Dashboard ► My courses ► MCD2020 - T1 - 2021 ► WEEK TWO - Market Forces of Supply and Demand ►
IN CLASS - QUIZ 1 - Foundations of economics and gains from trade
Started on Wednesday, 3 March 2021, 9:10 AM
State Finished
Completed on Wednesday, 3 March 2021, 9:13 AM
Time taken 3 mins 10 secs
Marks 10.00/10.00
Grade 5.00 out of 5.00 (100%)
QUESTION 1
Correct
Mark 1.00 out of
1.00
Suppose an economist giving a speech gives the example of someone having a “comparative
advantage” at making cars. During the question-and-answer session, someone asks, “compared to
what?” How will the economist answer?
Select one:
a. compared to making something else instead, like construction equipment
b. compared to not specializing and producing a wide range of products
c. compared to someone else who could make similar cars
d. compared to the opportunity cost involved in making cars
Your answer is correct.
The correct answer is: compared to someone else who could make similar cars
QUESTION 2
Correct
Refer to the following graph to answer the next question.
Mark 1.00 out of
1.00
In the graph, Point B is
Select one:
a. unattainable with current resources.
b. an impossible point.
c. an efficient point.
d. an inefficient point.
Your answer is correct.
The correct answer is: an efficient point.
QUESTION 3
Correct
Mark 1.00 out of
1.00
Suppose someone finds a production possibilities frontier (PPF) that is shaped like a straight line. What
can one determine about the production of the two goods?
Select one:
a. Production of the two goods is subject to decreasing opportunity cost.
b. Production of the two goods is subject to increasing opportunity cost.
c. More resources will not cause the PPF to shift.
d. Production of the two goods is subject to constant opportunity cost anywhere along the PPF.
Your answer is correct.
The correct answer is: Production of the two goods is subject to constant opportunity cost anywhere
along the PPF.
QUESTION 4
Correct
Mark 1.00 out of
1.00
Bea bakes pastries well, and Lucian raises great herbs. If Lucian trades parsley with Bea in exchange
for cupcakes, then:
Select one:
a. both Bea and Lucian are made better off by trade.
b. only Bea is made better off by trade.
c. either Bea or Lucian is made better off by trade, but not both.
d. only Lucian is made better off by trade.
Your answer is correct.
The correct answer is: both Bea and Lucian are made better off by trade.
QUESTION 5
Refer to the following graph to answer the next question.
Correct
Mark 1.00 out of
1.00
Which point on the corresponding graph represents a combination of smoothies and milkshakes that
society CANNOT currently produce?
Select one:
a. Point D
b. Point A
c. Point B
d. Point E
Your answer is correct.
The correct answer is: Point E
QUESTION 6
Correct
Mark 1.00 out of
1.00
Disparities in opportunity cost among competitors are the cause of:
Select one:
a. trade-offs.
b. comparative advantage.
c. command economies.
d. marginal benefits.
Your answer is correct.
The correct answer is: comparative advantage.
QUESTION 7
Correct
Mark 1.00 out of
1.00
Goods that are produced for current consumption are called ________ goods.
Select one:
a. capital
b. supply-side
c. consumer
d. Giffen
Your answer is correct.
The correct answer is: consumer
QUESTION 8
Correct
Mark 1.00 out of
1.00
Which scenario represents contraction (negative growth) of the economy?
Select one:
a. downward movement along the PPF
b. upward movement along the PPF
c. an inward shift of the PPF
d. an outward shift of the production possibilities frontier (PPF)
Your answer is correct.
The correct answer is: an inward shift of the PPF
QUESTION 9
Correct
Mark 1.00 out of
1.00
When one producer has a comparative advantage in production, he or she:
Select one:
a. can produce a good at a lower opportunity cost than someone else.
b. does not benefit from trade with other producers.
c. can produce more output than someone else using the same quantity of resources.
d. trades only with others who have the same comparative advantage
Your answer is correct.
The correct answer is: can produce a good at a lower opportunity cost than someone else.
QUESTION 10
Correct
Mark 1.00 out of
1.00
Even if you have all the money you could possibly spend, you will always face trade-offs because of the
scarcity of:
Select one:
a. labor.
b. natural resources.
c. opportunities.
d. time.
Your answer is correct.
The correct answer is: time.