week 14 quiz key(1) - Reading Comprehension Questions from Textbook Unit IV sections 1-3 1 What was the purpose of the Einstein Exemption 1 It was an

week 14 quiz key(1) - Reading Comprehension Questions from...

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1 Reading Comprehension Questions from Textbook: Unit IV sections 1-3 1. What was the purpose of the Einstein Exemption? 1. It was an attempt to reduce the rate of unemployment. 2. It was an attempt to increase capital exports. 3. It was an attempt to slow the growth of illegal immigration. 4. It was an attempt to exceed the speed of light. 5. It was an attempt to bring in more skilled immigrants. 2. Which of the following is an assumption we typically make when drawing a production possibilities frontier? 1. The country has a fixed amount of resources at a given point in time. 2. The country can produce only two goods or services. 3. The country is producing in only two comparison time periods. 4. Both 1 and 2 5. Both 2 and 3 3. When we draw a production possibilities frontier, which of the following categories of labor is not counted as part of the country’s potential resource pool? 1. Children under the age of 16 are not counted as potential labor since under federal law they are not allowed to work. 2. People who are temporarily unemployed are not counted since they are expecting to be called back to work soon. 3. Immigrants are not counted. 4. Human capital is not counted since a country’s resources consist of only concrete physical items. 5. None of the above resources should be excluded from a country’s potential resource pool. 4. For a country to be producing on its production possibilities frontier, and not inside its production possibilities frontier, it must: 1. Not be experiencing any unemployment. 2. Not have any workers sitting at home when they could be working. 3. Be employing child labor. 4. All of the above 5. None of the above 5. When we say that a country has the comparative advantage in the production of a good, then we know that the country must: 1. Be able to produce that good at a lower opportunity cost than any other country. 2. Also have the absolute advantage in the production of that good. 3. Be able to produce that good at a higher opportunity cost than any other country. 4. Both 1and 2 5. Both 2 and3 6. Which of the following events could cause a country’s production possibilities frontier to shift out? 1. A reduction in its rate of unemployment. 2. An increase in its population. 3. An improvement in the country’s efficiency of resource use. 4. A reduction in discriminatory hiring practices that keep some workers out of the labor force. 5. All of the above could cause a country’s production possibilities frontier to shift out.