CH 6 Cinema Questions

CH 6 Cinema Questions - Practice Test#1 Chapters 1-5 Part A...

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Practice Test #1, Chapters 1-5 Part A - Multiple Choice (50 points) Identify the letter of the choice that best completes the statement or answers the question. Answer on the scan sheet provided, using an HB pencil. These figures illustrate the production possibilities available to Barney and Betty with 8 hours of labour in their bakery. Figure 3-4 1. Refer to Figure 3-4 . The opportunity cost of 1 loaf of bread for Barney is a. 1/4 pie. b. 1/2 pie. c. 1 pie. d. 2 pies. 2. Pollution regulations will a. increase profit to firms. b. impose a tradeoff on society. c. allow firms to raise workers' wages. d. lower prices for consumers. 3. Each of the following are determinants of demand EXCEPT a. tastes. b. technology. c. income. d. the price of related goods. Table 3-4 Hours needed to make one unit of: Amount produced in 2400 hours: Cars Airplanes Cars Airplanes U.S. 40 160 60 15 Japan 50 150 48 16
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4. Refer to Table 3-4 . The opportunity cost of 1 car for Japan is a. 4 airplanes. b. 3 airplanes. c. 1/3 airplane. d. 1/4 airplane. 5. Refer to Table 3-4 . If the United States and Japan trade based on the principle of comparative advantage, the United States will export what product to Japan? a. cars b. both airplanes and cars c. airplanes d. The United States should buy both products from Japan. 6. Refer to Table 3-4 . Japan has an absolute advantage in a. both goods and the United States has a comparative advantage in cars. b. both goods and the United States has a comparative advantage in neither good. c. cars and the United States has a comparative advantage in airplanes. d. airplanes and the United States has a comparative advantage in cars. 7. An increase in the price of a good would a. increase the supply. b. increase the amount purchased by buyers. c. give producers an incentive to produce more. d. decrease the supply. 8. Economists consider normative statements to be a. descriptive, making a claim about how the world is. b. statements about the normal condition of the world. c. prescriptive, making a claim about how the world ought to be. d. statements which establish production goals for the economy. 9. Suppose that the country of Xenophobia chose to isolate itself from the rest of the world. Its ruler proclaimed that Xenophobia should become self-sufficient, and so would not engage in foreign trade. From an economic perspective, this idea would a. make sense if Xenophobia had an absolute advantage in all goods. b. make sense if Xenophobia had no absolute advantages in any goods. c. not make sense as long as Xenophobia had a comparative advantage in any good. d. not make sense as long as Xenophobia had an absolute advantage in at least half the goods traded. 10.
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CH 6 Cinema Questions - Practice Test#1 Chapters 1-5 Part A...

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