Question 1 John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail

Question 1

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

attending a movie, studying for an economics exam, and answering his e-mail

going to the concert because that is what John choose to do

answering his e-mail

attending a movie

studying for an economics exam

Question 2

Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?

Hank and Holly both have a comparative advantage in cutting the grass

Hank has an absolute advantage in both cutting the grass and cleaning the house

Hank has a comparative advantage in both cutting the grass and cleaning the house

Hank has a lower opportunity cost of cutting the grass

Holly has a comparative advantage in cutting the grass

Question 3

The vertical axis in a graph

is named the y-axis

measures time in a cross-section and time series graph

has no origin

measures time only in a time series graph

is named the x-axis

Question 4

Suppose that Germany, France, Estonia, and India all have the same production possibilities, illustrated in the figure above. Based on the production points in the figure, which country is most likely to expand its PPF to PPF3?

India

Germany

France

France and Germany equally

Estonia

Question 5

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

scarcity.

why to produce

social interest versus self-interest

macroeconomics

microeconomics

Question 6

Which of the following is the best definition of economic growth?

The investment in capital and consumption goods by an economy

Increased development of land and entrepreneurship

The sustained expansion of production possibilities

The opportunity cost of capital

The opportunity cost of consumption

Question 7

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

why

what

where

for whom

how

Question 8

The decision to go to graduate school is a rational one for a college student if the

opportunity cost of graduate school equals zero

marginal benefit of graduate school exceeds the marginal cost

cost is not too great

marginal cost exceeds the marginal benefit of graduate school

student carefully compared the social benefits of this decision

Question 9

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that “everyone, regardless of their ability to pay” is the answer to what microeconomic question?

What type of health care will be produced and in what quantity?

Why will we offer health care?

Must we offer health care?

How will health care be produced?

For whom will health care be produced?

Question 10

A graph shows the average SAT scores for males and females in 2012. The kind of graph used to show these data would be a

trend figure

time-series graph

time-stationary graph

scatter diagram

cross-section graph

Question 11

When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ________ question.

how

when

where

what

for whom

Question 12

“As the price of gasoline increases, fewer people buy cars that are gas guzzlers.” A graph showing this relationship would

have a negative slope

be a horizontal line

be a vertical line

have a positive relationship

have a direct relationship

Question 13

If a nation devotes a larger share of its current production to consumption goods, then

its economic growth will slow down

some productive factors will become unemployed

its PPF will shift inward

it must produce at a point within its PPF

its PPF will shift outward

Question 14

Which of the following would most likely cause a country’s production possibilities set to shift outward at every point along the frontier?

a decrease in idle capital

none of the above

a decrease in unemployment

a technological advance in only one sector of the economy

a general technological advance that affects all sectors of the economy

Question 15

A graph shows the wage rate of factory workers. The slope of the line is positive for periods when the wage rate is

low and falling

rising

high and not changing

high and falling

falling.

Question 16

For country Gamma, the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta, the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?

Gamma

More information is needed to determine which of the two nations has the comparative advantage.

Both have the comparative advantage in the production of steel

Neither country has the comparative advantage in the production of steel

Beta

Question 17

To increase its economic growth, a nation should

limit the number of people in college because they produce nothing

eliminate expenditure on capital goods

increase current consumption

encourage spending on goods and services

encourage education because that increases the quality of labor

Question 18

In a production possibilities frontier graph, the cost of producing more units of a good is measured by the

area in the arc between the PPF and a straight line drawn between the starting point and the ending point

dollar value of the additional output

None of the above answers is correct

dollar value of the resources used to produce the good

amount of the other good or service that must be forgone

PartialQuestion 19

0.8 / 1 pts

Label each entry in the list as dealing with a microeconomic topic or a macroeconomic topic.

Motor vehicle production in China is growing by 10 percent a year

Coffee prices rocket

Globalization has reduced African poverty

The government must cut its budget deficit

Apple sells 20 million iPhone 6 a month

Answer 1:

macroeconomic

Answer 2:

microeconomic

Answer 3:

macroeconomic

Answer 4:

macroeconomic

Answer 5:

microeconomic

Question 20

In the above figure, a negative relationship between x and y is shown in Figure

C

B and C

B

D

A

Question 21

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points A and B is

20

2

4

nonexistent because at point A, no roses are sold

16.

Question 22

The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are

points B and C

points A, B, and C

point E

points A and D.

points A, B, C, and D

Question 23

Economics is the social science that studies

the real reasons people buy goods and services

whether a nation has enough natural resources

how people make choices to cope with scarcity

the psychology of individuals and businesses

how choices made in the social interest could eliminate scarcity

Question 24

A major earthquake occurs in the central part of the United States. What impact would this have on the nation’s production possibilities frontier and why?

A tradeoff would occur to replace the resources and goods destroyed

It would shift outward because unemployment would be reduced

Nothing would happen because the nation would still have the same capabilities

It would not shift because people would get to work to replace any capital that was destroyed

It would shift inward because some of the nation’s resources, such as capital and labor, would be destroyed

Question 25

If Jessie studies economics for two hours instead of going to the movies with her friends, then

Jesse definitely is making a rational choice

the opportunity cost of studying is the missed movie

Jessie is ignoring a sunk cost

Jessie is not responding to any incentives

the benefit of studying is the missed movie

Question 26

If workers in Mexico produce fewer goods and services per hour than workers in the United States in all areas of production, then

it is unknown whether either country can benefit from trade with the other

neither Mexico nor the United States will benefit from trade with the other

both the United States and Mexico will benefit from trade with the other

Mexico will benefit from trade with the United States but the United States will not

the United States will benefit from trade with Mexico but Mexico will not

Question 27

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has

decreased the marginal benefit of cheating

made all the students act in the social interest

recognized that students don’t respond to incentives

increased the marginal cost of cheating

recognized that students don’t make rational choices

IncorrectQuestion 28

0 / 1 pts

If John can produce 10 chairs or 20 lamps during a week while Mary can produce 12 chairs or 22 lamps in the same time, who has the absolute advantage in producing each good?

John in producing chairs, Mary in producing lamps

Both Mary and John in both goods

Mary in producing chairs, John in producing lamps

John in producing both goods

Mary in producing both goods

Question 29

As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then shrinks. In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ________.

negative; positive

positive; nonexistent

linear; negative

positive; negative

positive; linear

Question 30

A country has a comparative advantage in the production of a good if it can

produce the good on and remain on its production possibilities frontier

produce more of the good than another country

produce more of the good most efficiently

produce the good at the lowest opportunity cost

tradeoff producing the good for another good