Assignment Instructions/ Description
Your quiz has been submitted successfully. Question 1 2 / 2 points The United States produced approximately ________ worth of goods and services in 2011. A) $15 billion B) $15 trillion C) $150 trillion D) $1,500 trillion E) $150 billion Question 2 2 / 2 points The production possibilities frontier is the boundary between the A) attainable and unattainable combinations of goods and services. B) affordable and unaffordable combinations of production. C) rational and irrational choices facing a society. D) wanted and unwanted combinations of goods and services. E) goods and services that the economy can produce. Question 3 2 / 2 points A movement from one point on a production possibilities frontier to another represents A) an advance in technology. B) a free lunch. C) a tradeoff. D) full employment of labor but not capital. E) unemployment. Question 4 2 / 2 points The bowed out (concave) shape of the production possibilities curve implies that as production of one good A) increases, society must forgo decreasing amounts of another good. B) increases, society can obtain a free lunch. C) decreases, production of other goods decreases as well. D) increases, production of other goods increases as well. E) increases, society must forgo increasing amounts of another good. Question 5 2 / 2 points The sustained expansion of production possibilities is called A) economic investment. B) production possibilities. C) opportunity cost of growth. D) production expansion. E) economic growth. Question 6 2 / 2 points To increase its economic growth, a nation should A) encourage education because that increases the quality of labor. B) eliminate expenditure on capital goods. C) increase current consumption. D) encourage spending on goods and services. E) limit the number of people in college because they produce nothing. Question 7 2 / 2 points When a country's production possibilities frontier shifts outward over time, the country is experiencing A) an end to opportunity cost. B) higher unemployment of resources. C) economic growth. D) a decrease in unemployment of resources. E) no opportunity cost. Question 8 2 / 2 points If Wendy can produce more of all goods than Tommy in an hour, then A) Tommy has an absolute advantage in all goods. B) Wendy has a comparative advantage in all goods. C) Wendy does not need to trade with Tommy in order to achieve the gains from trade. D) Only Tommy, but not Wendy, can benefit from trade between the two of them. E) Wendy has an absolute advantage in all goods. Question 9 2 / 2 points A country has a comparative advantage in the production of a good if it can A) trade off producing the good for another good. B) produce the good on and remain on its production possibilities frontier. C) produce more of the good most efficiently. D) produce more of the good than another country. E) produce the good at the lowest opportunity cost. Question 10 0 / 2 points Gains from trade Correct Answer A) result in being able to consume beyond the trading individuals' production possibilities frontiers. B) occur when one party to the trade has an absolute advantage in both goods. C) occur when people do not specialize. D) occur when opportunity costs are equal. Incorrect Response E) always benefit one party but not the other party of any trade. Attempt Score: 18 / 20 - 90 % Overall Grade (first attempt): 18 / 20 - 90 %
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