Comparative advantage is a comparison based on opportunity cost.

Economics is the study of

a) production technology b) consumption decisions

c) how society decides what, how, and for whom to produce

d) the best way to run society

The opportunity cost of a good is

a) the time lost in finding it b) the expenditure on the good

c) the quantity of other goods sacrificed to get another unit of that good

d) the loss of interest in using savings

3. In economics the central problem is:

a) allocation b) money

c) production d) scarcity

4. In a planed (command) economy, all the economic decisions are taken by:

a) workers b) voters

c) consumers d) government

One country enjoys a comparative advantage over another in producing oil when

a) it has more oil than the other country. b) it can produce oil at a lower opportunity cost than the other country.

c) it does not need to import oil. d) it wants to export as much oil as possible.

If the cost of sugar rises and sugar is a major ingredient in jelly beans, then the jelly bean

a) demand curve shifts to the left. b)supply curve shifts to the left.

c) supply curve shifts to the right. d)demand and supply curves both shift to the right.

Economics is the study of

a) how society manages its unlimited resources.

b) how to reduce our wants until we are satisfied.

c) how society manages its scarce resources. d) how to fully satisfy our unlimited wants.

The Phillips curve shows that

a) an increase in inflation temporarily increases unemployment.

b) inflation and unemployment are unrelated in the short run.

c) a decrease in inflation temporarily increases unemployment.

d) the business cycle has been eliminated.

An increase in the price of beef provides information which

a)tells consumers to buy less pork.

b) tells producers to produce more beef.

c) tells consumers to buy more beef.

d) none of the above

10. Which of the following is not part of the opportunity cost of going on holiday?

a) the money you spent on a theatre show b) the money you could have made if you had stayed at home and worked

c) the money you spent on airline tickets

d) the money you spent on food

Productivity can be increased by

a) improving the education of workers.

b) raising union wages. c) raising minimum wages.

d) restricting trade with foreign countries.

Points outside the production possibilities frontier are attainable but inefficient.

a) TRUE b) FALSE

If Japan has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.

a) TRUE b) FALSE

Absolute advantage is a comparison based on productivity.

a) TRUE b) FALSE

Comparative advantage is a comparison based on opportunity cost.

a) TRUE b) FALSE

Дата добавления: 2015-11-14