Test bank for essentials of economics 6th edition hubbard full chapter

,DOWNLOAD THE Test Bank for Essentials of Economics 6th Edition Hubbard
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EssentialsloflEconomicsl2019l(Hubbard/O'Brien)
Chapterl2l Trade-offs,lComparativelAdvantage,landlthelMarketlSystem

2.1 ProductionlPossibilitieslFrontierslandlOpportunitylCosts

1) Scarcity
A) stemslfromlthelincompatibilitylbetweenllimitedlresourceslandlunlimitedlwants.
B) canlbelovercomelbyldiscoveringlnewlresources.
C) canlbeleliminatedlbylrationinglproducts.
D) islalbiggerlproblemlinlmarketleconomieslthanlinlsocialistleconomies.lAn
swer:l A
Diff:l2
PagelRef:l42l
Topic:l Scarcity
*:l Recurring
LearninglOutcome:l Micro-
1:lIdentifylthelbasiclprincipleslofleconomicslandlexplainlhowltolthinkllikelanleconomist
AACSB:l Analyticallthinking

2) TeslalMotorslmanufactureslitslcarslatlalplantlinlFremont,lCalifornia.lAtlthislplant,lTeslalislableltolt
akeladvantageloflthelhighllevellofltechnicalltraininglpossessedlbylitslAmericanlworkers,lbutlitlalsolsa
crificeslthelabilityltolpayllowerlwageslhadlitlchosenltolopenlitslplantlinlallow-
wagelcountrylsuchlaslMexico,lIndia,lorlChina.lInldecidingltolopenlthelFremontlplant,lTesla
A) facedlnoltrade-offslbecauselemployinglmoreltechnically-skilledlworkerslincreasedlefficiency.
B) facedlaltrade-offlbetweenlhigherlcostlandllessltechnicallskill.
C) adoptedlalnegativeltechnologicallchangelbecauselitlchoselhigh-skilledlworkersloverllow-
paidlworkers.
D) erodedlsomeloflitslcompetitivenesslinlthelluxurylelectriclcarlmarketlbecauseloflitslincreasedlcostl
oflproduction.
Answer:l B
Diff:l2
PagelRef:l40lTo
pic:l OpportunitylCost
LearninglOutcome:l Micro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade
AACSB:l Analyticallthinking
SpeciallFeature:l ChapterlOpener:lManagerslatlTeslalMotorslFacelTrade-Offs




1
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3) Thelconceptloflopportunitylcostlislthat
A) inlalmarketleconomy,ltakingladvantageloflprofitablelopportunitieslinvolveslsomelmoneylcost.
B) theleconomiclcostloflusinglalfactorloflproductionlislthelalternativeluseloflthatlfactorlthatlislgiven
lup.

C) takingladvantageloflinvestmentlopportunitieslinvolveslcosts.
D) thelcostloflproductionlvariesldependinglonlthelopportunitylforltechnologicallapplication.lAn
swer:lB
Diff:l2
PagelRef:l43lTo
pic:l OpportunitylCost
*:l Recurring
LearninglOutcome:l Micro-
1:lIdentifylthelbasiclprincipleslofleconomicslandlexplainlhowltolthinkllikelanleconomist
AACSB:l Analyticallthinking

4) Thelproductionlpossibilitieslfrontierlshowslthe
combinationslofltwolproductslthatlcanlbelproducedlinlalparticularltimelperiodlwithlavailablelreso
urces.
A) minimumlattainable
B) maximumlattainable
C) only
D) equitablel
Answer:l B
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:l Micro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade
AACSB:l Analyticallthinking

5) Thelproductionlpossibilitieslfrontierlmodellshowslthat
A) iflconsumersldecideltolbuylmoreloflalproduct,litslpricelwilllincrease.
B) almarketleconomylislmorelefficientlinlproducinglgoodslandlserviceslthanlislalcentrallylplan
nedleconomy.
C) economiclgrowthlcanlonlylbelachievedlbylfreelmarketleconomies.
D) iflalllresourceslarelfullylandlefficientlylutilized,lmoreloflonelgoodlcanlbelproducedlonlylbylprod
ucingllessloflanotherlgood.
Answer:l D
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:l Micro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade
AACSB:l Analyticallthinking




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6) Thelproductionlpossibilitieslfrontierlmodellassumeslwhichloflthelfollowing?
A) Labor,lcapital,lland,landlnaturallresourceslarelunlimitedlinlquantity.
B) Theleconomylproduceslonlyltwolproducts.
C) Productionloflanyllevellofltheltwolproductslthatltheleconomylproduceslislcurrentlylpossible.
D) Thellevellofltechnologylislvariable.l
Answer:lB
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:l Micro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade
AACSB:l Analyticallthinking

7) Thelattainablelproductionlpointslonlalproductionlpossibilitieslfrontierlare
A) thelhorizontallandlverticallintercepts.
B) thelpointslalonglthelproductionlpossibilitieslfrontier.
C) thelpointsloutsidelthelarealenclosedlbylthelproductionlpossibilitieslfrontier.
D) thelpointslalonglandlinsidelthelproductionlpossibilitylfrontier.lA
nswer:l D
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:l Micro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade
AACSB:l Analyticallthinking

8) Thelpointsloutsidelthelproductionlpossibilitieslfrontierlare
A) efficient.
B) attainable.
C) inefficient.
D) unattainable.
Answer:l D
Diff:l2 PagelRef:l43
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:l Micro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade
AACSB:l Analyticallthinking




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mynursytest.store