choose the correct answer and aswer correctly!!! QUESTION 1 Comparative advantag
ID: 1135449 • Letter: C
Question
choose the correct answer and aswer correctly!!!
QUESTION 1
Comparative advantage is based on...
opportunity costs.
prices of goods.
government subsides.
tariff rates.
QUESTION 2
Figure 1.1 shows the production possibilities for a city that is deciding how to allocate resources between police stations and hospitals. According to the figure, which points are both possible and efficient?
Figure 1.1
Points A, B, and C
Points A, B, and D
Points A and B
Points A and D
QUESTION 3
A shift in the supply curve for a good may be caused by any of the following except:
a change in technology
a change in input prices
a change in expectations
a change in consumer income
QUESTION 4
A price floor above the market-clearing price will cause:
the demand curve to shift left
the supply curve to shift right
the quantity supplied to exceed the quantity demanded (a surplus)
the supply curve to become negative
QUESTION 5
A shift in the demand curve for a good could be caused by any of the following except:
a change in consumers' tastes and preferences
a change in the price of a substitute or complement good
a change in the price of the good
a change in consumer expectations about future prices
QUESTION 6
A shortage occurs in a market when ...
the quantity demanded is less than the quantity supplied.
the quantity supplied is less than the quantity demanded.
authorities establish a price floor below the market-clearing price.
the quantity demanded and the quantity supplied are equal.
QUESTION 7
According to Figure 2.5, if the price of beef is $1.00, what will happen?
There will be a 1,000-pound shortage of beef.
There will be a 2,000- pound shortage of beef.
There will be a 1,000-pound surplus of beef.
There will be a 2,000-pound surplus of beef.
QUESTION 8
According to Figure 2.5, how many pounds of beef will be sold when the market is in equilibrium?
4,000
3,000
2,000
1,000
QUESTION 9
Guatemala needs 3 hours of labor to produce a TV and 12 to make a minivan. France requires 2 hours of labor to make a TV and 6 to make a minivan. Which of the following statements is true about the two countries' comparative advantages?
Guatemala has comparative advantage in TV production and France has comparative advantage in producing minivans.
France has comparative advantage in producing both TVs and minivans.
France has comparative advantage in TVs and Guatemala in minivans.
Neither country has comparative advantage in either product.
QUESTION 10
If consumers' earned income is unchanged, but part of their purchasing power is taken away by a tax increase, we would say there is ________.
an increase in disposable income.
unplanned disposable investment.
a decrease in disposable income.
a decrease in gross domestic product.
QUESTION 11
Which of the following transactions would not be included in US GDP?
The Department of Defense purchases an aircraft carrier from a shipyard in Virginia.
A Kansas wheat farmer sells 100 metric tons of wheat to a customer in China.
A tractor manufacturer in Missouri purchases 50 tons of steel from a steel mill in Illinois, which it uses to make tractors that are sold to farmers in Kansas.
You pay $309 tuition to take an economics course at MCC.
QUESTION 12
In an open economy, if exports exceed imports, which of the following must also be true?
There must be a government budget deficit.
There must be a net financial outflow.
There must be a net financial inflow.
Both a and b, but not c
QUESTION 13
Which of the following correctly shows the method for calculating GDP by the expenditure approach?
Y=C+G+(X-I)
Y=C+I+T+(X-M)
Y=C+I+G+(X-M)
Y=C+I+G+(V)
QUESTION 14
Which of the following statements is not true concerning gross domestic product (GDP)?
GDP provides a complete and comprehensive measure of a country's quality of life or overall well-being.
GDP represents the total value of all final goods and services produced within a given territory during a given period of time, usually one year.
GDP does not include the value of net factor payments from abroad, such as wages paid to domestic residents for work performed in other countries or profits of domestic firms that are earned overseas.
GDP includes the value of goods produced within our territory but sold to people in other countries.
QUESTION 15
What is the difference between nominal GDP and real GDP?
Real GDP includes only the value of real, tangible goods produced, whereas nominal GDP includes also the value of intangible things, such as services.
Real GDP includes only the value of goods and services sold within the national territory, whereas nominal GDP includes also the value of goods and services that are produced here but sold abroad.
Real GDP is calculated using the income approach, whereas nominal GDP is calculated using the expenditure approach.
Nominal GDP is calculated using current prices, whereas real GDP is calculated using constant prices (prices that prevailed in some base period) so as to correct for inflation.
QUESTION 16
The residents of Erewhon consumed $10 billion worth of goods and services last year. A total of $2 billion was invested to acquire or build productive facilities, equipment or other capital goods in Erewhon. The Erewhon Government purchased $5 billion worth of goods and services. Erewhon exported$3 billion worth of goods and services to other countries. Erewhon's imports from the rest of the world totaled $4 billion. The Erewhon national football team spent $100 million on player salaries in an effort to secure a spot in the World Cup finals in 2022. What was Erewhon's GDP in billions of dollars? (omit dollar sign and zeros in answer)
QUESTION 17
Erewhyna's nominal GDP in 2016, in billions of dollars, was 925. In 2015 it was 875. Its GDP deflator, based on a 2010 base year, was 116.7 in 2015 and 119.4 in 2016. What was Erewhyna's rate of growth of real GDP from 2015 to 2016? (Round your answer to one decimal place and do not include % sign)
opportunity costs.
prices of goods.
government subsides.
tariff rates.
Explanation / Answer
(Question 1) Option (1)
A country has comparative advantage in that good which it can produce at a lower opportunity cost compared to another country.
(Question 2) Graph is missing.
(Question 3) Option (4)
A change in consumer income will change demand and shift the demand curve only. This is not a determinant of supply.
(Question 4) Option (3)
At higher price, quantity supplied rises and quantity demanded falls, causing a surplus (excess supply).
(Question 5) Option (3)
A change in a good's own price causes a movement along demand curve caused by a change in quantity demanded. It does not change demand or shift the demand curve.
NOTE: As per Answering Policy, first 4 questions have been answered.
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