Multiple Choice
Identify the
choice that best completes the statement or answers the question.
|
|
|
1.
|
If you voluntarily agree to exchange four ginger snaps for one of your chocolate
chip cookies, and you voluntarily agree also, then it must be true that
a. | we will both be at least as well off as we were before, and one of us will be better
off. | b. | I will be better off than I was before, but you will not | c. | we will both be
worse off than before | d. | you're better off than you were before,
but I am not |
|
|
|
|
|
|
2.
|
In Exhibit 0020, the opportunity cost of moving from point b to d is
a. | 50 mufflers | b. | 100 socks | c. | 150
socks | d. | 30 mufflers | e. | 250 socks |
|
|
|
3.
|
Which of the following is a microeconomics topic?
a. | the study of how prices are determined in the computer industry | b. | the study of
unemployment in the economy | c. | the study of how changes in the nation's
money supply affect the nation's output | d. | a and c | e. | b and
c |
|
|
|
4.
|
Which of the following factors of production is a capital resource?
a. | Labor | b. | Equipment | c. | Farmland | d. | Buildings | e. | both b and d
|
|
|
|
5.
|
If one person has the absolute advantage in producing both of two goods, then
that person
a. | should specialize in the production of both goods | b. | cannot benefit from
trade | c. | must also have a comparative advantage in both goods | d. | cannot have a
comparative advantage in either good | e. | will have the comparative advantage in only one
good |
|
|
|
|
|
|
6.
|
According to Exhibit 0017, Maria's opportunity cost of typing a page
is
a. | 6 loads of laundry | b. | 4 loads of laundry | c. | 2/3 of a load of
laundry | d. | impossible to compute | e. | 3/2 of a load of
laundry |
|
|
|
7.
|
According to Exhibit 0017, if Maria does one fewer load of laundry, how many
pages can she type in the time saved on laundry?
a. | it cannot be determined | b. | 3/2 of a page | c. | 4
pages | d. | 6 pages | e. | 2/3 of a page |
|
|
|
8.
|
An example of a positive economic statement is, "An increase in the price
of a product causes consumers to purchase more of that product."
|
|
|
9.
|
A point inside the production possibilities curve illustrates that resources are
not being fully employed
|
|
|
10.
|
Consider the factors of production required to make a textbook. Which of
the following factors is an example of capital?
a. | The lumber used to make the paper. | b. | The printing press used to print the
book. | c. | The author of the textbook. | d. | The worker in charge of operating the printing
press. |
|
|
|
|
|
|
11.
|
In Exhibit 0019, if resources are used fully and efficiently, then the economy
can produce at point(s)
a. | f | b. | h, d, or e | c. | a, b, or
c | d. | d or e | e. | g, h, or i |
|
|
|
12.
|
Which of the following points in Exhibit 0019 is unattainable, given the
quantity of resources and level of technology?
|
|
|
13.
|
Suppose y is on the vertical axis, x is on the horizontal axis, and the various
combinations of x and y are shown by a nonvertical straight line. Which of the following must be
true?
a. | If the value of x is known, the value of y can be determined. | b. | There is a causal
relation between x and y. | c. | The value of y is independent of the value of
x. | d. | There is a negative relation between x and y. | e. | There is a positive
relation between x and y. |
|
|
|
14.
|
Competitive markets achieve equity, but they cannot achieve efficiency.
|
|
|
15.
|
A production possibilities frontier can shift inward if there is
a. | an increase in the unemployment rate | b. | mandatory retirement at age
55 | c. | a larger capital stock | d. | an improvement in
technology | e. | a larger work force |
|
|
|
16.
|
If we observe two people making a trade, and neither is being coerced,
then
a. | we know that the exchange is a win-win situation. | b. | one person gained at
the other’s expense. | c. | we know one of the people got the
“short-end” of the deal, but we can’t tell which one. | d. | all of the
above |
|
|
|
17.
|
Along a bowed-out production possibilities frontier, as more of one good is
produced,
a. | opportunity cost cannot be determined | b. | technology remains constant | c. | the opportunity cost
of producing it decreases | d. | the opportunity cost of producing it remains
constant | e. | the opportunity cost of producing both goods must remain
constant |
|
|
|
18.
|
Opportunity cost is defined
a. | as the difference between the benefits from your choice and the costs of that
choice | b. | only in terms of money spent | c. | as the difference between the benefits from
your choice and the benefits from the next best alternative | d. | as the value of all
alternatives not chosen | e. | as the value of the best alternative not
chosen |
|
|
|
19.
|
When economic choice involves an adjustment to an existing situation, marginal
analysis
a. | involves comparing the additional costs and additional benefits of an activity before
deciding | b. | eliminates incorrect decisions and bad choices | c. | involves examining
only the total costs and total benefits of an activity before deciding | d. | has no practical
applications or real-world uses | e. | none of the
above |
|
|
|
20.
|
The production possibilities frontier will shift if there is a change in
a. | society's preferences for commodities | b. | technology | c. | the quantities of the two goods being
produced | d. | unemployment | e. | product prices |
|
|
|
21.
|
"There should be an increase in the minimum wage" is an example of a
positive statement.
|
|
|
22.
|
Scarcity
a. | creates a need for society to allocate goods according to some set of
criteria | b. | exists because people have wants that are unlimited relative to the availability of
resources to satisfy those wants | c. | means that society and individuals must make
choices | d. | exists in all societies | e. | all of the
above |
|
|
|
|
|
|
23.
|
Point b in Exhibit 0001 represents
a. | x + y = 60 | b. | x + y = 30 | c. | b =
90 | d. | x = 30, y = 60 | e. | x = 60, y = 30 |
|
|
|
24.
|
Your opportunity cost of choosing a particular activity
a. | is measured by the money you spend on the activity | b. | does not change over
time | c. | cannot even be estimated | d. | varies, depending on time and
circumstances | e. | can be easily and accurately calculated |
|
|
|
25.
|
If Jason can wash a car in 20 minutes and wash the dog in 10 minutes, and Megan
can wash the car in 15 minutes and wash the dog in 15 minutes, which of the following statements is
true?
a. | The opportunity cost of washing the dog is greater for Jason. | b. | The opportunity cost
of washing the car is one dog bath for Jason. | c. | The opportunity cost of washing the car is
greater for Megan. | d. | Jason has both a comparative and an absolute
advantage in washing the dog. | e. | Megan could wash two cars in the time it takes
to wash the dog. |
|
|
|
26.
|
Suppose you have an hour before your next class starts. You can either read a
book, get something to eat, or take a nap. The opportunity cost of getting something to eat is
a. | impossible to determine because the most preferred alternative is not
known | b. | the value of reading and sleeping | c. | the cost of what you eat | d. | the net benefit of
sleeping for another hour | e. | the loss of value from not reading or
sleeping |
|
|
|
27.
|
Economics can best be defined as the study of how individuals decide to use
limited resources in an attempt to satisfy unlimited wants.
|
|
|
28.
|
Which economic concept does the expression "Time is money"
reflect?
a. | opportunity cost | b. | market exchange | c. | specialization | d. | efficiency | e. | comparative
advantage |
|
|
|
29.
|
It is impossible for one person to have a comparative advantage in all
tasks.
|
|
|
30.
|
We know that reources are being used efficiently when
a. | an economy utilizes every opportunity to make people better off, given existing
resources | b. | we acheive equity. | c. | there are still gains from trade possible from
making more trades. | d. | scarcity is no longer an
issue |
|