Basic economic concepts Unit test
The Queen's Kitchen is a restaurant that serves classic British, Welsh, and Irish dishes. Its chef can make bowls of cawl and plates of flummery according to the production possibilities curve (PPC) shown here. Based on the production possibilities curve shown here, what is the opportunity cost of a plate of flummery when the chef goes from producing 10 plates of flummery to 11 plates of flummery?
33 bowls of cawl When a producer increases their production of flummery from 10 to 11 plates, they go from making 9 bowls of cawl to 6 bowls of cawl. The one additional plate of flummery costs 3 bowls of cawl.
Which of the following is the best definition of an economic system? Choose 1 answer:
A mechanism to decide what to make, how to make it, and who gets it
Kim and Leah have the same amount of time and resources available. Kim can write either 101010 articles or complete 555 worksheets. Leah can either write 333 articles or complete 999 worksheets. Who has an absolute advantage in each thing? Choose 1 answer:
Kim has an absolute advantage in writing articles; Leah has an absolute advantage in worksheets.
Which of the following is an example of a macroeconomic question?
What would be the likely impact of an increase in business taxes on the overall level of inflation in the country?
The graph below represents a change in the production possibilities of the nation of Xam. Which of the following statements about the economic growth in this PPC are true?
Xam now has more resources or technology available to produce more fast cars, but not fruit smoothies
Alex and Henry are baking cookies and cupcakes. The input table below shows the amount of time it takes them to create each good. Time to make cookiesTime to make cupcakesHenry111 hour222 hoursAlex111 hour333 hours Assuming Alex and Henry decide to specialize and trade cupcakes and cookies with one another, what would be a term of trade or exchange price that would satisfy both of them? Choose 1 answer:
Any price where a cupcake costs between 222 and 333 cookies
Which of the following best describes what we mean by resources in economics?
The factors used to produce goods and services
The graph below shows the PPC for a country producing ice cream and frozen yogurt.
The shape of the PPC signifies that the resources needed to produce the two goods are interchangeable.
