Q: The economic problem can best be stated as

Given scarceâ resources, how exactly do societies go about deciding what toâ produce, how to produceâ it, and for whom toâ produce?

Q: The data shows that Billabong experiences increasing opportunity costs becauseâ ____________.

for every surfboard itâ produces, it must give up increasing amounts of kayaks

Q: Refer to the information provided in the figure at right to answer the question that follows. The best point for society would be

indeterminate from thisâ information, as weâ don\'t have any information about theâ society\'s desires.

Question 1

The economic problem can best be stated as

Accepted Answer

Given scarceâ resources, how exactly do societies go about deciding what toâ produce, how to produceâ it, and for whom toâ produce?

Question 2

The data shows that Billabong experiences increasing opportunity costs becauseâ ____________.

Accepted Answer

for every surfboard itâ produces, it must give up increasing amounts of kayaks

Question 3

Refer to the information provided in the figure at right to answer the question that follows. According to theâ figure, the point where only motorcycles are produced is

Accepted Answer

E.

Question 4

Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes isâ 0.2, then the opportunity cost of grapes is

Accepted Answer

the 0.2 bushels of olives that must be forgone.

Question 5

The table below represents the output of Poems or TV Commercials per day by twoâ authors: Krystal orâ Mark: Krystal Mark Writing Poems 8 12 Writing TV Commercials 2 4   Forâ Krystal, the opportunity cost of writing one TV commercial is

Accepted Answer

4 poems.

Question 6

Refer to the information provided in the figure at right to answer the question that follows. The best point for society would be

Accepted Answer

indeterminate from thisâ information, as weâ don\'t have any information about theâ society\'s desires.

Question 7

A law is passed that makes community college tuition free for all U.S. citizens.

Accepted Answer

The PPC shifts  up  and to the  right

Question 8

An unexpectedly mild spring results in a bumper crop of citrus fruit in both Florida and California.

Accepted Answer

The PPC shifts  up  and to the  right

Question 9

A change in immigration laws significantly increases the number of immigrant workers entering the country.

Accepted Answer

The PPC shifts  up  and to the  right

Question 10

The amount of time that unemployed workers can collect unemployment insurance is increased from 26 weeks to 96 weeks during aâ recession, resulting in workers remaining unemployed for a longer period of time.

Accepted Answer

This  does not shift  the PPC.

Question 11

An innovation in desalinization technology allows for the more efficient conversion of salt water to fresh water

Accepted Answer

The PPC shifts  up  and to the  right

Question 12

A radiation leak at a nuclear power plant results in theâ long-term evacuation of aâ 10,000 square-mileâ area, which significantly reduces theâ nation\'s productive capacity.

Accepted Answer

The PPC shifts  down  and to the  left

Question 13

A command economy is one inâ which:

Accepted Answer

the basic economic questions are answered by a central government

Question 14

Do any economic systems in the world reflect the purest forms of command orâ laissez-faire economies?

Accepted Answer

No, in most economies either the government plays a major role or there is some government involvement.

Question 15

If a ppf has a negative slope and is bowedâ out, we experienceâ ________ opportunity costs as we continue to move down and to the right along the curve.

Accepted Answer

increasing

Question 16

On a production possibilityâ frontier, economic growth is represented by

Accepted Answer

a shift of the ppf up and to the right.

Question 17

Which of the following would an economist classify asâ capital?

Accepted Answer

a guitar used by a musician

Question 18

Inefficient production of meat andâ fish:

Accepted Answer

a

Question 19

productiveâ efficiency:

Accepted Answer

c

Question 20

An inefficient mix ofâ output:

Accepted Answer

b

Question 21

d. Technological advances in the production of meat andâ fish:

Accepted Answer

e

Question 22

e. An impossible combination of meat andâ fish:

Accepted Answer

d

Question 23

A command economy is an economy in which households and businesses dictate what products and services will be produced and how much to charge for those products and services.

Accepted Answer

False

Question 24

Inâ economics, investment refers to the creation of capital.

Accepted Answer

True

Question 25

If Davey can produce candles at a lower opportunity cost than Rebecca then Davey definitely hasâ ________ in producing candles relative to Rebecca.

Accepted Answer

a comparative advantage

Question 26

Assume that in this society the marginal rate of transformation of sailboats for surfboards is constant and equal to minusâ10. A graph of thisâ society\'s production possibility frontier will be represented by Panel

Accepted Answer

C

Question 27

The shape ofâ Macroland\'s production possibility frontier shows

Accepted Answer

increasing opportunity costs.

Question 28

When two people trade

Accepted Answer

they both expect to be made better off by the exchange.

Question 29

The law ofâ _____ opportunity costs is best depicted by the production possibilities frontier in panel A.

Accepted Answer

increasing

Question 30

The process of converting inputs into useful output is called  production . These inputs are also known as  the factors of production. Which of the following is not included in this list ofâ inputs?

Accepted Answer

Energy

Question 31

For this economy to move from Point B to Point C so that an additional 20 plasma televisions could beâ produced, production of LCD televisions would have to be reduced by

Accepted Answer

Exactly 60

Question 32

According to theâ figure, a decrease in unemployment may be represented by the movement from

Accepted Answer

C to D.

Question 33

The economy moves from Point A to Point D. This could be explained by

Accepted Answer

a change inâ society\'s preferences for motorcycles versus hybrid cars.

Question 34

Point B represents a situation of

Accepted Answer

both full resource employment and production efficiency.

Question 35

Microland is currently operating at Point B. You correctly deduce that

Accepted Answer

in Microland all resources are fully employed and there are no production inefficiencies.

Question 36

What do you suggest Betty Lou do to make the most efficient use of herâ resources?

Accepted Answer

Betty Lou should raise the price of car detailing or concentrate on washing cars.

Question 37

Forâ Mark, the opportunity cost of writing one TV commercial is

Accepted Answer

3 poems.

Question 38

According to the theory of comparativeâ advantage, specialization and free trade will benefit

Accepted Answer

all tradingâ parties, even when some are absolutely more efficient producers than others.

Question 39

The marginal rate of transformation is the

Accepted Answer

slope of the production possibility frontier.

Question 40

Which of the following describes the economic system in the Unitedâ States?

Accepted Answer

Mixed economy.

Question 41

To maximize totalâ production,

Accepted Answer

Mark should specialize in writing TV commercials and Krystal should specialize in writing poems.

Question 42

At the end of the 2014 NFL regularâ season, the Louisiana Lottery allowed customers to enter theirâ non-winning New Orleans Saintsâ scratch-off lottery game tickets in a finalâ second-chance drawing, with a chance to win the 2015 Saints Season Prize Package Experience. This package includes 4 Plaza Sideline tickets and field passes to every 2015 Saints homeâ game, a season parkingâ pass, and overnight accommodations for each home game. Suppose you entered thisâ second-chance drawing and won this Season Prize Package Experience for theâ Saints\' 2015 season. Would there be a cost to you to attend theâ Saints\' games during the 2015â season?

Accepted Answer

âYes, there would be an opportunity cost each time you went to a game.

Question 43

The marginal rate of transformation in moving from Point A to Point B is

Accepted Answer

-1.5.

Question 44

According to theâ figure, as the economy moves from Point E to Point Aâ, the opportunity cost of hybridâ cars, measured in terms ofâ motorcycles,

Accepted Answer

increases

Question 45

Which of the following does not constitute an act ofâ \"investment\" as economists use theâ term?

Accepted Answer

A retiree buys 50 shares of stock atâ $10 a share and then sells the stock at a profit forâ $20 a share.

Question 46

Because resources areâ scarce, the opportunity cost of investment in capital is

Accepted Answer

forgone present consumption.

Question 47

Which of the following statements is trueâ?

Accepted Answer

Mark has a comparative advantage in writing TV commercials and Krystal has a comparative advantage in writing poems.

Question 48

An improvement in technology may be represented by a

Accepted Answer

shift from ppf 1ppf1 to ppf 2ppf2.

Question 49

Macroland is currently operating at Point A. The best explanation for this is that

Accepted Answer

theâ economy\'s resources are being used inefficiently.

Question 50

â1.) Using the multipoint curve drawingâ tool, plot the six points that make up the PPF given in the table aboveâ (with carpet on the verticalâ axis). Properly label your curve. Carefully follow the instructions above and only draw the required object. .

Accepted Answer

The principle ofâ \"increasing opportunityâ cost\"  holds  in this nation

Question 51

Ifâ Macroland\'s economy is at Pointâ A, it could produce more consumer goods

Accepted Answer

without sacrificing any capital goods.

Question 52

What is the opportunity cost of spending 2 hours studying for a biologyâ exam?

Accepted Answer

Time spent studying for one of your other classes.

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