Test Bank For M Economics, The Basics, 4th Edition All Chapters - 9781260226768.pdf

DOWNLOAD THE Test Bank for Economics 7th Edition Hubbard
p p p p p p p p




Economicsp2019p(Hubbard/O'Brien)
Chapterp2p p Trade-offs,pComparativepAdvantage,pandpthepMarketpSystem

2.1 ProductionpPossibilitiespFrontierspandpOpportunitypCosts

1) Scarcity
A) stemspfrompthepincompatibilitypbetweenplimitedpresourcespandpunlimitedpwants.
B) canpbepovercomepbypdiscoveringpnewpresources.
C) canpbepeliminatedpbyprationingpproducts.
D) ispapbiggerpproblempinpmarketpeconomiespthanpinpsocialistpeconomie
s.pAnswer:p A
Diff:p2
PagepRef:p4
2pTopic:p Scarcity
*:p Recurring
LearningpOutcome:p Micro-
1:pIdentifypthepbasicpprinciplespofpeconomicspandpexplainphowptopthinkplikepanpeconomistpAACSB:p Analyticalpthinki
ng

2) TeslapMotorspmanufacturespitspcarspatpapplantpinpFremont,pCalifornia.pAtpthispplant,pTeslapispableptopta
kepadvantagepofpthephighplevelpofptechnicalptrainingppossessedpbypitspAmericanpworkers,pbutpitpalsopsacri
ficespthepabilityptoppayplowerpwagesphadpitpchosenptopopenpitspplantpinpaplow-
wagepcountrypsuchpaspMexico,pIndia,porpChina.pInpdecidingptopopenpthepFremontpplant,pTesla
A) facedpnoptrade-offspbecausepemployingpmoreptechnically-skilledpworkerspincreasedpefficiency.
B) facedpaptrade-offpbetweenphigherpcostpandplessptechnicalpskill.
C) adoptedpapnegativeptechnologicalpchangepbecausepitpchosephigh-skilledpworkerspoverplow-paidpworkers.
D) erodedpsomepofpitspcompetitivenesspinpthepluxurypelectricpcarpmarketpbecausepofpitspincreasedpcostp
ofpproduction.
Answer:p B
Diff:p2
PagepRef:p40pT
opic:p OpportunitypCost
LearningpOutcome:p Micro-
3:pDiscusspdifferentptypespofpmarketpsystemspandpthepgainspthatpcanpbepmadepfromptradepAACSB:p Analyticalpthinki
ng
SpecialpFeature:p ChapterpOpener:pManagerspatpTeslapMotorspFacepTrade-Offs

3) Thepconceptpofpopportunitypcostpispthat
A) inpapmarketpeconomy,ptakingpadvantagepofpprofitablepopportunitiespinvolvespsomepmoneypcost.
B) thepeconomicpcostpofpusingpapfactorpofpproductionpispthepalternativepusepofpthatpfactorpthatpispgivenpup.
C) takingpadvantagepofpinvestmentpopportunitiespinvolvespcosts.
D) thepcostpofpproductionpvariespdependingponpthepopportunitypforptechnologicalpapplicatio
n.pAnswer:p B
Diff:p2
PagepRef:p43pT
opic:p OpportunitypCost
*:p Recurring
LearningpOutcome:p Micro-
1:pIdentifypthepbasicpprinciplespofpeconomicspandpexplainphowptopthinkplikepanpeconomistpAACSB:p Analyticalpthinki
ng

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,DOWNLOAD THE Test Bank for Economics 7th Edition Hubbard
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4) Thepproductionppossibilitiespfrontierpshowspthep
combinationspofptwopproductspthatpcanpbepproducedpinpapparticularptimepperiodpwithpavailablepres
ources.
A) minimumpattainable
B) maximumpattainable
C) only
D) equitable
pAnswer:p B

Diff:p2 PagepRef:p42
Topic:p ProductionpPossibilitiespFrontiers
*:p Recurring
LearningpOutcome:p Micro-
3:pDiscusspdifferentptypespofpmarketpsystemspandpthepgainspthatpcanpbepmadepfromptradepAACSB:p Analyticalpthinki
ng

5) Thepproductionppossibilitiespfrontierpmodelpshowspthat
A) ifpconsumerspdecideptopbuypmorepofpapproduct,pitsppricepwillpincrease.
B) apmarketpeconomypispmorepefficientpinpproducingpgoodspandpservicespthanpispapcentrallypplanne
dpeconomy.
C) economicpgrowthpcanponlypbepachievedpbypfreepmarketpeconomies.
D) ifpallpresourcesparepfullypandpefficientlyputilized,pmorepofponepgoodpcanpbepproducedponlypbypproduci
ngplesspofpanotherpgood.
Answer:p D
Diff:p2 PagepRef:p42
Topic:p ProductionpPossibilitiespFrontiers
*:p Recurring
LearningpOutcome:p Micro-
3:pDiscusspdifferentptypespofpmarketpsystemspandpthepgainspthatpcanpbepmadepfromptradepAACSB:p Analyticalpthinki
ng

6) Thepproductionppossibilitiespfrontierpmodelpassumespwhichpofpthepfollowing?
A) Labor,pcapital,pland,pandpnaturalpresourcesparepunlimitedpinpquantity.
B) Thepeconomypproducesponlyptwopproducts.
C) Productionpofpanyplevelpofptheptwopproductspthatpthepeconomypproducespispcurrentlyppossible.
D) Theplevelpofptechnologypispvariable
.pAnswer:p B
Diff:p2 PagepRef:p42
Topic:p ProductionpPossibilitiespFrontiers
*:p Recurring
LearningpOutcome:p Micro-
3:pDiscusspdifferentptypespofpmarketpsystemspandpthepgainspthatpcanpbepmadepfromptradepAACSB:p Analyticalpthinki
ng

7) Thepattainablepproductionppointsponpapproductionppossibilitiespfrontierpare
A) thephorizontalpandpverticalpintercepts.
B) theppointspalongpthepproductionppossibilitiespfrontier.
C) theppointspoutsidepthepareapenclosedpbypthepproductionppossibilitiespfrontier.
D) theppointspalongpandpinsidepthepproductionppossibilitypfrontier
.pAnswer:p D
Diff:p2 PagepRef:p42
Topic:p ProductionpPossibilitiespFrontiers
2
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,DOWNLOAD THE Test Bank for Economics 7th Edition Hubbard
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*:p Recurring
LearningpOutcome:p Micro-
3:pDiscusspdifferentptypespofpmarketpsystemspandpthepgainspthatpcanpbepmadepfromptradepAACSB:p Analyticalpthinki
ng




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, DOWNLOAD THE Test Bank for Economics 7th Edition Hubbard
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8) Theppointspoutsidepthepproductionppossibilitiespfrontierpare
A) efficient.
B) attainable.
C) inefficient.
D) unattainable.
Answer:p D
Diff:p2 PagepRef:p43
Topic:p ProductionpPossibilitiespFrontiers
*:p Recurring
LearningpOutcome:p Micro-
3:pDiscusspdifferentptypespofpmarketpsystemspandpthepgainspthatpcanpbepmadepfromptradepAACSB:p Analyticalpthinki
ng

Figurep2-1




9) ReferptopFigurep2-1.pPointpApis
A) technicallypefficient.
B) unattainablepwithpcurrentpresources.
C) inefficientpinpthatpnotpallpresourcesparepbeingpused.
D) thepequilibriumpoutputpcombination.
pAnswer:p C

Diff:p1 PagepRef:p43
Topic:p ProductionpPossibilitiespFrontiers
*:p Recurring
LearningpOutcome:p Micro-
2:pInterpretpandpanalyzepinformationppresentedpinpdifferentptypespofpgraphspAACSB:p Analyticalpthinking




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