DOWNLOAD THE Test Bank for Microeconomics 2nd Edition Karlan
Chapter 02 - Specialization and Exchange
Chapter 02
Specialization and Exchange
Multiple Choice Questions
1. The invisible hand refers to:
A. the coordination that occurs from everyone working in his or her own self-interest.
B. the coordination that occurs from a government agency finding efficiencies.
C. the coordination that occurs from everyone working for the overall good of society.
D. the coordination that occurs from a government coordinating economic activity.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-01 The Origins of a T-Shirt
2. The concepts of specialization and gains from trade explain:
A. international trade.
B. why globalization has expanded recently.
C. consumer decisions.
D. both international trade and the choices individuals make.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-01 The Origins of a T-Shirt
2-1
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,DOWNLOAD THE Test Bank for Microeconomics 2nd Edition Karlan
Chapter 02 - Specialization and Exchange
3. The concept of the invisible hand was first introduced to economics by:
A. David Ricardo.
B. Adam Smith.
C. Thomas Malthus.
D. Milton Friedman.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-01 The Origins of a T-Shirt
4. A production possibilities frontier is a line or curve that:
A. shows all the possible combinations of outputs that can be produced using all available
resources.
B. shows what can be produced when all available resources are not efficiently used.
C. shows the best combinations of outputs that can be produced using all available resources.
D. explains why societies make the choices they do.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-02 Production Possibilities
2-2
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,DOWNLOAD THE Test Bank for Microeconomics 2nd Edition Karlan
Chapter 02 - Specialization and Exchange
5. Consider the production possibilities frontier displayed in the figure shown. The fact that
the line slopes downward displays which economic concept?
A. Production possibilities
B. Trade-offs
C. Specialization
D. Efficiency
Blooms: Apply
Difficulty: Medium
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-03 Drawing the Production Possibilities Frontier
2-3
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, DOWNLOAD THE Test Bank for Microeconomics 2nd Edition Karlan
Chapter 02 - Specialization and Exchange
6. Consider the production possibilities frontier displayed in the figure shown. A society faced
with this curve could choose to produce:
A. A, B, or D.
B. A, B, or C.
C. A, D, or C.
D. B, C, or D.
Blooms: Apply
Difficulty: Medium
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-03 Drawing the Production Possibilities Frontier
2-4
mynursytest.store
Chapter 02 - Specialization and Exchange
Chapter 02
Specialization and Exchange
Multiple Choice Questions
1. The invisible hand refers to:
A. the coordination that occurs from everyone working in his or her own self-interest.
B. the coordination that occurs from a government agency finding efficiencies.
C. the coordination that occurs from everyone working for the overall good of society.
D. the coordination that occurs from a government coordinating economic activity.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-01 The Origins of a T-Shirt
2. The concepts of specialization and gains from trade explain:
A. international trade.
B. why globalization has expanded recently.
C. consumer decisions.
D. both international trade and the choices individuals make.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-01 The Origins of a T-Shirt
2-1
mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics 2nd Edition Karlan
Chapter 02 - Specialization and Exchange
3. The concept of the invisible hand was first introduced to economics by:
A. David Ricardo.
B. Adam Smith.
C. Thomas Malthus.
D. Milton Friedman.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-01 The Origins of a T-Shirt
4. A production possibilities frontier is a line or curve that:
A. shows all the possible combinations of outputs that can be produced using all available
resources.
B. shows what can be produced when all available resources are not efficiently used.
C. shows the best combinations of outputs that can be produced using all available resources.
D. explains why societies make the choices they do.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-02 Production Possibilities
2-2
mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics 2nd Edition Karlan
Chapter 02 - Specialization and Exchange
5. Consider the production possibilities frontier displayed in the figure shown. The fact that
the line slopes downward displays which economic concept?
A. Production possibilities
B. Trade-offs
C. Specialization
D. Efficiency
Blooms: Apply
Difficulty: Medium
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-03 Drawing the Production Possibilities Frontier
2-3
mynursytest.store
, DOWNLOAD THE Test Bank for Microeconomics 2nd Edition Karlan
Chapter 02 - Specialization and Exchange
6. Consider the production possibilities frontier displayed in the figure shown. A society faced
with this curve could choose to produce:
A. A, B, or D.
B. A, B, or C.
C. A, D, or C.
D. B, C, or D.
Blooms: Apply
Difficulty: Medium
Learning Objective: 02-01 Construct a production possibilities graph and describe what causes shifts in production possibilities curves.
Topic: 02-03 Drawing the Production Possibilities Frontier
2-4
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