Economics CC 2 Sec ON 1 Week 3 Quiz 3

Economics CC 2 Sec ON 1 Week 3 Quiz 3 | chatbot las positas  community college

Question 1

If Luke can bake bread at a lower opportunity cost than Jason, and Jason can produce paintings at a lower opportunity cost than Luke, it follows that  

·         Luke has a comparative advantage in paintings and Jason has a comparative advantage in baking bread.  

·         Luke has a comparative advantage in both baking bread and producing painting.  

·         Jason has a comparative advantage in both baking bread and producing painting.  

·         Luke has a comparative advantage in baking bread and Jason has a comparative advantage in producing paintings.  

·         There is not enough information to answer the question.

Question 2

It is possible through trade for a country to consume a combination of goods that lies beyond its production possibilities frontier.  

·         True  

·         False

Question 3

Production possibilities curves can shift outward but they do not shift inward.  

·         True  

·         False

Question 4

Country X has a high unemployment rate. It follows that country X is operating  

·         beyond its production possibilities frontier (PPF).  

·         on its PPF.  

·         inside (below) its PPF.  

·         at a productive efficient point.

Question 5

A person has a comparative advantage in the production of a good when they can produce the product at a(n) ________ opportunity cost compared to another person.

·         higher  

·         increasing  

·         lower  

·         equal

Question 6

In a situation where two goods can be produced by two different people, it is possible for one person to have a comparative advantage in the production of both goods and the other person to have the comparative advantage in the production of neither good.

·         True  

·         False

Question 7

Consider two points on the production possibilities frontier (PPF): point A, at which there are 10 apples and 20 pears, and point B, at which there are 7 apples and 21 pears. If the economy is currently at point A, the opportunity cost of moving to point B is  

·         1 pear.  

·         7 apples.  

·         3 apples.  

·         21 pears.

Question 8

If there is an increase in the amount of good B foregone as every additional unit of good A is produced, the production possibilities frontier (PPF) between goods A and B would  

·         be a straight line.  

·         be a bowed-outward curve.  

·         be a bowed-inward curve.

Question 9

Economic growth causes the production possibilities frontier (PPF) to  

·         shift leftward.  

·         shift rightward.

·         remain constant.

Question 10

In the production possibilities framework, economic growth is depicted by the production possibilities frontier (PPF)  

·         shifting leftward/inward (toward the origin).  

·         shifting rightward/outward (away from the origin).  

·         becoming a straight line rather than a bowed outward curve.