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Fundamentals of Microeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why doesn't the output continue to increase on the production possibilities curve?

Question 2 2. Which of the following best describes a free market?

Question 3 3. Why is it often difficult to enter into a market that BEST resembles an oligopoly?

Question 4 4. When a point is on the production possibilities curve and there are no other points specifically on the curve, how can we interpret this point?

Question 5 5. A person or nation that has a comparative advantage in the production of a good, should _____.

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Question 6 6. What does it mean for a nation to have an absolute advantage in the production of a good?

Question 7 7. Ebay's success represents which of the following barriers to entry for another company in the same space?

Question 8 8. If Sally can produce 1 term paper or 4 cookies in one hour, and Adam can produce 2 term papers or 1 cookie in the same amount of time, which of these statements is true?

Question 9 9. Which of the following is a barrier to entry?

Question 10 10. Elasticity of demand is said to be elastic when elasticity is:

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Question 11 11. If a shoe store was running a big sale over the weekend, what would they be hoping to do?

Question 12 12. During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

Question 13 13. Which is TRUE of points located outside of the production possibility curve?

Question 14 14. Outward shifts (to the right) in the production possibilities curve will result in which of the following?

Question 15 15. According to the Law of Comparative Advantage, where should a good be produced?

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Question 16 16. A point that is located inside the production possibility curve is:

Question 17 17. Investments in which of these do more to increase economic growth?

Question 18 18. Which of the following is NOT an inelastic demand for a product?

Question 19 19. The United States can produce 20 strawberries or 80 apples, while Canada can produce 15 strawberries or 5 apples. Which of the following describes what will happen if these two countries trade with each other?

Question 20 20. The table here shows the labor hours necessary to produce one unit of two goods, salmon and coconut creme pies, in two countries. If labor is the only input used, which of the following statements is true?

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Question 21 21. Which of the following statements regarding barriers to entry in economics is NOT true?

Question 22 22. Josie decided to go to college full-time instead of working. Which of the following is the opportunity cost of going to college for Josie?

Question 23 23. Country A's opportunity cost of producing 1 ton of corn is 5 tons of wheat, while Country B's opportunity cost of producing 1 ton of corn is 1/3 of a ton of wheat. Which of the following statements is true?

Question 24 24. Assume that there are only two countries, Country A and Country B, producing only two goods, corn cereal and designer jeans. The table here shows the production possibilities for these two countries. Which of the following statements is correct?

Question 25 25. What happens if a nation doesn't have an absolute advantage in producing anything?

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Question 26 26. Provided that other factors remain the same, which of the following would shift an economy's production possibilities curve to the left?

Question 27 27. All of the following factors impact an economy's production possibility curve except

Question 28 28. In one hour, Sally can complete 4 reports or she can write 8 computer programs. Calculate the opportunity cost for this scenario.

Question 29 29. Because resources are scarce, but wants are not:

Question 30 30. Why does a monopoly-based system result in a negative business environment?

Fundamentals of Microeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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