Week 3 Quiz

Michaela Juric-Donlan
Quiz by Michaela Juric-Donlan, updated more than 1 year ago
Michaela Juric-Donlan
Created by Michaela Juric-Donlan almost 4 years ago
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Description

Based on Lectures 1 + 2, Chapters 1 - 3.

Resource summary

Question 1

Question
What is the reason that all economic issues and problems occur?
Answer
  • People seek only their own self-interest.
  • All nations use some form of money to buy and sell goods and services.
  • Humans are always wasteful and inefficient in production and consumption.
  • Powerful governments are able to control production and consumption.
  • Human wants exceed the resources available to satisfy them.

Question 2

Question
The characteristic from which all economic problems arise is
Answer
  • providing a minimal standard of living for every person.
  • how to make a profit.
  • hunger.
  • the nature of political decisions.
  • scarcity.

Question 3

Question
Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving. This successful campaign ________ of drunk driving.
Answer
  • decreased the marginal benefit
  • decreased the marginal cost
  • increased the marginal benefit
  • had no effect on the marginal cost or marginal benefit but did affect the total benefit
  • increased the marginal cost

Question 4

Question
The production possibilities frontier is the boundary between the
Answer
  • affordable and unaffordable combinations of production.
  • rational and irrational choices facing a society.
  • wanted and unwanted combinations of goods and services.
  • goods and services the economy can produce.
  • attainable and unattainable combinations of goods and services.

Question 5

Question
Which of the following statements is a positive statement?
Answer
  • We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate.
  • Too many people are unemployed.
  • There should be a computer in every primary school classroom.
  • Our country must increase military spending.
  • Online shopping increased by 50 per cent last Christmas season.

Question 6

Question
The 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
Answer
  • unattainable.
  • attainable and production efficient.
  • attainable and production inefficient.
  • unattainable and production efficient.
  • More information is needed to determine if the point is attainable or not.

Question 7

Question
Huey 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
Answer
  • 0, because he has an absolute advantage in it.
  • 1.0 kilogram of potatoes.
  • 1.5 kilograms of potatoes.
  • 0.66 kilograms of potatoes.
  • 0, because he has a comparative advantage in it.

Question 8

Question
Suppose 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,
Answer
  • Hawaii's PPF will shift outward further than Puerto Rico's PPF.
  • Puerto Rico's PPF will not shift.
  • Puerto Rico's PPF will shift outward further than Hawaii's PPF.
  • Hawaii's PPF will shift inward.
  • Puerto Rico's and Hawaii's PPF will shift outward by the same amount.

Question 9

Question
In the table above, how many jackets must Mary forgo for every dress she makes?
Answer
  • 8 jackets
  • 12 jackets
  • 2/3 of a jacket
  • 3/4 of a jacket
  • 1 1/2 jackets

Question 10

Question
The 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?
Answer
  • 2 million cell phones
  • 2 cell phones
  • 0.5 million cell phones
  • 0.5 cell phones
  • Zero
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