Question: Which cook has the comparative advantage in baking cakes?
Answer Options:
Vincent
Jean
Answer: Vincent
Question: What does the term ceteris paribus mean in this context?
Answer Options:
allowing all economic variables to change
holding all else equal (unchanged)
that the basic concepts of economics do not apply
that the statement is easy to understand and does not require complex analysis
Answer: holding all else equal (unchanged)
Question: People have limited resources to satisfy unlimited wants.
Answer Options:
business cycle
margins
tradeoffs
entrepreneurship
scarcity
recession
Answer: scarcity
Question: Who has a comparative advantage in producing digital cameras?
Answer Options:
Japan
United States
Answer: United States
Question: What is the difference between positive analysis and normative analysis?
Answer Options:
Positive analysis concerns what is; normative analysis concerns what should be.
Positive analysis yields no definitive conclusion; normative analysis yields a definitive conclusion.
In conducting a positive analysis, one employs deductive reasoning; in conducting a normative analysis, one employs inductive reasoning.
In conducting a positive analysis, one draws on values; in conducting a normative analysis, one draws on facts.
Answer: Positive analysis concerns what is; normative analysis concerns what should be.
Question: Which cook has the comparative advantage in making pizzas?
Answer Options:
Vincent
Jean
Answer: Jean
Question: Which cook has the absolute advantage in making pizzas?
Answer Options:
Vincent
Jean
Answer: Vincent
Question: Everything you do requires giving up something (time, money, etc.).
Answer Options:
recession
tradeoffs
scarcity
budgeting
financial capital
margins
Answer: tradeoffs
Question: Who has a comparative advantage in producing computers?
Answer Options:
Japan
United States
Answer: Japan
Question: Why, if at all, is the ceteris paribus condition important in economic analysis?
Answer Options:
It is not important.
It enables the analyst to simultaneously ascertain the roles of all relevant variables in producing a given outcome.
It enables the analyst to isolate the role of one variable in producing a given outcome.
Answer: It enables the analyst to isolate the role of one variable in producing a given outcome.
Question: Who has an absolute advantage in producing digital cameras?
Answer Options:
Japan
United States
Answer: United States
Question: Which of the following explains why modern Americans enjoy a higher standard of living than Americans 100 years ago?
Answer Options:
Market failure has been nonexistent.
Americans have prospered and earned more money, due to absence of recessions.
There has been economic growth in our society.
The invisible hand has guided all nations around the world to prosperity.
Answer: There has been economic growth in our society.
Question: In which field do researchers focus on investigating the phenomena described?
Answer Options:
Sociology
Economics
Business
Political Science
Answer: Economics
Question: Which cook has the absolute advantage in baking cakes?
Answer Options:
Vincent
Jean
Answer: Vincent
Question: Who has an absolute advantage in producing computers?
Answer Options:
Japan
United States
Answer: Japan
Question: In a competitive market, all of the choices along the production possibility frontier display ______ efficiency, while the specific choice on the frontier that society picks is the one with ______ efficiency.
Answer Options:
allocative; productive
allocative; allocative
productive; allocative
productive; productive
Answer: productive; allocative