Question 1

Which of the following is a positive statement?

Accepted Answer

A)   My dog should lose some weight.
B)   Legally requiring dogs to have rabies shots will reduce the number of rabid dogs.
C)   You should take your dog to the veterinarian once a year for a checkup.
D)   Chihuahuas are cuter than bulldogs.
E)   All dogs should be required to wear leashes at all times.F) A) and B)
G) A) and C)

Question 2

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 that follow.
 
-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 boatF) None of the above
G) A) and E)

Question 3

When money is acting as a medium of exchange,it:

Accepted Answer

A)   stops you from reselling goods once they are purchased.
B)   allows you to delay the purchase of goods.
C)   allows you to measure the value of goods precisely.
D)   allows you to make exchanges more efficiently.
E)   allows you to make exchanges less efficiently.F) A) and E)
G) A) and D)

Question 4

Refer to the accompanying figure to answer the questions that follow.
 
-Which point(s) on the figure show inefficient use of resources?

Accepted Answer

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

Question 5

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF) ?

Accepted Answer

A)   It will cause the PPF to shift inward.
B)   It will cause the PPF to shift outward.
C)   It will move society to a point farther inside the PPF.
D)   It will move society outward to a point closer to or on the PPF.
E)   It will push society to a point outside its PPF.F) B) and E)
G) All of the above

Question 6

Suppose that,during your afternoon shift working at the library,you could either reshelve books or process interlibrary loan (ILL)requests.Draw a production possibilities frontier (PPF)that describes your production trade-offs.Your production of each of these goods is subject to increasing relative costs in production,so be sure that your graph reflects this fact.
Now suppose that a new online request system increases your efficiency at processing ILL requests but does not affect your reshelving ability.Show,on the same graph,how this new innovation changes the PPF.

Accepted Answer

The answer of Suppose that,during your afternoon shift working at...

Question 7

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 questions that follow.
 
-What is Jim's opportunity cost of making a pizza?

Accepted Answer

A)   50 stromboli
B)   20 stromboli
C)   2.5 stromboli
D)   2 stromboli
E)   1.5 stromboliF) None of the above
G) D) and E)

Question 8

Consider the production possibilities frontier (PPF)  shown in the figure below to answer the questions that follow.
 
-Given current resources and technology,the unattainable range is best described as which places on the figures?

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.F) B) and D)
G) A) and D)

Question 9

An economist's use of experiments and real-world data to test a theory is an example of:

Accepted Answer

A)   the scientific method in economics.
B)   macroeconomics.
C)   economic growth.
D)   normative analysis.
E)   comparative advantage.F) A) and E)
G) B) and C)

Question 10

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 questions that follow.
 
-Based on the figures,which statement about comparative advantage is true?

Accepted Answer

A)   Jim has a comparative advantage in the production of stromboli because his opportunity cost is lower.
B)   Jim has a comparative advantage in the production of stromboli because his opportunity cost is higher.
C)   Jim has a comparative advantage in the production of pizzas because his opportunity cost is lower.
D)   Jim has a comparative advantage in the production of pizzas because his opportunity cost is higher.
E)   Jim has a comparative advantage in the production of both pizzas and stromboli.F) A) and D)
G) C) and D)

Question 11

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 that follow.
 
-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 sculpturesF) B) and C)
G) B) and E)

Question 12

Which of the following is a positive statement?

Accepted Answer

A)   Winters in Arkansas are too cold.
B)   Everyone should work in a bank to understand the true value of money.
C)   Harvard University is the top education institution in the country.
D)   On average, people save 15% when they switch to GEICO.
E)   Everyone ought to have a life insurance policy.F) A) and C)
G) A) and B)

Question 13

In the movie A Knight's Tale,three peasants win a jousting tournament and must decide whether they should enjoy most of their winnings now or use most of it for training to improve their future jousting performance.Use appropriate production possibilities frontiers (PPFs)and words to describe the investment trade-off they face.

Accepted Answer

This is a classic example of the trade...

Question 14

Consider the following scenario to answer the questions that follow.
Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake one loaf of bread and one hour to make one pie. Joey takes four hours to bake one loaf of bread and four hours to make one pie.
-If Rachel and Joey decide to specialize in order to maximize their combined output,who should produce what?

Accepted Answer

A)   Joey should specialize in making pies because he has an absolute advantage.
B)   Rachel should specialize in making pies and Joey should specialize in making bread.
C)   Joey should specialize in making pies and Rachel should specialize in making bread.
D)   Rachel should specialize in making bread and pies because she has a comparative advantage in both.
E)   Rachel should not specialize because she is better at producing both.F) None of the above
G) D) and E)

Question 15

Opportunity cost is evident on the production possibilities frontier (PPF) graph:

Accepted Answer

A)   as you move from one point on the frontier to another point on the frontier.
B)   as you move from the origin to any inefficient point.
C)   as you move from one unattainable point to an efficient point on the frontier.
D)   as you move from an inefficient point to the origin.
E)   at any one single point on the graph.F) A) and B)
G) All of the above

Question 16

A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources.The community's production possibilities frontier (PPF) would show an:

Accepted Answer

A)   inward shift of the PPF.
B)   outward shift of the PPF.
C)   outward rotation along the x axis.
D)   outward rotation along the y axis.
E)   increase in opportunity cost.F) B) and E)
G) A) and D)

Question 17

Refer to the accompanying figure to answer the questions that follow.
 
-How is opportunity cost illustrated in the figure?

Accepted Answer

A)   a move from point A to point B
B)   a move from point A to point C
C)   a move from point C to point D
D)   a move from point B to point C
E)   a move from point D to point EF) A) and D)
G) A) and C)

Question 18

Comment on the role of models in economics.What are the strengths and weaknesses of using them to explore the world around us?

Accepted Answer

Models are important because they simpli...

Question 19

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 questions that follow.
 
-What is Jim's opportunity cost of making a stromboli?

Accepted Answer

A)   1/2 pizza
B)   2/3 pizza
C)   2 pizzas
D)   2 stromboli
E)   25 pizzasF) A) and D)
G) A) and E)

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 that follow.
 
-What is DiNozzo's opportunity cost for 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 boatF) A) and E)
G) A) and B)

Exam 2: Economic Models and Gains From Trade

Comment on the role of models in economics.What are the strengths and weaknesses of using them to explore the world around us?

Correct Answer
verified
Models are important because they simpli...
View Answer

Refer to the accompanying figure to answer the questions that follow. -Which point(s) on the figure show inefficient use of resources?

Correct Answer
verified

Correct Answer
verified

A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources.The community's production possibilities frontier (PPF) would show an:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Consider the production possibilities frontier (PPF) shown in the figure below to answer the questions that follow. -Given current resources and technology,the unattainable range is best described as which places on the figures?

Correct Answer
verified

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF) ?

Correct Answer
verified

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 questions that follow. -What is Jim's opportunity cost of making a stromboli?

Correct Answer
verified

Correct Answer
verified

This is a classic example of the trade...
View Answer

When money is acting as a medium of exchange,it:

Correct Answer
verified

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 that follow. -What is Gibbs's opportunity cost of solving a crime?

Correct Answer
verified

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 that follow. -What is Angelo's opportunity cost of a painting?

Correct Answer
verified

Opportunity cost is evident on the production possibilities frontier (PPF) graph:

Correct Answer
verified

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 that follow. -What is DiNozzo's opportunity cost for solving a crime?

Correct Answer
verified

Which of the following is a positive statement?

Correct Answer
verified

Which of the following is a positive statement?

Correct Answer
verified

An economist's use of experiments and real-world data to test a theory is an example of:

Correct Answer
verified

Refer to the accompanying figure to answer the questions that follow. -How is opportunity cost illustrated in the figure?

Correct Answer
verified

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 questions that follow. -What is Jim's opportunity cost of making a pizza?

Correct Answer
verified

Exam 2: Economic Models and Gains From Trade

Comment on the role of models in economics.What are the strengths and weaknesses of using them to explore the world around us?

Correct AnswerverifiedModels are important because they simpli...View AnswerShow Answer

Refer to the accompanying figure to answer the questions that follow. -Which point(s) on the figure show inefficient use of resources?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources.The community's production possibilities frontier (PPF) would show an:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Consider the production possibilities frontier (PPF) shown in the figure below to answer the questions that follow. -Given current resources and technology,the unattainable range is best described as which places on the figures?

Correct AnswerverifiedShow Answer

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF) ?

Correct AnswerverifiedShow Answer

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 questions that follow. -What is Jim's opportunity cost of making a stromboli?

Correct AnswerverifiedShow Answer

Correct Answerverified This is a classic example of the trade...View AnswerShow Answer

When money is acting as a medium of exchange,it:

Correct AnswerverifiedShow Answer

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 that follow. -What is Gibbs's opportunity cost of solving a crime?

Correct AnswerverifiedShow Answer

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 that follow. -What is Angelo's opportunity cost of a painting?

Correct AnswerverifiedShow Answer

Opportunity cost is evident on the production possibilities frontier (PPF) graph:

Correct AnswerverifiedShow Answer

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 that follow. -What is DiNozzo's opportunity cost for solving a crime?

Correct AnswerverifiedShow Answer

Which of the following is a positive statement?

Correct AnswerverifiedShow Answer

Which of the following is a positive statement?

Correct AnswerverifiedShow Answer

An economist's use of experiments and real-world data to test a theory is an example of:

Correct AnswerverifiedShow Answer

Refer to the accompanying figure to answer the questions that follow. -How is opportunity cost illustrated in the figure?

Correct AnswerverifiedShow Answer

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 questions that follow. -What is Jim's opportunity cost of making a pizza?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Models are important because they simpli...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

This is a classic example of the trade...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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