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Econ 202 Final CSU Robert Kling Questions with Correct Answers
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Econ 202 Final CSU Robert Kling Questions with Correct Answers
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Econ 202 Final CSU Robert Kling Questions withCorrect Answers
Economics is the study of:
a. How to determine the fairest distribution of income
b. how to solve supply and demand equations to predict market prices
c. how to increase an economies rate of growth
d. how societies allocate scarce resources to satisfy human wants Correct
Answer-D
If we say "A causes B, ceteris paribus," we mean:
a. A causes B, and B causes A.
b.A causes B, and everything else stays constant.
c.A causes B, if everything else stays constant.
d.A causes B, if nothing else stays constant. Correct Answer-C
The "circular flow" diagram of a private market economy shows:
A. How market economies usually have "boom and bust" cycles.
B. How government redistributes resources from firms to households or
vice versa.
C. How prices in certain markets tend to rise and fall in predictable
cycles.
D. How households supply resources to firms in exchange for income,
and how firms supply goods and services in exchange for revenues.
Correct Answer-D
,Consider the following information about labor requirements for the
production of two goods in two different countries. Hours of labor
required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
Using this same information, which statement is correct?
A. The U.S. has an absolute advantage in oil production.
B.The U.S. has an absolute advantage in corn production.
C.Mexico has a comparative advantage in oil production.
D. The U.S. has a comparative advantage in oil production Correct
Answer-C
Consider the following information about labor requirements for the
production of two goods in two different countries. Hours of labor
required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
What is the opportunity cost of producing a bushel of corn in Mexico?
A. 1 barrel of oil.
B. 2 barrels of oil.
,C. 3 barrels of oil.
D. 10 barrels of oil. Correct Answer-C
Consider the following information about labor requirements for the
production of two goods in two different countries. Hours of labor
required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
In this same situation, if these two countries decide to specialize and
trade, then:
A.Mexico will specialize in producing corn.
B,Mexico will import oil.
C.The U.S. will import corn.
D. The U.S. will specialize in producing corn. Correct Answer-D
Consider the following information about labor requirements for the
production of two goods in two different countries. Hours of labor
required to produce:
1 BARREL OF OIL ... in the U.S.: 15 hours ... in Mexico: 10 hours
1 BUSHEL OF CORN ... in the U.S.: 30 hours ... in Mexico: 30 hours
, This is the last question that uses this table of information. If these two
countries are to trade willingly, how many barrels of oil will be traded
for each bushel of corn?
A. Between 1/3 and ½..
B. Between ½ and 2.
C. Between 2 and 3.
D. Between 10 and 15. Correct Answer-C
Which is the best economic explanation of why countries usually do
NOT specialize completely in just one good, in the real world?
A. Realistically, trade is based more on relative benefits than on relative
costs.
B. As countries become more affluent, the scarcity problem disappears,
so there is less
reason to trade.
C. The marginal opportunity cost starts to become too high as they
produce more and more
of a particular good.
D. In the real world, most countries' production possibilities curves are
straight lines instead
of bowed out curves. Correct Answer-C
In the relationship illustrated by a demand curve, which variable is the
dependent variable?
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