DOWNLOAD THE Test Bank for Essentials of Economics 5th Edition Hubbard
l l l l l l l l l l
EssentialsloflEconomicsl2017l(Hubbard/O'Brien)
Chapterl2l Trade-offs,lComparativelAdvantage,landlthelMarketlSystem
2.1 ProductionlPossibilitieslFrontierslandlOpportunitylCosts
1) Scarcity
A) stemslfromlthelincompatibilitylbetweenllimitedlresourceslandlunlimitedlwants.
B) canlbelovercomelbyldiscoveringlnewlresources.
C) canlbeleliminatedlbylrationinglproducts.
D) islalbiggerlproblemlinlmarketleconomieslthanlinlsocialistleconomies.lA
nswer:lA
Diff:l2
PagelRef:l42l
Topic:l Scarcity
*:l Recurring
LearninglOutcome:lMicro-
1:lIdentifylthelbasiclprincipleslofleconomicslandlexplainlhowltolthinkllikelanleconomist.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
2) TeslalMotorslmanufacturerslitslcarslatlalplantlinlFremont,lCalifornia.lAtlthislplant,lTeslalislableltoltakeladv
antageloflthelhighllevellofltechnicalltraininglpossessedlbylitslAmericanlworkers,lbutlitlalsolsacrificeslthelabili
tyltolpayllowerlwageslhadlitlchosenltolopenlitslplantlinlallow-
wagelcountrylsuchlaslMexico,lIndia,lorlChina.lInldecidingltolopenlthelFremontlplant,lTesla
A) facedlnoltrade-offslbecauselemployinglmoreltechnically-skilledlworkerslincreasedlefficiency.
B) facedlaltrade-offlbetweenlhigherlcostlandllowerlprecision.
C) adoptedlalnegativeltechnologicallchangelbecauselitlchoselhigh-skilledlworkersloverllow-paidlworkers.
D) erodedlsomeloflitslcompetitivenesslinlthelluxurylelectriclcarlmarketlbecauseloflitslincreasedlcostloflpro
duction.
Answer:l B
Diff:l2
PagelRef:l41lTo
pic:l OpportunitylCost
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l ChapterlOpener:lManagerslatlTeslalMotorslFacelTrade-Offs
3) Thelprincipleloflopportunitylcostlislthat
A) inlalmarketleconomy,ltakingladvantageloflprofitablelopportunitieslinvolveslsomelmoneylcost.
B) theleconomiclcostloflusinglalfactorloflproductionlislthelalternativeluseloflthatlfactorlthatlislgivenlup.
C) takingladvantageloflinvestmentlopportunitieslinvolveslcosts.
D) thelcostloflproductionlvariesldependinglonlthelopportunitylforltechnologicallapplication.lA
nswer:lB
Diff:l2
PagelRef:l43lTo
pic:l OpportunitylCost
*:l Recurring
LearninglOutcome:lMicro-
1:lIdentifylthelbasiclprincipleslofleconomicslandlexplainlhowltolthinkllikelanleconomist.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
1
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Essentials of Economics 5th Edition Hubbard
l l l l l l l l l l
4) Thelproductionlpossibilitieslfrontierlshowslthe
combinationslofltwolproductslthatlcanlbelproducedlinlalparticularltimelperiodlwithlavailablelresource
s.
A) minimumlattainable
B) maximumlattainable
C) only
D) equitablel
Answer:l B
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
5) Thelproductionlpossibilitieslfrontierlmodellshowslthat
A) iflconsumersldecideltolbuylmoreloflalproduct,litslpricelwilllincrease.
B) almarketleconomylislmorelefficientlinlproducinglgoodslandlserviceslthanlislalcentrallylplannedleco
nomy.
C) economiclgrowthlcanlonlylbelachievedlbylfreelmarketleconomies.
D) iflalllresourceslarelfullylandlefficientlylutilized,lmoreloflonelgoodlcanlbelproducedlonlylbylproducingllessl
oflanotherlgood.
Answer:l D
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
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:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
2
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Essentials of Economics 5th Edition Hubbard
l l l l l l l l l l
7) Thelattainablelproductionlpointslonlalproductionlpossibilitieslcurvelare
A) thelhorizontallandlverticallintercepts.
B) thelpointslalonglthelproductionlpossibilitieslfrontier.
C) thelpointsloutsidelthelarealenclosedlbylthelproductionlpossibilitieslfrontier.
D) thelpointslalonglandlinsidelthelproductionlpossibilitylfrontier.lA
nswer:lD
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
8) Thelpointsloutsidelthelproductionlpossibilitieslfrontierlare
A) efficient.
B) attainable.
C) inefficient.
D) unattainable.l
Answer:l D
Diff:l2 PagelRef:l43
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
3
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Essentials of Economics 5th Edition Hubbard
l l l l l l l l l l
Figurel2-1
9) ReferltolFigurel2-1.lPointlAlis
A) technicallylefficient.
B) unattainablelwithlcurrentlresources.
C) inefficientlinlthatlnotlalllresourceslarelbeinglused.
D) thelequilibriumloutputlcombination.l
Answer:lC
Diff:l1 PagelRef:l43
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
2:lInterpretlandlanalyzelinformationlpresentedlinldifferentltypesloflgraphs.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
10) ReferltolFigurel2-1.lPointlBlis
A) technicallylefficient.
B) unattainablelwithlcurrentlresources.
C) inefficientlinlthatlnotlalllresourceslarelbeinglused.
D) thelequilibriumloutputlcombination.l
Answer:lA
Diff:l1 PagelRef:l43
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
2:lInterpretlandlanalyzelinformationlpresentedlinldifferentltypesloflgraphs.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
4
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
l l l l l l l l l l
EssentialsloflEconomicsl2017l(Hubbard/O'Brien)
Chapterl2l Trade-offs,lComparativelAdvantage,landlthelMarketlSystem
2.1 ProductionlPossibilitieslFrontierslandlOpportunitylCosts
1) Scarcity
A) stemslfromlthelincompatibilitylbetweenllimitedlresourceslandlunlimitedlwants.
B) canlbelovercomelbyldiscoveringlnewlresources.
C) canlbeleliminatedlbylrationinglproducts.
D) islalbiggerlproblemlinlmarketleconomieslthanlinlsocialistleconomies.lA
nswer:lA
Diff:l2
PagelRef:l42l
Topic:l Scarcity
*:l Recurring
LearninglOutcome:lMicro-
1:lIdentifylthelbasiclprincipleslofleconomicslandlexplainlhowltolthinkllikelanleconomist.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
2) TeslalMotorslmanufacturerslitslcarslatlalplantlinlFremont,lCalifornia.lAtlthislplant,lTeslalislableltoltakeladv
antageloflthelhighllevellofltechnicalltraininglpossessedlbylitslAmericanlworkers,lbutlitlalsolsacrificeslthelabili
tyltolpayllowerlwageslhadlitlchosenltolopenlitslplantlinlallow-
wagelcountrylsuchlaslMexico,lIndia,lorlChina.lInldecidingltolopenlthelFremontlplant,lTesla
A) facedlnoltrade-offslbecauselemployinglmoreltechnically-skilledlworkerslincreasedlefficiency.
B) facedlaltrade-offlbetweenlhigherlcostlandllowerlprecision.
C) adoptedlalnegativeltechnologicallchangelbecauselitlchoselhigh-skilledlworkersloverllow-paidlworkers.
D) erodedlsomeloflitslcompetitivenesslinlthelluxurylelectriclcarlmarketlbecauseloflitslincreasedlcostloflpro
duction.
Answer:l B
Diff:l2
PagelRef:l41lTo
pic:l OpportunitylCost
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l ChapterlOpener:lManagerslatlTeslalMotorslFacelTrade-Offs
3) Thelprincipleloflopportunitylcostlislthat
A) inlalmarketleconomy,ltakingladvantageloflprofitablelopportunitieslinvolveslsomelmoneylcost.
B) theleconomiclcostloflusinglalfactorloflproductionlislthelalternativeluseloflthatlfactorlthatlislgivenlup.
C) takingladvantageloflinvestmentlopportunitieslinvolveslcosts.
D) thelcostloflproductionlvariesldependinglonlthelopportunitylforltechnologicallapplication.lA
nswer:lB
Diff:l2
PagelRef:l43lTo
pic:l OpportunitylCost
*:l Recurring
LearninglOutcome:lMicro-
1:lIdentifylthelbasiclprincipleslofleconomicslandlexplainlhowltolthinkllikelanleconomist.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
1
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Essentials of Economics 5th Edition Hubbard
l l l l l l l l l l
4) Thelproductionlpossibilitieslfrontierlshowslthe
combinationslofltwolproductslthatlcanlbelproducedlinlalparticularltimelperiodlwithlavailablelresource
s.
A) minimumlattainable
B) maximumlattainable
C) only
D) equitablel
Answer:l B
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
5) Thelproductionlpossibilitieslfrontierlmodellshowslthat
A) iflconsumersldecideltolbuylmoreloflalproduct,litslpricelwilllincrease.
B) almarketleconomylislmorelefficientlinlproducinglgoodslandlserviceslthanlislalcentrallylplannedleco
nomy.
C) economiclgrowthlcanlonlylbelachievedlbylfreelmarketleconomies.
D) iflalllresourceslarelfullylandlefficientlylutilized,lmoreloflonelgoodlcanlbelproducedlonlylbylproducingllessl
oflanotherlgood.
Answer:l D
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
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:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
2
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Essentials of Economics 5th Edition Hubbard
l l l l l l l l l l
7) Thelattainablelproductionlpointslonlalproductionlpossibilitieslcurvelare
A) thelhorizontallandlverticallintercepts.
B) thelpointslalonglthelproductionlpossibilitieslfrontier.
C) thelpointsloutsidelthelarealenclosedlbylthelproductionlpossibilitieslfrontier.
D) thelpointslalonglandlinsidelthelproductionlpossibilitylfrontier.lA
nswer:lD
Diff:l2 PagelRef:l42
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
8) Thelpointsloutsidelthelproductionlpossibilitieslfrontierlare
A) efficient.
B) attainable.
C) inefficient.
D) unattainable.l
Answer:l D
Diff:l2 PagelRef:l43
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
3:lDiscussldifferentltypesloflmarketlsystemslandlthelgainslthatlcanlbelmadelfromltrade.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
3
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Essentials of Economics 5th Edition Hubbard
l l l l l l l l l l
Figurel2-1
9) ReferltolFigurel2-1.lPointlAlis
A) technicallylefficient.
B) unattainablelwithlcurrentlresources.
C) inefficientlinlthatlnotlalllresourceslarelbeinglused.
D) thelequilibriumloutputlcombination.l
Answer:lC
Diff:l1 PagelRef:l43
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
2:lInterpretlandlanalyzelinformationlpresentedlinldifferentltypesloflgraphs.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
10) ReferltolFigurel2-1.lPointlBlis
A) technicallylefficient.
B) unattainablelwithlcurrentlresources.
C) inefficientlinlthatlnotlalllresourceslarelbeinglused.
D) thelequilibriumloutputlcombination.l
Answer:lA
Diff:l1 PagelRef:l43
Topic:l ProductionlPossibilitieslFrontiers
*:l Recurring
LearninglOutcome:lMicro-
2:lInterpretlandlanalyzelinformationlpresentedlinldifferentltypesloflgraphs.lAACSB:lAnalyticallthinking
SpeciallFeature:l None
4
Copyrightl©l2017lPearsonlEducation,lInc.
mynursytest.store
