University of Illinois, Urbana Champaign - ECON 102 Dashboard > College of Liberal Arts and Sciences ® ECON (Economics) » Spring 2017 > ECON 102 AL1 SP17 ® PPF AND TRADE January 23 - January 29 ® WEEKLY QUIZ: PPF AND TRADE Started on Thursday, January 26, 2017, 4:42 PM State Finished Completed on Thursday, January 26, 2017, 5:02 PM Time taken 19 mins 55 secs Question 1 Economists will call the following an inefficient allocation of Select one: a long line at the airport security checkpoint A long line in the supermarket with one cashier opened None of these situations is inefficient All of these situations are inefficient A long line in the supermarket with many cashiers opened Question 2 Four survivors are stuck on an island

Dashboard > College of Liberal Arts and Sciences ® ECON (Economics) » Spring 2017 >

ECON 102 AL1 SP17 ® PPF AND TRADE January 23 - January 29 ® WEEKLY QUIZ: PPF AND TRADE

Started on Thursday, January 26, 2017, 4:42 PM

State Finished

Completed on Thursday, January 26, 2017, 5:02 PM

Time taken 19 mins 55 secs

Question 1 Economists will call the following an inefficient allocation of

Select one:

a long line at the airport security checkpoint

A long line in the supermarket with one cashier opened

None of these situations is inefficient

All of these situations are inefficient

A long line in the supermarket with many cashiers opened

Your answer is correct.

The correct answer is: A long line in the supermarket with many cashiers opened

Question 2 Four survivors are stuck on an island. Each can either fish or gather berries. The

Correct following table shows what each survivor can produce in a day

Jean Joe Jerry Jack

Fish 4 3 2 1

(Ibs)

Berries 1 2 3 4

(Ibs)

When the survivors produce 6 lbs of berries at the smallest possible cost, the

opportunity cost for one pound of berries is __-_—————«s pounds of fish.

Select one:

2/3

1/4

4

1.5

Your answer Is correct.

The correct answer is: 2/3

Question 3 The following table shows the hours needed to produce 1 car, and the hours needed

Correct to produce 1 bike for UK and Germany. What is the opportunity cost of producing 1

car for Germany (without trade)

Cars Bikes

UK 20hs 5hs

Germany 16hs 2hs

Select one:

1/8 cars.

None of the other choices is correct

8 bikes.

1/8 bikes.

4 bikes.

Your answer is correct.

The correct answer is: 8 bikes.

Question 4 Suppose a country's PPF is depicted by curve C, but the country

Correct is producing X and Y at a point over curve A. What is happening?

Select one:

Some resources are wasted/ not being used

We need more information to answer this question

The economy is shrinking

The country does not need as much amount of goods X and/or Y as it could

produce

Your answer is correct.

The correct answer is: Some resources are wasted/ not being used

Question 9 Suppose that you are registered in two classes: math and economics, which take up

Correct all of your time. If you decide to study longer hours for math, then the opportunity

cost of one more hour of mathcramming___——————CDeOCaUSe_ zw

Select one:

Decreases, because you study for math more efficiently

Increases, because you study for math less efficiently

Increases, because you spend more time on math when resources better suited

to studying for econ

Decreases, because you spend more time on math when resources better suited

to studying for econ

Your answer is correct.

The correct answer is: Increases, because you spend more time on math when

resources better suited to studying for econ

Question 6 The table below show the production possibilities (PPF) for two

Correct countries: Greece and Germany. If these two countries traded

1.00 points out of based on comparative advantage then the following would be a

+00 trade beneficial to both regions:

Sweaters Skirts

Germany 1 5

Greece 2 8

Select one:

45 skirts for 12 sweaters

None of the other choices is correct

60 skirts for 10 sweaters

21 skirts for 6 sweaters

answer is: None of the other choices is correct

Question

 In one hour, the United States can produce 25 tons of steel or 250

Correct automobiles. In one hour, Japan can produce 30 tons of steel or

+00 vo 275 automobiles. This information implies that:

Select one:

Japan has a comparative advantage in the production of automobiles.

the United States has an absolute advantage in the production of steel.

Japan has a comparative advantage in the production of both goods.

the United States has a comparative advantage in the production of automobiles.

Your answer is correct.

The correct answer is: the United States has a comparative advantage in the

production of automobiles.

Question 8  A production possibility frontier illustrates the == in an economy

Correct that produces only_—————s Qs.

 Select one:

a. shortages; three

b. prices; two

c. trade-offs; one

d. trade-offs; two

The correct answer is: trade-offs; two

Question 9 Assume an economy is operating on its production possibility frontier, which shows

Correct the production of military and civilian goods. If the output of military goods is

increased, the output of civilian goods:

Select one:

a. will not change.

b. must decrease.

Cc. may increase or decrease.

d. will increase, too.

The correct answer is: must decrease.

Question 10 Economists usually make the assumption that production is subject to increasing

Correct opportunity costs because:

Select one :

a. not all resources are equally suited to producing every good.

b. if production is efficient, it is not possible to increase the production of all

goods simultaneously.

c. higher production usually results in more inflation.

d. individuals desire constantly increasing opportunities to make themselves

better off.

Your  correct answer is: not all resources are equally suited to producing every good.