Test Bank for Essentials of Economics, 8th Edition by Hubbard - 2025 Published (All Chapters included.pdf

DOWNLOAD THE Test Bank for Economics 8th Edition Hubbard
k k k k k k k k




Economics,k 8ek (Hubbard/O'Brien)
Chapterk2k k Trade-offs,kComparativekAdvantage,kandkthekMarketkSystem

2.1 Productionk Possibilitiesk Frontiersk and k Opportunityk Costs

1) Scarcity
A) stems kfrom kthekincompatibilitykbetween klimitedkresources kandkunlimitedkwants.
B) can kbekovercomekbykdiscoveringknewkresources.
C) can kbekeliminatedkbykrationingkproducts.
D) is ka kbiggerkproblem kin kmarketkeconomies kthan kin ksocialistkeconomies
.kAnswer:k A
Diff:k2
PagekRef:k42
kTopic:k Scarcity

*:k Recurring
Learning kOutcome:k Micro-
1:kIdentify kthekbasickprincipleskofkeconomicskandkexplainkhowktokthink klikekankeconomistkAACSB:k Analytical kthinki
ng

2) In k2017,kTesla kMotors kintroducedkthekModelk3,kits kfirstklowkcostkmodelkwhich kitkhadkhopedktoksellkfor
$35,000 kbutkrealizedkthatkitkwouldklosekseveralkthousandkdollars kperkcarkatkthatkprice.kPriorktokthekintrod
uction kofkthekModelk3,kTesla's ktwokexistingkmodels k(thekModelkSksedan kandkthekModelkXkSUV)khadkstarti
ngkprices kofkoverk$70,000 kandkatkthosekprices,kthekcompanykwas kearningka kprofitkon keach kcarksold.kTesla k
CEOkElon kMuskksaidkthatk"Higherkvolumekandkmanufacturingkdesign kimprovements karekcrucialkforkTesl
a k[toksellkthekModelk3 katka kpricekofk$35,000] .......... "kIn kdecidingktokincreasekvolumekandkimprove
manufacturingkdesign kforkthekModelk3,kTesla
A) facedknoktrade-offs kbecausekitkwas kalreadykmakingka kprofitksellingkits kModelkSkandkModelkXkvehicles.
B) facedka ktrade-
offkbetween kdevotingkadditional kresources ktokthekproduction kofkthekModelk3 kandkdevotingkadditional kreso
urces ktokproducingkits kotherkmodels.
C) was kguaranteedktokbekablektokreducekcosts kon kits kModelk3 ktoka kpointkwherekitkcouldksellkthekModelk3 katk
a kpricekofk$35,000 kandkearn ka kprofit.
D) hadknokchoicekbutktokincreasektheksellingkprices kofkits kModelkSksedan kandkModelkXkSUV
.kAnswer:k B
Diff:k2
PagekRef:k40kT
opic:k Opportunity kCost
Learning kOutcome:k Micro-
3:kDiscusskdifferentktypeskofkmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradekAACSB:k Analytical kthinki
ng
Special kFeature:k Chapter kOpener:kElonkMuskkandkTeslakMotorskFacekakTrade-Off

3) Thekconceptkofkopportunitykcostkis kthat
A) in ka kmarketkeconomy,ktakingkadvantagekofkprofitablekopportunities kinvolves ksomekmoneykcost.
B) thekeconomickcostkofkusingka kfactorkofkproduction kis kthekalternativekusekofkthatkfactorkthatkis kgiven kup.
C) takingkadvantagekofkinvestmentkopportunities kinvolves kcosts.
D) thekcostkofkproduction kvaries kdependingkon kthekopportunitykforktechnological kapplication
.kAnswer:k B
Diff:k2
PagekRef:k43kT

1
Copyright k ©k 2021 k Pearson kEducation,k Inc.
mynursytest.store

,DOWNLOAD THE Test Bank for Economics 8th Edition Hubbard
k k k k k k k k




opic:k Opportunity kCost
*:k Recurring
Learning kOutcome:k Micro-
1:kIdentify kthekbasickprincipleskofkeconomicskandkexplainkhowkto kthinkklikekankeconomistkAACSB:k Analytical kthinki
ng




2
Copyright k ©k 2021 k Pearson kEducation,k Inc.
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,DOWNLOAD THE Test Bank for Economics 8th Edition Hubbard
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4) Thekproduction kpossibilities kfrontierkshows kthek
combinations kofktwokproducts kthatkcan kbekproducedkin ka kparticularktimekperiodkwith kavailablekres
ources.
A) minimum kattainable
B) maximum kattainable
C) only
D) equitable
kAnswer:k B

Diff:k2 PagekRef:k42
Topic:k ProductionkPossibilitieskFrontiers
*:k Recurring
Learning kOutcome:k Micro-
3:kDiscusskdifferentktypeskofkmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradekAACSB:k Analytical kthinki
ng

5) Thekproduction kpossibilities kfrontierkmodelkshows kthat
A) ifkconsumers kdecidektokbuykmorekofka kproduct,kits kpricekwillkincrease.
B) a kmarketkeconomykis kmorekefficientkin kproducingkgoods kandkservices kthan kis ka kcentrallykplanne
dkeconomy.
C) economickgrowth kcan konlykbekachievedkbykfreekmarketkeconomies.
D) ifkallkresources karekfullykandkefficientlykutilized,kmorekofkonekgoodkcan kbekproducedkonlykbykproducin
gkless kofkanotherkgood.
Answer:k D
Diff:k2 PagekRef:k42
Topic:k ProductionkPossibilitieskFrontiers
*:k Recurring
Learning kOutcome:k Micro-
3:kDiscusskdifferentktypeskofkmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradekAACSB:k Analytical kthinki
ng

6) Thekproduction kpossibilities kfrontierkmodelkassumes kwhich kofkthekfollowing?
A) Labor,kcapital,kland,kandknaturalkresources karekunlimitedkin kquantity.
B) Thekeconomykproduces konlyktwokproducts.
C) Production kofkanyklevelkofkthektwokproducts kthatkthekeconomykproduces kis kcurrentlykpossible.
D) Theklevelkofktechnologykis kvariable.
kAnswer:k B

Diff:k2 PagekRef:k42
Topic:k ProductionkPossibilitieskFrontiers
*:k Recurring
Learning kOutcome:k Micro-
3:kDiscusskdifferentktypeskofkmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradekAACSB:k Analytical kthinkin
g

7) Thekattainablekproduction kpoints kon ka kproduction kpossibilities kfrontierkare
A) thekhorizontalkandkverticalkintercepts.
B) thekpoints kalongkthekproduction kpossibilities kfrontier.
C) thekpoints koutsidekthekarea kenclosedkbykthekproduction kpossibilities kfrontier.
D) thekpoints kalongkandkinsidekthekproduction kpossibilitykfrontier
.kAnswer:k D
Diff:k2 PagekRef:k42
Topic:k ProductionkPossibilitieskFrontiers
3
Copyright k ©k 2021 k Pearson kEducation,k Inc.
mynursytest.store

, DOWNLOAD THE Test Bank for Economics 8th Edition Hubbard
k k k k k k k k




*:k Recurring
Learning kOutcome:k Micro-
3:kDiscusskdifferentktypeskofkmarketksystemskandkthekgainskthatkcankbekmadekfrom ktradekAACSB:k Analytical kthinki
ng




4
Copyright k ©k 2021 k Pearson kEducation,k Inc.
mynursytest.store