C718 Practice Test Total points 64/80
Please note: These questions are intended for practice purposes only.
The respondent's email address () was recorded on submission of this form.
First Name *
Veronica
Last Name *
perez
1- To economists, scarcity means that * 1/1
limited wants cannot be satis ed by the unlimited
resources.
a person looking for work is not able to nd work.
the number of people without jobs rises when economic
times are bad.
unlimited wants cannot be satis ed by the limited
resources.
2- Ali decides to attend the one-hour review session for 1/1
microeconomics instead of working at his job. His job pays
him $10 per hour. Ali's opportunity cost of attending the
review session is *
the $10 he could have earned at his job.
the value of the session minus the $10 he could have
earned at his job.
nothing, because the review session does not cost
anything.
equal to the bene t he gets from the review session.
,3- Decision making on the margin involves * 1/1
comparing the marginal cost and marginal bene ts
when making a decision.
comparing the total cost and the total bene t when
making a decision.
eliminating the additional cost when making a decision.
determining the total bene ts of a decision.
4- To nd the opportunity cost of producing one more unit of 1/1
any product while on the production possibilities frontier
requires *
setting the amounts of the two products equal to each
other.
setting the change in one product equal to the change in
the other product.
dividing the amount of the product forgone by the
amount of the product gained.
subtracting the change in the product whose production
increased from the change in the product whose
production decreased.
5- Producers in the U.S. and in Canada can choose to produce 0/1
either cheese or steel. The table below shows the output
choices for each of the countries. Based on the chart, how
many pounds of cheese does a pound of steel cost in
Canada? *
2,000
3,000
2/3
3/2
Correct answer
2/3
, 6- Based on the table above, which country has comparative 1/1
advantage in which good? *
The U.S. has comparative advantage in both goods.
Canada has comparative advantage in cheese, the U.S.
has comparative advantage in steel.
Canada has comparative advantage in steel, the U.S. has
comparative advantage in cheese.
Canada has comparative advantage in both goods.
7- As an economy grows, * 1/1
its PPF shifts outward.
it can eliminate scarcity.
the opportunity cost of production will approach 0.
the opportunity cost of production will increase.
8- Payments to the factors of production are * 1/1
rent, mortgage, interest, and bonds.
rent, interest, bonds, and pro t or loss.
rent, wages, interest, and pro t or loss.
rent, wages, pro t or loss, and bonus.
9- The below gure shows the production possibility frontier 1/1
for a country. What is the opportunity cost per ton of rice to
move from point B to point D? *
1000 bottles of wine
500 bottles of wine
2 bottles of wine
1/2 of a bottle of wine
Please note: These questions are intended for practice purposes only.
The respondent's email address () was recorded on submission of this form.
First Name *
Veronica
Last Name *
perez
1- To economists, scarcity means that * 1/1
limited wants cannot be satis ed by the unlimited
resources.
a person looking for work is not able to nd work.
the number of people without jobs rises when economic
times are bad.
unlimited wants cannot be satis ed by the limited
resources.
2- Ali decides to attend the one-hour review session for 1/1
microeconomics instead of working at his job. His job pays
him $10 per hour. Ali's opportunity cost of attending the
review session is *
the $10 he could have earned at his job.
the value of the session minus the $10 he could have
earned at his job.
nothing, because the review session does not cost
anything.
equal to the bene t he gets from the review session.
,3- Decision making on the margin involves * 1/1
comparing the marginal cost and marginal bene ts
when making a decision.
comparing the total cost and the total bene t when
making a decision.
eliminating the additional cost when making a decision.
determining the total bene ts of a decision.
4- To nd the opportunity cost of producing one more unit of 1/1
any product while on the production possibilities frontier
requires *
setting the amounts of the two products equal to each
other.
setting the change in one product equal to the change in
the other product.
dividing the amount of the product forgone by the
amount of the product gained.
subtracting the change in the product whose production
increased from the change in the product whose
production decreased.
5- Producers in the U.S. and in Canada can choose to produce 0/1
either cheese or steel. The table below shows the output
choices for each of the countries. Based on the chart, how
many pounds of cheese does a pound of steel cost in
Canada? *
2,000
3,000
2/3
3/2
Correct answer
2/3
, 6- Based on the table above, which country has comparative 1/1
advantage in which good? *
The U.S. has comparative advantage in both goods.
Canada has comparative advantage in cheese, the U.S.
has comparative advantage in steel.
Canada has comparative advantage in steel, the U.S. has
comparative advantage in cheese.
Canada has comparative advantage in both goods.
7- As an economy grows, * 1/1
its PPF shifts outward.
it can eliminate scarcity.
the opportunity cost of production will approach 0.
the opportunity cost of production will increase.
8- Payments to the factors of production are * 1/1
rent, mortgage, interest, and bonds.
rent, interest, bonds, and pro t or loss.
rent, wages, interest, and pro t or loss.
rent, wages, pro t or loss, and bonus.
9- The below gure shows the production possibility frontier 1/1
for a country. What is the opportunity cost per ton of rice to
move from point B to point D? *
1000 bottles of wine
500 bottles of wine
2 bottles of wine
1/2 of a bottle of wine
