MACRO QUIZ2
A worker is hired in a A. factor market. B. goods and services market. C. government market. D. product market.
A.
George Lawns Mowed 10 Gardens Cultivated 5 Jack Lawns Mowed 6 Gardens Cultivated 4 The table above shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Which of the following statements is true? A. Jack has a comparative advantage in garden cultivating and George in lawn mowing. This is the correct answer.B. George has a comparative advantage in both tasks. C. Jack has a comparative advantage in lawn mowing and George in garden cultivating. D. Jack has a comparative advantage in both tasks.
A.
If society decides it wants more of one good and ________, then it has to give up some of another good and incur some opportunity costs. A. resources are underutilized B. all resources are fully utilized C. technology advances D. new resources are discovered
A.
The figure above shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts. What is the opportunity cost of producing 1 ton of coconuts in Guatemala? A. 1/2 of a ton of pineapples B. 1 1/3 tons of pineapples C. 2 tons of pineapples D. 90 tons of pineapples
A.
The production possibilities frontier shows A. the maximum attainable combinations of two products that may be produced in a particular time period with available resources. B. the various products that can be produced now and in the future. C. what people want firms to produce in a particular time period. D. what an equitable distribution of products among citizens would be.
A.
The ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier. A. attainable B. productively efficient C. unattainable D. allocatively efficient
A.
Without technological advancement, how can a nation achieve economic growth? A. through an increase in supplies of factors of production B. by decreasing the size of the labor force C. by producing more lowminus−value goods and fewer highminus−value goods D. by producing more highminus−value goods and fewer lowminus−value goods
A.
________ a nation's production possibilities frontier represents economic growth. A. An outward shift of B. An inward shift of C. Moving up along D. Moving down along
A.
________ is (are) inefficient in that not all resources are being used. A. Point A B. Points A and C C. Point C D. Point B
B, the point is inside the ppp curve
Comparative advantage means A. compared to others you are better at producing a product. Your answer is not correct.B. the ability to produce a good or service at a lower opportunity cost than any other producer. This is the correct answer.C. the ability to produce more of a product with the same amount of resources than any other producer. D. the ability to produce a good or service at a higher opportunity cost than any other producer.
B.
Firms A. have no influence on the circular flow in a market economy. B. sell goods in the product market. C. sell resources in the factor market. D. purchase resources in the product market.
B.
For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the two countries? A. Germany has the comparative advantage in watches and chocolate. B. Switzerland has the comparative advantage in watches. C. Switzerland has the comparative advantage in chocolate. D. Germany has the comparative advantage in watches.
B.
Households A. purchase resources in the factor market. B. purchase final goods and services in the product market. C. purchase final goods and services in the factor market. D. purchase resources in the product market.
B.
If the economy is currently producing at point A, what is the opportunity cost of moving to point B? A. 12 thousand forks B. 16 thousand spoons C. 60 thousand spoons D. 46 thousand forks
B.
If the economy is currently producing at point X, what is the opportunity cost of moving to point W? A. 9 million tons of paper B. 3 million tons of steel C. 5 million tons of paper D. 19 million tons of steel
B.
Increasing opportunity cost along a bowed-out production possibilities frontier occurs because A. of the scarcity of factors of production. B. some factors of production are not equally suited to producing both goods or services. C. of inefficient production. D. of ineffective management by entrepreneurs.
B.
The figure to the right shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids. What is the opportunity cost of one dozen orchids? A. 0.4 dozen roses B. 2.5 dozen roses C. 7.25 dozen roses D. 16 dozen roses
B.
The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up. A. marginal cost B. opportunity cost C. normative economics D. entrepreneurship
B.
The production possibilities frontier model assumes all of the following except A. labor, capital, land and natural resources are fixed in quantity. B. any level of the two products that the economy produces is currently possible. C. the economy produces only two products. D. the level of technology is fixed and unchanging.
B.
The table above shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. What is George's opportunity cost of cultivating a garden? A. one-half of a garden cultivated B. two lawns mowed C. two-thirds of a garden cultivated D. one and a half lawns mowed
B.
George Lawns Mowed 10 Gardens Cultivated 5 Jack Lawns Mowed 6 Gardens Cultivated 4 The table above shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Which of the following statements is true? A. Jack has an absolute advantage in both tasks. B. Jack has an absolute advantage in garden cultivating and George in lawn mowing. C. George has an absolute advantage in both tasks. D. Jack has an absolute advantage in lawn mowing and George in garden cultivating.
C.
If the production possibilities frontier is linear, then A. it is easy to efficiently produce output. B. opportunity costs are increasing as more of one good is produced. C. opportunity costs are constant as more of one good is produced. D. opportunity costs are decreasing as more of one good is produced.
C.
Suppose your expenses for this term are as follows: tuition: $9,000, room and board: $1,500, books and other educational supplies: $1,000. Further, during the term, you can only work partminus−time and earn $3,000 instead of your fullminus−time salary of $8,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A. $10,000 B. $13,000 C. $15,000 .D. $18,000
C.
Which of the following statements is true about a simple circular flow model? A. Producers are neither buyers nor sellers in the product market. B. Households are neither buyers nor sellers in the input market. C. Producers are buyers in the factors market. D. Households are sellers in the product market.
C.
________ is (are) unattainable with current resources. A. Point A B. Point B C. Point C D. Points A and C
C.
A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced. A. linear B. perfectly horizontal C. bowed inward D. bowed outward
D.
Increasing marginal opportunity cost implies that A. the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts. B. that rising opportunity costs makes it inefficient to produce beyond a certain quantity. C. the law of scarcity. D. the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
D.
The table above shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. What is Jack's opportunity cost of cultivating a garden? A. one-half of a garden cultivated B. two lawns mowed C. two-thirds of a garden cultivated. D. one and a half lawns mowed
D.
When you purchase a new surfboard you do so in the A. factor market. B. resource market. C. input market. D. product market.
D.
Which of the following is a factor of production? A. 20 shares of Microsoft stock B. a sofa produced by a furniture manufacturer C. $500 in cash D. the janitor at the local elementary school
D.
