WGU c712 quiz #2, #3, #4, #5, #6, #7, #9, #10, #11 with COMPLETE SOLUTION

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WGU c712 quiz #2, #3, #4, #5, #6, #7, #9, #10, #11 with COMPLETE SOLUTION 1. The production possibilities frontier illustrates A. Goods and services that people want. B. The limits to future growt... h of a nation. C. How money can be allocated among two kinds of goods. D. The minimum combination of goods and services that can be produced. E. The various combinations of output a nation can produce given its available resources and technology. - ✔✔E. The various combinations of output a nation can produce given its available resources and technology. Which of the following are assumptions used when drawing a production possibilities frontier? * A. Only two goods are considered. B. Demand equals supply. C. The level of technology is constant. D. How much of each good people want. - ✔✔A. Only two goods are considered. C. The level of technology is constant. In the production possibilities frontier model, an unattainable point lies A. On the production possibilities frontier. B. Inside the production possibilities frontier. C. Outside the production possibilities frontier. D. There are no unattainable points in the production possibilities frontier model. - ✔✔C. Outside the production possibilities frontier.On a production possibilities frontier, 5 guns and 12 pounds of butter can be produced. At another point on the same frontier, 3 guns and 13 pounds of butter can be produced. Between these points, what is the opportunity cost of a pound of butter? A. 2 pounds of butter B. 2 guns. C. 0.2 guns. D. 0.5 guns. E. 2.4 guns. - ✔✔B. 2 guns. 7. Production possibilities frontiers usually curve out and away from the origin because A. The more resources used to produce one good, the fewer resources are available to produce another good. B. As more of a good is produced, the opportunity cost decreases. C. Technological change happens. D. Some resources are better at producing one good, while other resources are better at producing the other good. E. As more of a good is produced, the opportunity cost doesn't change. - ✔✔D. Some resources are better at producing one good, while other resources are better at producing the other good. If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will A. shift leftward. B. Shift rightward. C. Not shift because the society moves from one point on the frontier to a point inside the frontier. D. Not shift because the society moves from a point inside the frontier to a point on the frontier.E. Not shift because the society moves from a point on the frontier to a point outside the frontier. - ✔✔D. Not shift because the society moves from a point inside the frontier to a point on the frontier. If Wendy can produce more of all goods than Tommy in an hour, then * A. Wendy has an absolute advantage in all goods. B. Wendy does not need to trade with Tommy in order to achieve the gains from trade. C. Wendy has a comparative advantage in all goods. D. Tommy has an absolute advantage in all goods. E. Only Tommy but not Wendy can benefit from trade between the two of them. - ✔✔A. Wendy has an absolute advantage in all goods. Two islands, North Island and South Island, produce food and clothing. If North Island uses all of it resources on food production, it can produce 250 units of food. If North Island uses all of its resources to make clothing, it can make 100 units of clothing. Meanwhile, if South Island uses all of it resources on food production, it can produce 125 units of food. If South Island uses all of its resources to make clothing, it can make 100 units of clothing. Which island has the absolute advantage in food production? * North Island South Island Both Islands Neither Island - ✔✔North Island Two islands, North Island and South Island, produce food and clothing. If North Island uses all of it resources on food production, it can produce 250 units of food. If North Island uses all of its resources to make clothing, it can make 100 units of clothing. Meanwhile, if South Island uses all of it resources on food production, it can produce 125 units of food. If South Island uses all of its resources to make clothing, it can make 100 units of clothing.Which island has the absolute advantage in clothing production? * North Island South Island. Both Islands. Neither Island. - ✔✔Neither Island. Two islands, North Island and South Island, produce food and clothing. If North Island uses all of it resources on food production, it can produce 250 units of food. If North Island uses all of its resources to make clothing, it can make 100 units of clothing. Meanwhile, if South Island uses all of it resources on food production, it can produce 125 units of food. If South Island uses all of its resources to make clothing, it can make 100 units of clothing. For North Island, the opportunity cost of food is * 1 unit of clothing. 10 units of clothing. 0.4 units of clothing. 2.5 units of food - ✔✔0.4 units of clothing. Two islands, North Island and South Island, produce food and clothing. If North Island uses all of it resources on food production, it can produce 250 units of food. If North Island uses all of its resources to make clothing, it can make 100 units of clothing. Meanwhile, if South Island uses all of it resources on food production, it can produce 125 units of food. If South Island uses all of its resources to make clothing, it can make 100 units of clothing. For South Island, the opportunity cost of clothing is * 2.5 units of food 1.25 units of food 1.25 units of clothing1 unit of clothing - ✔✔1.25 units of food Two islands, North Island and South Island, produce food and clothing. If North Island uses all of it resources on food production, it can produce 250 units of food. If North Island uses all of its resources to make clothing, it can make 100 units of clothing. Meanwhile, if South Island uses all of it resources on food production, it can produce 125 units of food. If South Island uses all of its resources to make clothing, it can make 100 units of clothing. Based on the theory of comparative advantage, * North should produce clothing. South should produce clothing. South should produce food. Both countries should produce what its residents need. - ✔✔South should produce clothing. Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service * A. Rises. B. Falls. C. Does not change. D. Rises or does not change. E. Rises or falls. - ✔✔B. Falls. . A change in the demand for apples could result from any of the following EXCEPT * A. A change in the number of buyers.B. Increased preferences for fresh fruit consumption for health reasons. C. A change in the price of an apple. D. A change in the price of a banana. E. A change in income. - ✔✔C. A change in the price of an apple. The phrase "a change in demand" most directly implies a * A. Movement along a demand curve. B. Movement along the price curve. C. Change in the quantity demanded of a good. D. Shift of the demand curve. E. Movement along the quantity curve. - ✔✔D. Shift of the demand curve. When the price of oranges increases, A. The supply of oranges increases. B. The quantity of oranges demanded increases. C. The quantity of oranges supplied increases. D. The supply of oranges decreases. E. None of the above - ✔✔C. The quantity of oranges supplied increases. Which of the following does NOT increase the supply of lightbulbs, that is, does NOT shift the supply curve of lightbulbs? A. An advance in the technology used to produce lightbulbs. B. An increase in the number of firms producing lightbulb C. A fall in the cost of the components used to assemble lightbulbs D. A rise the price of a lightbulb E. A change in the expected future price of a lightbulb - ✔✔D. A rise the price of a lightbulbWhich of the following decreases the supply of doughnuts? * A. A situation where the quantity of doughnuts demanded exceeds the quantity supplied B. An increase in the price of doughnuts. C. An increase in the price of a resource used to produce doughnuts, such as sprinkles D. A decrease in the demand for fried foods, such as doughnuts E. An increase in income if doughnuts are a normal good - ✔✔C. An increase in the price of a resource used to produce doughnuts, such as sprinkles If input prices decrease, ceteris paribus, A. Quantity supplied will decrease. B. Supply will increase. C. Supply will decrease. D. Demand will increase. - ✔✔B. Supply will increase Assume a market is in equilibrium. There is an increase in supply, but no change in demand. As a result the equilibrium price ________, and the equilibrium quantity ________. * A. Rises; increases. B. Rises; decreases. C. Rises; does not change. D. Falls; decreases. E. Falls; increases. - ✔✔E. Falls; increases. [Show More]

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