Principles of Economics An Asian Edition 2nd Edition by N. Gregory Mankiw – Test Bank

a.

are acting out of generosity.

b.

do so because they have no other choice.

c.

do so because they get something in return.

d.

are required to do so by the government.

a.

rely upon government to provide us with the basic necessities of life.

b.

rely upon one another for the goods and services we all consume.

c.

have similar tastes and abilities.

d.

are concerned about one another’s well-being.

a.

a good thing, since it fosters friendships and bonds that otherwise would never develop.

b.

a good thing, since it allows people to consume more goods and services than they would otherwise be able to consume.

c.

a bad thing, since self-sufficiency may become necessary in the future.

d.

a bad thing, since interdependence reduces people’s self-esteem and causes various social problems.

a.

only when each has each agent has an advantage in producing a certain good.

b.

even if one of the agents is better at producing all the tradable goods.

c.

if the government provides incentives to bolster the exchange.

d.

a bad thing, since interdependence reduces people’s self-esteem and causes various social problems.

a.

benefit both Jason and Nikita.

c.

benefit Nikita but not Jason.

b.

benefit Jason but not Nikita.

d.

benefit neither Jason nor Nikita.

a.

Ben cannot stitch shirts and Shawna cannot cook rice.

b.

Ben is better than Shawna at cooking rice and Shawna is better than Ben at stitching shirts.

c.

Ben is better than Shawna at cooking rice and at stitching shirts.

d.

None of the above is correct.

a.

Alicia does not like vegetables and Ali does not like cakes.

b.

Alicia is better than Ali at baking cakes and Ali is better than Alicia at growing vegetables.

c.

Ali is better than Alicia at baking cakes and at growing vegetables.

d.

All the above are correct.

a.

the shoemaker can produce only shoes and the vegetable farmer can produce only vegetables.

b.

the shoemaker is capable of growing vegetables, but he is not very good at it.

c.

the vegetable farmer is better at growing vegetables and better at making shoes than the shoemaker.

d.

All the above are correct.

a.

a country is better off because it will have to learn to be self-sufficient without trade.

b.

a country’s production possibilities frontier is also its consumption possibilities frontier.

c.

a country can still benefit from international specialization.

d.

interdependence is more extensive than it would be with trade.

a.

the country’s technology is superior to the technologies of other countries.

b.

the citizens of the country have a greater desire to consume goods and services than the citizens of other countries.

c.

the country engages in trade.

d.

All the above are correct.