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ECON 2100 EXAM 1 practice Questions and
Correct Answers
Which of the following is a correct statement about production
possibilities frontiers?
a. An economy can produce only on the production possibilities
frontier.
b. An economy can produce at any point inside or outside a
production possibilities frontier.
c. An economy can produce at any point on or inside the
production possibilities frontier, but
not outside the frontier.
d. An economy can produce at any point inside the production
possibilities frontier, but not
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on or outside the frontier. Ans: c. An economy can produce at any
point on or inside the production possibilities frontier, but
not outside the frontier.
If an economy is producing efficiently, then
a. there is no way to produce more of one good without producing
less of another good.
b. it is possible to produce more of both goods without increasing
the quantities of inputs that
are being used.
c. it is possible to produce more of one good without producing
less of another good.
d. it is not possible to produce more of any good at any cost. Ans:
a. there is no way to produce more of one good without producing
less of another good.
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Normative statements are not
a. descriptive.
b. prescriptive.
c. claims about how the world should be.
d. made by economists speaking as policy advisers. Ans: a.
descriptive
Kelly and David are both capable of repairing cars and cooking
meals. Which of the following scenarios is not possible?
a. Kelly has a comparative advantage in repairing cars and David
has a comparative
advantage in cooking meals.
b. Kelly has an absolute advantage in repairing cars and David has
an absolute advantage in
© 2025 All rights reserved
ECON 2100 EXAM 1 practice Questions and
Correct Answers
Which of the following is a correct statement about production
possibilities frontiers?
a. An economy can produce only on the production possibilities
frontier.
b. An economy can produce at any point inside or outside a
production possibilities frontier.
c. An economy can produce at any point on or inside the
production possibilities frontier, but
not outside the frontier.
d. An economy can produce at any point inside the production
possibilities frontier, but not
© 2025 All rights reserved
, 2 | Page
on or outside the frontier. Ans: c. An economy can produce at any
point on or inside the production possibilities frontier, but
not outside the frontier.
If an economy is producing efficiently, then
a. there is no way to produce more of one good without producing
less of another good.
b. it is possible to produce more of both goods without increasing
the quantities of inputs that
are being used.
c. it is possible to produce more of one good without producing
less of another good.
d. it is not possible to produce more of any good at any cost. Ans:
a. there is no way to produce more of one good without producing
less of another good.
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, 3 | Page
Normative statements are not
a. descriptive.
b. prescriptive.
c. claims about how the world should be.
d. made by economists speaking as policy advisers. Ans: a.
descriptive
Kelly and David are both capable of repairing cars and cooking
meals. Which of the following scenarios is not possible?
a. Kelly has a comparative advantage in repairing cars and David
has a comparative
advantage in cooking meals.
b. Kelly has an absolute advantage in repairing cars and David has
an absolute advantage in
© 2025 All rights reserved
