Ivy Software - Fundamentals of Economics PRACTICE
FINAL EXAM NEWEST!! ACTUAL COMPLETE 250 REAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+|| BRAND
NEW!! 2026-2027
If corn producer A is more productive relative to corn producer B,
then economists say that corn producer A
a. has an absolute advantage in the production of corn
b. has a comparative advantage in the production of corn
c. is the bigger corn producer
d. is smaller than corn producer B
a. has an absolute advantage in the production of corn
The main concept demonstrated in the production possibilities
frontier is
a. Comparative advantage
b. Profit maximization
c. Opportunity cost
d. Absolute advantage
c. Opportunity cost
,Assume a production possibilities frontier for pickup trucks and
big Mac hamburgers. The economy is producing 60 big Mac
hamburgers and 50 pickup trucks (point 60, 50). What is the
opportunity cost of producing an additional 20 big Mac
hamburgers (point 80, 30)?
a. Zero pickup trucks
b. Two pickup trucks
c. Five pickup trucks
d. 20 pickup trucks
e. None of the above
d. 20 pickup trucks
Assume a production possibilities frontier for pickup trucks and
big Mac hamburgers. The economy is producing 20 big Mac
hamburgers and 65 pickup trucks (point 20, 65). What is the
opportunity cost of producing an additional 20 Big Mac
hamburgers (point 40, 60)?
a. zero pickup trucks
b. Two pickup trucks
c. Five pickup trucks
d. 20 pickup trucks
e. None of the above
c. Five pickup trucks
,The law of __________________ is the concept that as you continue to
increase production of one good, the opportunity cost of
producing that next unit increases. This comes about as you
reallocate resources to produce one good that was better
suited to produce the original good.
a. absolute advantage
b. entrepreneurial ability
c. increasing opportunity cost
d. comparative advantage
c. increasing opportunity cost
The ability of an individual or group to carry out a particular economic
activity (such as making a specific product) more efficiently than
another activity; the one who has the lowest opportunity cost of an
activity.
a. entrepreneurial ability
b. comparative advantage
c. opportunity cost
d. absolute advantage
b. comparative advantage
, The ability of an individual or group to carry out a particular
economic activity more efficiently than another individual or
group; one has the lowest absolute production cost relative to
those with whom they are compared.
a. increasing opportunity cost
b. comparative advantage
c. constant opportunity cost
d. absolute advantage
d. absolute advantage
When the opportunity cost of a good remains constant as output
of the good increases.
a. constant opportunity cost
b. increasing opportunity cost
c. comparative advantage
d. decreasing opportunity cost
a. constant opportunity cost
FINAL EXAM NEWEST!! ACTUAL COMPLETE 250 REAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+|| BRAND
NEW!! 2026-2027
If corn producer A is more productive relative to corn producer B,
then economists say that corn producer A
a. has an absolute advantage in the production of corn
b. has a comparative advantage in the production of corn
c. is the bigger corn producer
d. is smaller than corn producer B
a. has an absolute advantage in the production of corn
The main concept demonstrated in the production possibilities
frontier is
a. Comparative advantage
b. Profit maximization
c. Opportunity cost
d. Absolute advantage
c. Opportunity cost
,Assume a production possibilities frontier for pickup trucks and
big Mac hamburgers. The economy is producing 60 big Mac
hamburgers and 50 pickup trucks (point 60, 50). What is the
opportunity cost of producing an additional 20 big Mac
hamburgers (point 80, 30)?
a. Zero pickup trucks
b. Two pickup trucks
c. Five pickup trucks
d. 20 pickup trucks
e. None of the above
d. 20 pickup trucks
Assume a production possibilities frontier for pickup trucks and
big Mac hamburgers. The economy is producing 20 big Mac
hamburgers and 65 pickup trucks (point 20, 65). What is the
opportunity cost of producing an additional 20 Big Mac
hamburgers (point 40, 60)?
a. zero pickup trucks
b. Two pickup trucks
c. Five pickup trucks
d. 20 pickup trucks
e. None of the above
c. Five pickup trucks
,The law of __________________ is the concept that as you continue to
increase production of one good, the opportunity cost of
producing that next unit increases. This comes about as you
reallocate resources to produce one good that was better
suited to produce the original good.
a. absolute advantage
b. entrepreneurial ability
c. increasing opportunity cost
d. comparative advantage
c. increasing opportunity cost
The ability of an individual or group to carry out a particular economic
activity (such as making a specific product) more efficiently than
another activity; the one who has the lowest opportunity cost of an
activity.
a. entrepreneurial ability
b. comparative advantage
c. opportunity cost
d. absolute advantage
b. comparative advantage
, The ability of an individual or group to carry out a particular
economic activity more efficiently than another individual or
group; one has the lowest absolute production cost relative to
those with whom they are compared.
a. increasing opportunity cost
b. comparative advantage
c. constant opportunity cost
d. absolute advantage
d. absolute advantage
When the opportunity cost of a good remains constant as output
of the good increases.
a. constant opportunity cost
b. increasing opportunity cost
c. comparative advantage
d. decreasing opportunity cost
a. constant opportunity cost
