labor unions and others do not. 
C) management and labor are always in conflict. 
D) the production process is divided into smaller tasks.

Question 5

Explain why even the most affluent people,businesses and counties never solve the problem of scarcity.

Accepted Answer

Scarcity is a problem that is never comp

Question 6

Fred and Ann both decide to see the same movie when they are given free movie tickets.We know that

Accepted Answer

A) both bear an opportunity cost since they could have done other things instead of see the movie. 
B) both bear the same opportunity cost since they are doing the same thing. 
C) the cost of going to the movie is greater for the one who had more choices to do other things. 
D) neither bears an opportunity cost because the tickets were free. 
A) both bear an opportunity cost since they could have done other things instead of see the movie. 
B) both bear the same opportunity cost since they are doing the same thing. 
C) the cost of going to the movie is greater for the one who had more choices to do other things. 
D) neither bears an opportunity cost because the tickets were free.

Question 7

When Adam Smith's ten pin workers specialized,they were able to increase output of pins in a day from 200 to 48,000.One reason for the increase in pin output was due to

Accepted Answer

A) the time saved when workers do not need to shift from one task to another. 
B) the boredom the workers suffered when they stopped making a whole pin and only concentrated on one task such as painting the heads white. 
C) new machinery. 
D) the bonus they received when they produced more pins. 
A) the time saved when workers do not need to shift from one task to another. 
B) the boredom the workers suffered when they stopped making a whole pin and only concentrated on one task such as painting the heads white. 
C) new machinery. 
D) the bonus they received when they produced more pins.

Question 8

The production possibilities curve for two products is bowed out because

Accepted Answer

A) as the production of a good increases,opportunity cost increases. 
B) as the production of a good increases,opportunity cost is unchanged. 
C) the qualities of the resources are not identical. 
D) there are unemployed resources. 
A) as the production of a good increases,opportunity cost increases. 
B) as the production of a good increases,opportunity cost is unchanged. 
C) the qualities of the resources are not identical. 
D) there are unemployed resources.

Question 9

Bonnie is a self employed.She makes floral arrangements in a building she rents.She owns the delivery vehicle and has hired a delivery driver.She is an example of

Accepted Answer

A) Entrepreneurial ability. 
B) Labor. 
C) Physical capital. 
D) Human capital. 
A) Entrepreneurial ability. 
B) Labor. 
C) Physical capital. 
D) Human capital.

Question 10

A factory can be thought of as

Accepted Answer

A) a land and labor combination. 
B) a trade-off with land. 
C) physical capital. 
D) a type of entrepreneurship. 
A) a land and labor combination. 
B) a trade-off with land. 
C) physical capital. 
D) a type of entrepreneurship.

Question 11

Human capital is

Accepted Answer

A) what people get from physical capital. 
B) the accumulation of skills,training and education of workers. 
C) the value obtained from selling stocks and bonds. 
D) the human resources that perform the function of raising capital. 
A) what people get from physical capital. 
B) the accumulation of skills,training and education of workers. 
C) the value obtained from selling stocks and bonds. 
D) the human resources that perform the function of raising capital.

Question 12

The opportunity cost of attending college might best be described as

Accepted Answer

A) the money that must be paid in order to attend college. 
B) the lowest-valued alternative use of the student's time. 
C) the highest-valued alternative use of the student's time. 
D) the value that the student attaches to not working. 
A) the money that must be paid in order to attend college. 
B) the lowest-valued alternative use of the student's time. 
C) the highest-valued alternative use of the student's time. 
D) the value that the student attaches to not working.

Question 13

Assume that Economy A and Economy B have the same resources,but that individuals in Economy A have specialized whereas individuals in Economy B have not.Given this information,you can determine that

Accepted Answer

A) Economy A will have a higher output than Economy B. 
B) Economy A will have a lower output than Economy B. 
C) Economy A and Economy B will have identical outputs. 
D) Individuals in Economy A will have lower incomes than individuals in Economy B. 
A) Economy A will have a higher output than Economy B. 
B) Economy A will have a lower output than Economy B. 
C) Economy A and Economy B will have identical outputs. 
D) Individuals in Economy A will have lower incomes than individuals in Economy B.

Question 14

$$\begin{array} { l c c c c r } 
& \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Pizza (Pies) } & 0 & 30 & 60 & 90 & 120 \
\text { Bread (Loaves) } & 300 & 240 & 180 & 120 & 60 \
\hline
\end{array}$$ The above table shows the daily production possibilities for a bakery.
Currently the bakery bakes 60 pizzas and 180 loaves of bread,that is-it is at alternative C.
-Using the above table,what is the opportunity cost of moving from alternative C to alternative D?

Accepted Answer

A) 60 loaves of bread 
B) 2 loaves of bread 
C) 30 loaves of bread 
D) 1/2 loaf of bread 
A) 60 loaves of bread 
B) 2 loaves of bread 
C) 30 loaves of bread 
D) 1/2 loaf of bread

Question 15

-In the above figure,the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is

Accepted Answer

A) 25 ukuleles. 
B) 50 guitars. 
C) 100 guitars. 
D) 25 guitars. 
A) 25 ukuleles. 
B) 50 guitars. 
C) 100 guitars. 
D) 25 guitars.

Question 16

In 2006,hurricanes damaged many parts of Texas,destroying homes,businesses,schools,and infrastructure.In strictly economic terminology,these hurricanes are said to have caused

Accepted Answer

A) scarcity,because the damages made food and shelter scarce. 
B) scarcity,because some goods were difficult to get. 
C) shortages,because supplies were cut off and goods were destroyed. 
D) tradeoffs,because some areas of the country were damaged when others were not. 
A) scarcity,because the damages made food and shelter scarce. 
B) scarcity,because some goods were difficult to get. 
C) shortages,because supplies were cut off and goods were destroyed. 
D) tradeoffs,because some areas of the country were damaged when others were not.

Question 17

Production is efficient when

Accepted Answer

A) it generates a point beyond the production possibility curve. 
B) the maximum output possible is being produced given current levels of resources and technology. 
C) technological change occurs. 
D) the maximum amounts of the most important good are produced. 
A) it generates a point beyond the production possibility curve. 
B) the maximum output possible is being produced given current levels of resources and technology. 
C) technological change occurs. 
D) the maximum amounts of the most important good are produced.

Question 18

What is the "division of labor"? How is the division of labor related to production?

Accepted Answer

The division of labor refers to the segr

Question 19

A student has a job that pays a wage rate of $10 per hour.The night before an economics exam,the student has set aside four hours to study for the exam,estimating that for each hour spent studying,her grade will rise by 5 points.That night,she gets a call from her employer to come to work for a wage rate of $15 per hour for that night.She decides to work for three hours and earn an extra $45.00.The next day she takes the test and gets a grade of 75.The opportunity cost for her work is

Accepted Answer

A) the $45.00 she earned. 
B) the 15 extra points she estimates that she could have earned on the exam if she had studied the extra three hours. 
C) the three hours she did not study. 
D) the entire four hours she set aside for studying. 
A) the $45.00 she earned. 
B) the 15 extra points she estimates that she could have earned on the exam if she had studied the extra three hours. 
C) the three hours she did not study. 
D) the entire four hours she set aside for studying.

Question 20

-Between points "b" and "c" in the above figure,the opportunity cost of 250 more bushels of corn is

Accepted Answer

A) 200 yards of cloth. 
B) 250 yards of cloth. 
C) 600 yards of cloth. 
D) 800 yards of cloth. 
A) 200 yards of cloth. 
B) 250 yards of cloth. 
C) 600 yards of cloth. 
D) 800 yards of cloth.

-In the above figure,the farmer faces a trade-off between beans and wheat equal to

Trading off capital goods for increasing amounts of consumer goods today will most likely result in

Opportunity cost

Division of labor means that

Explain why even the most affluent people,businesses and counties never solve the problem of scarcity.

Fred and Ann both decide to see the same movie when they are given free movie tickets.We know that

When Adam Smith's ten pin workers specialized,they were able to increase output of pins in a day from 200 to 48,000.One reason for the increase in pin output was due to

The production possibilities curve for two products is bowed out because

Bonnie is a self employed.She makes floral arrangements in a building she rents.She owns the delivery vehicle and has hired a delivery driver.She is an example of

A factory can be thought of as

Human capital is

The opportunity cost of attending college might best be described as

Assume that Economy A and Economy B have the same resources,but that individuals in Economy A have specialized whereas individuals in Economy B have not.Given this information,you can determine that

-In the above figure,the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is

In 2006,hurricanes damaged many parts of Texas,destroying homes,businesses,schools,and infrastructure.In strictly economic terminology,these hurricanes are said to have caused

Production is efficient when

What is the "division of labor"? How is the division of labor related to production?

-Between points "b" and "c" in the above figure,the opportunity cost of 250 more bushels of corn is

The Nature of Economics

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 2: Scarcity and the World of Trade-Offs

-In the above figure,the farmer faces a trade-off between beans and wheat equal to

Trading off capital goods for increasing amounts of consumer goods today will most likely result in

Opportunity cost

Division of labor means that

Explain why even the most affluent people,businesses and counties never solve the problem of scarcity.

Fred and Ann both decide to see the same movie when they are given free movie tickets.We know that

When Adam Smith's ten pin workers specialized,they were able to increase output of pins in a day from 200 to 48,000.One reason for the increase in pin output was due to

The production possibilities curve for two products is bowed out because

Bonnie is a self employed.She makes floral arrangements in a building she rents.She owns the delivery vehicle and has hired a delivery driver.She is an example of

A factory can be thought of as

Human capital is

The opportunity cost of attending college might best be described as

Assume that Economy A and Economy B have the same resources,but that individuals in Economy A have specialized whereas individuals in Economy B have not.Given this information,you can determine that

-In the above figure,the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is

In 2006,hurricanes damaged many parts of Texas,destroying homes,businesses,schools,and infrastructure.In strictly economic terminology,these hurricanes are said to have caused

Production is efficient when

What is the "division of labor"? How is the division of labor related to production?

-Between points "b" and "c" in the above figure,the opportunity cost of 250 more bushels of corn is

The Nature of Economics

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters