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Question : 2.4   Integrative Questions 1) If a product becomes more popular and : 1228113

Economics

 

2.4   Integrative Questions

 

1) If a product becomes more popular and consumers want more produced, which of the following best describes what happens to move more factors of production into that industry?

A) An agency of the Federal government directs the movement of factors.

B) The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry.

C) Factor owners voluntarily move their factors because they want to satisfy the interests of consumers.

D) Wages, rent, interest, and profit increase in that industry, thereby giving factors the incentive to move to that industry.

E) Consumers increase their demand for the products and, as a result, the taxes the producers must pay decrease enabling the producers to hire more factors of production.

 

2) What determines the income flows that households receive?

A) an agency of the Federal government

B) what they choose to produce, how much is sold, and the price received when sold

C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold

D) financial institutions such as banks

E) what they choose to consume

 

3) What determines the revenue flows received by businesses?

A) an agency of the Federal government

B) what they choose to produce, how much is sold, and the price received when sold

C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold

D) financial institutions such as banks

E) what they pay the factors of production they employ.

2.5   Chapter Figures

 

 

The figure above shows the circular  flow model.

 

1) In the figure above, which of the following represents a real flow of a factor of production?

A) Labor

B) Wages

C) Goods bought

D) Services sold

E) Firms’ expenditures on factors of production

2) In the figure above, which of the following represents a money flow?

A) Goods purchased

B) Interest

C) Capital

D) Services sold

E) Goods supplied

 

3) In the figure above, which of the following represents a real flow?

A) Expenditures on real estate services

B) Profit

C) Capital

D) Wages

E) Both B and D

 

4) In the figure above, which of the following transactions take place in the factor markets?

i.Michael, a student, orders a computer from Dell online.

ii.Peter gets a job at a Wal-Mart store.

iii.Apple Computer opens a new store in Georgia

A) ii and iii

B) Only i

C) Only ii

D) Only iii

E) i and ii

5) Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business. How will this be reflected in the figure above?

A) As a flow of a factor of production

B) As a flow of goods and services bought

C) As expenditures on goods and services

D) As goods and services supplied

E) It won’t be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

 

 

The figure above shows governments in the circular flow.

 

6) In the figure above, households

A) receive transfers directly from governments.

B) buy goods and services from governments in goods markets.

C) receive transfers from governments through factor markets.

D) sell factors of production to governments.

E) pay taxes to governments through factor markets.

 

7) In the figure above, firms

A) pay taxes directly to governments.

B) sell goods and services to governments in goods markets.

C) receive transfers from governments through factor markets.

D) own factors of production.

E) do all of the above.

 

8) In the figure above, governments

A) collect taxes.

B) coordinate economic activities of households and firms.

C) hire factors of production.

D) own factors of production.

E) sell goods and services to household.

 

9) In the figure above, which of the following is true?

i.Governments coordinate economic activities of households and firms.

ii.Governments buy goods and services in goods markets.

iii.Households pay taxes directly to firms.

A) Only ii

B) Only i

C) Only iii

D) i and ii

E) ii and iii

10) Social Security tax is deducted from your paycheck. In the figure above this will be shown as

A) taxes flowing from households to governments.

B) taxes flowing from firms to governments.

C) taxes flowing from households to firms.

D) wages flowing from firms to households.

E) wages flowing from firms to governments.

 

 

 

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July 1, 2023
    

 

 

51) The figure above illustrates a small country's production possibilities frontier. Moving from point A to point B, the per unit opportunity cost of a VCR is ________ per VCR.

A) 2 computers

B) 4/3 of a computer

C) 100 computers

D) 1/2 of a computer

E) 1 VCR

 

52) The figure above illustrates a small country's production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

A) 4 VCRs

B) 5/4 of a VCR

C) 4/5 of a VCR

D) 1/4 of a VCR

E) 1 computer

 

53) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

A) decrease SUV production by 1 million.

B) decrease SUV production by 3 million.

C) decrease SUV production by 4 million.

D) decrease compact car production by 3 million.

E) acquire more resources and/or more advanced technology.

 

54) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of

A) 1 million SUVs.

B) 3 million SUVs.

C) 4 million SUVs.

D) 3 million compact cars.

E) 0 because the gain in compact cars exceeds the loss in SUVs.

55) The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.

B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.

C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.

D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.

E) More information is needed to determine how the two opportunity costs compare.

 

56) Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must

A) take the inverse.

B) multiply by the total amount produced of the second good.

C) divide by the total amount produced of the second good.

D) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.

E) None of the answers is correct.

 

57) While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2.

B) 1/4.

C) 2.

D) 4.

E) an amount that cannot be calculated without more information.

 

58) The opportunity cost of producing more of one good on a production possibilities frontier is

A) a dollar amount.

B) a ratio of quantities.

C) a ratio of prices.

D) equal to the area inside the production possibilities frontier.

E) a theoretical concept which cannot be measured.

 

59) The opportunity cost of one more slice of pizza in terms of sodas is the

A) number of pizza slices we have to give up in order to get one extra soda.

B) number of sodas we have to give up in order to get one extra pizza slice.

C) total number of sodas that we have divided by the total number of pizza slices that we have.

D) total number of pizza slices that we have divided by the total number of sodas that we have.

E) price of a pizza slice minus the price of a soda.

 

60) Moving between two points on a PPF, a country gains 6 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is

A) 3 trucks.

B) 6 automobiles - 3 trucks.

C) 2 trucks.

D) 1/2 of a truck.

E) 1 automobile.

61) Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

A) 4 laptops.

B) 8 desktops.

C) 1 desktop.

D) 2 laptops.

E) 1/2 of a laptop.

 

62) A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

A) cans of soup is increasing.

B) cans of soup is decreasing.

C) cans of soup remains unchanged.

D) ink pens is increasing.

E) More information is needed to determine what happens to the opportunity cost.

 

63) Moving along a country's PPF, a reason opportunity costs increase is that

A) unemployment decreases as a country produces more and more of one good.

B) unemployment increases as a country produces more and more of one good.

C) technology declines as a country produces more and more of one good.

D) some resources are better suited for producing one good rather than the other.

E) technology must advance in order to produce more and more of one good.

 

64) Increasing opportunity cost exists

A) in the real world.

B) as long as there is high unemployment.

C) only in theory but not in real life.

D) for a country but not for an individual.

E) inside the PPF but not on the PPF.

 

 

default image
July 1, 2023
    

 

 

51) The figure above illustrates a small country's production possibilities frontier. Moving from point A to point B, the per unit opportunity cost of a VCR is ________ per VCR.

A) 2 computers

B) 4/3 of a computer

C) 100 computers

D) 1/2 of a computer

E) 1 VCR

 

52) The figure above illustrates a small country's production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

A) 4 VCRs

B) 5/4 of a VCR

C) 4/5 of a VCR

D) 1/4 of a VCR

E) 1 computer

 

53) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

A) decrease SUV production by 1 million.

B) decrease SUV production by 3 million.

C) decrease SUV production by 4 million.

D) decrease compact car production by 3 million.

E) acquire more resources and/or more advanced technology.

 

54) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of

A) 1 million SUVs.

B) 3 million SUVs.

C) 4 million SUVs.

D) 3 million compact cars.

E) 0 because the gain in compact cars exceeds the loss in SUVs.

55) The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.

B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.

C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.

D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.

E) More information is needed to determine how the two opportunity costs compare.

 

56) Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must

A) take the inverse.

B) multiply by the total amount produced of the second good.

C) divide by the total amount produced of the second good.

D) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.

E) None of the answers is correct.

 

57) While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2.

B) 1/4.

C) 2.

D) 4.

E) an amount that cannot be calculated without more information.

 

58) The opportunity cost of producing more of one good on a production possibilities frontier is

A) a dollar amount.

B) a ratio of quantities.

C) a ratio of prices.

D) equal to the area inside the production possibilities frontier.

E) a theoretical concept which cannot be measured.

 

59) The opportunity cost of one more slice of pizza in terms of sodas is the

A) number of pizza slices we have to give up in order to get one extra soda.

B) number of sodas we have to give up in order to get one extra pizza slice.

C) total number of sodas that we have divided by the total number of pizza slices that we have.

D) total number of pizza slices that we have divided by the total number of sodas that we have.

E) price of a pizza slice minus the price of a soda.

 

60) Moving between two points on a PPF, a country gains 6 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is

A) 3 trucks.

B) 6 automobiles - 3 trucks.

C) 2 trucks.

D) 1/2 of a truck.

E) 1 automobile.

61) Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

A) 4 laptops.

B) 8 desktops.

C) 1 desktop.

D) 2 laptops.

E) 1/2 of a laptop.

 

62) A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

A) cans of soup is increasing.

B) cans of soup is decreasing.

C) cans of soup remains unchanged.

D) ink pens is increasing.

E) More information is needed to determine what happens to the opportunity cost.

 

63) Moving along a country's PPF, a reason opportunity costs increase is that

A) unemployment decreases as a country produces more and more of one good.

B) unemployment increases as a country produces more and more of one good.

C) technology declines as a country produces more and more of one good.

D) some resources are better suited for producing one good rather than the other.

E) technology must advance in order to produce more and more of one good.

 

64) Increasing opportunity cost exists

A) in the real world.

B) as long as there is high unemployment.

C) only in theory but not in real life.

D) for a country but not for an individual.

E) inside the PPF but not on the PPF.

 

 

default image
July 1, 2023
    

 

 

51) The figure above illustrates a small country's production possibilities frontier. Moving from point A to point B, the per unit opportunity cost of a VCR is ________ per VCR.

A) 2 computers

B) 4/3 of a computer

C) 100 computers

D) 1/2 of a computer

E) 1 VCR

 

52) The figure above illustrates a small country's production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

A) 4 VCRs

B) 5/4 of a VCR

C) 4/5 of a VCR

D) 1/4 of a VCR

E) 1 computer

 

53) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

A) decrease SUV production by 1 million.

B) decrease SUV production by 3 million.

C) decrease SUV production by 4 million.

D) decrease compact car production by 3 million.

E) acquire more resources and/or more advanced technology.

 

54) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of

A) 1 million SUVs.

B) 3 million SUVs.

C) 4 million SUVs.

D) 3 million compact cars.

E) 0 because the gain in compact cars exceeds the loss in SUVs.

55) The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.

B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.

C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.

D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.

E) More information is needed to determine how the two opportunity costs compare.

 

56) Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must

A) take the inverse.

B) multiply by the total amount produced of the second good.

C) divide by the total amount produced of the second good.

D) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.

E) None of the answers is correct.

 

57) While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2.

B) 1/4.

C) 2.

D) 4.

E) an amount that cannot be calculated without more information.

 

58) The opportunity cost of producing more of one good on a production possibilities frontier is

A) a dollar amount.

B) a ratio of quantities.

C) a ratio of prices.

D) equal to the area inside the production possibilities frontier.

E) a theoretical concept which cannot be measured.

 

59) The opportunity cost of one more slice of pizza in terms of sodas is the

A) number of pizza slices we have to give up in order to get one extra soda.

B) number of sodas we have to give up in order to get one extra pizza slice.

C) total number of sodas that we have divided by the total number of pizza slices that we have.

D) total number of pizza slices that we have divided by the total number of sodas that we have.

E) price of a pizza slice minus the price of a soda.

 

60) Moving between two points on a PPF, a country gains 6 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is

A) 3 trucks.

B) 6 automobiles - 3 trucks.

C) 2 trucks.

D) 1/2 of a truck.

E) 1 automobile.

61) Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

A) 4 laptops.

B) 8 desktops.

C) 1 desktop.

D) 2 laptops.

E) 1/2 of a laptop.

 

62) A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

A) cans of soup is increasing.

B) cans of soup is decreasing.

C) cans of soup remains unchanged.

D) ink pens is increasing.

E) More information is needed to determine what happens to the opportunity cost.

 

63) Moving along a country's PPF, a reason opportunity costs increase is that

A) unemployment decreases as a country produces more and more of one good.

B) unemployment increases as a country produces more and more of one good.

C) technology declines as a country produces more and more of one good.

D) some resources are better suited for producing one good rather than the other.

E) technology must advance in order to produce more and more of one good.

 

64) Increasing opportunity cost exists

A) in the real world.

B) as long as there is high unemployment.

C) only in theory but not in real life.

D) for a country but not for an individual.

E) inside the PPF but not on the PPF.

 

 

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