Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1.
If Leslie can produce two pairs of pants in an hour while Eva can make one pair an hour, then:
A)Leslie has a comparative advantage.
B)Eva has an absolute advantage.
C)Leslie has an absolute advantage.
D)Eva has a comparative advantage.
E)Leslie has a comparative disadvantage.
2.
If a given production combination is known to be attainable, then it must be:
A)on the production possibilities curve.
B)beyond the production possibilities curve.
C)an efficient point.
D)an inefficient point.
E)either an inefficient or efficient point.
3.
The textbook notes that average number of goals scored in World Cup games fell from 5.36 to 2.21 between 1954 and 1990. This, it appears is was in 1941. It's:
A)because the average quality of strikers has fallen.
B)because the size of goal-keepers has increased.
C)because team formations have shifted to emphasising defence.
D)because there have been changes in the rules of the game that have favoured defence.
E)because large contracts for players have reduced the incentive to give 110%.
4.
The equation for Carlo's production possibilities curve is A = 20 - 5B where A and B are the two goods he can produce. The opportunity cost to Carlo of producing an extra unit of B is:
A)25 units of A.
B)4 units of A.
C)5 units of A.
D)2 units of A.
E)2/5 units of A.
5.
Application of the Principle of Comparative Advantage leads to:
A)greater and greater specialization of labor and other factors of production.
B)lesser and lesser specialization of labor.
C)societies where everyone can do a little of everything.
D)lower total output.
E)misallocation of resources.
6.
According to the textbook, the largest factor explaining the variance in the performance of the economies of the world is the:
A)degree of specialization.
B)size of government.
C)location of the country.
D)type of government.
E)amount of average rainfall.
7.
The Low-Hanging Fruit Principle means that if one want to gather apples:
A)one should avoid the ones closest to the ground.
B)one will start by collecting the ones furthest from the ground.
C)one will start by collecting the ones closest to the ground and proceed up.
D)it is never worthwhile to pick the high-hanging fruit.
E)one will pick only the low-hanging ones and then wait until the new ones grow in.
8.
Increased specialization in the production of goods:
A)always increases net benefits.
B)never increases net benefits.
C)has benefits, but no costs.
D)has costs, but no benefits.
E)has costs and benefits.
9.
Professor Michael Parkin has a comparative advantage in the production of economics textbooks and one of his graduate students has a comparative advantage in number-crunching. Professor Parkin:
A)should never do his own econometric analysis.
B)should only write economics textbooks.
C)may be better off doing some number crunching if he felt like taking a break from writing textbooks.
D)will always be better off hiring the graduate student to do his statistical analysis.
E)may be better off hiring the graduate student to write his economics textbook if he needs some numbers crunched.
10.
By specializing in accordance with its comparative advantage and trading with other nations, the small nation of Islandia will benefit:
A)less than that of larger nations.
B)more than that larger nations.
C)only if its trading partners suffer losses.
D)more or less, depending on the combination of goods it chooses to consume.
E)regardless of the combination of goods it chooses to consume.





To learn more about the book this website supports, please visit its Information Center.
(c)2006 McGraw-Hill Education Europe
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Education Europe is one of the many fine businesses of The McGraw-Hill Companies.


Principles of EconomicsOnline Learning Center

Home > Chapter 2 > Multiple Choice Quiz