DOWNLOAD THE Test Bank for Economics 6th Edition Hubbard
g g g g g g g g
Economicsg2017g(Hubbard/O'Brien)
Chapterg2g g Trade-offs,gComparativegAdvantage,gandgthegMarketgSystem
2.1g g ProductiongPossibilitiesgFrontiersgandgOpportunitygCosts
1) Scarcity
A) stemsgfromgthegincompatibilitygbetweenglimitedgresourcesgandgunlimitedgwants.
B) cangbegovercomegbygdiscoveringgnewgresources.
C) cangbegeliminatedgbygrationinggproducts.
D) isgagbiggergproblemgingmarketgeconomiesgthangingsocialistgeconomies.g
Answer:g A
Diff:g2
PagegRef:g42g
Topic:g Scarcity
*:g Recurring
LearninggOutcome:g Micro-
1:gIdentifygthegbasicgprinciplesgofgeconomicsgandgexplainghowgtogthinkglikegangeconomist
AACSB:g Analyticalgthinking
2) TeslagMotorsgmanufacturersgitsgcarsgatgagplantgingFremont,gCalifornia.gAtgthisgplant,gTeslagisgabl
egtogtakegadvantagegofgtheghighglevelgofgtechnicalgtraininggpossessedgbygitsgAmericangworkers,gbutgi
tgalsogsacrificesgthegabilitygtogpayglowergwagesghadgitgchosengtogopengitsgplantgingaglow-
wagegcountrygsuchgasgMexico,gIndia,gorgChina.gIngdecidinggtogopengthegFremontgplant,gTesla
A) facedgnogtrade-offsgbecausegemployinggmoregtechnically-skilledgworkersgincreasedgefficiency.
B) facedgagtrade-offgbetweenghighergcostgandglowergprecision.
C) adoptedgagnegativegtechnologicalgchangegbecausegitgchoseghigh-skilledgworkersgoverglow-
paidgworkers.
D) erodedgsomegofgitsgcompetitivenessgingthegluxurygelectricgcargmarketgbecausegofgitsgincreasedgc
ostgofgproduction.
Answer:g B
Diff:g2
PagegRef:g41gT
opic:g OpportunitygCost
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
SpecialgFeature:g ChaptergOpener:gManagersgatgTeslagMotorsgFacegTrade-Offs
1
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Economics 6th Edition Hubbard
g g g g g g g g
3) Thegprinciplegofgopportunitygcostgisgthat
A) ingagmarketgeconomy,gtakinggadvantagegofgprofitablegopportunitiesginvolvesgsomegmoneygcost.
B) thegeconomicgcostgofgusinggagfactorgofgproductiongisgthegalternativegusegofgthatgfactorgthatgisgg
ivengup.
C) takinggadvantagegofginvestmentgopportunitiesginvolvesgcosts.
D) thegcostgofgproductiongvariesgdependinggongthegopportunitygforgtechnologicalgapplication.g
Answer:g B
Diff:g2
PagegRef:g43gT
opic:g OpportunitygCost
*:g Recurring
LearninggOutcome:g Micro-
1:gIdentifygthegbasicgprinciplesgofgeconomicsgandgexplainghowgtogthinkglikegangeconomist
AACSB:g Analyticalgthinking
4) Thegproductiongpossibilitiesgfrontiergshowsgtheg
gcombinationsgofgtwogproductsgthatgcangbegproducedgingagparticulargtimegperiodgwithgavailableg
resources.
A) minimumgattainable
B) maximumgattainable
C) only
D) equitable
gAnswer:g B
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
5) Thegproductiongpossibilitiesgfrontiergmodelgshowsgthat
A) ifgconsumersgdecidegtogbuygmoregofgagproduct,gitsgpricegwillgincrease.
B) agmarketgeconomygisgmoregefficientgingproducingggoodsgandgservicesgthangisgagcentrallygp
lannedgeconomy.
C) economicggrowthgcangonlygbegachievedgbygfreegmarketgeconomies.
D) ifgallgresourcesgaregfullygandgefficientlygutilized,gmoregofgoneggoodgcangbegproducedgonlygbygp
roducingglessgofganotherggood.
Answer:g D
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
2
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Economics 6th Edition Hubbard
g g g g g g g g
6) Thegproductiongpossibilitiesgfrontiergmodelgassumesgwhichgofgthegfollowing?
A) Labor,gcapital,gland,gandgnaturalgresourcesgaregunlimitedgingquantity.
B) Thegeconomygproducesgonlygtwogproducts.
C) Productiongofganyglevelgofgthegtwogproductsgthatgthegeconomygproducesgisgcurrentlygpossible.
D) Theglevelgofgtechnologygisgvariable.g
Answer:g B
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
7) Thegattainablegproductiongpointsgongagproductiongpossibilitiesgcurvegare
A) theghorizontalgandgverticalgintercepts.
B) thegpointsgalonggthegproductiongpossibilitiesgfrontier.
C) thegpointsgoutsidegthegareagenclosedgbygthegproductiongpossibilitiesgfrontier.
D) thegpointsgalonggandginsidegthegproductiongpossibilitygfrontier.g
Answer:g D
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
8) Thegpointsgoutsidegthegproductiongpossibilitiesgfrontiergare
A) efficient.
B) attainable.
C) inefficient.
D) unattainable.
Answer:g D
Diff:g2 PagegRef:g43
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
3
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Economics 6th Edition Hubbard
g g g g g g g g
Figureg2-1
9) RefergtogFigureg2-1.gPointgAgis
A) technicallygefficient.
B) unattainablegwithgcurrentgresources.
C) inefficientgingthatgnotgallgresourcesgaregbeinggused.
D) thegequilibriumgoutputgcombination.g
Answer:g C
Diff:g1 PagegRef:g43
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
2:gInterpretgandganalyzeginformationgpresentedgingdifferentgtypesgofggraphs
AACSB:g Analyticalgthinking
10) RefergtogFigureg2-1.gPointgBgis
A) technicallygefficient.
B) unattainablegwithgcurrentgresources.
C) inefficientgingthatgnotgallgresourcesgaregbeinggused.
D) thegequilibriumgoutputgcombination.g
Answer:g A
Diff:g1 PagegRef:g43
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
2:gInterpretgandganalyzeginformationgpresentedgingdifferentgtypesgofggraphs
AACSB:g Analyticalgthinking
4
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
g g g g g g g g
Economicsg2017g(Hubbard/O'Brien)
Chapterg2g g Trade-offs,gComparativegAdvantage,gandgthegMarketgSystem
2.1g g ProductiongPossibilitiesgFrontiersgandgOpportunitygCosts
1) Scarcity
A) stemsgfromgthegincompatibilitygbetweenglimitedgresourcesgandgunlimitedgwants.
B) cangbegovercomegbygdiscoveringgnewgresources.
C) cangbegeliminatedgbygrationinggproducts.
D) isgagbiggergproblemgingmarketgeconomiesgthangingsocialistgeconomies.g
Answer:g A
Diff:g2
PagegRef:g42g
Topic:g Scarcity
*:g Recurring
LearninggOutcome:g Micro-
1:gIdentifygthegbasicgprinciplesgofgeconomicsgandgexplainghowgtogthinkglikegangeconomist
AACSB:g Analyticalgthinking
2) TeslagMotorsgmanufacturersgitsgcarsgatgagplantgingFremont,gCalifornia.gAtgthisgplant,gTeslagisgabl
egtogtakegadvantagegofgtheghighglevelgofgtechnicalgtraininggpossessedgbygitsgAmericangworkers,gbutgi
tgalsogsacrificesgthegabilitygtogpayglowergwagesghadgitgchosengtogopengitsgplantgingaglow-
wagegcountrygsuchgasgMexico,gIndia,gorgChina.gIngdecidinggtogopengthegFremontgplant,gTesla
A) facedgnogtrade-offsgbecausegemployinggmoregtechnically-skilledgworkersgincreasedgefficiency.
B) facedgagtrade-offgbetweenghighergcostgandglowergprecision.
C) adoptedgagnegativegtechnologicalgchangegbecausegitgchoseghigh-skilledgworkersgoverglow-
paidgworkers.
D) erodedgsomegofgitsgcompetitivenessgingthegluxurygelectricgcargmarketgbecausegofgitsgincreasedgc
ostgofgproduction.
Answer:g B
Diff:g2
PagegRef:g41gT
opic:g OpportunitygCost
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
SpecialgFeature:g ChaptergOpener:gManagersgatgTeslagMotorsgFacegTrade-Offs
1
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Economics 6th Edition Hubbard
g g g g g g g g
3) Thegprinciplegofgopportunitygcostgisgthat
A) ingagmarketgeconomy,gtakinggadvantagegofgprofitablegopportunitiesginvolvesgsomegmoneygcost.
B) thegeconomicgcostgofgusinggagfactorgofgproductiongisgthegalternativegusegofgthatgfactorgthatgisgg
ivengup.
C) takinggadvantagegofginvestmentgopportunitiesginvolvesgcosts.
D) thegcostgofgproductiongvariesgdependinggongthegopportunitygforgtechnologicalgapplication.g
Answer:g B
Diff:g2
PagegRef:g43gT
opic:g OpportunitygCost
*:g Recurring
LearninggOutcome:g Micro-
1:gIdentifygthegbasicgprinciplesgofgeconomicsgandgexplainghowgtogthinkglikegangeconomist
AACSB:g Analyticalgthinking
4) Thegproductiongpossibilitiesgfrontiergshowsgtheg
gcombinationsgofgtwogproductsgthatgcangbegproducedgingagparticulargtimegperiodgwithgavailableg
resources.
A) minimumgattainable
B) maximumgattainable
C) only
D) equitable
gAnswer:g B
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
5) Thegproductiongpossibilitiesgfrontiergmodelgshowsgthat
A) ifgconsumersgdecidegtogbuygmoregofgagproduct,gitsgpricegwillgincrease.
B) agmarketgeconomygisgmoregefficientgingproducingggoodsgandgservicesgthangisgagcentrallygp
lannedgeconomy.
C) economicggrowthgcangonlygbegachievedgbygfreegmarketgeconomies.
D) ifgallgresourcesgaregfullygandgefficientlygutilized,gmoregofgoneggoodgcangbegproducedgonlygbygp
roducingglessgofganotherggood.
Answer:g D
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
2
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Economics 6th Edition Hubbard
g g g g g g g g
6) Thegproductiongpossibilitiesgfrontiergmodelgassumesgwhichgofgthegfollowing?
A) Labor,gcapital,gland,gandgnaturalgresourcesgaregunlimitedgingquantity.
B) Thegeconomygproducesgonlygtwogproducts.
C) Productiongofganyglevelgofgthegtwogproductsgthatgthegeconomygproducesgisgcurrentlygpossible.
D) Theglevelgofgtechnologygisgvariable.g
Answer:g B
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
7) Thegattainablegproductiongpointsgongagproductiongpossibilitiesgcurvegare
A) theghorizontalgandgverticalgintercepts.
B) thegpointsgalonggthegproductiongpossibilitiesgfrontier.
C) thegpointsgoutsidegthegareagenclosedgbygthegproductiongpossibilitiesgfrontier.
D) thegpointsgalonggandginsidegthegproductiongpossibilitygfrontier.g
Answer:g D
Diff:g2 PagegRef:g42
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
8) Thegpointsgoutsidegthegproductiongpossibilitiesgfrontiergare
A) efficient.
B) attainable.
C) inefficient.
D) unattainable.
Answer:g D
Diff:g2 PagegRef:g43
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
3:gDiscussgdifferentgtypesgofgmarketgsystemsgandgtheggainsgthatgcangbegmadegfromgtrade
AACSB:g Analyticalgthinking
3
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Economics 6th Edition Hubbard
g g g g g g g g
Figureg2-1
9) RefergtogFigureg2-1.gPointgAgis
A) technicallygefficient.
B) unattainablegwithgcurrentgresources.
C) inefficientgingthatgnotgallgresourcesgaregbeinggused.
D) thegequilibriumgoutputgcombination.g
Answer:g C
Diff:g1 PagegRef:g43
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
2:gInterpretgandganalyzeginformationgpresentedgingdifferentgtypesgofggraphs
AACSB:g Analyticalgthinking
10) RefergtogFigureg2-1.gPointgBgis
A) technicallygefficient.
B) unattainablegwithgcurrentgresources.
C) inefficientgingthatgnotgallgresourcesgaregbeinggused.
D) thegequilibriumgoutputgcombination.g
Answer:g A
Diff:g1 PagegRef:g43
Topic:g ProductiongPossibilitiesgFrontiers
*:g Recurring
LearninggOutcome:g Micro-
2:gInterpretgandganalyzeginformationgpresentedgingdifferentgtypesgofggraphs
AACSB:g Analyticalgthinking
4
Copyrightg©g2017gPearsongEducation,gInc.
mynursytest.store
