Question 1

A movement from one point on a production possibilities frontier to another represents

Accepted Answer

A)  a tradeoff.
B)  an advance in technology.
C)  a free lunch.
D)  full employment of labour but not capital.
E)  unemployment.F) D) and E)
G) A) and B)

Question 2

Consider the United States' production of soy beans and running shoes.If the United States has an absolute advantage in the production of both goods compared to China,

Accepted Answer

A)  only China can gain from trade.
B)  both countries can gain from trade.
C)  only the United States will be able to operate beyond its PPF.
D)  only the United States can gain from trade.
E)  each country will be able to produce at a point beyond its PPF.F) B) and E)
G) C) and D)

Question 3

-The table above shows a nation's production possibilities frontier.If the nation wants to produce 4 robots and 34 pizzas,

Accepted Answer

A)  it will shift the production possibilities frontier.
B)  the nation will be producing inefficiently.
C)  the opportunity cost is 9 pizzas.
D)  it will be unable to do so because the production point is unattainable.
E)  the nation will then be producing at a production efficient point.F) A) and B)
G) A) and C)

Question 4

Specialisation and trade

Accepted Answer

A)  shift the production possibilities frontier inward.
B)  do not benefit anyone.
C)  allow nations to consume combinations of products that are outside their individual production possibilities frontiers.
D)  allow nations to produce inside their individual production possibilities frontiers.
E)  shift the production possibilities frontier outward.F) A) and B)
G) A) and C)

Question 5

-Deb and Pete have volunteered to help their favourite charity mail out fundraiser information.The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.If Deb spends all her time assembling packets,how many can she assemble?

Accepted Answer

A)  40
B)  64
C)  32
D)  160
E)  22F) A) and D)
G) B) and D)

Question 6

If the production possibilities frontier between bottled water and water in a jug is a straight line,which of the following statements would be correct?

Accepted Answer

A)  There is no tradeoff between the two goods.
B)  Resources are equally productive at producing either product.
C)  A large amount of unemployment must exist.
D)  There is no decrease in the production of one good when the production of the other is increased.
E)  Producing more of one good gives the economy a free lunch.F) All of the above
G) B) and E)

Question 7

-In the table above,how many jackets must Mark forgo for every dress he makes?

Accepted Answer

A)  1 jacket
B)  24 dresses
C)  2/3 of a jacket
D)  16 jackets
E)  1 1/2 jacketsF) A) and D)
G) B) and E)

Question 8

-The above figure shows the production possibility frontier for an economy.The point or points that are attainable and production efficient is/are

Accepted Answer

A)  points A and D.
B)  points A,B,C and D.
C)  points A,B and C.
D)  points B and C.
E)  point E.F) A) and E)
G) C) and E)

Question 9

The opportunity cost of producing more of one good on a production possibilities frontier is

Accepted Answer

A)  a dollar amount.
B)  a ratio of prices.
C)  equal to the area inside the production possibilities frontier.
D)  a ratio of quantities.
E)  a theoretical concept which cannot be measured.F) A) and B)
G) None of the above

Question 10

The production possibilities frontier is the

Accepted Answer

A)  boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced,given the available factors of production and the state of technology.
B)  minimum output that can be produced when resources are used inefficiently.
C)  maximum output that can be produced at an opportunity cost of zero.
D)  boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing.
E)  maximum opportunity cost combinations of goods and services.F) C) and E)
G) B) and E)

Question 11

If the production possibilities frontier between two goods were a straight line,then the opportunity cost of one good in terms of another would be

Accepted Answer

A)  zero.
B)  constant.
C)  decreasing.
D)  increasing.
E)  either constant,increasing or decreasing,but more information is needed to determine which.F) None of the above
G) A) and D)

Question 12

The production possibilities frontier is a graph showing the

Accepted Answer

A)  minimum combinations of goods and services that can be produced.
B)  maximum combinations of goods and services that can be produced.
C)  tradeoff between free lunches.
D)  exact point of greatest efficiency for producing goods and services.
E)  resources available for the economy's production use.F) A) and D)
G) C) and D)

Question 13

Points inside the PPF are all

Accepted Answer

A)  attainable and have some unemployed resources.
B)  unattainable and have some unemployed resources.
C)  unaffordable.
D)  unattainable and have fully employed resources.
E)  attainable and have fully employed resources.F) B) and E)
G) A) and B)

Question 14

-Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,India's most likely future PPF is ________ and France's most likely future PPF is ________.

Accepted Answer

A)  PPF₂;PPF₁
B)  PPF2;PPF2
C)  PPF₁;PPF₂
D)  PPF₀ ;PPF₀
E)  PPF₁;PPF₁F) B) and D)
G) A) and C)

Question 15

-Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas.Hotels are a capital good that,once built,will help produce still more consumption goods.According to the figure,which island will have more rapid economic growth?

Accepted Answer

A)  Neither Hawaii nor Puerto Rico will grow
B)  Hawaii
C)  Puerto Rico
D)  Both Hawaii and Puerto Rico will grow at the same speed
E)  More than one of the above answers is correctF) A) and E)
G) A) and D)

Question 16

Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis.As the country moves along the frontier closer to the horizontal axis,

Accepted Answer

A)  more tradeoffs occur.
B)  more shoes are produced.
C)  more jeans are produced.
D)  the country eventually chooses an unattainable point.
E)  free lunches occur.F) B) and D)
G) A) and E)

Question 17

Gains from trade

Accepted Answer

A)  occur when people do not specialise.
B)  occur when one party to the trade has an absolute advantage in both goods.
C)  result in being able to consume beyond the trading individuals' production possibilities frontiers.
D)  always benefit one party but not the other party of any trade.
E)  occur when opportunity costs are equal.F) A) and B)
G) A) and C)

Question 18

A country has a comparative advantage in the production of a good if it can

Accepted Answer

A)  produce more of the good most efficiently.
B)  tradeoff producing the good for another good.
C)  produce more of the good than another country.
D)  produce the good at the lowest opportunity cost.
E)  produce the good on and remain on its production possibilities frontier.F) C) and D)
G) C) and E)

Question 19

Comparative advantage is directly related to which of the following concepts?

Accepted Answer

A)  Opportunity cost
B)  Competition
C)  Fairness
D)  Efficiency
E)  ProductivityF) C) and D)
G) B) and E)

Question 20

-The table above shows a nation's production possibilities frontier.The opportunity cost of a robot between combination D and E is

Accepted Answer

A)  1/4 of a pizza.
B)  30 pizzas.
C)  34 pizzas.
D)  undefined because neither point is production efficient.
E)  4 pizzas.F) A) and D)
G) B) and C)

Exam 3: The Economic Problem

If the production possibilities frontier between bottled water and water in a jug is a straight line,which of the following statements would be correct?

Correct Answer
verified

-The table above shows a nation's production possibilities frontier.If the nation wants to produce 4 robots and 34 pizzas,

Correct Answer
verified

The production possibilities frontier is a graph showing the

Correct Answer
verified

If the production possibilities frontier between two goods were a straight line,then the opportunity cost of one good in terms of another would be

Correct Answer
verified

-In the table above,how many jackets must Mark forgo for every dress he makes?

Correct Answer
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Points inside the PPF are all

Correct Answer
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Comparative advantage is directly related to which of the following concepts?

Correct Answer
verified

Consider the United States' production of soy beans and running shoes.If the United States has an absolute advantage in the production of both goods compared to China,

Correct Answer
verified

Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis.As the country moves along the frontier closer to the horizontal axis,

Correct Answer
verified

-Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,India's most likely future PPF is and France's most likely future PPF is .

Correct Answer
verified

-The above figure shows the production possibility frontier for an economy.The point or points that are attainable and production efficient is/are

Correct Answer
verified

A country has a comparative advantage in the production of a good if it can

Correct Answer
verified

-The table above shows a nation's production possibilities frontier.The opportunity cost of a robot between combination D and E is

Correct Answer
verified

Correct Answer
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Gains from trade

Correct Answer
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-Deb and Pete have volunteered to help their favourite charity mail out fundraiser information.The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.If Deb spends all her time assembling packets,how many can she assemble?

Correct Answer
verified

Specialisation and trade

Correct Answer
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The production possibilities frontier is the

Correct Answer
verified

The opportunity cost of producing more of one good on a production possibilities frontier is

Correct Answer
verified

A movement from one point on a production possibilities frontier to another represents

Correct Answer
verified

Exam 3: The Economic Problem

If the production possibilities frontier between bottled water and water in a jug is a straight line,which of the following statements would be correct?

Correct AnswerverifiedShow Answer

-The table above shows a nation's production possibilities frontier.If the nation wants to produce 4 robots and 34 pizzas,

Correct AnswerverifiedShow Answer

The production possibilities frontier is a graph showing the

Correct AnswerverifiedShow Answer

If the production possibilities frontier between two goods were a straight line,then the opportunity cost of one good in terms of another would be

Correct AnswerverifiedShow Answer

-In the table above,how many jackets must Mark forgo for every dress he makes?

Correct AnswerverifiedShow Answer

Points inside the PPF are all

Correct AnswerverifiedShow Answer

Comparative advantage is directly related to which of the following concepts?

Correct AnswerverifiedShow Answer

Consider the United States' production of soy beans and running shoes.If the United States has an absolute advantage in the production of both goods compared to China,

Correct AnswerverifiedShow Answer

Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis.As the country moves along the frontier closer to the horizontal axis,

Correct AnswerverifiedShow Answer

-Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,India's most likely future PPF is ________ and France's most likely future PPF is ________.

Correct AnswerverifiedShow Answer

-The above figure shows the production possibility frontier for an economy.The point or points that are attainable and production efficient is/are

Correct AnswerverifiedShow Answer

A country has a comparative advantage in the production of a good if it can

Correct AnswerverifiedShow Answer

-The table above shows a nation's production possibilities frontier.The opportunity cost of a robot between combination D and E is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Gains from trade

Correct AnswerverifiedShow Answer

-Deb and Pete have volunteered to help their favourite charity mail out fundraiser information.The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.If Deb spends all her time assembling packets,how many can she assemble?

Correct AnswerverifiedShow Answer

Specialisation and trade

Correct AnswerverifiedShow Answer

The production possibilities frontier is the

Correct AnswerverifiedShow Answer

The opportunity cost of producing more of one good on a production possibilities frontier is

Correct AnswerverifiedShow Answer

A movement from one point on a production possibilities frontier to another represents

Correct AnswerverifiedShow Answer

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-Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,India's most likely future PPF is and France's most likely future PPF is .

Correct Answer
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