Econ: Supply and Demand and Production Possibilities

Topics: Supply and demand, Economics, Economic equilibrium Pages: 4 (497 words) Published: February 8, 2013
cQuiz #1
ECON 2001.01
Name: __________________________ OSU Email: _____________
1. If resources are "scarce," it means that they:
A) cannot provide enough goods or services to satisfy all human material wants and needs.
B) have no opportunity cost.
C) are probably not valued by consumers.
D) have an unlimited supply.
2. An economy is efficient if it is:
A) possible to produce more of all goods and services.
B) possible to produce more of one good without producing less of another.
C) not possible to produce more of one good without producing less of another good.
D) producing a combination of goods.
Use the following to answer question 3:

3. (Table: Coffee and Salmon Production Possibilities) Look at the table Coffee and Salmon Production Possibilities. The table shows the maximum amounts of coffee and salmon that Brazil and Alaska can produce if they just produce one good. The opportunity cost of producing 1 unit of coffee for Brazil is:

A) 2 salmon.
B) 1/4 salmon.
C) 1 salmon.
D) 1/2 salmon.

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4. If all of the opportunities to make someone better off (without making someone else worse off) have been exploited, an economy is
A) equitable.
B) inefficient.
C) marginally optimal.
D) efficient.
5. An economy is said to have a comparative advantage in the production of a good if it can produce that good:
A) with more resources than another economy.
B) with a higher opportunity cost than another economy.
C) outside its production possibilities curve.
D) at a lower opportunity cost than another economy.
Use the following to answer question 6:
Figure: Tom's Production Possibilities

6. (Figure: Tom's Production Possibilities) Look at the figure Tom's Production Possibilities. In the figure, which point or points represent an efficient combination of coconuts and fish that Tom could choose to produce?

A) A only
B) A and B
C) B and C
D) D only

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7. A negative relationship between the quantity demanded and price...
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