Principles of Microeconomics Chapter 2 Quiz

Principles of Microeconomics Chapter 2 Quiz

Q1. Consider the production possibilities frontier (PPF) shown in the figure below to answer the following questions.

Principles of Microeconomics Chapter 2 Q1

Given current resources and technology, the unattainable range is best described as

  • area I: inside the PPF and points on the PPF.
  • only area I: points inside the PPF.
  • points on the PPF only.
  • only area O: points outside the PPF.
  • area O: outside the PPF and points on the PPF.

Q2. The ability of one producer to produce a good at a lower opportunity cost than another producer is called

  • a zero-sum game.
  • a normative statement.
  • absolute advantage.
  • comparative advantage.
  • the law of increasing relative cost.

Q3. Which of the following is a normative statement?

  • Points on the production possibilities frontier (PPF) are efficient.
  • Points outside the production possibilities frontier (PPF) are unattainable with current resources.
  • The sky is green with pink polka dots.
  • We should strive to push the production possibilities frontier (PPF) outward.
  • The sky is blue

Q4. Refer to the following figure for the following questions

Principles of Microeconomics Chapter 2 Q4

The opportunity cost of increasing production of blueberry pies from 7 to 11 pies is ________ pies.

  • 7 blueberry
  • 2 blueberry
  • 2 apple
  • 4 apple
  • 14 apple

Q5. The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the following questions.

Principles of Microeconomics Chapter 2 Q5

What is Gibbs’s opportunity cost of solving a crime?

  • 1/20 of a boat
  • 20 solved crimes
  • 5 solved crimes
  • 30 solved crimes
  • 1/10 of a boat

Q6. Consider the production possibilities frontier (PPF) shown in the figure below to answer the following questions.

Principles of Microeconomics Chapter 2 Q1

The set of efficient points is best described as

  • only area O: points outside the PPF.
  • area I: inside the PPF and points on the PPF.
  • area O: outside the PPF and points on the PPF.
  • only area I: points inside the PPF.
  • points on the PPF only.

Q7. When one producer can create more of a good than another producer using the same quantity of resources, the first producer has

  • a zero-sum game.
  • gains from trade
  • an absolute advantage.
  • a comparative advantage.
  • increasing relative cost.

Q8. Mikhail and Stefan are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the following questions.

Sculptures Paintings
Mikhail 10 5
Stefan 6 2

What is Mikhail’s opportunity cost of a painting?

  • 2 paintings
  • 3 paintings
  • 1/2 paintings
  • 2 sculptures
  • 1/2 sculptures

Q9. Which of the following is a normative statement?

  • A bicycle has two wheels.
  • A unicycle has five wheels
  • The sky is blue.
  • Electricity follows the path of least resistance.
  • One should wear a helmet when cycling.

Q10. Suppose someone is studying a production possibilities frontier (PPF) that has a bowed-out shape relative to the origin. What causes this shape?

  • absolute advantage
  • economic growth
  • the law of increasing relative cost
  • more resources
  • normative economics

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