Old Exam 1

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Question 1 1 out of 1 points
  | Which of the following statements is correct? Answer | | Selected Answer: |  d.  Economists are usually not allowed to conduct experiments, so they must rely on natural experiments offered by history. | | | Question 2 1 out of 1 points

  | A circular-flow diagram is a model that Answer | | Selected Answer: |  d.  Both (a) and (b) are correct. | | | Question 3 1 out of 1 points
  | In the simple circular-flow diagram, Answer | | Selected Answer: |  d.  All of the above are correct. | | | Question 4 0 out of 1 points
  | Suppose an economy produces two goods, food and machines.  This economy always operates on its production possibilities frontier.  Last year, it produced 50 units of food and 30 machines.  This year, it is producing 55 units of food and 33 machines.  Which of the following events could not explain the increase in output? Answer | | Selected Answer: |  d.  Any of these events could explain the increase in output. | | | Question 5 0 out of 1 points

  | When can two countries gain from trading two goods? Answer | | Selected Answer: |  b.  when the first country can produce both goods, but can only produce the second good at great cost, and the second country can produce both goods, but can only produce the first good at great cost | | | Question 6 1 out of 1 points

  | If Shawn can produce more donuts in one day than Sue can produce in one day, then Answer | | Selected Answer: |  a.  Shawn has an absolute advantage in the production of donuts. | | | Question 7 1 out of 1 points

  | Mike and Sandy are two woodworkers who both make tables and chairs.  In one month, Mike can make 4 tables or 20 chairs, while Sandy can make 6 tables or 18 chairs.  Given this, we know that Answer | | Selected Answer: |  c.  Mike has an absolute advantage in chairs. | | | Question 8 1 out of 1 points

  | Table 3-5Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.   | Labor Hours Neededto Make 1 Unit of | Number of UnitsProduced in 40 Hours | Cheese | Bread | Cheese | Bread | England | 1 | 4 | 40 | 10 | Spain | 4 | 8 | 10 | 5 | Refer to Table 3-5.  Assume that England and Spain each has 40 labor hours available.  If each country divides its time equally between the production of cheese and bread, then total production is Answer | | Selected Answer: |  b.  25 units of cheese and 7.5 units of bread. | | | Question 9 1 out of 1 points

  | Table 3-5Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.   | Labor Hours Neededto Make 1 Unit of | Number of UnitsProduced in 40 Hours | Cheese | Bread | Cheese | Bread | England | 1 | 4 | 40 | 10 | Spain | 4 | 8 | 10 | 5 | Refer to Table 3-5.  Which of the following combinations of cheese and bread could Spain produce in 40 hours? Answer | | Selected Answer: |  b.  7 units of cheese and 1.5 units of bread. | | | Question 10 1 out of 1 points

  | Table 3-5Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.   | Labor Hours Neededto Make 1 Unit of | Number of UnitsProduced in 40 Hours | Cheese | Bread | Cheese | Bread | England | 1 | 4 | 40 | 10 | Spain | 4 | 8 | 10 | 5 | Refer to Table 3-5.  The opportunity cost of 1 unit of cheese for England is Answer | | Selected Answer: |  b.  1/4 unit of bread. | | |...
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