Question 1

which of the following is true for all economies regardless of their economic system ?

Accepted Answer

every economiy must determine what to produce and how it produces goods and services.

Question 2

which of the following is the best example of physical capital ?

Accepted Answer

a truck for a delivery company

Question 3

when making a decision, the next best alternative is called

Accepted Answer

the opportunity cost

Question 4

which of the following must be tru if an individuals next best alternative to going to the beach is studying for an economics exam

Accepted Answer

the opportunity cost of going to the beach is being better prepared for the exam

Question 5

if the production possibilities curve is concave from the origin (or bowed out) , then economists say that

Accepted Answer

resources aren’t equally suited for the production of both curves

Question 6

a point outside the production possibilities curve would represent

Accepted Answer

a combination that can’t be achieved due to scarcity

Question 7

an increase in which of the following would cause an outward shift of the production possibilities curve for consumer goods and capital goods ?

Accepted Answer

an increase in the resources to produce capital goods

Question 8

which of the following is true according to the circular flow model ?

Accepted Answer

firms are demanders in the resource markets and suppliers In the product markets

Question 9

which of the following can be considered a leakage from the circular flow of economic activity ?

Accepted Answer

saving

Question 10

which of the following best explain why many US economists support free trade ?

Accepted Answer

the long run gains to consumers and some producers exceed the losses to other producers

Question 11

claire is an economist who can earn $150 per hour. she is also an excellent chef who can cook three times as fast as the best chef in the area, whose hourly wage is $20 per hour. which of the following is a correct economic statement?

Accepted Answer

claire has a comparative advantage in economics so she.should specialize in economics and hire a chef to cooke for her

Question 12

an increase in which of the following would cause an outward shift of the production possibilities curve for consumer goods and capital goods ?

Accepted Answer

an increase in the resources to produce capital goods

Question 13

which of the following is true according to the circular flow model ?

Accepted Answer

firms are demanders in the resource markets and suppliers In the product markets

Question 14

which of the following can be considered a leakage from the circular flow of economic activity ?

Accepted Answer

saving

Question 15

which of the following best explain why many US economists support free trade ?

Accepted Answer

the long run gains to consumers and some producers exceed the losses to other producers

Question 16

claire is an economist who can earn $150 per hour. she is also an excellent chef who can cook three times as fast as the best chef in the area, whose hourly wage is $20 per hour. which of the following is a correct economic statement?

Accepted Answer

claire has a comparative advantage in economics so she.should specialize in economics and hire a chef to cook for her

Question 17

mixed economics

Accepted Answer

free market within govt

Question 18

Atlantis can producers either 2 tons of grain or 4 cars with 10 units of labor. Zoltar can produce either 5 tons of grain or 25 cars with 10 unts of labor. based on this information, which of the following is true

Accepted Answer

atlantis has a competitive advantage in the production of grain, while zoltar has a comparative adavantage in the production of cars

Question 19

deirdre has one free hour to practice the piano for an upcoming school concert or work at the library for $7 per hour or babysit her neighbors 12 year old son for $10 per hour. she chooses to practice piano. what is the opportunity cost of practicing the

Accepted Answer

opportunity cost would be $10 bc it is the wage for the most profitable alternative

Question 20

concave shape of the production possibilities curve implies the notion of

Accepted Answer

increasing opportunity costs

Question 21

it is beneficial for two countries to trade only when there is

Accepted Answer

a comparative advantage in production between the two countries

Question 22

in a command economy

Accepted Answer

market prices are determined by a central plan designed by the government

Question 23

which of the following will cause an outward shift of the production possibilities curve ?

Accepted Answer

education reading for employees

Question 24

which of the following are some of the basic questions every economy must answer

Accepted Answer

what to produce ? how to produce ? from whom to produce ?

Question 25

a nation produces spinach and letttuce. a biased technology is made which improves spinach production. if the quantity of pinch produced doesn’t change, the ?

Accepted Answer

lettuce quantity will increase

Question	Answer
scarcity
consumer goods v capital goods
trade-offs
opportunity costs
centrally planned economics
free market economics (capitalism)
	mixed economics

three shifters on PPC
product market
factor (resource) market
factor payments
transfer payments
which of the following is true for all economies regardless of their economic system ?	every economiy must determine what to produce and how it produces goods and services.
which of the following is the best example of physical capital ?	a truck for a delivery company
when making a decision, the next best alternative is called	the opportunity cost
which of the following must be tru if an individuals next best alternative to going to the beach is studying for an economics exam	the opportunity cost of going to the beach is being better prepared for the exam
if the production possibilities curve is concave from the origin (or bowed out) , then economists say that	resources aren’t equally suited for the production of both curves
a point outside the production possibilities curve would represent	a combination that can’t be achieved due to scarcity
an increase in which of the following would cause an outward shift of the production possibilities curve for consumer goods and capital goods ?	an increase in the resources to produce capital goods
which of the following is true according to the circular flow model ?	firms are demanders in the resource markets and suppliers In the product markets
which of the following can be considered a leakage from the circular flow of economic activity ?	saving
which of the following best explain why many US economists support free trade ?	the long run gains to consumers and some producers exceed the losses to other producers
claire is an economist who can earn $150 per hour. she is also an excellent chef who can cook three times as fast as the best chef in the area, whose hourly wage is $20 per hour. which of the following is a correct economic statement?	claire has a comparative advantage in economics so she.should specialize in economics and hire a chef to cooke for her
an increase in which of the following would cause an outward shift of the production possibilities curve for consumer goods and capital goods ?	an increase in the resources to produce capital goods
which of the following is true according to the circular flow model ?	firms are demanders in the resource markets and suppliers In the product markets
which of the following can be considered a leakage from the circular flow of economic activity ?	saving
which of the following best explain why many US economists support free trade ?	the long run gains to consumers and some producers exceed the losses to other producers
claire is an economist who can earn $150 per hour. she is also an excellent chef who can cook three times as fast as the best chef in the area, whose hourly wage is $20 per hour. which of the following is a correct economic statement?	claire has a comparative advantage in economics so she.should specialize in economics and hire a chef to cook for her
	having limited resources to meet everyone’s unlimited wants and needs
	direct consumption by consumers goods made for indirect consumption
	all lost choices
	giving up something to get something
	govt controls all resources
	little govt involvement
mixed economics	free market within govt
	change in resource quality or quantity change in technology change in trade
Atlantis can producers either 2 tons of grain or 4 cars with 10 units of labor. Zoltar can produce either 5 tons of grain or 25 cars with 10 unts of labor. based on this information, which of the following is true	atlantis has a competitive advantage in the production of grain, while zoltar has a comparative adavantage in the production of cars
deirdre has one free hour to practice the piano for an upcoming school concert or work at the library for $7 per hour or babysit her neighbors 12 year old son for $10 per hour. she chooses to practice piano. what is the opportunity cost of practicing the	opportunity cost would be $10 bc it is the wage for the most profitable alternative
concave shape of the production possibilities curve implies the notion of	increasing opportunity costs
it is beneficial for two countries to trade only when there is	a comparative advantage in production between the two countries
in a command economy	market prices are determined by a central plan designed by the government
which of the following will cause an outward shift of the production possibilities curve ?	education reading for employees
which of the following are some of the basic questions every economy must answer	what to produce ? how to produce ? from whom to produce ?
a nation produces spinach and letttuce. a biased technology is made which improves spinach production. if the quantity of pinch produced doesn’t change, the ?	lettuce quantity will increase

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unit 1 test