exam 1 chapter 1

refer to figure 2-3 at which point of points can the economy not currently produce?

A, C

refer to figure 2-3. the economy has the abilit to produce at which point or points?

B,D,E

refer to figure 2-3. efficient production is represented by which point or points?

B,E

refer to figure 2-1 which arrow show the flow of land, labor, and capital

C

refer to figure 2-1 michelle completes her first week of employment working as a hairdresser at a salon. on friday of that week she receives her first paycheck. to which of the arrows does this activity contribute directly

C and D

refer to figure 2-1 which arrow shows the flow of income payments

D

refer to figure 2-3. inefficient production is represented by which point or points?

D

refer to figure 2-3. which point represents the situation in which the economy is producing its maximum possible quantitiy of tubas?

E

refer to figure 2-2 the figure represents a circular-flow diagram. if householeds are sellers in this markets represnted by box D, then

all of the above are correct

Refer to Figure 2-1. Which arrow represents the flow of goods and services?

b

refer to figure 2-2 the figure represents a circular-flow diagram. if box A represents firms, then which box represents households

box B

refer to figure 2-5 the shift of the production possibilities frontier from A to B illustrates

economic growth

If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.

false

With careful planning, we can usually get something that we like without having to give up something else that we like.

false

tuition is the single opportunity cost of attending college for most students

false

refer to figure 2-2 the figure represents a circular-flow diagram. Boxes A and B represent

firms and households

refer to figure 2-2 the figure represents a circular-flow diagram. if the owners of land, labor, and capital are represented by box B, then

firms are represented by box A

refer to figure 2-2 the figure represents a circular-flow diagram. if household are buyers in the markets represented by box C, then

firms are sellers in the markets represented by box C

refer to figure 2-2 the figure represents a circular-flow diagram. if the outer loop represents flows of dollars, then the inner loop includes

flows of inputs, of whihc firms are buyers

refer to figure 2-2 the figure represents a circular-flow diagram. andrea regularly buys fruits and vegetables from the grocery store. Michael regularly pays a lawncare company to mow his lawn. if the flow of fruits and vegetables from the grocery store to andrea is represented by an arrow form box C to box B, then the money is paid by micahel to the lawn[care company is represented by an arrow

from box B to box C

refer to figure 2-2 the figure represents a circular-flow diagram.. marsha works as an attorney for a corporation and is paid a salary in exchange for the legal services she performs. james owns office buildings and rents his building to companies in exchange for rent payments. if marsh'a income is represented by a flow of dollars from box d to box b, then james's income is represented by a flow of dollars

from box D to box B

Economics is the study of

how society manages its scarce resources

Refer to Table 3-1. The rancher has a comparative advantage in

meat, and the farmer has a comparative advantage in potatoes

refer to table 3-1. the rancher has an absolute advantage in

meat, and the farmerhas a comparative advantage in potatoes

refer to figure 2-2 the figure represents a circular-flow diagram. if the flow of goods and services is part of what is represented by the inner loop, then

the flow of factors of production is also part of what is represented by the inner loop

refer to table 2-1 which of the following statements accurately describes the production possibilities of toyland?

the opportunity cost of an additional 100 dolls increases as more dolls are produced

the bowed-out shape of the production possibilities frontier can be explained by the fact that

the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing

resources are

scarce for households and scarce for economies

economics deals primarily with the concept of

scarcity

referto figure 2-5. which of the follow events would explain the shift of the production possibilities frontier from A to B?

the economy experienced a technological advance in the production of batteries

Russell spends an hour studying instead of playing tennis. The opportunity cost to him of studying is the enjoyment and exercise he would have received had he played tennis.

the enjoyment and exercise he would have received had he played tennis

the overridding reason as to why households and societies face many decisions is that

resources are scarce

refer to table 3-1. the opportunity cost of 1 pound of potatoes for the farmer is

1/4 pound of meat

refer to table 2-1 what is the opportunity cost to toyland of increasing the production of dolls from 200 to 300

150 fire trucks

refer to table 3-1. the opportunity cost of 1 pound of meat for the farmer is

4 pounds of potatoes

refer to table 3-1. the opportunity cost of 1 pound of meat for the rancher is

4/5 pounds of potatoes

refer to table 3-1. the opportunity cost of 1 pound of potatoes for the rancher is

5/4 pounds of meat

refer to figure 2-1 which arrow represents the flow of spending by households

A

refer to figure 2-1 juan buys a new pair of shoes at a shoe store. to which of the arrows does this purchase directly contribute

A AND B

refer to figure 2-2 the figure represents a cirular flow diagram. boxes c and d represent

none of the above are correct

refer to table 3-1. the farmer and the rancher both could benefit if the farmer were to specialize in

potatoes and the rancher were to specialize in emat

refer to table 3-1.the farmer has an abosulte advantage in

potatoes, and the rancher has a comparativ advantage in meat

Refer to table 3-1. The farmer has an absolute advantage in

potatoes, and the rancher has an absolute advantage in meat

if an economy is producing efficiently, then

there is no way to produce more of one good without producing less of another good

scarcity means that ther is less of a good or resource available than people wish to have

true