DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard
Microeconomics, 8e (Hubbard/O'Brien) 4) The production possibilities frontier shows the ________ combinations of two products that can be
Chapter 2 Trade-offs, Comparative Advantage, and the Market System produced in a particular time period with available resources.
A) minimum attainable
2.1 Production Possibilities Frontiers and Opportunity Costs B) maximum attainable
C) only
1) Scarcity D) equitable
A) stems from the incompatibility between limited resources and unlimited wants. Answer: B
B) can be overcome by discovering new resources. Diff: 2 Page Ref: 42
C) can be eliminated by rationing products. Topic: Production Possibilities Frontiers
*: Recurring
D) is a bigger problem in market economies than in socialist economies.
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Answer: A
AACSB: Analytical thinking
Diff: 2 Page Ref: 42
Topic: Scarcity
5) The production possibilities frontier model shows that
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an economist
A) if consumers decide to buy more of a product, its price will increase.
AACSB: Analytical thinking B) a market economy is more efficient in producing goods and services than is a centrally planned
economy.
2) In 2017, Tesla Motors introduced the Model 3, its first low cost model which it had hoped to sell for C) economic growth can only be achieved by free market economies.
$35,000 but realized that it would lose several thousand dollars per car at that price. Prior to the D) if all resources are fully and efficiently utilized, more of one good can be produced only by producing
introduction of the Model 3, Tesla's two existing models (the Model S sedan and the Model X SUV) had less of another good.
starting prices of over $70,000 and at those prices, the company was earning a profit on each car sold. Answer: D
Tesla CEO Elon Musk said that "Higher volume and manufacturing design improvements are crucial for Diff: 2 Page Ref: 42
Tesla [to sell the Model 3 at a price of $35,000]...." In deciding to increase volume and improve Topic: Production Possibilities Frontiers
*: Recurring
manufacturing design for the Model 3, Tesla
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
A) faced no trade-offs because it was already making a profit selling its Model S and Model X vehicles.
AACSB: Analytical thinking
B) faced a trade-off between devoting additional resources to the production of the Model 3 and devoting
additional resources to producing its other models. 6) The production possibilities frontier model assumes which of the following?
C) was guaranteed to be able to reduce costs on its Model 3 to a point where it could sell the Model 3 at a A) Labor, capital, land, and natural resources are unlimited in quantity.
price of $35,000 and earn a profit. B) The economy produces only two products.
D) had no choice but to increase the selling prices of its Model S sedan and Model X SUV. C) Production of any level of the two products that the economy produces is currently possible.
Answer: B D) The level of technology is variable.
Diff: 2 Page Ref: 40
Answer: B
Topic: Opportunity Cost
Diff: 2 Page Ref: 42
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Topic: Production Possibilities Frontiers
AACSB: Analytical thinking
*: Recurring
Special Feature: Chapter Opener: Elon Musk and Tesla Motors Face a Trade-Off
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
3) The concept of opportunity cost is that
A) in a market economy, taking advantage of profitable opportunities involves some money cost. 7) The attainable production points on a production possibilities frontier are
B) the economic cost of using a factor of production is the alternative use of that factor that is given up. A) the horizontal and vertical intercepts.
C) taking advantage of investment opportunities involves costs. B) the points along the production possibilities frontier.
D) the cost of production varies depending on the opportunity for technological application. C) the points outside the area enclosed by the production possibilities frontier.
Answer: B D) the points along and inside the production possibility frontier.
Diff: 2 Page Ref: 43
Answer: D
Topic: Opportunity Cost
Diff: 2 Page Ref: 42
*: Recurring
Topic: Production Possibilities Frontiers
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an economist
*: Recurring
AACSB: Analytical thinking
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
1 2
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard
8) The points outside the production possibilities frontier are 10) Refer to Figure 2-1. Point B is
A) efficient. A) technically efficient.
B) attainable. B) unattainable with current resources.
C) inefficient. C) inefficient in that not all resources are being used.
D) unattainable. D) the equilibrium output combination.
Answer: D Answer: A
Diff: 2 Page Ref: 43 Diff: 1 Page Ref: 43
Topic: Production Possibilities Frontiers Topic: Production Possibilities Frontiers
*: Recurring *: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking AACSB: Analytical thinking
Figure 2-1 11) Refer to Figure 2-1. Point C is
A) technically efficient.
B) unattainable with current resources.
C) inefficient in that not all resources are being used.
D) is the equilibrium output combination.
Answer: B
Diff: 1 Page Ref: 43
Topic: Production Possibilities Frontiers
*: Recurring
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking
12) In a production possibilities frontier, a point ________ the frontier is productively inefficient.
A) along
B) inside
C) outside
D) at either intercept of
Answer: B
Diff: 1 Page Ref: 43
Topic: Production Possibilities Frontiers
*: Recurring
9) Refer to Figure 2-1. Point A is Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
A) technically efficient. AACSB: Analytical thinking
B) unattainable with current resources.
13) Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk
C) inefficient in that not all resources are being used.
roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost
D) the equilibrium output combination.
of producing an additional 10 silk roses?
Answer: C
Diff: 1 Page Ref: 43
A) 2.5 silk leaves
Topic: Production Possibilities Frontiers B) 10 silk leaves
*: Recurring C) 25 silk leaves
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs D) 55 silk leaves
AACSB: Analytical thinking Answer: C
Diff: 2 Page Ref: 43
Topic: Opportunity Cost
*: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
3 4
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard
14) Pierre can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties Figure 2-2
and 15 neckties. If he now produces 35 bow ties and 15 neckties, what is the opportunity cost of
producing an additional 15 neckties?
A) 2 bow ties
B) 15 bow ties
C) 20 bow ties
D) 35 bow ties
Answer: B
Diff: 2 Page Ref: 43
Topic: Opportunity Cost
*: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
15) If the production possibilities frontier is ________, then opportunity costs are constant as more of one
good is produced.
A) bowed out
B) bowed in
C) non-linear
D) linear Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that
Answer: D produces two goods, meat and vegetables.
Diff: 2 Page Ref: 43
Topic: Opportunity Cost 16) Refer to Figure 2-2. What is the opportunity cost of one pound of vegetables?
*: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade A) pound of meat
AACSB: Analytical thinking
B) 1.2 pounds of meat
C) pounds of meat
D) 12 pounds of meat
Answer: A
Diff: 2 Page Ref: 44-45
Topic: Opportunity Cost
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
17) Refer to Figure 2-2. What is the opportunity cost of one pound of meat?
A) pound of vegetables
B) pounds of vegetables
C) 1.6 pounds of vegetables
D) 16 pounds of vegetables
Answer: B
Diff: 2 Page Ref: 44-45
Topic: Opportunity Cost
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
5 6
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
, DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard
18) Refer to Figure 2-2. Suppose Mendonca is currently producing 60 pounds of vegetables per period. 22) A production possibilities frontier with a bowed-outward shape indicates
How much meat is it also producing, assuming that resources are fully utilized? A) the possibility of inefficient production.
A) 45 pounds of meat B) constant opportunity costs as more and more of one good is produced.
B) 75 pounds of meat C) increasing opportunity costs as more and more of one good is produced.
C) 80 pounds of meat D) decreasing opportunity costs as more and more of one good is produced.
D) 100 pounds of meat Answer: C
Answer: B Diff: 2 Page Ref: 46
Diff: 2 Page Ref: 44-45 Topic: Opportunity Cost
Topic: Opportunity Cost *: Recurring
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
23) Increasing opportunity cost is represented by a ________ production possibilities frontier.
19) Refer to Figure 2-2. If Mendonca chooses to produce 160 pounds of vegetables, how much meat can it A) linear
produce to maximize production? B) bowed in
A) 0 pounds of meat C) bowed out
B) 30 pounds of meat D) vertical
C) 60 pounds of meat Answer: C
D) 120 pounds of meat Diff: 2 Page Ref: 46
Answer: A Topic: Opportunity Cost
Diff: 2 Page Ref: 44-45 *: Recurring
Topic: Opportunity Cost Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs AACSB: Analytical thinking
AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors 24) The slope of a production possibilities frontier
A) has no economic relevance or meaning.
20) Refer to Figure 2-2. If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it B) is always constant.
produce to maximize production? C) is always varying.
A) 0 pounds of vegetables D) measures the opportunity cost of producing one more unit of a good.
B) 60 pounds of vegetables Answer: D
C) 100 pounds of vegetables Diff: 1 Page Ref: 46
D) 160 pounds of vegetables Topic: Opportunity Cost
Answer: A *: Recurring
Diff: 2 Page Ref: 44-45 Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Topic: Opportunity Cost AACSB: Analytical thinking
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking 25) ________ marginal opportunity cost implies that the more resources already devoted to any activity,
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
A) Increasing
21) Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that B) Decreasing
A) Mendonca has a comparative advantage in the production of vegetables. C) Constant
B) Mendonca has a comparative disadvantage in the production of meat. D) Negative
C) the tradeoff between meat and vegetables is constant. Answer: A
D) it is progressively more expensive to produce meat. Diff: 2 Page Ref: 46
Answer: C Topic: Opportunity Cost
Diff: 2 Page Ref: 44-45 *: Recurring
Topic: Opportunity Cost Learning Outcome: Micro-20: Apply the concepts of opportunity cost, marginal analysis, and present value to make
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs decisions
AACSB: Analytical thinking AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
7 8
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
Microeconomics, 8e (Hubbard/O'Brien) 4) The production possibilities frontier shows the ________ combinations of two products that can be
Chapter 2 Trade-offs, Comparative Advantage, and the Market System produced in a particular time period with available resources.
A) minimum attainable
2.1 Production Possibilities Frontiers and Opportunity Costs B) maximum attainable
C) only
1) Scarcity D) equitable
A) stems from the incompatibility between limited resources and unlimited wants. Answer: B
B) can be overcome by discovering new resources. Diff: 2 Page Ref: 42
C) can be eliminated by rationing products. Topic: Production Possibilities Frontiers
*: Recurring
D) is a bigger problem in market economies than in socialist economies.
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Answer: A
AACSB: Analytical thinking
Diff: 2 Page Ref: 42
Topic: Scarcity
5) The production possibilities frontier model shows that
*: Recurring
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an economist
A) if consumers decide to buy more of a product, its price will increase.
AACSB: Analytical thinking B) a market economy is more efficient in producing goods and services than is a centrally planned
economy.
2) In 2017, Tesla Motors introduced the Model 3, its first low cost model which it had hoped to sell for C) economic growth can only be achieved by free market economies.
$35,000 but realized that it would lose several thousand dollars per car at that price. Prior to the D) if all resources are fully and efficiently utilized, more of one good can be produced only by producing
introduction of the Model 3, Tesla's two existing models (the Model S sedan and the Model X SUV) had less of another good.
starting prices of over $70,000 and at those prices, the company was earning a profit on each car sold. Answer: D
Tesla CEO Elon Musk said that "Higher volume and manufacturing design improvements are crucial for Diff: 2 Page Ref: 42
Tesla [to sell the Model 3 at a price of $35,000]...." In deciding to increase volume and improve Topic: Production Possibilities Frontiers
*: Recurring
manufacturing design for the Model 3, Tesla
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
A) faced no trade-offs because it was already making a profit selling its Model S and Model X vehicles.
AACSB: Analytical thinking
B) faced a trade-off between devoting additional resources to the production of the Model 3 and devoting
additional resources to producing its other models. 6) The production possibilities frontier model assumes which of the following?
C) was guaranteed to be able to reduce costs on its Model 3 to a point where it could sell the Model 3 at a A) Labor, capital, land, and natural resources are unlimited in quantity.
price of $35,000 and earn a profit. B) The economy produces only two products.
D) had no choice but to increase the selling prices of its Model S sedan and Model X SUV. C) Production of any level of the two products that the economy produces is currently possible.
Answer: B D) The level of technology is variable.
Diff: 2 Page Ref: 40
Answer: B
Topic: Opportunity Cost
Diff: 2 Page Ref: 42
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Topic: Production Possibilities Frontiers
AACSB: Analytical thinking
*: Recurring
Special Feature: Chapter Opener: Elon Musk and Tesla Motors Face a Trade-Off
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
3) The concept of opportunity cost is that
A) in a market economy, taking advantage of profitable opportunities involves some money cost. 7) The attainable production points on a production possibilities frontier are
B) the economic cost of using a factor of production is the alternative use of that factor that is given up. A) the horizontal and vertical intercepts.
C) taking advantage of investment opportunities involves costs. B) the points along the production possibilities frontier.
D) the cost of production varies depending on the opportunity for technological application. C) the points outside the area enclosed by the production possibilities frontier.
Answer: B D) the points along and inside the production possibility frontier.
Diff: 2 Page Ref: 43
Answer: D
Topic: Opportunity Cost
Diff: 2 Page Ref: 42
*: Recurring
Topic: Production Possibilities Frontiers
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to think like an economist
*: Recurring
AACSB: Analytical thinking
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
1 2
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard
8) The points outside the production possibilities frontier are 10) Refer to Figure 2-1. Point B is
A) efficient. A) technically efficient.
B) attainable. B) unattainable with current resources.
C) inefficient. C) inefficient in that not all resources are being used.
D) unattainable. D) the equilibrium output combination.
Answer: D Answer: A
Diff: 2 Page Ref: 43 Diff: 1 Page Ref: 43
Topic: Production Possibilities Frontiers Topic: Production Possibilities Frontiers
*: Recurring *: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking AACSB: Analytical thinking
Figure 2-1 11) Refer to Figure 2-1. Point C is
A) technically efficient.
B) unattainable with current resources.
C) inefficient in that not all resources are being used.
D) is the equilibrium output combination.
Answer: B
Diff: 1 Page Ref: 43
Topic: Production Possibilities Frontiers
*: Recurring
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking
12) In a production possibilities frontier, a point ________ the frontier is productively inefficient.
A) along
B) inside
C) outside
D) at either intercept of
Answer: B
Diff: 1 Page Ref: 43
Topic: Production Possibilities Frontiers
*: Recurring
9) Refer to Figure 2-1. Point A is Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
A) technically efficient. AACSB: Analytical thinking
B) unattainable with current resources.
13) Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk
C) inefficient in that not all resources are being used.
roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost
D) the equilibrium output combination.
of producing an additional 10 silk roses?
Answer: C
Diff: 1 Page Ref: 43
A) 2.5 silk leaves
Topic: Production Possibilities Frontiers B) 10 silk leaves
*: Recurring C) 25 silk leaves
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs D) 55 silk leaves
AACSB: Analytical thinking Answer: C
Diff: 2 Page Ref: 43
Topic: Opportunity Cost
*: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
3 4
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
,DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard
14) Pierre can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties Figure 2-2
and 15 neckties. If he now produces 35 bow ties and 15 neckties, what is the opportunity cost of
producing an additional 15 neckties?
A) 2 bow ties
B) 15 bow ties
C) 20 bow ties
D) 35 bow ties
Answer: B
Diff: 2 Page Ref: 43
Topic: Opportunity Cost
*: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking
15) If the production possibilities frontier is ________, then opportunity costs are constant as more of one
good is produced.
A) bowed out
B) bowed in
C) non-linear
D) linear Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that
Answer: D produces two goods, meat and vegetables.
Diff: 2 Page Ref: 43
Topic: Opportunity Cost 16) Refer to Figure 2-2. What is the opportunity cost of one pound of vegetables?
*: Recurring
Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade A) pound of meat
AACSB: Analytical thinking
B) 1.2 pounds of meat
C) pounds of meat
D) 12 pounds of meat
Answer: A
Diff: 2 Page Ref: 44-45
Topic: Opportunity Cost
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
17) Refer to Figure 2-2. What is the opportunity cost of one pound of meat?
A) pound of vegetables
B) pounds of vegetables
C) 1.6 pounds of vegetables
D) 16 pounds of vegetables
Answer: B
Diff: 2 Page Ref: 44-45
Topic: Opportunity Cost
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
5 6
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
, DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard DOWNLOAD THE Test Bank for Microeconomics 8th Edition Hubbard
18) Refer to Figure 2-2. Suppose Mendonca is currently producing 60 pounds of vegetables per period. 22) A production possibilities frontier with a bowed-outward shape indicates
How much meat is it also producing, assuming that resources are fully utilized? A) the possibility of inefficient production.
A) 45 pounds of meat B) constant opportunity costs as more and more of one good is produced.
B) 75 pounds of meat C) increasing opportunity costs as more and more of one good is produced.
C) 80 pounds of meat D) decreasing opportunity costs as more and more of one good is produced.
D) 100 pounds of meat Answer: C
Answer: B Diff: 2 Page Ref: 46
Diff: 2 Page Ref: 44-45 Topic: Opportunity Cost
Topic: Opportunity Cost *: Recurring
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
AACSB: Analytical thinking AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
23) Increasing opportunity cost is represented by a ________ production possibilities frontier.
19) Refer to Figure 2-2. If Mendonca chooses to produce 160 pounds of vegetables, how much meat can it A) linear
produce to maximize production? B) bowed in
A) 0 pounds of meat C) bowed out
B) 30 pounds of meat D) vertical
C) 60 pounds of meat Answer: C
D) 120 pounds of meat Diff: 2 Page Ref: 46
Answer: A Topic: Opportunity Cost
Diff: 2 Page Ref: 44-45 *: Recurring
Topic: Opportunity Cost Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs AACSB: Analytical thinking
AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors 24) The slope of a production possibilities frontier
A) has no economic relevance or meaning.
20) Refer to Figure 2-2. If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it B) is always constant.
produce to maximize production? C) is always varying.
A) 0 pounds of vegetables D) measures the opportunity cost of producing one more unit of a good.
B) 60 pounds of vegetables Answer: D
C) 100 pounds of vegetables Diff: 1 Page Ref: 46
D) 160 pounds of vegetables Topic: Opportunity Cost
Answer: A *: Recurring
Diff: 2 Page Ref: 44-45 Learning Outcome: Micro-3: Discuss different types of market systems and the gains that can be made from trade
Topic: Opportunity Cost AACSB: Analytical thinking
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs
AACSB: Analytical thinking 25) ________ marginal opportunity cost implies that the more resources already devoted to any activity,
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
A) Increasing
21) Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that B) Decreasing
A) Mendonca has a comparative advantage in the production of vegetables. C) Constant
B) Mendonca has a comparative disadvantage in the production of meat. D) Negative
C) the tradeoff between meat and vegetables is constant. Answer: A
D) it is progressively more expensive to produce meat. Diff: 2 Page Ref: 46
Answer: C Topic: Opportunity Cost
Diff: 2 Page Ref: 44-45 *: Recurring
Topic: Opportunity Cost Learning Outcome: Micro-20: Apply the concepts of opportunity cost, marginal analysis, and present value to make
Learning Outcome: Micro-2: Interpret and analyze information presented in different types of graphs decisions
AACSB: Analytical thinking AACSB: Analytical thinking
Special Feature: Solved Problem: Analyzing Trade-offs Using a Production Possibilities Frontier for Tesla Motors
7 8
Copyright © 2021 Pearson Education, Inc. Copyright © 2021 Pearson Education, Inc.
mynursytest.store mynursytest.store
