Question 1

-Referring to Figure 1.9, if a point is unattainable it is in

Accepted Answer

A)  AREA #1 but not on the curve.
B)  AREA #1 or is on the curve.
C)  AREA #2 but not on the curve.
D)  AREA #2 or is on the curve.

Question 2

-In Figure 1.2, which labeled points are unattainable?

Accepted Answer

A)  only A
B)  only B and C
C)  only D
D)  A, B and C

Question 3

-Referring to Figure 1.8, if a point represents unemployment it is in

Accepted Answer

A)  AREA #1 but not on the curve.
B)  AREA #1 or is on the curve.
C)  AREA #2 but not on the curve.
D)  AREA #2 or is on the curve.

Question 4

Figure 1.10 
-Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in soda when there is constant opportunity cost.

Accepted Answer

A)  Fig. A
B)  Fig. B
C)  Fig. C
D)  Fig. D

Question 5

The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there

Accepted Answer

A)  is government.
B)  are always choices that have to be made.
C)  is a scarcity of resources within a fixed level of technology.
D)  is unemployment of resources.

Question 6

Production possibilities frontier models

Accepted Answer

A)  the choices we make in setting prices.
B)  the choices we make in setting output alternatives.
C)  the choices we make in setting wages.
D)  the choices we make in setting incomes.

Question 7

When analyzing a problem, if an economist is attempting to understand what caused something to happen without considering whether or not the action was fair or just, the economist is thinking

Accepted Answer

A)  positively.
B)  negatively.
C)  normatively.
D)  justifiably.

Question 8

-Using Figure 1.7 we know the production of 10 units of soda and 2 units of pizza is

Accepted Answer

A)  possible, but there would be unemployed resources.
B)  possible, but only if all resources were fully employed.
C)  impossible because we either do not have the resources or the technology.
D)  undesirable.

Question 9

If the (steadily decreasing) marginal benefit of another day spent in the hospital exceeds the (steadily increasing) marginal cost of an additional day spent in the hospital, the rational consumer of hospital services would be predicted to

Accepted Answer

A)  check out of the hospital immediately.
B)  stay in the hospital for at least that additional day.
C)  demand a refund from the hospital for the previous day's stay.
D)  complain about the hospital food.

Question 10

Generalized growth is typically the result of an increase in, or an increase in the ability of resources to

Accepted Answer

A)  produce all goods
B)  produce certain goods
C)  produce exported goods
D)  compete with imported goods

Question 11

Scarcity implies that the allocation scheme chosen by society can

Accepted Answer

A)  not make more of any one good.
B)  typically make more of a good but at the expense of making less of another.
C)  always make more of all goods simultaneously.

Question 12

Figure 1.11 
-Referring to the Production Possibilities Frontiers in Figure 1.11 A and B, which depicts specialized growth

Accepted Answer

A)  Fig. A
B)  Fig. B
C)  Either Fig. A or B is correct
D)  Neither Fig. A nor B are correct

Question 13

-Using Figure 1.6 you can tell that

Accepted Answer

A)  the technology does not exist to produce 130 units of soda and 1 unit of pizza.
B)  there is unemployment.
C)  there is constant opportunity cost.
D)  the technology does not exist to produce 90 units of soda and 3 units of pizza.

Question 14

An economist, when analyzing a problem will attempt to

Accepted Answer

A)  maximize the net benefit of an action and this occurs where the marginal benefit equals the marginal cost.
B)  maximize the total benefit of an action.
C)  minimize the total cost of an action.
D)  maximize the net benefit of an action and this occurs where the average benefit equals the average cost.

Question 15

The statement that "since a farmer will make more money if he has a bumper crop means that all farmers would make more money if they all had bumper crops" would be an example of which of the following?

Accepted Answer

A)  the fallacy that correlation is the same as causation
B)  the fallacy of composition
C)  truth in an obvious form
D)  none of the options are correct

Question 16

-Referring to Figure 1.4, the opportunity cost of producing the first unit of pizza is

Accepted Answer

A)  one unit of soda.
B)  three units of soda.
C)  six units of soda.
D)  the same as the opportunity cost of producing the second unit of pizza.

Question 17

-Using Figure 1.4 we know the production of 9 units of soda and 1 units of pizza is

Accepted Answer

A)  possible, but there would be unemployment.
B)  possible, but only if all resources were fully employed.
C)  impossible because we have the resources but do not have the technology.
D)  impossible because we have the technology but do not have the resources.

Question 18

Imagine an economist ordering pizza by the slice. When deciding how many slices to order she would pick that number where the enjoyment of the _____ equals the enjoyment she could get from using the money on another good.

Accepted Answer

A)  first slice
B)  last slice
C)  average slice
D)  total number of slices

Question 19

-Using Figure 1.7 we know the production of 4 units of soda and 2 units of pizza is

Accepted Answer

A)  possible, but there would be unemployed resources.
B)  possible, but only if all resources were fully employed.
C)  impossible because we have the resources but do not have the technology.
D)  impossible because we have the technology but do not have the resources.

Question 20

-In Figure 1.2, which labeled points represent the existence of unemployment?

Accepted Answer

A)  only A
B)  only B and C
C)  only D
D)  A, B and C

Exam 1: Economics: the Study of Opportunity Cost

-In Figure 1.2, which labeled points are unattainable?

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When analyzing a problem, if an economist is attempting to understand what caused something to happen without considering whether or not the action was fair or just, the economist is thinking

Correct AnswerverifiedShow Answer

Generalized growth is typically the result of an increase in, or an increase in the ability of resources to

Correct AnswerverifiedShow Answer

-Using Figure 1.6 you can tell that

Correct AnswerverifiedShow Answer

The statement that "since a farmer will make more money if he has a bumper crop means that all farmers would make more money if they all had bumper crops" would be an example of which of the following?

Correct AnswerverifiedShow Answer

-Using Figure 1.7 we know the production of 4 units of soda and 2 units of pizza is

Correct AnswerverifiedShow Answer

Imagine an economist ordering pizza by the slice. When deciding how many slices to order she would pick that number where the enjoyment of the _____ equals the enjoyment she could get from using the money on another good.

Correct AnswerverifiedShow Answer

Production possibilities frontier models

Correct AnswerverifiedShow Answer

-Using Figure 1.7 we know the production of 10 units of soda and 2 units of pizza is

Correct AnswerverifiedShow Answer

-Referring to Figure 1.8, if a point represents unemployment it is in

Correct AnswerverifiedShow Answer

Scarcity implies that the allocation scheme chosen by society can

Correct AnswerverifiedShow Answer

If the (steadily decreasing) marginal benefit of another day spent in the hospital exceeds the (steadily increasing) marginal cost of an additional day spent in the hospital, the rational consumer of hospital services would be predicted to

Correct AnswerverifiedShow Answer

The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there

Correct AnswerverifiedShow Answer

-In Figure 1.2, which labeled points represent the existence of unemployment?

Correct AnswerverifiedShow Answer

Figure 1.10 -Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in soda when there is constant opportunity cost.

Correct AnswerverifiedShow Answer

-Using Figure 1.4 we know the production of 9 units of soda and 1 units of pizza is

Correct AnswerverifiedShow Answer

An economist, when analyzing a problem will attempt to

Correct AnswerverifiedShow Answer

Figure 1.11 -Referring to the Production Possibilities Frontiers in Figure 1.11 A and B, which depicts specialized growth

Correct AnswerverifiedShow Answer

-Referring to Figure 1.4, the opportunity cost of producing the first unit of pizza is

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-Referring to Figure 1.9, if a point is unattainable it is in

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