Question 1

It is possible for one person to have a comparative advantage in the production of all products.​

Accepted Answer

It is unlikely for one person to have a comparative advantage in the production of all products because comparative advantage is based on the concept of specialization and trade. One person cannot be an expert in the production of all goods and services. It is more efficient for individuals and firms to specialize in producing goods or services in which they have a comparative advantage and then trade with others for the goods and services that they need.

Question 2

A person who can produce more of a good than another person is said to possess a comparative advantage.​

Accepted Answer

False

Question 3

A university should not disband its football team since it has already paid for the stadium.​

Accepted Answer

The fact that the university has already paid for the stadium is not a sufficient reason to keep the football team. The decision to disband the team should be based on other factors such as financial viability, student interest, and success of the team.

Question 4

Opportunity cost is always measured in dollar terms, rather than in terms of real goods and services.​

Accepted Answer

Opportunity cost can be measured in both dollar terms and in terms of real goods and services. It depends on the context and what is being compared.

Question 5

Comparative advantage is based on opportunity costs.​

Accepted Answer

Comparative advantage refers to the ability of an individual or country to produce goods or services at a lower opportunity cost than another individual or country. Opportunity cost is the cost of giving up one thing to obtain another. Therefore, comparative advantage is based on opportunity costs.

Question 6

The opportunity cost of going to college is the same for all students who are receiving full-tuition scholarships.​

Accepted Answer

While the financial cost of college may be covered by a full-tuition scholarship, there are still opportunity costs involved, such as time and potential income from working instead of attending college. These may vary for different students depending on their individual circumstances and goals.

Question 7

Each point along a nation's production possibilities frontier represents efficient use of all resources.​

Accepted Answer

This is true, as the production possibilities frontier represents all possible combinations of two goods that can be produced with the given resources and technology, where all resources are efficiently allocated. Any point inside the PPF would represent inefficient use of resources, and any point beyond it would be unattainable with the current resources and technology.

Question 8

A rational decision maker engages in an activity if that activity is more attractive than the best alternative.​

Accepted Answer

A rational decision maker will choose an activity that is more attractive than the best alternative, as this is the most logical and advantageous choice.

Question 9

If people specialize in producing those goods for which they possess a comparative advantage, then an economy as a whole can produce a greater quantity of goods.​

Accepted Answer

This concept is known as the principle of comparative advantage in economics and is widely accepted by economists as true.

Question 10

Each point on a production possibilities frontier requires full employment of resources.​

Accepted Answer

The production possibilities frontier shows the maximum amount of output that can be produced with available resources and technology. In order to achieve any point on the frontier, all resources must be fully employed.

Question 11

The opportunity cost of going to college consists of more than just the tuition that will be paid.​

Accepted Answer

The answer of The opportunity cost of going to college...

Question 12

Specialization often leads to gains in productivity for society as a whole.​

Accepted Answer

When individuals or countries specialize in producing a particular good or service, they can become more efficient in producing that product. This leads to an increase in productivity and can result in lower costs, higher quality goods, and ultimately a higher standard of living for society as a whole.

Question 13

It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one.​

Accepted Answer

Absolute advantage refers to the ability to produce more of a good or service using the same resources as another individual, while comparative advantage refers to the ability to produce a good or service at a lower opportunity cost than another individual. It is possible for an individual to have an absolute advantage in two tasks (meaning they can produce more of those two tasks than anyone else), but they may have a lower opportunity cost in only one of those tasks, resulting in a comparative advantage in that task.

Question 14

The Sultan of Brunei, one of the world's richest people, does not face the problem of scarcity.​

Accepted Answer

The answer of The Sultan of Brunei, one of the...

Question 15

​It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything.

Accepted Answer

The answer of ​It is possible for one person to...

Question 16

The production possibilities frontier represents the boundary between attainable and unattainable prices of commodities.​

Accepted Answer

The production possibilities frontier represents the boundary between attainable and unattainable quantities of commodities, not prices.

Question 17

The production possibilities frontier represents all desirable combinations of outputs.​

Accepted Answer

The answer of The production possibilities frontier represents all desirable...

Question 18

Opportunity cost is objective; therefore, its value does not change as circumstances change.​

Accepted Answer

Opportunity cost is subjective and can change depending on the circumstances and individual preferences.

Question 19

Absolute advantage is based on opportunity cost.​

Accepted Answer

The answer of Absolute advantage is based on opportunity cost.​...

Question 20

Opportunity cost is the difference between the benefits and the costs of a choice.​

Accepted Answer

The answer of Opportunity cost is the difference between the...

Quiz 2: Economic Tools and Economic Systems

It is possible for one person to have a comparative advantage in the production of all products.​

A person who can produce more of a good than another person is said to possess a comparative advantage.​

A university should not disband its football team since it has already paid for the stadium.​

Opportunity cost is always measured in dollar terms, rather than in terms of real goods and services.​

Comparative advantage is based on opportunity costs.​

The opportunity cost of going to college is the same for all students who are receiving full-tuition scholarships.​

Each point along a nation's production possibilities frontier represents efficient use of all resources.​

A rational decision maker engages in an activity if that activity is more attractive than the best alternative.​

If people specialize in producing those goods for which they possess a comparative advantage, then an economy as a whole can produce a greater quantity of goods.​

Each point on a production possibilities frontier requires full employment of resources.​

The opportunity cost of going to college consists of more than just the tuition that will be paid.​

Specialization often leads to gains in productivity for society as a whole.​

It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one.​

The Sultan of Brunei, one of the world's richest people, does not face the problem of scarcity.​

​It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything.

The production possibilities frontier represents the boundary between attainable and unattainable prices of commodities.​

The production possibilities frontier represents all desirable combinations of outputs.​

Opportunity cost is objective; therefore, its value does not change as circumstances change.​

Absolute advantage is based on opportunity cost.​

Opportunity cost is the difference between the benefits and the costs of a choice.​

It is possible for one person to have a comparative advantage in the production of all products.

A person who can produce more of a good than another person is said to possess a comparative advantage.

A university should not disband its football team since it has already paid for the stadium.

Opportunity cost is always measured in dollar terms, rather than in terms of real goods and services.

Comparative advantage is based on opportunity costs.

The opportunity cost of going to college is the same for all students who are receiving full-tuition scholarships.

Each point along a nation's production possibilities frontier represents efficient use of all resources.

A rational decision maker engages in an activity if that activity is more attractive than the best alternative.

If people specialize in producing those goods for which they possess a comparative advantage, then an economy as a whole can produce a greater quantity of goods.

Each point on a production possibilities frontier requires full employment of resources.

The opportunity cost of going to college consists of more than just the tuition that will be paid.

Specialization often leads to gains in productivity for society as a whole.

It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one.

The Sultan of Brunei, one of the world's richest people, does not face the problem of scarcity.

It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything.

The production possibilities frontier represents the boundary between attainable and unattainable prices of commodities.

The production possibilities frontier represents all desirable combinations of outputs.

Opportunity cost is objective; therefore, its value does not change as circumstances change.

Absolute advantage is based on opportunity cost.

Opportunity cost is the difference between the benefits and the costs of a choice.