Test Bank For Essentials of Economics, 5th Edition All Chapters - 9781265350642.pdf

DOWNLOAD THE Test Bank for Essentials of Economics 7th Edition Hubbard
j j j j j j j j j j




EssentialsjofjEconomics,j7ej(Hubbard)
Chapterj2 Trade-offs,jComparativejAdvantage,jandjthejMarketjSystem

2.1 ProductionjPossibilitiesjFrontiersjandjOpportunityjCosts

1) Scarcity
A) stemsjfromjthejincompatibilityjbetweenjlimitedjresourcesjandjunlimitedjwants.
B) canjbejovercomejbyjdiscoveringjnewjresources.
C) canjbejeliminatedjbyjrationingjproducts.
D) isjajbiggerjproblemjinjmarketjeconomiesjthanjinjsocialistjeconomies.jAn
swer:j A
Diff:j2
PagejRef:j42j
Topic:j Scarcity
*:j j Recurring
LearningjOutcome:j Micro-
1:jIdentifyjthejbasicjprinciplesjofjeconomicsjandjexplainjhowjtojthinkjlikejanjeconomist
AACSB:j j Analyticaljthinking

2) Inj2017,jTeslajMotorsjintroducedjthejModelj3,jitsjfirstjlowjcostjmodeljwhichjitjhadjhopedjtojselljforj
$35,000jbutjrealizedjthatjitjwouldjlosejseveraljthousandjdollarsjperjcarjatjthatjprice.jPriorjtojthejintrodu
ctionjofjthejModelj3,jTesla'sjtwojexistingjmodelsj(thejModeljSjsedanjandjthejModeljXjSUV)jhadjstarti
ngjpricesjofjoverj$70,000jandjatjthosejprices,jthejcompanyjwasjearningjajprofitjonjeachjcarjsold.jTeslaj
CEOjElonjMuskjsaidjthatj"HigherjvolumejandjmanufacturingjdesignjimprovementsjarejcrucialjforjT
eslaj[tojselljthejModelj3jatjajpricejofj$35,000] ......................................................................"jIn
decidingjtojincreasejvolumejandjimprovejmanufacturingjdesignjforjthejModelj3,jTesla
A) facedjnojtrade-
offsjbecausejitjwasjalreadyjmakingjajprofitjsellingjitsjModeljSjandjModeljXjvehicles.
B) facedjajtrade-
offjbetweenjdevotingjadditionaljresourcesjtojthejproductionjofjthejModelj3jandjdevotingjadditionaljr
esourcesjtojproducingjitsjotherjmodels.
C) wasjguaranteedjtojbejablejtojreducejcostsjonjitsjModelj3jtojajpointjwherejitjcouldjselljthejModel
j3jatjajpricejofj$35,000jandjearnjajprofit.

D) hadjnojchoicejbutjtojincreasejthejsellingjpricesjofjitsjModeljSjsedanjandjModeljXjSUV.jAnsw
er:j B
Diff:j2
PagejRef:j40jT
opic:j OpportunityjCost
LearningjOutcome:j Micro-
3:jDiscussjdifferentjtypesjofjmarketjsystemsjandjthejgainsjthatjcanjbejmadejfromjtrade
AACSB:j j Analyticaljthinking
SpecialjFeature:j j ChapterjOpener:jElonjMuskjandjTeslajMotorsjFacejajTrade-Off




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,DOWNLOAD THE Test Bank for Essentials of Economics 7th Edition Hubbard
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3) Thejconceptjofjopportunityjcostjisjthat
A) injajmarketjeconomy,jtakingjadvantagejofjprofitablejopportunitiesjinvolvesjsomejmoneyjcost.
B) thejeconomicjcostjofjusingjajfactorjofjproductionjisjthejalternativejusejofjthatjfactorjthatjisjgivenj
up.
C) takingjadvantagejofjinvestmentjopportunitiesjinvolvesjcosts.
D) thejcostjofjproductionjvariesjdependingjonjthejopportunityjforjtechnologicaljapplication.jAn
swer:j B
Diff:j2
PagejRef:j43jT
opic:j OpportunityjCost
*:j j Recurring
LearningjOutcome:j Micro-
1:jIdentifyjthejbasicjprinciplesjofjeconomicsjandjexplainjhowjtojthinkjlikejanjeconomist
AACSB:j j Analyticaljthinking

4) Thejproductionjpossibilitiesjfrontierjshowsjthej
combinationsjofjtwojproductsjthatjcanjbejproducedjinjajparticularjtimejperiodjwithjavailablejreso
urces.
A) minimumjattainable
B) maximumjattainable
C) only
D) equitable
jAnswer:j B

Diff:j2 PagejRef:j42
Topic:j j ProductionjPossibilitiesjFrontiers
*:j j Recurring
LearningjOutcome:j Micro-
3:jDiscussjdifferentjtypesjofjmarketjsystemsjandjthejgainsjthatjcanjbejmadejfromjtrade
AACSB:j j Analyticaljthinking

5) Thejproductionjpossibilitiesjfrontierjmodeljshowsjthat
A) ifjconsumersjdecidejtojbuyjmorejofjajproduct,jitsjpricejwilljincrease.
B) ajmarketjeconomyjisjmorejefficientjinjproducingjgoodsjandjservicesjthanjisjajcentrallyjplan
nedjeconomy.
C) economicjgrowthjcanjonlyjbejachievedjbyjfreejmarketjeconomies.
D) ifjalljresourcesjarejfullyjandjefficientlyjutilized,jmorejofjonejgoodjcanjbejproducedjonlyjbyjprod
ucingjlessjofjanotherjgood.
Answer:j j D
Diff:j2 PagejRef:j42
Topic:j j ProductionjPossibilitiesjFrontiers
*:j j Recurring
LearningjOutcome:j Micro-
3:jDiscussjdifferentjtypesjofjmarketjsystemsjandjthejgainsjthatjcanjbejmadejfromjtrade
AACSB:j j Analyticaljthinking




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,DOWNLOAD THE Test Bank for Essentials of Economics 7th Edition Hubbard
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6) Thejproductionjpossibilitiesjfrontierjmodeljassumesjwhichjofjthejfollowing?
A) Labor,jcapital,jland,jandjnaturaljresourcesjarejunlimitedjinjquantity.
B) Thejeconomyjproducesjonlyjtwojproducts.
C) Productionjofjanyjleveljofjthejtwojproductsjthatjthejeconomyjproducesjisjcurrentlyjpossible.
D) Thejleveljofjtechnologyjisjvariable.jA
nswer:j B
Diff:j2 PagejRef:j42
Topic:j j ProductionjPossibilitiesjFrontiers
*:j j Recurring
LearningjOutcome:j Micro-
3:jDiscussjdifferentjtypesjofjmarketjsystemsjandjthejgainsjthatjcanjbejmadejfromjtrade
AACSB:j j Analyticaljthinking

7) Thejattainablejproductionjpointsjonjajproductionjpossibilitiesjfrontierjare
A) thejhorizontaljandjverticaljintercepts.
B) thejpointsjalongjthejproductionjpossibilitiesjfrontier.
C) thejpointsjoutsidejthejareajenclosedjbyjthejproductionjpossibilitiesjfrontier.
D) thejpointsjalongjandjinsidejthejproductionjpossibilityjfrontier.jA
nswer:j D
Diff:j2 PagejRef:j42
Topic:j j ProductionjPossibilitiesjFrontiers
*:j j Recurring
LearningjOutcome:j Micro-
3:jDiscussjdifferentjtypesjofjmarketjsystemsjandjthejgainsjthatjcanjbejmadejfromjtrade
AACSB:j j Analyticaljthinking

8) Thejpointsjoutsidejthejproductionjpossibilitiesjfrontierjare
A) efficient.
B) attainable.
C) inefficient.
D) unattainable.j
Answer:j D
Diff:j2 PagejRef:j43
Topic:j j ProductionjPossibilitiesjFrontiers
*:j j Recurring
LearningjOutcome:j Micro-
3:jDiscussjdifferentjtypesjofjmarketjsystemsjandjthejgainsjthatjcanjbejmadejfromjtrade
AACSB:j j Analyticaljthinking




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, DOWNLOAD THE Test Bank for Essentials of Economics 7th Edition Hubbard
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Figurej2-1




9) ReferjtojFigurej2-1.jPointjAjis
A) technicallyjefficient.
B) unattainablejwithjcurrentjresources.
C) inefficientjinjthatjnotjalljresourcesjarejbeingjused.
D) thejequilibriumjoutputjcombination.j
Answer:j C
Diff:j1 PagejRef:j43
Topic:j j ProductionjPossibilitiesjFrontiers
*:j j Recurring
LearningjOutcome:j Micro-
2:jInterpretjandjanalyzejinformationjpresentedjinjdifferentjtypesjofjgraphs
AACSB:j j Analyticaljthinking

10) ReferjtojFigurej2-1.jPointjBjis
A) technicallyjefficient.
B) unattainablejwithjcurrentjresources.
C) inefficientjinjthatjnotjalljresourcesjarejbeingjused.
D) thejequilibriumjoutputjcombination.j
Answer:j A
Diff:j1 PagejRef:j43
Topic:j j ProductionjPossibilitiesjFrontiers
*:j j Recurring
LearningjOutcome:j Micro-
2:jInterpretjandjanalyzejinformationjpresentedjinjdifferentjtypesjofjgraphs
AACSB:j j Analyticaljthinking



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