Economics Questions????? Please help me!!!!!

Posted on 2014-11-27 07:07:00 in Economics by NANCY

Multiple Choice

Identify the choice that best completes the statement or answers the question.

Q 1. In economics, choices are necessary due to the presence of:

a. luxuries.

b. inefficiency.

c. needs.

d. scarcity.

Q 2. Economics is the study of:

a. how to make money.

b. the choices people and firms make to attain their goals.

c. capitalism.

d. how to make workers more productive and firms more profitable.

Q 3. Opportunity cost is the ________ alternative forfeited when a choice is made.

a. least-valued

b. highest-valued

c. most recently considered

d. most convenient

Q 4. The term ________ means additional.

a. marginal

b. comparative

c. incentive

d. opportunity cost

Q 5. The process of examining a change in one variable in a model while assuming that all the other variables

remain constant is called:

a. exogenous factors.

b. ceteris paribus.

c. normative analysis.

d. positive analysis.

Q 6. Economists believe that optimal decisions are made at the point where:

a. marginal cost is greater than marginal benefit.

b. marginal benefit is greater than marginal cost.

c. marginal benefit is zero.

d. marginal benefit is equal to marginal cost.

Q 7. Which of the following is a positive statement?

a. My dog should lose some weight.

b. Legally requiring dogs to have rabies shots will reduce the number of rabid dogs.

c. You should take your dog to the veterinarian once a year for a checkup.

d. Chihuahuas are cuter than bulldogs.

8. The production possibilities frontier (PPF) shows:

a. the maximum attainable combinations of two goods that can be produced with available

resources.

b. the difference between micro analysis and macro analysis.

c. the difference between normative and positive analysis.

d. how a firm should price a new product.

Refer to the following figure to answer the questions that follow.

 

Q 9. In the figure, point A is:

a. an efficient point.

b. unattainable with current resources.

c. an inefficient point.

d. the equilibrium.

Q 10. In the figure, point E is:

a. an efficient point.

b. unattainable with current resources.

c. an inefficient point.

d. the equilibrium.

Refer to the following figure for the questions that follow.

 

Q 11. The marginal cost of increasing the production of blueberry pies from 7 to 11 pies is:

a. 14 apple pies.

b. 7 blueberry pies.

c. 2 blueberry pies.

d. 2 apple pies.

Q 12. A production possibilities frontier (PPF) that has a bowed-out shape indicates:

a. economic growth

b. increasing marginal cost

c. absolute advantage

d. decreasing marginal cost

Q 13. Economic growth can be depicted on a production possibilities frontier (PPF) as an:

a. inward shift of the PPF.

b. outward shift of the PPF.

c. inward rotation along the x axis.

d. inward rotation along the y axis.

Q 14. A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources. The community's production possibilities frontier (PPF) would show an:

a. inward shift of the PPF.

b. outward shift of the PPF.

c. outward rotation along the x axis.

d. outward rotation along the y axis.


Refer to the following figure to answer the questions that follow. The figure shows Jim's and Pam's PPFs for

producing Pizza and Stromboli.

 

Q 15. What is Jim's marginal cost of producing one more Stromboli?

a. 2 Pizzas                     c. 2 Strombolis

b. 1/2 Pizza                    d. 1/2 Stromboli

Q 16. What is Pam's marginal cost of producing one more Pizza?

a. 3/2 Pizzas                     c. 3/2 Strombolis

b. 2/3 Pizza                      d. 2/3 Stromboli

Q 17. Who has an absolute advantage in making Stromboli?

a. Pam                              c. Neither

b. Jim                                d. Both

Q 18. Who has a comparative advantage in making Stromboli?

a. Pam                                  c. Neither

b. Jim                                    d. Both

Q 19. If Jim and Pam completely specialize and trade with each other, ________ will produce Pizza and ________ will produce Stromboli.

a. Pam; Jim                             c. Jim; Jim

b. Jim; Pam                            d. Pam; Pam

Q 20. By specializing and then trading:

a. Only Jim will be better off                            c. Neither Jim nor Pam will be better off

b. Only Pam will be better off                           d. Both Jim and Pam will be better off

Refer to the following figure for the questions that follow.

 

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