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  3. Liberty ECON 213 Quiz 2 Answers Complete Solutions

Contents

  • 1 Liberty ECON 213 Quiz 2 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
    • 1.1 STATUS
      • 1.1.1 Question 8
      • 1.1.2 Question 9
      • 1.1.3 Question 11
      • 1.1.4 Question 12
      • 1.1.5 Question 13
      • 1.1.6 Question 15
      • 1.1.7 Question 17
      • 1.1.8 Question 18
      • 1.1.9 Question 19
      • 1.1.10 Question 20

Liberty ECON 213 Quiz 2 Answers Complete Solutions

 

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Question 1

Economists use the scientific method and the tools of economics to study:

Question 2

Ceteris paribus, if a society is producing at a point on the production possibilities frontier (PPF), it can only increase the production of one good by:

Question 3

Goods that are produced today in order to make other valuable goods and services in the future are called:

Question 4

Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the questions that follow. Suppose the printing press is invented. Which graph best depicts how this would affect the PPF?

Question 5

Refer to the following table to answer the questions that follow. Given the same quantity of resources, what is Jay­Z’s opportunity cost of producing a New York pizza?

Question 6

Refer to the following figure to answer the questions that follow. Which point in the corresponding figure represents a combination of smoothies and milk shakes that society cannot currently produce?

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Question 8

Refer to the following figure for the questions that follow. The opportunity cost of increasing production of apple pies from 14 to 16 pies is:

Question 9

Which of the following is a positive statement? Selected Answer: e. Increases in the minimum wage cause unemployment. Question 10 Refer to the following figure to answer the questions that follow. In the figure, point E is:

Question 11

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the questions that follow. What is DiNozzo’s opportunity cost for solving a crime?

Question 12

Greater investment in capital goods today leads to:

Question 13

Suppose that Sheldon and Leonard can either run errands or wash dishes. Their maximum output per hour is listed in the following table. Given the same quantity of resources, at what terms of trade (relative price ratio) could they specialize and trade so that both consume outside their own production possibilities frontier (PPF)?

Question 15

Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)?

Question 17

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the questions that follow. What is Jim’s opportunity cost of making 1 stromboli?

Question 18

Consider the following scenario to answer the questions that follow: Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie. What is Rachel’s opportunity cost of baking 1 loaf of bread?

Question 19

The _________ illustrates the various combinations of output that a society can produce if all of its resources are being used efficiently.

Question 20

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called:

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