FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Economics: The Core Issues

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

In Figure 1.9 the slope of the line is

A) Greater at point K than point L.
B) Equal to zero at all points.
C) The same at points J and K.
D) Greater at point M than point L.

E) A) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

The study of microeconomic theory focuses on the

A) Structure and performance of individual markets and the operation of the price system.
B) Operation of the entire economy.
C) Role of the banking system in the economy.
D) Interaction of international trade and domestic production of goods and services.

E) None of the above
F) A) and C)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs. $\begin{array}{|c|c|c|c|c|c|}\hline \text { Combination } & \begin{array}{c}\text { Number } \\\text { of } \\\text { Brushes }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Brushes in } \\\text { Terms } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Number } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Combs in Terms } \\\text { of Brushes }\end{array} \\\hline \text { J } & 0 & & 4 \\\hline \mathrm{K} & 10 & & 3 \\\hline \mathrm{L} & 17 & & 2 \\\hline \mathrm{M} & 21 & & 1 \\\hline \mathrm{N} & 23 & & 0 \\\hline\end{array}$ Table 1.3 Production Possibilities for Brushes and Combs On the basis of your calculations in Table 1.3,the lowest opportunity cost for combs in terms of brushes is

In Figure 1.9,the slope of the line between points L and M is

The opportunity cost of studying for an economics test is

Economic growth would best be represented by a

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs. $\begin{array}{|c|c|c|c|c|c|}\hline \text { Combination } & \begin{array}{c}\text { Number } \\\text { of } \\\text { Brushes }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Brushes in } \\\text { Terms } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Number } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Combs in Terms } \\\text { of Brushes }\end{array} \\\hline \text { J } & 0 & & 4 \\\hline \mathrm{K} & 10 & & 3 \\\hline \mathrm{L} & 17 & & 2 \\\hline \mathrm{M} & 21 & & 1 \\\hline \mathrm{N} & 23 & & 0 \\\hline\end{array}$ Table 1.3 Production Possibilities for Brushes and Combs On the basis of your calculations in Table 1.3,what is gained by producing at point M rather than point N?

Microeconomics is concerned with issues such as

Macroeconomics focuses on the performance of

Using Figure 1.3 and PP1,at point A,

In Figure 1.6,if the opportunity cost of producing cars was zero at all levels of production,the production possibilities curve would be best be represented by a

The production possibilities decrease as more resources and better technology are utilized. More resources and better technology create a greater capacity to produce.

To calculate the slope of a line,find the vertical distance between two points and divide it by the horizontal distance between the same two points. This is the same as rise over run,or change in y divided by change in x.

Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. $\begin{array}{|c|c|c|c|c|}\hline \text { Combination }&\begin{array}{c}\text { Number } \\\text { of Stealth } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity cost } \\\text { of Stealth } \\\text { Bombers in } \\\text { Terms of B-1s }\end{array} & \begin{array}{c}\text { Number } \\\text { of B-1s }\end{array} & \begin{array}{c}\text { Opportunity } \\\text { Cost of B-1s in }\\\text { Terms of Stealth } \\\text { Bombers }\end{array} \\\hline \mathrm{S} & 10 & & 0 \\\hline \mathrm{T} & 9 & & 1 \\\hline \mathrm{U} & 7 & & 2 \\\hline \mathrm{V} & 4 & & 3 \\\hline\end{array}$ $\text { Table 1.1 Answers }$ $\text { Production Possibilities for Bombers }$ The highest opportunity cost anywhere in Table 1.1 for B-1 bombers in terms of Stealth bombers is

Which of the following correctly characterizes the shape of a constant opportunity cost production possibilities curve?

Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. $\begin{array}{|c|c|c|c|c|}\hline \text { Combination }& \begin{array}{c}\text { Number } \\\text { of Stealth } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity cost } \\\text { of Stealth } \\\text { Bombers in } \\\text { Terms of B-1s }\end{array} & \begin{array}{c}\text { Number } \\\text { of B-1s }\end{array} & \begin{array}{c}\text { Opportunity } \\\text { Terms of Stealth } \\\text { Bombers }\end{array} \\\hline \mathrm{S} & 10 & & 0 \\\hline \mathrm{T} & 9 & & 1 \\\hline \mathrm{U} & 7 & & 2 \\\hline \mathrm{V} & 4 & & 3 \\\hline\end{array}$ Table 1.1 Production Possibilities for Bombers On the basis of your calculations in Table 1.1,what is the opportunity cost of producing at point S rather than point T?

Output combinations that lie inside the production possibilities curve are characterized by efficient use of resources. Efficient levels of production lie on the production possibilities curve.

The slope of a curve at any point is given by this formula:

In using a guns and butter production possibilities curve with increasing opportunity cost,producing more and more tanks

Economics can be defined as the study of