Econ 101 - Microeconomics » Fall 2019 » Quiz 2

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Question #1
If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and the German workers produce half as much output
A.   Canada since the cost per unit of output will be higher
B.   Germany since the cost per unit of output will be higher
C.   Canada since the cost per unit of output will be lower
D.   Germany since the cost per unit of output will be lower
Question #2
In the linear equation y=mx-b, a increase in b will:
A.   cause the curve to become steeper
B.   cause the curve to become flatter
C.   shift the curve down
D.   shift the curve up
Question #3
If there is an inverse relationship between two variables, the graph relating the two variables will be:
A.   upward sloping
B.   horizontal
C.   downward sloping
D.   vertical
Question #4
The text attributes the growth of economies over the last 200 years largely to
A.   a decrease in the size of the world population
B.   the development of markets
C.   the discovery of additional resources
D.   laissez-faire policies
Question #5
The slope of a line is the
A.   change in the value on the horizontal axis divided by the change in the value on the vertical axis
B.   value on the horizontal axis divided by the value on the vertical axis
C.   value on the vertical axis divided by the value on the horizonal axis
D.   Change in the value on the vertical axis divided by the change in the vale on the horizontal axis
Question #6
The text argues that the United States has had a comparative advantage in goods and services that:
A.   are artistic and well crafted
B.   require creativity and innovation
C.   are luxury goods
D.   are mass produced
Question #7
If a production possibility curve representing a trade-off between a grade in English and a grade in Math has a negative slope, we know that:
A.   there is a direct relationship between grades in English and grades in Math
B.   there is an inverse relationship between grades in English and grades in Math
C.   there is no relationship between grades in English and grades in Math
D.   one can get better grades in English only if one gets better grades in Math
Question #8
Increasing marginal opportunity cost means that the production possibility curve is:
A.   bowed in so that for every additional unit of one good given up, you get fewer and fewer units of the other good.
B.   bowed out so that for every additional unit of one good given up, you get more and more units of the other good.
C.   bowed out so that for every additional unit of a good given up, you get fewer and fewer units of the other good.
D.   bowed in so that for every additional unit of one good given up, you get more and more units of the other good.
Question #9
To graphically demonstrate the principle of marginal opportunity cost, the production possibility curve must be:
A.   straight
B.   bowed in
C.   Flat
D.   bowed out
Question #10
Which of the following factors will help the United States regain comparative advantages in industries in which it has lost comparative advantages?
A.   The United States imports more goods
B.   The value of the U.S. dollar rises.
C.   wages in the United States rise
D.   The value of the US dollar falls

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