Eco Quizzes (Study for Exam)

The table shows the amount of cherries or apples that Chile and Argentina can produce using one day of labor. The opportunity cost of producing 1 cherry is _____ in Chile and _____ in Argentina. _____ has a comparative advantage in cherry production. (Look at Quiz 2 Q4 for img) 0.5 apple; 0.33 apple; Chile 2 apples; 3 apples; Chile 0.5 apple; 0.33 apple; Argentina 2 apples; 3 apples; Argentina

0.5 apple; 0.33 apple; Argentina

Heather has one employee in her sweater shop who can sew 6 sweaters a day. When she hires a second person, the two employees can make 10 sweaters together. Thinking at the margin, the extra benefit received from hiring a second worker is _____ sweaters. 4 6 10 16

4

Which statement is NOT correct regarding point X? (Look at Quiz 2 Q1 for img) Society might prefer other combinations on the line to the mix of output at point X. Because it is on the line, the combination at point X has no opportunity cost. The combination of output at point X might not be allocatively efficient. The combination produced at point X is productively efficient.

Because it is on the line, the combination at point X has no opportunity cost.

An airline finds that its morning flights are half-empty, but the mid-afternoon flights are full. Which would be the MOST plausible statement for an economist to make? Fewer flights should be scheduled in the afternoon to force travelers to take morning flights. Cut the prices of early morning flights and raise the prices of afternoon flights. Nothing can be done because travelers are inflexible with their schedules. Nothing can be done to rectify the situation because of consumer sovereignty.

Cut the prices of early morning flights and raise the prices of afternoon flights.

Consider the following statements. Which, if any, are positive statements? I. Main Street needs more coffee shops. II. A new parking garage on campus will reduce parking congestion. III. Last winter, the state should have spent more money on snow removal. II only I, II, and III I and II I

II only

Which statement about economic models is FALSE? Economic models are built using assumptions. In practice, it is easy for an economist to isolate economic variables. Economists hold all other variables constant in order to see the impact of one particular variable. Economic models lead to economic theories that must be tested.

In practice, it is easy for an economist to isolate economic variables.

Which statement would NOT be a possible explanation for the shift depicted in the graph? (Look at Quiz 2 Q6 for img) Unemployment rises. New technology is developed. Workers receive more education. New energy resources are found.

Unemployment rises.

Which is NOT a basic economic question that societies must answer? How are the goods and services to be produced? For whom are the goods and services being produced? What goods and services are to be produced? Why are these goods and services being produced?

Why are these goods and services being produced?

Which of these would NOT be considered a factor of production? mineral deposits college graduates seeking a job a large copy machine at the office a bank loan used to start a new business

a bank loan used to start a new business

Although the United States hardly produces any coffee, it is able to acquire various types of coffee from other countries to satisfy the desires of every American coffee drinker. This example best represents _____ efficiency. allocative marginal production Pareto

allocative

Paying a salesperson more for increased sales is an example of an incentive. equity. efficiency. an opportunity cost.

an incentive.

The key benefit of countries engaging in trade based on comparative advantage is that it allows countries to produce efficiently inside of their individual production possibilities frontiers. it allows both countries to maximize their opportunity cost. None of these is a key benefit. both countries will be able to consume more than they would with no trade.

both countries will be able to consume more than they would with no trade.

Given the production possibilities schedules for the United States and Chile, which product should the United States produce if it is to produce the good for which it has a comparative advantage? (Look at Quiz 2 Q8 for img) bread neither bread nor avocados avocados both bread and avocados

bread

The area between which two points on the production possibilities frontier could represent an improvement in productive efficiency? (Look at Quiz 2 Q2 for img) from B to C from D to B from C to B from A to B

from D to B

One of the key ingredients in making rational choices is access to a university psychology department. information. sufficient funds. foreign markets.

information

Which is NOT considered to be an institution that influences the wealth of nations? strong monetary system national health care system legislative process to develop laws and policies that provides incentives to work hard legal system to enforce contracts and laws to protect the rights of citizens

national health care system

If the government of Spain decides to spend less on the military and more on health care, the forgone spending on military items represents the _____ of the extra health care. allocative cost opportunity cost cost factor production efficiency

opportunity cost

According to the graph (Look at Quiz 2 Q10 for img) the United States should export automobiles and import wheat. South Korea should produce neither product because it does not possess an absolute advantage in either. the United States should produce both products because it has an absolute advantage in both. the United States should import automobiles and export wheat.

the United States should export automobiles and import wheat.

The opportunity cost of buying a ticket to a major league baseball game and then going to the game is all other alternative activities that could have been undertaken. the next best alternative that could have been undertaken. the price of the ticket. the time spent at the game.

the next best alternative that could have been undertaken.

Reasons to study economics include all of these EXCEPT that you may become a better prepared voter. will always live in a world of scarcity and choices. will learn exactly how to invest your cash in the short term for the highest return on investment. will understand more about how governments and businesses interact.

will learn exactly how to invest your cash in the short term for the highest return on investment.