Question 1

While there exists the potential for specialization to go too far,it is equally true that

Accepted Answer

The statement presents specialization as a necessary aspect of the modern workforce, suggesting that failure to specialize may have significant costs. This supports the idea that specialization is crucial, and goes against the idea that less specialization means higher wages (D) or that specialization is no better or worse than any other type of work (B). The statement does not address the media's coverage of this issue (A) or its impact on conversation at parties (E).

Question 2

-In a two-person economy,Little Joe can trap a maximum of 6 rabbits or catch 10 fish a week,while his father can trap 12 rabbits or catch 15 fish per week.If their family wants to consume 20 fish per week while maximizing their joint production,

Accepted Answer

The answer of 
-In a two-person economy,Little Joe can trap...

Question 3

At the most basic level,the benefit of specialization is

Accepted Answer

Specialization allows individuals to focus on specific tasks and become more efficient in performing them, resulting in increased productivity and greater total output.

Question 4

-Refer to the graph above.Given Vineetstan's production possibility curve,when moving from point B to point C the opportunity cost of reading articles in terms of listening to CDs is

Accepted Answer

The opportunity cost of reading articles in terms of listening to CDs is the amount of CDs that must be given up to read one more article. Moving from point B to point C, Vineetstan gives up 2 CDs to read 1 more article. Therefore, the opportunity cost is 2 CDs.

Question 5

An existing comparative advantage can be increased by specialization because

Accepted Answer

By specializing in a particular task, workers can focus all their production time and effort on that task, resulting in higher efficiency and productivity. They can avoid the time and energy wasted by switching between tasks, which can lower their productivity. Therefore, specialization can increase an existing comparative advantage by enhancing efficiency and saving time.

Question 6

For a nation that finds it has a comparative advantage in producing good Z,it is likely that the size of the comparative advantage will

Accepted Answer

The comparative advantage of a nation in producing a good is determined by evaluating the opportunity cost of producing that good compared to other goods that could be produced instead. If a nation finds it has a comparative advantage in producing good Z, it means that producing Z has a lower opportunity cost compared to other goods. As production experience increases, the efficiency of the production process improves, leading to lower costs and higher output for the same level of inputs. This will lead to a growth in the size of the comparative advantage, making it more advantageous for the nation to specialize in producing good Z. Therefore, option B is the correct answer.

Question 7

Which of the following statements is NOT true about specialization?

Accepted Answer

Specialization typically leads to a narrower range of tasks associated with a particular job, rather than a growing variety over time.

Question 8

The principle of comparative advantage states that specialization increases productivity,but the principle of increasing opportunity costs states that when you increase production of a single good you must use increasingly costly resources.These two principles

Accepted Answer

The principle of comparative advantage and the principle of increasing opportunity costs both play a role in determining the outward bow shape of production possibility curves. As specialization occurs and more resources are devoted to a single good, the opportunity cost of producing that good increases, causing the curve to bow outwards. Therefore, these principles can both be true at the same time and work together to explain the shape of production possibility curves.

Question 9

Which of the following factors will NOT cause a production possibilities curve to shift away from the origin?

Accepted Answer

Enforcement of compulsory retirement at age 60, for all workers, will affect the labor force and not resources, technology, or capital investment, which are the main factors that shift the production possibilities curve. Easier access to university education may enhance technology and human capital, thus shifting the curve outward. Access to additional resources and investment in capital goods will increase resources, thus causing the curve to shift outward.

Question 10

In general,it is true that

Accepted Answer

Specialization can lead to increased efficiency and productivity, but it can also result in a lack of flexibility and adaptability. Additionally, highly specialized workers may struggle to find employment outside of their specific field. Therefore, specialization imposes both costs and benefits.

Question 11

The major cost,or penalty,imposed by increasing specialization is

Accepted Answer

The answer of The major cost,or penalty,imposed by increasing specialization...

Question 12

Refer to the graph below.As you move from point B to point A,

Accepted Answer

As we move from point B towards point A, the production and consumption of both goods X and Y are increased. This indicates that the economy's productive resources are being utilized more effectively, resulting in an increase in efficiency. Therefore, option C is the best choice.

Question 13

If there were decreasing opportunity costs,then the slope of the production possibilities curve would be

Accepted Answer

The slope of the production possibilities curve represents the opportunity cost of producing one good in terms of the other. If the opportunity cost of producing a good decreases as more of it is produced, then the slope of the curve will get flatter (decrease) as we move down the curve. This is because as we produce more of one good, we have to give up fewer units of the other good to produce it. Therefore, the answer is C.

Question 14

-Refer to the graph above.The graph indicates that,as more eggs are produced,the opportunity cost of producing eggs is

Accepted Answer

The graph likely shows a production possibilities frontier (PPF) that is concave to the origin, indicating increasing opportunity costs as more eggs are produced.

Question 15

Increased specialization in the production of goods

Accepted Answer

Increased specialization in the production of goods has both costs and benefits. The benefits include increased efficiency, productivity, and quality of goods produced, which can lead to lower costs and higher profits. However, the costs include the increased risk of dependency on specific industries or technologies, and may also contribute to income inequality and job displacement in certain sectors. Overall, the benefits and costs of increased specialization depend on the specific context and the extent of specialization.

Question 16

The psychological cost of specialization is likely to affect

Accepted Answer

Specialization can lead to monotonous and repetitive tasks, which are more common in factory work than in brain surgery, potentially causing greater psychological costs for factory workers.

Question 17

Specialization of labour not only results in the ability to produce a larger quantity of goods due to innate differences in people's skills,but also in

Accepted Answer

Specialization of labour allows workers to focus and deepen their skills through repetitive practice and experience, leading to increased efficiency and productivity.

Question 18

If an economy takes advantage of the comparative advantage of some resources over others,the slope of its production possibilities curve is likely to be

Accepted Answer

The slope of the production possibilities curve is negative, but not constant, because as an economy specializes in the production of goods for which it has a comparative advantage, the opportunity cost of producing additional units of that good increases, leading to a bowed-out shape.

Question 19

Suppose that a further increase in specialization allows a country to increase total output by 10% but,afterward,it was discovered that work absenteeism increased by 30%.This is likely an example of

Accepted Answer

The increase in total output due to specialization suggests that specialization is beneficial for the country, however, the work absenteeism suggests that there may be negative consequences to too much specialization. The 30% increase in absenteeism suggests that workers may be becoming overworked or disenchanted with their work due to the narrow focus of their specialization. Therefore, it is likely an example of too much specialization.

Question 20

-Refer to the graph above.The graph indicates that,as more rye is produced,the opportunity cost of producing rye

Accepted Answer

The opportunity cost increases as more rye is produced, which is typical in a production possibilities curve due to the law of increasing opportunity costs.

Quiz 2: Measuring Macroeconomic Performance: Saving and Wealth