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Econ Quiz Ch 1 -5 - Quiz#1 Attempt 1 Written 12:29 AM 6:06...

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Quiz #1
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Attempt 1 Written: Jun 23, 2010 12:29 AM - Jun 27, 2010 6:06 PM Submission View 1 / 1 point An increase in efficiency means that an economy has: increased the equity of its distribution of goods and services. increased the incentives for its citizens to follow their own self-interest. made some people better off without making others worse off. reduced its opportunity costs. Question 2 1 / 1 point Individuals gain from trade because: of specialization in production. of the principle of absolute advantage. self-sufficiency is efficient. they can sell at a lower price than they can buy at. Question 3 1 / 1 point The cost of going to college is: tuition, the cost of housing, the cost of books, and forgone income. forgone income only. tuition, the cost of housing, and the cost of books. tuition and the cost of housing. Question 4 1 / 1 point A friend comes up to you and offers to give you a free ticket to the local professional team's
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uestion 1 1 / 1 point When building a model, economists: simplify reality in order to highlight what really matters. attempt to duplicate reality in all its complexity. ignore the facts, and instead try to determine what the facts should be. are careful to avoid the scientific method. Question 2 1 / 1 point Figure: Guns and Butter Reference: Ref 2-2 (Figure: Guns and Butter) If the economy were producing 8 units of guns and 12 units of butter per period:
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this is a possible choice, but would involve unemployment and/or inefficiency. the notion of increasing opportunity cost is invalidated. the economy is still efficient but has made a decision not to buy as much as it could. something must be done to reduce the amount of employment. Question 3 1 / 1 point A production possibility frontier illustrates the ________ facing an economy that ________ only two goods. prices; sells trade-offs; produces trade-offs; consumes shortages; produces Question 4 1 / 1 point With trade, a country may: consume outside its production possibility frontier. consume inside its production possibility frontier. find that its production possibility frontier will shift outward. avoid opportunity costs. Question 5 1 / 1 point Consider a possible production possibility frontier for Iraq. If in 2008 Iraq's resources are not being fully utilized, Iraq will be somewhere ________ of its production possibility frontier. inside outside near the bottom
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near the top Question 6 1 / 1 point All points on the production possibility frontier represent: efficient production points. inefficient production points. nonfeasible production points. economic growth. Question 7 0 / 1 point Figure: Production Possibility Frontier Curve for Tealand Reference: Ref 2-6 (Figure: Production Possibility Frontier for Tealand) In the figure, Tealand is currently producing at point C on its production possibility frontier. What is the opportunity cost in Tealand of increasing the production of tea from 20 million cups to 30 million cups?
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