Exam 1 example #2675

28 December 2022
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A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.
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True
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The gains from specialization and trade are based on absolute advantage.
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False
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When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other is constant.
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False
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Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.
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True
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In the circular-flow diagram, factors of production include land, labor, and capital.
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True
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In the markets for goods and services in the circular-flow diagram,
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households are buyers and firms are sellers.
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Chile should specialize in the production of
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soybeans and import coffee
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Inefficient production is represented by which point(s)?
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M (point under the curve)
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Hosne has an absolute advantage in the production of
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both goods and Merve has an absolute advantage in the production of neither good.
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The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.
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1.25 pounds of ham
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If Arturo and Dina both spend all their time producing tacos, then total production is
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800 tacos and 0 burritos
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If Arturo and Dina each divides his/her time equally between the production of tacos and burritos, then the total production is
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400 tacos and 250 burritos
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Azerbaijan has an absolute advantage in the production of
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nails and a comparative advantage in the production of nails.
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Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?
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200 pounds of coffee
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Microeconomics is the study of
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how individual households and firms make decisions.
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Production is
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possible at points A, B, C, and D, but efficient only at points A, C, and D.
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When an economy is operating at a point on its production possibilities frontier, then
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There is no way to produce more of one good without producing less of the other
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It is possible for this economy to produce
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40 notepads and 20 lamps
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The production possibilities frontier illustrates
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the combinations of output that an economy can produce
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When a country has a comparative advantage in producing a certain good,
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None of the above is correct.
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Efficiency means that
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society is getting the maximum benefits from its scarce resources
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The opportunity cost of an item is
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what you give up to get that item
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Factors of production are
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used to produce goods and services
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In the circular-flow diagram,
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the factors of production are labor, land, and capital.
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Resources are
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scarce for households and scarce for economies
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When you give up to obtain an item is called your
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opportunity cost
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The term "productivity"
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refers to the quantity of goods and services produced from each unit of labor input.
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Which of the following statements is true about point B for this economy?
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There is unemployment at point B
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Positive statements are
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claims about how the world is
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The most obvious benefit of specialization and trade is that they allow us to
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consume more goods than we otherwise would be able to consume.