Principles of Microeconomics Exam 1
Complete Questions And Correct
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In the 1950s, the economist Bela Balassa compared 28 manufacturing industries in
the United States and Britain. In everyone of the 28 industries, Balassa found that
the United States had an absolute advantage. In these circumstances, would there
have been any gain to the United States from importing any of these products
from Britain? - CORRECT ANSWER-Even with an absolute advantage, the
United States would have benefited from importing those products for which
Britain had a comparative advantage.
According to the U.S. Bureau of Labor Statistics, the amount of time men devote
to housework has been increasing, while the amount of time women devote to
housework has been decreasing. An economic explanation for this trend could be
that as women have... - CORRECT ANSWER-more employment opportunities,
their opportunity cost of doing housework, relative to men's, has risen.
,For each surfboard that Australia produces, it gives up the opportunity to make 25
boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it
produces. Which of the following is true about the comparative advantage between
the two countries? - CORRECT ANSWER-Australia has the comparative
advantage in boomerangs.
True or False: If Sanjaya can shuck more oysters in one hour than Tatiana, then
Sanjaya has a comparative advantage in shucking oysters. - CORRECT ANSWER-
False
The primary purpose of ___is to encourage the expenditure of funds on research
and development to create new products. - CORRECT ANSWER-patents and
copyrights
A major factor contributing to the slow growth rate of less developed economies
is... - CORRECT ANSWER-the lack of well-defined and enforceable property
rights
A successful market economy requires... - CORRECT ANSWER-well-defined
property rights and an independent court system to adjudicate disputes based on
the law
Consider the following items:
a.the novel "The DaVinci Code" by Dan Brown
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, b.the "The Spirited Shipper", an innovative wine shipping box
c.a Swiss chef's award-winning recipe
d.an original fabric design for example, the fabric used for "Coach" bags and
luggage
Which of the items listed is an example of intellectual property? - CORRECT
ANSWER-all of the items listed
In the 18th century Europe, governments gave guild legal authority to limit
production of goods. Did this authority obstruct or improve the market
mechanism and how? - CORRECT ANSWER-It obstructed the market
mechanism because the guild's actions prevented the forces of demand and supply
from coordinating the self-interested decisions of producers and consumers.
A production possibilities frontier(PPF) is... - CORRECT ANSWER-a curve
showing the maximum attainable combinations of two products that may be
produced with available resources and current technology.
The principle of increasing marginal opportunity cost states that the more
resources devoted to any activity, the ___ the payoff to devoting additional
resources to that activity. - CORRECT ANSWER-smaller
Tesla Motors manufacturers its cars at a plant in Fremont, California. At this plant,
Tesla is able to take advantage of the high level of technical training possessed by
its American workers, but it also sacrifices the ability to pay lower wages had it
Complete Questions And Correct
Detailed Answers Latest 2025
Already Passed
In the 1950s, the economist Bela Balassa compared 28 manufacturing industries in
the United States and Britain. In everyone of the 28 industries, Balassa found that
the United States had an absolute advantage. In these circumstances, would there
have been any gain to the United States from importing any of these products
from Britain? - CORRECT ANSWER-Even with an absolute advantage, the
United States would have benefited from importing those products for which
Britain had a comparative advantage.
According to the U.S. Bureau of Labor Statistics, the amount of time men devote
to housework has been increasing, while the amount of time women devote to
housework has been decreasing. An economic explanation for this trend could be
that as women have... - CORRECT ANSWER-more employment opportunities,
their opportunity cost of doing housework, relative to men's, has risen.
,For each surfboard that Australia produces, it gives up the opportunity to make 25
boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it
produces. Which of the following is true about the comparative advantage between
the two countries? - CORRECT ANSWER-Australia has the comparative
advantage in boomerangs.
True or False: If Sanjaya can shuck more oysters in one hour than Tatiana, then
Sanjaya has a comparative advantage in shucking oysters. - CORRECT ANSWER-
False
The primary purpose of ___is to encourage the expenditure of funds on research
and development to create new products. - CORRECT ANSWER-patents and
copyrights
A major factor contributing to the slow growth rate of less developed economies
is... - CORRECT ANSWER-the lack of well-defined and enforceable property
rights
A successful market economy requires... - CORRECT ANSWER-well-defined
property rights and an independent court system to adjudicate disputes based on
the law
Consider the following items:
a.the novel "The DaVinci Code" by Dan Brown
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, b.the "The Spirited Shipper", an innovative wine shipping box
c.a Swiss chef's award-winning recipe
d.an original fabric design for example, the fabric used for "Coach" bags and
luggage
Which of the items listed is an example of intellectual property? - CORRECT
ANSWER-all of the items listed
In the 18th century Europe, governments gave guild legal authority to limit
production of goods. Did this authority obstruct or improve the market
mechanism and how? - CORRECT ANSWER-It obstructed the market
mechanism because the guild's actions prevented the forces of demand and supply
from coordinating the self-interested decisions of producers and consumers.
A production possibilities frontier(PPF) is... - CORRECT ANSWER-a curve
showing the maximum attainable combinations of two products that may be
produced with available resources and current technology.
The principle of increasing marginal opportunity cost states that the more
resources devoted to any activity, the ___ the payoff to devoting additional
resources to that activity. - CORRECT ANSWER-smaller
Tesla Motors manufacturers its cars at a plant in Fremont, California. At this plant,
Tesla is able to take advantage of the high level of technical training possessed by
its American workers, but it also sacrifices the ability to pay lower wages had it
