Ivy Software Fecn Review Questions With Answers

IVY software FECN review QUESTIONS
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WITH ANSWERS |\




If corn producer A is more productive relative to corn producer B,
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then economists say that corn producer A
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Select one: |\




a. Chicago
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b. New York
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c. neither Chicago nor New York
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d. not enough information to answer the question - CORRECT
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ANSWERS ✔✔New York |\ |\




Assume a production possibilities frontier for pickup trucks and
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big Mac hamburgers. The economy is producing 60 big Mac
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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
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b. Two pickup trucks
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c. Five pickup trucks
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d. 20 pickup trucks
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e. None of the above. - CORRECT ANSWERS ✔✔20 pickup trucks
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, When an economy does not fully use its factors of production,
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then it ends up at a location _____the production possibilities
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frontier.
Select one: |\




a. Inside
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b. Outside
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c. On
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d. None of the above. - CORRECT ANSWERS ✔✔inside
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A graph that shows the combinations of two goods that the
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economy can produce given the available scarce resources and
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available technology is called a |\ |\ |\ |\




Select one: |\




a. demand curve
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b. supply curve
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c. Edgeworth box
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d. production possibilities frontier. - CORRECT ANSWERS
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✔✔production possibilities frontier |\ |\




Economists frequently say there's no such thing as a free lunch.|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


What do they mean by this?
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Select one: |\




a. Your friends are cheap and never offer you lunch for free
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b. Even if someone literally offers you a free lunch, there is an
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opportunity cost to the resources that are used to produce your |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


free lunch |\




c. Productive resources are examples of natural monopolies
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