Question 1

Given the same quantity of resources, what is Alicia Keys's opportunity cost of producing a New York pizza?

Accepted Answer

A)  5/2 Philly cheesesteaks 
B)  2/5 Philly cheesesteak 
C)  3 Philly cheesesteaks 
D)  1/3 New York pizza 
E)  4/5 New York pizza 
A)  5/2 Philly cheesesteaks 
B)  2/5 Philly cheesesteak 
C)  3 Philly cheesesteaks 
D)  1/3 New York pizza 
E)  4/5 New York pizza

Question 2

Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions. $$\begin{array} { | l | l | l | } 
\hline & \text { Sculptures } & \text { Paintings } \
\hline \text { Michael } & 10 & 5 \
\hline \text { Angelo } & 6 & 2 \
\hline
\end{array}$$
-What is Angelo's opportunity cost of a painting?

Accepted Answer

A)  1/3 painting 
B)  1/3 sculpture 
C)  2/5 sculpture 
D)  3 paintings 
E)  3 sculptures 
A)  1/3 painting 
B)  1/3 sculpture 
C)  2/5 sculpture 
D)  3 paintings 
E)  3 sculptures

Question 3

Car companies build wind tunnels to test the aerodynamics and the handling capabilities of their car designs. The many variables that can be precisely controlled inside the wind tunnel are considered:

Accepted Answer

A)  normative factors. 
B)  positive factors. 
C)  comparative factors. 
D)  endogenous factors. 
E)  exogenous factors. 
A)  normative factors. 
B)  positive factors. 
C)  comparative factors. 
D)  endogenous factors. 
E)  exogenous factors.

Question 4

The existing entries in the following table show the maximum quantities of milk shakes or fruit smoothies the college president and dining hall staffer could make during an afternoon shift, given a fixed amount of resources.
a. Fill in the remaining part of the table (be sure to label the units) and answer the questions below. $$\begin{array} { | l | l | l | l | l | } 
\hline & \begin{array} { l } 
\text { Number of } \
\text { Milk } \
\text { Shakes per } \
\text { Shift }
\end{array} & \begin{array} { l } 
\text { Number of } \
\text { Simoothies }
\end{array} & \begin{array} { l } 
\text { Opportunity } \
\text { Cost of 1 } \
\text { Simoothie }
\end{array} & \begin{array} { l } 
\text { Opportunity } \
\text { Cost of 1 Milk } \
\text { Slake }
\end{array} \
\hline \text { President } & 50 & 25 & & \
\hline \begin{array} { l } 
\text { Dining Hall } \
\text { Staffer }
\end{array} & 90 & 30 & & \
\hline
\end{array}$$ 
b. Who has a comparative advantage in producing smoothies?
c. Who has an absolute advantage in producing milk shakes?

Accepted Answer

a. @#IMG-DLM& b. President has a comparative advan

Question 5

Suppose a new generation of baby boomers is entering the workforce. Which graph best depicts how this would affect the PPF?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
E)  Graph E 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
E)  Graph E

Question 6

Refer to the accompanying figure to answer the next four questions.
 
-Given your current resources, you would need even more hours in each day in order to attain:

Accepted Answer

A)  point A. 
B)  point B. 
C)  point C. 
D)  point D. 
E)  point E. 
A)  point A. 
B)  point B. 
C)  point C. 
D)  point D. 
E)  point E.

Question 7

Michael and Angelo are both artists who can create sculptures or paint paintings each day. The following table describes their maximum outputs per day. Does either person have an absolute advantage? $$\begin{array} { | l | l | l | } 
\hline & \text { Sculptures } & \text { Paintings } \
\hline \text { Michael } & 10 & 5 \
\hline \text { Angelo } & 6 & 2 \
\hline
\end{array}$$

Accepted Answer

A)  Yes, Michael has an absolute advantage in both sculptures and paintings. 
B)  Yes, Angelo has an absolute advantage in both sculptures and paintings. 
C)  Yes, Michael has an absolute advantage in paintings, and Angelo has an absolute advantage in sculptures. 
D)  Yes, Michael has an absolute advantage in sculptures, and Angelo has an absolute advantage in paintings. 
E)  No, neither has an absolute advantage. 
A)  Yes, Michael has an absolute advantage in both sculptures and paintings. 
B)  Yes, Angelo has an absolute advantage in both sculptures and paintings. 
C)  Yes, Michael has an absolute advantage in paintings, and Angelo has an absolute advantage in sculptures. 
D)  Yes, Michael has an absolute advantage in sculptures, and Angelo has an absolute advantage in paintings. 
E)  No, neither has an absolute advantage.

Question 8

Suppose the printing press is invented. Which graph best depicts how this would affect the PPF?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
E)  Graph E 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
E)  Graph E

Question 9

Is there an opportunity cost to increased investment in capital goods today?

Accepted Answer

A)  Yes, increased production of capital goods means fewer consumer goods today. 
B)  Yes, increased production of capital goods today means less economic growth in the future. 
C)  No, increased production of capital goods today does not mean fewer consumer goods today. 
D)  No, increased production of capital goods today guarantees more consumption today. 
E)  No, if society is producing at an efficient point on the production possibilities frontier (PPF), then there is no opportunity cost to investment in capital goods. 
A)  Yes, increased production of capital goods means fewer consumer goods today. 
B)  Yes, increased production of capital goods today means less economic growth in the future. 
C)  No, increased production of capital goods today does not mean fewer consumer goods today. 
D)  No, increased production of capital goods today guarantees more consumption today. 
E)  No, if society is producing at an efficient point on the production possibilities frontier (PPF), then there is no opportunity cost to investment in capital goods.

Question 10

If Jim can sell paper at a lower opportunity cost than Dwight can, then:

Accepted Answer

A)  Jim has an absolute advantage in paper sales. 
B)  Dwight has an absolute advantage in paper sales. 
C)  Jim has a positive advantage in paper sales. 
D)  Jim has a comparative advantage in paper sales. 
E)  Dwight has a comparative advantage in paper sales. 
A)  Jim has an absolute advantage in paper sales. 
B)  Dwight has an absolute advantage in paper sales. 
C)  Jim has a positive advantage in paper sales. 
D)  Jim has a comparative advantage in paper sales. 
E)  Dwight has a comparative advantage in paper sales.

Question 11

Why might Shaquille O'Neal, a 7'1" former National Basketball Association (NBA) player, hire professional movers to help him move, even though his size and strength likely make him more proficient (better) at furniture moving than the professionals he may hire?

Accepted Answer

Even today, Shaquille O'Neal has certain

Question 12

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called:

Accepted Answer

A)  a production possibilities frontier (PPF). 
B)  a supply curve. 
C)  opportunity cost. 
D)  a consumer demand curve. 
E)  absolute advantage. 
A)  a production possibilities frontier (PPF). 
B)  a supply curve. 
C)  opportunity cost. 
D)  a consumer demand curve. 
E)  absolute advantage.

Question 13

Over the last 20 years, countries such as India and China have:

Accepted Answer

A)  consumed heavily with little regard for the future. 
B)  invested heavily and enjoyed significant economic growth. 
C)  eliminated the problem of scarcity. 
D)  produced outside their production possibilities frontier (PPF). 
E)  produced wholly for current consumption. 
A)  consumed heavily with little regard for the future. 
B)  invested heavily and enjoyed significant economic growth. 
C)  eliminated the problem of scarcity. 
D)  produced outside their production possibilities frontier (PPF). 
E)  produced wholly for current consumption.

Question 14

The movie Saving Private Ryan is about a military mission to find and recover a particular soldierÑPrivate Ryan. The movie is predominantly about how much was given up in an effort to save this one particular soldier. The main economic theme of the movie is:

Accepted Answer

A)  absolute advantage. 
B)  opportunity cost. 
C)  normative analysis. 
D)  comparative advantage. 
E)  positive advantage. 
A)  absolute advantage. 
B)  opportunity cost. 
C)  normative analysis. 
D)  comparative advantage. 
E)  positive advantage.

Question 15

Refer to the following figure for the next three questions.

-The opportunity cost of increasing production of apple pies from 14 to 16 pies is:

Accepted Answer

A)  2 blueberry pies. 
B)  14 apple pies. 
C)  7 blueberry pies. 
D)  4 blueberry pies. 
E)  16 blueberry pies. 
A)  2 blueberry pies. 
B)  14 apple pies. 
C)  7 blueberry pies. 
D)  4 blueberry pies. 
E)  16 blueberry pies.

Question 16

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the next three questions.
 
-What is Jim's opportunity cost of making 1 pizza?

Accepted Answer

A)  50 stromboli 
B)  20 stromboli 
C)  2.5 stromboli 
D)  2 stromboli 
E)  1.5 stromboli 
A)  50 stromboli 
B)  20 stromboli 
C)  2.5 stromboli 
D)  2 stromboli 
E)  1.5 stromboli

Question 17

Consider the production possibilities frontier (PPF) shown in the figure below to answer the next three questions.
 
-Given current resources and technology, the unattainable range is best described as:

Accepted Answer

A)  only area O: points outside the PPF. 
B)  points on the PPF only. 
C)  only area I: points inside the PPF. 
D)  area I: inside the PPF and points on the PPF. 
E)  Area O: outside the PPF and points on the PPF. 
A)  only area O: points outside the PPF. 
B)  points on the PPF only. 
C)  only area I: points inside the PPF. 
D)  area I: inside the PPF and points on the PPF. 
E)  Area O: outside the PPF and points on the PPF.

Question 18

Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions. $$\begin{array} { | l | l | l | } 
\hline & \text { Sculptures } & \text { Paintings } \
\hline \text { Michael } & 10 & 5 \
\hline \text { Angelo } & 6 & 2 \
\hline
\end{array}$$
-What is Angelo's opportunity cost of a sculpture?

Accepted Answer

A)  1/2 painting 
B)  1/3 painting 
C)  3 paintings 
D)  1/3 sculpture 
E)  6/10 sculpture 
A)  1/2 painting 
B)  1/3 painting 
C)  3 paintings 
D)  1/3 sculpture 
E)  6/10 sculpture

Question 19

Goods that are produced today in order to make other valuable goods and services in the future are called:

Accepted Answer

A)  normal goods. 
B)  inferior goods. 
C)  consumer goods. 
D)  capital goods. 
E)  personal goods. 
A)  normal goods. 
B)  inferior goods. 
C)  consumer goods. 
D)  capital goods. 
E)  personal goods.

Question 20

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the questions.
 
-What is Gibbs's opportunity cost of solving a crime?

Accepted Answer

A)  20 solved crimes 
B)  30 solved crimes 
C)  5 solved crimes 
D)  1/20 of a boat 
E)  1/10 of a boat 
A)  20 solved crimes 
B)  30 solved crimes 
C)  5 solved crimes 
D)  1/20 of a boat 
E)  1/10 of a boat

Given the same quantity of resources, what is Alicia Keys's opportunity cost of producing a New York pizza?

Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions. Sculptures Paintings Michael 10 5 Angelo 6 2 -What is Angelo's opportunity cost of a painting?

Car companies build wind tunnels to test the aerodynamics and the handling capabilities of their car designs. The many variables that can be precisely controlled inside the wind tunnel are considered:

Suppose a new generation of baby boomers is entering the workforce. Which graph best depicts how this would affect the PPF?

Refer to the accompanying figure to answer the next four questions. -Given your current resources, you would need even more hours in each day in order to attain:

Michael and Angelo are both artists who can create sculptures or paint paintings each day. The following table describes their maximum outputs per day. Does either person have an absolute advantage? Sculptures Paintings Michael 10 5 Angelo 6 2

Suppose the printing press is invented. Which graph best depicts how this would affect the PPF?

Is there an opportunity cost to increased investment in capital goods today?

If Jim can sell paper at a lower opportunity cost than Dwight can, then:

Why might Shaquille O'Neal, a 7'1" former National Basketball Association (NBA) player, hire professional movers to help him move, even though his size and strength likely make him more proficient (better) at furniture moving than the professionals he may hire?

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called:

Over the last 20 years, countries such as India and China have:

The movie Saving Private Ryan is about a military mission to find and recover a particular soldierÑPrivate Ryan. The movie is predominantly about how much was given up in an effort to save this one particular soldier. The main economic theme of the movie is:

Refer to the following figure for the next three questions. -The opportunity cost of increasing production of apple pies from 14 to 16 pies is:

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the next three questions. -What is Jim's opportunity cost of making 1 pizza?

Consider the production possibilities frontier (PPF) shown in the figure below to answer the next three questions. -Given current resources and technology, the unattainable range is best described as:

Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions. Sculptures Paintings Michael 10 5 Angelo 6 2 -What is Angelo's opportunity cost of a sculpture?

Goods that are produced today in order to make other valuable goods and services in the future are called:

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the questions. -What is Gibbs's opportunity cost of solving a crime?

The Five Foundations of Economics

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income, Inequality, and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters

Exam 2: Model Building and Gains From Trade

Given the same quantity of resources, what is Alicia Keys's opportunity cost of producing a New York pizza?

Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions. Sculptures Paintings Michael 10 5 Angelo 6 2 -What is Angelo's opportunity cost of a painting?

Car companies build wind tunnels to test the aerodynamics and the handling capabilities of their car designs. The many variables that can be precisely controlled inside the wind tunnel are considered:

Suppose a new generation of baby boomers is entering the workforce. Which graph best depicts how this would affect the PPF?

Refer to the accompanying figure to answer the next four questions. -Given your current resources, you would need even more hours in each day in order to attain:

Michael and Angelo are both artists who can create sculptures or paint paintings each day. The following table describes their maximum outputs per day. Does either person have an absolute advantage? Sculptures Paintings Michael 10 5 Angelo 6 2

Suppose the printing press is invented. Which graph best depicts how this would affect the PPF?

Is there an opportunity cost to increased investment in capital goods today?

If Jim can sell paper at a lower opportunity cost than Dwight can, then:

Why might Shaquille O'Neal, a 7'1" former National Basketball Association (NBA) player, hire professional movers to help him move, even though his size and strength likely make him more proficient (better) at furniture moving than the professionals he may hire?

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called:

Over the last 20 years, countries such as India and China have:

The movie Saving Private Ryan is about a military mission to find and recover a particular soldierÑPrivate Ryan. The movie is predominantly about how much was given up in an effort to save this one particular soldier. The main economic theme of the movie is:

Refer to the following figure for the next three questions. -The opportunity cost of increasing production of apple pies from 14 to 16 pies is:

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the next three questions. -What is Jim's opportunity cost of making 1 pizza?

Consider the production possibilities frontier (PPF) shown in the figure below to answer the next three questions. -Given current resources and technology, the unattainable range is best described as:

Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions. Sculptures Paintings Michael 10 5 Angelo 6 2 -What is Angelo's opportunity cost of a sculpture?

Goods that are produced today in order to make other valuable goods and services in the future are called:

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the questions. -What is Gibbs's opportunity cost of solving a crime?

The Five Foundations of Economics

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income, Inequality, and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters