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ECON104 Quiz Questions With Complete Solutions Latest Update 2024
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ECON104 Quiz Questions With Complete Solutions Latest Update 2024
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ECON104 Quiz Questions With CompleteSolutions Latest Update 2024
Labour hours needed to make one pound of:
Farmer Rancher
Meat 10 5
Potatoes 4 1
For the rancher, the opportunity cost of one pound of meat is
Select one:
a. 5 pounds of meat
b. 1 pound of meat
c. 0.2 pound of potatoes
d. 5 pounds of potatoes - ANS d. 5 pounds of potatoes
Labour hours needed to make one pound of:
Farmer Rancher
Meat 10 5
Potatoes 4 1
,The farmer and rancher both could benefit by the farmer's specialising in ............
and the rancher's specialising in ..............
Select one:
a. meat, potatoes
b. potatoes, meat
c. neither good, meat
d. They cannot benefit by specialisation and trade. - ANS a. meat, potatoes
Labour hours needed to make one pound of:
Farmer Rancher
Meat 10 5
Potatoes 4 1
The farmer has a comparative advantage in ............. and the rancher has an
absolute advantage in .................
Select one:
a. both goods, neither good
b. meat, both goods
c. meat, neither good
d. potatoes, neither good - ANS b. meat, both goods
Labour hours needed to make one pound of:
Farmer Rancher
,Meat 10 5
Potatoes 4 1
The farmer has an absolute advantage in .......... and the rancher has a comparative
advantage in ...............
Select one:
a. meat, meat
b. potatoes, potatoes
c. neither good, potatoes
d. neither good, meat - ANS c. neither good, potatoes
Economics is defined as
Select one:
a. the study of business
b. the study of how society controls prices and output
c. the study of how society manages its scarce resources
d. the study of government regulation - ANS c. the study of how society manages
its scarce resources
In the second half of the nineteenth century, grasshoppers caused great
destruction to crops in the American Midwest. To rid the area of the insects, states
paid large bounties for each bushel of dead grasshoppers. In some cases, farmers
began growing and harvesting grasshoppers rather than wheat. This is an example
of
, Select one:
a. profit maximisation
b. irrational behaviour
c. rational response to economic incentives
d. the need for a subsidy - ANS c. rational response to economic incentives
Paul decides to spend an hour playing football rather than studying or working at
$6 per hour. His trade off is
Select one:
a. nothing, because he enjoys playing football more than working or studying
b. the benefit to his marks from studying for an hour or the $6 he could have
earned
c. the increase in skill he obtains from playing football for that hour
d. nothing, because he spent $6 for admission into the sports complex to play
football - ANS b. the benefit to his marks from studying for an hour or the $6 he
could have earned
The opportunity cost of going to university is
Select one:
a. the sum of all the money a student spends on food, clothing, books,
transportation, tuition, lodging and other expenses
b. the value of the best opportunity a student gives up to attend university
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