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Test Canvas : Self-Test Quiz – Chapter 02
Microeconom ics, 3e
Test Canvas: Self-Test Quiz – Chapter 02
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1. Multiple Choice: When economists want to describe how ...
Question When economists want to describe how much an economy can produce with a
given amount of resources, they use a model known as:
Answer
the positive model.
the normative model.
2. Multiple Choice: Economists typically depict the PPF a...
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Points: 1
Economists typically depict the PPF as a bowed-out curve rather than as a straight
line in order to show that:
3. Multiple Choice: Those points lying beyond the PPF:
Question Those points lying beyond the PPF:
Answer
are inefficient.
4. Multiple Choice: What is measured along the horizontal…
Question What is measured along the horizontal axis in a graph of the PPF?
Answer the amount of labor input
Points: 1
Points: 1
5. Multiple Choice: Picture a production possibility fron...
Question Picture a production possibility frontier. Point A lies inside (to the left) of the
frontier. Points B and C are located along the frontier, and Point D is located
outside (to the right) the frontier. Which of the following points represent feasible
(attainable) production points?
Answer
All points (A, B, C, and D) are feasible.
6. Multiple Choice: Picture a production possibility fron...
Question Picture a production possibility frontier. Point A lies inside (to the left) of the
frontier. Points B and C are located along the frontier, and Point D is located
outside (to the right) the frontier. Which points represent efficient production
points?
Answer All points (A, B, C, and D) are efficient.
Points A, B, and C are efficient.
Points: 1
Points: 1
7. Multiple Choice: If a country specializes according to...
Question If a country specializes according to its own comparative advantage and then
trades with other nations:
Answer
it will operate at a point inside its production possibility frontier.
8. Multiple Choice: The result of free trade between nati...
Question The result of free trade between nations is that:
Answer
wealthy countries benefit; developing nations lose.
Points: 1
Points: 1
9. Multiple Choice: Suppose you hear an economist make an…
Question Suppose you hear an economist make an assertion that, between the two
countries, France has a comparative advantage in the production of chocolate and
that Italy has a comparative advantage in the production of wine. Which of the
following statements is another way of stating the same idea expressed in the
assertion?
Answer
French chocolate is better tasting than Italian chocolate.
10. Multiple Choice: What name is given to the form of exc…
Question What name is given to the form of exchange in which individuals trade goods and
services directly, without money serving as a medium of exchange?
11. Multiple Choice: What are the two sectors represented ...
Question What are the two sectors represented in a simple circular-flow diagram of the
economy?
Points: 1
Points: 1
Points: 1
Answer
unions and management
12. Multiple Choice: What is traded in factor markets?
Question What is traded in factor markets?
Answer
agricultural products
13. Multiple Choice: As an economy moves from point to poi...
Question As an economy moves from point to point along its PPF, what is changing?
Answer the amount of resources available in the economy
Points: 1
Points: 1
14. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is true?
Answer
A country cannot have a comparative advantage in producing a particular good
unless it first has an absolute advantage in producing that good.
15. Multiple Choice: Suppose that in Australia, it takes t...
Question Suppose that in Australia, it takes two hours of labor to harvest 10 bushels of
apples and four hours of labor to harvest 10 bushels of tomatoes. Further, suppose
that in Brazil it takes 4 hours of labor to harvest 10 bushels of apples and 5 hours
of labor to produce 10 bushels of tomatoes. Which of the following statements is
TRUE?
Points: 1
Points: 1
16. Multiple Choice: Which of the following is a normative…
Question Which of the following is a normative statement?
Answer
An increase in the price of cameras will decrease the number of cameras sold.
17. Multiple Choice: Why do economists use models?
Question Why do economists use models?
Answer
to distinguish between positive and normative statements
Points: 1
Points: 1
18. Multiple Choice: What is one thing that economists gen…
Question What is one thing that economists generally agree on?
19. Multiple Choice: If an economist argues that all count...
Question If an economist argues that all countries gain from trade, what reasoning is most
likely underlying her argument?
Answer
Trading with other countries does not affect the number or the type of
remaining domestic jobs.
20. Multiple Choice: Suppose that a single person working ...
Question Suppose that a single person working in Mexico can produce either 20 yards of
cloth or 80 baskets, and that a single person working in Turkey for the same length
of time can produce either 15 yards of cloth or 30 baskets. Which of the following
statements is then TRUE?
Answer Between these two countries, Turkey has the absolute advantage in both
goods.
Points: 1
Points: 1
Points: 1
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