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The Economic Problem
3
CLICKER QUESTIONS
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Checkpoint 3.1
Checkpoint 3.3
Checkpoint 3.4
Question 1
Question 5
Question 8
Question 2
Question 6
Question 9
Question 7
Question 10
Checkpoint 3.2
Question 3
Question 4
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CHECKPOINT 3.1
Question 1
Points inside the PPF are all ___________.
A. unattainable and have fully employed resources
B. attainable and have fully employed resources
C. unattainable and have some unemployed resources
D. attainable and have some unemployed resources
E. unaffordable and productive resources are misallocated
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CHECKPOINT 3.1
Question 2
Moving along the production possibilities frontier itself
illustrates _________.
A. the existence of a tradeoff between goods produced
B. unemployment of productive resources
C. the existence of free lunches
D. how the efficiency of production changes with tradeoffs
E. how tradeoffs do not occur if the production is efficient
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CHECKPOINT 3.2
Question 3
Moving along its PPF, a country produces 8 additional
desktop computers, and its production of laptop computers
decreases by 4. The opportunity cost of 1 desktop computer
is _______.
A.
B.
C.
D.
E.
4 laptop computers
8 desktop computers
1 desktop computer
2 laptop computers
1/2 of a laptop computer
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CHECKPOINT 3.2
Question 4
A country produces only cans and bottles. If the country
produces on its PPF and increases its production of cans,
the opportunity cost of an additional ______.
A. can increases
B. can decreases
C. can is constant, but the opportunity cost of an additional
bottle increases
D. bottle increases
E. can or an additional bottle increases
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CHECKPOINT 3.3
Question 5
If a nation devotes a larger share of its current production to
consumption goods, then ________.
A. its economic growth will slow down
B. its production possibilities will expand
C. its production possibilities will shrink
D. some factors of production will become unemployed
E. it must producing at the efficient point on its PPF
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CHECKPOINT 3.3
Question 6
The opportunity cost of economic growth is ____ current
consumption, and the benefit of economic growth is ____
future consumption.
A. increased; increased
B. increased; decreased
C. no loss of; increased
D. decreased; increased
E. decreased; decreased
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CHECKPOINT 3.3
Question 7
In one hour, Scott can produce 20 pizzas or 40 tacos. In one
hour, Cindy can produce 30 pizzas or 40 tacos. Scott’s
opportunity cost of producing 1 taco is ________.
A.
B.
C.
D.
E.
1/2 of a pizza
1 pizza
2 pizzas
20 pizzas
2 tacos
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CHECKPOINT 3.4
Question 8
In one hour, Scott can produce 20 pizzas or 40 tacos. In one
hour, Cindy can produce 30 pizzas or 40 tacos.
A. Cindy has a comparative advantage in producing tacos.
B. Scott has a comparative advantage in producing tacos.
C. Both Cindy and Scott have a comparative advantage in
producing tacos.
D. Neither has a comparative advantage in producing tacos.
E. Scott has a comparative advantage in producing pizzas.
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CHECKPOINT 3.4
Question 9
In one hour John can produce 20 loaves of bread or 8 cakes
and Phyllis can produce 30 loaves of bread or 15 cakes.
John and Phyllis will reap the largest gains from
specialization and trade if John produces _____ and Phyllis
produces ______.
A.
B.
C.
D.
E.
only loaves; only cakes
only cakes; only loaves
both loaves and cakes; only loaves
only cakes; both loaves and cakes
both loaves and cakes; both loaves and cakes
© 2013 Pearson
CHECKPOINT 3.4
Question 10
If Sue and Mark reap the
maximum gains from trade,
together they produce
______.
A. 6 shirts and 6 blouses
B. 4 shirts and 6 blouses
C. 6 shirts and 2 blouses
D. 4 shirts and 4 blouses
E. 2 shirts and 2 blouses
© 2013 Pearson