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Week 3 Quiz
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Questions in this quiz (10)
1What is the reason that all economic issues and problems occur?
- APeople seek only their own self-interest.
- BAll nations use some form of money to buy and sell goods and services.
- CHumans are always wasteful and inefficient in production and consumption.
- DPowerful governments are able to control production and consumption.
- EHuman wants exceed the resources available to satisfy them.
2The characteristic from which all economic problems arise is
- Aproviding a minimal standard of living for every person.
- Bhow to make a profit.
- Chunger.
- Dthe nature of political decisions.
- Escarcity.
3Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving. This successful campaign ________ of drunk driving.
- Adecreased the marginal benefit
- Bdecreased the marginal cost
- Cincreased the marginal benefit
- Dhad no effect on the marginal cost or marginal benefit but did affect the total benefit
- Eincreased the marginal cost
4The production possibilities frontier is the boundary between the
- Aaffordable and unaffordable combinations of production.
- Brational and irrational choices facing a society.
- Cwanted and unwanted combinations of goods and services.
- Dgoods and services the economy can produce.
- Eattainable and unattainable combinations of goods and services.
5Which of the following statements is a positive statement?
- AWe need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate.
- BToo many people are unemployed.
- CThere should be a computer in every primary school classroom.
- DOur country must increase military spending.
- EOnline shopping increased by 50 per cent last Christmas season.
6The figure above shows the production possibilities frontier for a country. A combination of 4 million litres of milk and 4 million litres of ice cream is
- Aunattainable.
- Battainable and production efficient.
- Cattainable and production inefficient.
- Dunattainable and production efficient.
- EMore information is needed to determine if the point is attainable or not.
7Huey and Steve can grow potatoes or tomatoes. The table above shows the kilograms of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, Huey's opportunity cost of producing one kilogram of tomatoes is
- A0, because he has an absolute advantage in it.
- B1.0 kilogram of potatoes.
- C1.5 kilograms of potatoes.
- D0.66 kilograms of potatoes.
- E0, because he has a comparative advantage in it.
8Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas. Hotels are a capital good that, once built, will help produce still more consumption goods. If Puerto Rico produces more hotels than Hawaii,
- AHawaii's PPF will shift outward further than Puerto Rico's PPF.
- BPuerto Rico's PPF will not shift.
- CPuerto Rico's PPF will shift outward further than Hawaii's PPF.
- DHawaii's PPF will shift inward.
- EPuerto Rico's and Hawaii's PPF will shift outward by the same amount.
9In the table above, how many jackets must Mary forgo for every dress she makes?
- A8 jackets
- B12 jackets
- C2/3 of a jacket
- D3/4 of a jacket
- E1 1/2 jackets
10The figure above shows a production possibilities frontier. In the figure, when the economy moves from point C to point B, what is the opportunity cost of a DVD?
- A2 million cell phones
- B2 cell phones
- C0.5 million cell phones
- D0.5 cell phones
- EZero
Information
- Description
- Based on Lectures 1 + 2, Chapters 1 - 3.
- Author
- Michaela Juric-Donlan
- Language
- English
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- 85
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