Econ Review

60 Questions | Total Attempts: 250

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Economics Quizzes & Trivia

Just a review for me for my final tomorrow


Questions and Answers
  • 1. 
    Michelle and Patrick plan on completing a painting project at home. However, their skills are not equal. Michelle can paint one wall in 20 minutes and she can 'cut-in' or edge one wall in 10 minutes. Patrick can paint one wall in 60 minutes and he can edge one wall in 20 minutes. Which person has the comparative advantage in each task?
    • A. 

      Michelle has the comparative advantage in both tasks.

    • B. 

      Michelle has the comparative advantage in painting and Patrick has the comparative advantage in edging.

    • C. 

      Michelle has the comparative advantage in edging and Patrick has the comparative advantage in painting.

    • D. 

      Patrick has the comparative advantage in both tasks.

  • 2. 
    It is not possible for one individual to have the comparative advantage over another individual in all areas.
    • A. 

      True

    • B. 

      False

  • 3. 
    Based on the information below, which country has the absolute advantage producing each good? C Coffee Banana    Q Coffee Banana 0           9             0           65     6              3           410         3            6             215          0             9          0
    • A. 

      Columbia in coffee

    • B. 

      Columbia in Bananas

    • C. 

      Guatemala in coffee

    • D. 

      Guatemala in both goods

    • E. 

      Columbia in both goods

  • 4. 
    It is not possible for one individual to have the absolute advantage over another individual in all areas
    • A. 

      True

    • B. 

      False

  • 5. 
    TJ and Colton have to fold letters and then seal envelopes for a political campaign. It takes TJ 40 seconds to fold a letter but it only takes Colton 20 seconds. It takes TJ 20 seconds to seal an envelope but it only takes Colton 5 seconds. Which person has the comparative advantage in each area?
    • A. 

      TJ has the comparative advantage in both area.

    • B. 

      TJ has the comparative advantage in folding letters and Colton has the comparative advantage in sealing envelopes.

    • C. 

      TJ has the comparative advantage in sealing envelopes and Colton has the comparative advantage in folding letters.

    • D. 

      Colton has the comparative advantage in both areas.

  • 6. 
    If one individual has the comparative advantage in one of two tasks then the other individual must have the comparative advantage in the other task.
    • A. 

      True

    • B. 

      False

  • 7. 
    Assume Melody can edit a video file in 20 minutes and create a web page in 10 minutes. Further assume that Brandon can edit a video file in 36 minutes and create a web page in 12 minutes. What is Melody's opportunity cost of editing a video?
    • A. 

      Creating 1/3 of a web page

    • B. 

      Creating 1/2 of a web page

    • C. 

      Creating 2 web pages

    • D. 

      Creating 3 web pages

    • E. 

      None of the above

  • 8. 
    If one individual has the absolute advantage in one of two tasks then the other individual must have the absolute advantage in the other task.
    • A. 

      True

    • B. 

      False

  • 9. 
    Assume Melody can edit a video file in 20 minutes and create a web page in 10 minutes. Further assume that Brandon can edit a video file in 36 minutes and create a web page in 12 minutes. Based on this information, what is Brandon's opportunity cost of creating a web page?
    • A. 

      Editing 1/3 of a video

    • B. 

      Editing 1/2 of a video

    • C. 

      Editing 2 videos

    • D. 

      Editing 3 videos

    • E. 

      None of the above

  • 10. 
    Assume Melody can edit a video file in 20 minutes and create a web page in 10 minutes. Further assume that Brandon can edit a video file in 36 minutes and create a web page in 12 minutes. Which of the following is true?
    • A. 

      Melody has the absolute advantage in editing videos and the comparative advantage in creating web pages

    • B. 

      Melody has the absolute advantage in editing videos and the comparative advantage in editing videos.

    • C. 

      Brandon has the absolute advantage in editing videos and the comparative advantage in creating web pages.

    • D. 

      Brandon has the absolute advantage in editing videos and the comparative advantage in editing videos.

    • E. 

      None of the above

  • 11. 
    Assume Jake can complete a tax form in one hour and he can update a file in 20 minutes. Assume Samantha can complete a tax form in 40 minutes and update a file in 20 minutes. Which of the following is true?
    • A. 

      Jake has an absolute advantage in completing tax forms.

    • B. 

      Jake has an absolute advantage in updating files.

    • C. 

      Jake has a comparative advantage in completing tax forms

    • D. 

      Jake has a comparative advantage in updating files.

    • E. 

      None of the above

  • 12. 
    Assume that Alex can wash a car in 12 minutes and wax a car in 36 minutes. Further assume that Bill can wash a car in 8 minutes and wax a car in 16 minutes. Which of the following is true?
    • A. 

      Alex has an absolute advantage washing cars.

    • B. 

      Alex has an absolute advantage waxing cars.

    • C. 

      Alex has a comparative advantage waxing cars.

    • D. 

      Alex has a comparative advantage waxing cars

    • E. 

      None of the Above

  • 13. 
    If Lucy can make a box of chocolate in 3 minutes and squeeze a gallon of juice in 12 minutes and Ethel can make a box of chocolate in 5 minutes and squeeze a gallon of juice in 15 minutes, which of the following is true?
    • A. 

      Lucy has the absolute advantage and comparative advantage in making chocolate.

    • B. 

      Lucy has the absolute advantage in making chocolate and a comparative advantage making juice.

    • C. 

      Ethel has the absolute advantage and the comparative advantage in making juice.

    • D. 

      Ethel has the absolute advantage making chocolate and comparative advantage in making juice.

    • E. 

      Ethel has the absolute advantage making juice and comparative advantage in making chocolate.

  • 14. 
    Consumer Sovereignty is found in which types of economies?
    • A. 

      Socialist economies.

    • B. 

      Command economies.

    • C. 

      Market economies.

    • D. 

      Comparative economies.

  • 15. 
    Bob is a popular hairdresser with a long waiting-list of clients who want him to style their hair. Bob earns $50 per hour as a hairdresser. Bob is also an excellent housekeeper and can clean his entire house in 1 hour. Bob's neighbor Jack (who lives next door with his parents) tutors high school students in math at his house and makes $20 an hour. Jack, who has less experience cleaning houses, would take 2 hours to clean Bob's house.
    • A. 

      Bob should pay Jack $26 dollars an hour to clean his house.

    • B. 

      Bob should clean his own house to save $40.

    • C. 

      Bob should pay Jack more than $20 an hour but less than $25 per hour to clean his house.

    • D. 

      Bob should pay Jack more than $25 an hour but less than $50 per hour to clean his house.

  • 16. 
    Currently there are more than one billion people living in India and 300 million people in the United States. Generally speaking, workers in the United States make higher wages and enjoy a higher standard of living than workers in India. We would expect rug producers in the United States to be more likely to use _____________ methods of production and rug producers in India to be more likely to use _____________ methods of production.
    • A. 

      Capital-intensive; labor-intensive

    • B. 

      Comparative; absolute

    • C. 

      Labor-intensive; capital-intensive

    • D. 

      Capital-intensive; land-intensive

  • 17. 
    In a market economy, who receives the goods produced?
    • A. 

      Everyone who was part of the production process.

    • B. 

      Everyone who wants the goods and has sufficient income to buy them

    • C. 

      Everyone shares equally, at least in theory.

    • D. 

      Everyone who deserves the goods.

  • 18. 
    Governments may intervene in markets when
    • A. 

      Goods are scarce.

    • B. 

      Goods are not scarce.

    • C. 

      Non-necessities are scarce.

    • D. 

      Necessities are scarce

  • 19. 
    It is not possible for one individual to have the comparative advantage over another individual in all areas.
    • A. 

      True

    • B. 

      False

  • 20. 
    Production at a point lying outside a production possibilities curve is
    • A. 

      Not possible

    • B. 

      Possible

    • C. 

      Not efficient

    • D. 

      Efficient

    • E. 

      Both possible and efficient

  • 21. 
    An increase in prices across a nation will lead to an increase in that nation's PPC.
    • A. 

      True

    • B. 

      False

  • 22. 
    A point lying inside the production possibilities curve is
    • A. 

      Not possible

    • B. 

      Possible

    • C. 

      Possible and efficient

    • D. 

      Possible but not efficient

    • E. 

      Not efficient

  • 23. 
    Aggregate demand represents that amount of goods and services that consumers want to buy over a range of different price levels.
    • A. 

      True

    • B. 

      False

  • 24. 
    Short run aggregate supply refers to the amounts that producers want to sell over a range of prices.
    • A. 

      True

    • B. 

      False

  • 25. 
    Which of the following are arguments that there will be a downward slope on the SRAS curve?
    • A. 

      The international substitution effect

    • B. 

      The interest rate effect

    • C. 

      The real balance effect

    • D. 

      All of the above

    • E. 

      None of the above

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