If Countries X and Y have the same production levels for producing PS5s, which country has the PS5 absolute advantage?

Neither Country X nor Country Y

Rewards or punishments that are used to influence someone's behavior

What are the four factors of production?

Land, Labor, Capital, and Entrepreurship

A point outside the Production Possibilities Curve is:

Unfeasible given current resources and technolgy

Why do countries specialize in particular goods for trade, rather than produce both goods independently?

Specialization and trade allow for greater efficiency and increased output

A point anywhere along the Production Possibilities Curve represents what?

Maximum efficiency with the given resources

Scarcity is best defined as:

When there are limited resources to serve unlimited needs and wants

A positive statement is:

A statement based on observable or quantifiable fact

What does the green line in the PPC below likely represent?

The purchase of a machine that doubles pink shirt production efficiency

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Unit 1: Basics of Economics TEST REVIEW

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Questions 20

Answers

1
The cost of the next best alternative when making a decision.
Marginal Cost
Opportunity Cost
Comparative Advantage
Trade-off
2
If Countries X and Y have the same production levels for producing PS5s, which country has the PS5 absolute advantage?
Both Country X and Country Y
Country Y
Country X
Neither Country X nor Country Y
3
__ is an examination of the additional benefits of an activity vs the additional costs incurred by that same activity
Marginal Analysis
Trade-off
Comparative Analysis
Production Possibilities Curve
4
The added satisfaction a consumer enjoys from an additional unit of a good or service
Trade-off
Marginal Benefit
Marginal Cost
Net benefit
5
What should the terms of trade be for bread using the production table below?
1 Bread = 1 Apple
1 Bread = 2/3 Apples
2 Breads = 1 Apple
2 Breads = 2/3 Apples
6
Which country has the comparative advantage in bread?
Impossible to determine with the given information
United States
Both countries have a comparative advantage in bread
Panama
7
What are incentives?
Tools used by the government to drive economic stability
Prizes won by luck in contests
Rewards or punishments that are used to influence someone's behavior
Rules that are imposed by managers in firms
8
What are the four factors of production?
Factor Markets, Product Markets, Command Economies, Mixed Economies
Firms, Consumerism, Markets, Households
Land, Human Capital, Physical Capital, Entrepreneurship
Land, Labor, Capital, and Entrepreurship
9
In a command economy, who owns the factors of production?
The Marxists
Businesses
The public sector
The working class
10
If you spend $60 a gift for your sensei, rather than a new game for yourself, what is your opportunity cost?
$60 and the game
$60
If you're going to get me a $60 gift, I'm eyeballing Xenoblade Chronicles 3
The game
11
A Production Possibilities curve is an economic model that depicts opportunity costs and trade-offs
True
False
12
A point outside the Production Possibilities Curve is:
Unfeasible given current resources and technolgy
Increased revenues for a business
Underutilizing resources, leading to inefficiency
Maximum utilization of resources
13
Why do countries specialize in particular goods for trade, rather than produce both goods independently?
Specialization and trade allow stronger countries to help weaker countries
Specialization and trade allow for greater efficiency and increased output
Specialization and trade can lead to technological innovation
Specialization and trade expose weaknesses in a country for takeover
14
If Wyoming is capable of either manufacturing 1000 or 500 slippers, what is the per unit opportunity cost of slippers?
1/2 microchips
2 microchips
1/4 microchips
4 microchips
15
What does an outward-bending Production Possibilities Curve represent?
The Law of Increasing Costs
The Law of Demand
The Law of One Price
The Law of Supply
16
A point anywhere along the Production Possibilities Curve represents what?
Maximum efficiency with the given resources
Inefficient production with the given resources
Unfeasible production
Specialization of production
17
Economics is:
The study of how the Federal government controls cashflow
The study of making choices
The study of how money circulates
The study of how businesses operate
18
Scarcity is best defined as:
A socio-economic problem that solely exists in a command economy
When there are limited resources to serve unlimited needs and wants
When there are unlimited resources to serve limited needs and wants
When producers are unwilling to produce at the current market price
19
A positive statement is:
A statement that is based on the "other things equal" assumption
A statement of how something "should" be
A statement that is true
A statement based on observable or quantifiable fact
20
What does the green line in the PPC below likely represent?
The increase in demand for pink shirts
The purchase of a machine that doubles pink shirt production efficiency
The purchase of a machine that doubles PS5 production efficiency
The reduction in demand for PS5s

Unit 1: Basics of Economics TEST REVIEW Flashcards | StudBud