ECON 2101 Macroeconomics,
Ch 1, Ch 2, & Ch 3 Practice
(76 questions and answers)
The opportunity cost of an activity is the value of - answer The next-best
alternative forgone.
Whether studying the size of the U.S. economy or the number of children a
couple will choose to have, the unifying concept is that wants are - answer
Unlimited, resources are limited, and thus trade-offs must be made.
Which of the following questions would be studied in microeconomics? -
answer How will the legalization of marijuana in Colorado affect a supplier of
cigarettes?
Which of the following questions would a macroeconomist most likely try to
answer? - answer What stage of the business cycle is our economy currently
in?
Think about the definition of scarcity that you learned in this chapter. Identify
three examples of scarcity people face every day. - answer - Limited
resources for travel
- Limited income for family cars
- Not enough time to do everything they want
Determine whether each of the following statements is positive or normative.
(Remember that a positive statement isn't necessarily correct; it just makes
a factual claim rather than a moral judgment.)
a. People who pay their bills on time are less likely than others to get into
debt: _____
,b. Hard work is a virtue: _____
c. Everyone should pay his or her bills on time: _____
d. China has a bigger population than any other country in the world: _____
e. China's One-Child Policy (which limits families to one child each) helped to
spur the country's rapid economic growth: _____
f. Lower taxes are good for the country: _____ - answer a. Positive
b. Normative
c. Normative
d. Positive
e. Positive
f. Normative
Which of the following is an example of an investment in physical capital? -
answer A firm purchases new equipment for a manufacturing process.
If France is capable of producing cheese, wine, or some combination of those
two, it should: - answer Produce the good for which it has a comparative
advantage.
Randy and Frank are both landscapers. Randy can mow 8 lawns per day or
prune 12 trees. Frank can mow 10 lawns per day or prune 20 trees. What is
each man's opportunity cost of mowing lawns? Who has a comparative
advantage in each task, and who, if anyone, has an absolute advantage at
each task?
- The opportunity cost of mowing lawns for Randy is _____ prunings.
- The opportunity cost of mowing lawns for Frank is _____ prunings.
- _____ has a comparative advantage in mowing lawns.
- _____ has a comparative advantage in pruning trees.
- _____ has an absolute advantage in mowing lawns.
- _____ has an absolute advantage in pruning trees. - answer - 1.50
, - 2.00
- Randy
- Frank
- Frank
- Frank
Randy and Frank are both landscapers. Randy can mow 6 lawns per day or
prune 18 trees. Frank can mow 4 lawns per day or prune 8 trees. What is
each man's opportunity cost of mowing lawns? Who has a comparative
advantage in each task, and who, if anyone, has an absolute advantage at
each task?
- The opportunity cost of mowing lawns for Randy is _____ prunings.
- The opportunity cost of mowing lawns for Frank is _____ prunings.
- _____ has a comparative advantage in mowing lawns.
- _____ has a comparative advantage in pruning trees.
- _____ has an absolute advantage in mowing lawns.
- _____ has an absolute advantage in pruning trees. - answer - 3.00
- 2.00
- Frank
- Randy
- Randy
- Randy
Paula and Carlo are coworkers. Their production possibilities frontiers for
counseling clients and writing memos are given below.
Graph (I don't have QuizletPlus for images, here's the graphs in text form):
X-axis = Memos | Y-axis = Clients
[Paula intercepts: (3,0) & (0,12)]
Ch 1, Ch 2, & Ch 3 Practice
(76 questions and answers)
The opportunity cost of an activity is the value of - answer The next-best
alternative forgone.
Whether studying the size of the U.S. economy or the number of children a
couple will choose to have, the unifying concept is that wants are - answer
Unlimited, resources are limited, and thus trade-offs must be made.
Which of the following questions would be studied in microeconomics? -
answer How will the legalization of marijuana in Colorado affect a supplier of
cigarettes?
Which of the following questions would a macroeconomist most likely try to
answer? - answer What stage of the business cycle is our economy currently
in?
Think about the definition of scarcity that you learned in this chapter. Identify
three examples of scarcity people face every day. - answer - Limited
resources for travel
- Limited income for family cars
- Not enough time to do everything they want
Determine whether each of the following statements is positive or normative.
(Remember that a positive statement isn't necessarily correct; it just makes
a factual claim rather than a moral judgment.)
a. People who pay their bills on time are less likely than others to get into
debt: _____
,b. Hard work is a virtue: _____
c. Everyone should pay his or her bills on time: _____
d. China has a bigger population than any other country in the world: _____
e. China's One-Child Policy (which limits families to one child each) helped to
spur the country's rapid economic growth: _____
f. Lower taxes are good for the country: _____ - answer a. Positive
b. Normative
c. Normative
d. Positive
e. Positive
f. Normative
Which of the following is an example of an investment in physical capital? -
answer A firm purchases new equipment for a manufacturing process.
If France is capable of producing cheese, wine, or some combination of those
two, it should: - answer Produce the good for which it has a comparative
advantage.
Randy and Frank are both landscapers. Randy can mow 8 lawns per day or
prune 12 trees. Frank can mow 10 lawns per day or prune 20 trees. What is
each man's opportunity cost of mowing lawns? Who has a comparative
advantage in each task, and who, if anyone, has an absolute advantage at
each task?
- The opportunity cost of mowing lawns for Randy is _____ prunings.
- The opportunity cost of mowing lawns for Frank is _____ prunings.
- _____ has a comparative advantage in mowing lawns.
- _____ has a comparative advantage in pruning trees.
- _____ has an absolute advantage in mowing lawns.
- _____ has an absolute advantage in pruning trees. - answer - 1.50
, - 2.00
- Randy
- Frank
- Frank
- Frank
Randy and Frank are both landscapers. Randy can mow 6 lawns per day or
prune 18 trees. Frank can mow 4 lawns per day or prune 8 trees. What is
each man's opportunity cost of mowing lawns? Who has a comparative
advantage in each task, and who, if anyone, has an absolute advantage at
each task?
- The opportunity cost of mowing lawns for Randy is _____ prunings.
- The opportunity cost of mowing lawns for Frank is _____ prunings.
- _____ has a comparative advantage in mowing lawns.
- _____ has a comparative advantage in pruning trees.
- _____ has an absolute advantage in mowing lawns.
- _____ has an absolute advantage in pruning trees. - answer - 3.00
- 2.00
- Frank
- Randy
- Randy
- Randy
Paula and Carlo are coworkers. Their production possibilities frontiers for
counseling clients and writing memos are given below.
Graph (I don't have QuizletPlus for images, here's the graphs in text form):
X-axis = Memos | Y-axis = Clients
[Paula intercepts: (3,0) & (0,12)]
