Test Bank for The Micro Economy Today, 16th Edition by Bradley Schiller.pdf

1k
Copyrightk©k2021kPearsonkEducation,kInc.k
Economics,k8ek(Hubbard/O'Brien)kk
Chapterk2kkkTrade-offs,kComparativekAdvantage,kandkthekMarketkSystem k
k

2.1kkkProductionkPossibilitieskFrontierskandkOpportunity kCostsk
k

1)kScarcity k
A)kstemskfrom kthekincompatibility kbetweenklimitedkresourceskandkunlimitedkwants.k
B)kcankbekovercomekby kdiscoveringknewkresources.k
C)kcankbekeliminatedkby krationingkproducts.k
D)kiskakbiggerkproblem kinkmarketkeconomieskthankinksocialistkeconomies.k
Answer:kkAk
Diff:k2kkkkkkkPagekRef:k42k
Topic:kkScarcity k
*:kkRecurringk
LearningkOutcome:kkMicro-
1:kIdentify kthekbasickprincipleskof keconomicskandkexplainkhow ktokthinkklikekankeconomistk
AACSB:kkAnalyticalkthinkingk
k

2)kInk2017,kTeslakMotorskintroducedkthekModelk3,kitskfirstklowkcostkmodelkwhichkitkhadkhope
dktoksellkfork
$35,000kbutkrealizedkthatkitkwouldklosekseveralkthousandkdollarskperkcarkatkthatkprice.kPriorkt
okthek
introductionkof kthekModelk3,kTesla'sktwokexistingkmodelsk(thekModelkSksedankandkthekModelk
X kSUV)khadk
startingkpriceskof koverk$70,000kandkatkthosekprices,kthekcompany kwaskearningkakprofitkonkeac
hkcarksold.k
TeslakCEOkElonkMuskksaidkthatk"Higherkvolumekandkmanufacturingkdesignkimprovementskar
ekcrucialkfork
Teslak[toksellkthekModelk3katkakpricekofk$35,000]...."kInkdecidingktokincreasekvolumekandkimpr
ovek
manufacturingkdesignkforkthekModelk3,kTeslak
A)kfacedknoktrade-
offskbecausekitkwaskalready kmakingkakprofitksellingkitskModelkSkandkModelkX kvehicles.k
B)kfacedkaktrade-
off kbetweenkdevotingkadditionalkresourcesktokthekproductionkofkthekModelk3kandkdevotingk
additionalkresourcesktokproducingkitskotherkmodels.k
C)kwaskguaranteedktokbekablektokreducekcostskonkitskModelk3ktokakpointkwherekitkcouldksellkth
ekModelk3katkak
pricekof k$35,000kandkearnkakprofit.k
D)khadknokchoicekbutktokincreasektheksellingkpriceskof kitskModelkSksedankandkModelkXkSUV.k
Answer:kkBk
Diff:k2kkkkkkkPagekRef:k40k
Topic:kkOpportunity kCostk

,LearningkOutcome:kkMicro-
3:kDiscusskdifferentktypeskof kmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradek
AACSB:kkAnalyticalkthinkingk
SpecialkFeature:kkChapterkOpener:kElonkMuskkandkTeslakMotorskFacekakTrade-Off k
k

3)kThekconceptkof kopportunity kcostkiskthatk
A)kinkakmarketkeconomy,ktakingkadvantagekof kprofitablekopportunitieskinvolvesksomekmoney
k cost.k

B)kthekeconomickcostkof kusingkakfactorkof kproductionkiskthekalternativekusekofkthatkfactorkthatk
iskgivenkup.k
C)ktakingkadvantagekof kinvestmentkopportunitieskinvolveskcosts.kk
D)kthekcostkof kproductionkvarieskdependingkonkthekopportunity kforktechnologicalkapplication
.kk
Answer:kkBk
Diff:k2kkkkkkkPagekRef:k43k
Topic:kkOpportunity kCostk
*:kkRecurringk
LearningkOutcome:kkMicro-
1:kIdentify kthekbasickprincipleskof keconomicskandkexplainkhow ktokthinkklikekankeconomistk
AACSB:kkAnalyticalkthinkingk
k

DOWNLOADkTHEkTestkBankkforkEconomicsk8thkEditionkHubbard
nursytestbank.store
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Copyrightk©k2021kPearsonkEducation,kInc.k
4)kThekproductionkpossibilitieskfrontierkshowskthek________ kcombinationskofktwokproductsktha
tkcankbek
producedkinkakparticularktimekperiodkwithkavailablekresources.k
A)kminimum kattainablek
B)kmaximum kattainablek
C)konly k
D)kequitablek
Answer:kkBk
Diff:k2kkkkkkkPagekRef:k42k
Topic:kkProductionkPossibilitieskFrontiersk
*:kkRecurringk
LearningkOutcome:kkMicro-
3:kDiscusskdifferentktypeskof kmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradek
AACSB:kkAnalyticalkthinkingk
k

5)kThekproductionkpossibilitieskfrontierkmodelkshowskthatk
A)kif kconsumerskdecidektokbuy kmorekof kakproduct,kitskpricekwillkincrease.kk
B)kakmarketkeconomykiskmorekefficientkinkproducingkgoodskandkserviceskthankiskakcentrallykpl
annedk
economy.k

,C)keconomickgrowthkcankonly kbekachievedkby kfreekmarketkeconomies.k
D)kif kallkresourceskarekfullykandkefficiently kutilized,kmorekofkonekgoodkcankbekproducedkonlykb
y kproducingk
lesskof kanotherkgood.k
Answer:kkDk
Diff:k2kkkkkkkPagekRef:k42k
Topic:kkProductionkPossibilitieskFrontiersk
*:kkRecurringk
LearningkOutcome:kkMicro-
3:kDiscusskdifferentktypeskof kmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradek
AACSB:kkAnalyticalkthinkingk
k

6)kThekproductionkpossibilitieskfrontierkmodelkassumeskwhichkofkthekfollowing?k
A)kLabor,kcapital,kland,kandknaturalkresourceskarekunlimitedkinkquantity.k
B)kThekeconomy kproduceskonly ktwokproducts.kk
C)kProductionkof kanyklevelkofkthektwokproductskthatkthekeconomy kproduceskiskcurrently kpossi
ble.k
D)kTheklevelkof ktechnology kiskvariable.k
Answer:kkBk
Diff:k2kkkkkkkPagekRef:k42k
Topic:kkProductionkPossibilitieskFrontiersk
*:kkRecurringk
LearningkOutcome:kkMicro-
3:kDiscusskdifferentktypeskof kmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradek
AACSB:kkAnalyticalkthinkingk
k

7)kThekattainablekproductionkpointskonkakproductionkpossibilitieskfrontierkarek
A)kthekhorizontalkandkverticalkintercepts.k
B)kthekpointskalongkthekproductionkpossibilitieskfrontier.k
C)kthekpointskoutsidekthekareakenclosedkbykthekproductionkpossibilitieskfrontier.k
D)kthekpointskalongkandkinsidekthekproductionkpossibility kfrontier.k
Answer:kkDk
Diff:k2kkkkkkkPagekRef:k42k
Topic:kkProductionkPossibilitieskFrontiersk
*:kkRecurringk
LearningkOutcome:kkMicro-
3:kDiscusskdifferentktypeskof kmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradek
AACSB:kkAnalyticalkthinkingk
k

DOWNLOADkTHEkTestkBankkforkEconomicsk8thkEditionkHubbard
nursytestbank.store
3k
Copyrightk©k2021kPearsonkEducation,kInc.k
8)kThekpointskoutsidekthekproductionkpossibilitieskfrontierkarek
A)kefficient.k

, B)kattainable.k
C)kinefficient.k
D)kunattainable.k
Answer:kkDk
Diff:k2kkkkkkkPagekRef:k43k
Topic:kkProductionkPossibilitieskFrontiersk
*:kkRecurringk
LearningkOutcome:kkMicro-
3:kDiscusskdifferentktypeskof kmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradek
AACSB:kkAnalyticalkthinkingk
k

Figurek2-1k
k
k
k

9)kReferktokFigurek2-1.kPointkAkisk
A)ktechnically kefficient.k
B)kunattainablekwithkcurrentkresources.k
C)kinefficientkinkthatknotkallkresourceskarekbeingkused.kk
D)kthekequilibrium koutputkcombination.k
Answer:kkCk
Diff:k1kkkkkkkPagekRef:k43k
Topic:kkProductionkPossibilitieskFrontiersk
*:kkRecurringk
LearningkOutcome:kkMicro-
2:kInterpretkandkanalyzekinformationkpresentedkinkdifferentktypeskof kgraphsk
AACSB:kkAnalyticalkthinkingk
k

DOWNLOADkTHEkTestkBankkforkEconomicsk8thkEditionkHubbard
nursytestbank.store
4k
Copyrightk©k2021kPearsonkEducation,kInc.k
10)kReferktokFigurek2-1.kPointkBkisk
A)ktechnically kefficient.k
B)kunattainablekwithkcurrentkresources.k
C)kinefficientkinkthatknotkallkresourceskarekbeingkused.kk
D)kthekequilibrium koutputkcombination.k
Answer:kkAk
Diff:k1kkkkkkkPagekRef:k43k
Topic:kkProductionkPossibilitieskFrontiersk
*:kkRecurringk
LearningkOutcome:kkMicro-
2:kInterpretkandkanalyzekinformationkpresentedkinkdifferentktypeskof kgraphsk
AACSB:kkAnalyticalkthinkingk
k

11)kReferktokFigurek2-1.kPointkCkisk
A)ktechnically kefficient.k