Unit 2 Test

Question 1

This table shows the number of employees needed to fill lunch orders at several food trucks.Food Truck Number of Lunch Orders Number of Employees Frank’s Falafels 20 per hour 2 Kimchi Kim’s 25 per hour 3 Deli Delight 30 per hour 3 Lunch on the Go 25 per hour 2 Which food truck has the absolute advantage?

Revolt · Accepted Answer

Lunch on the Go

Question 2

This table shows the production possibility schedule for several major manufacturing companies in the automobile industry. Manufacturing CompanyTruck Parts Car PartsCompany A10 per hr.20 per hr.Company B10 per hr.25 per hr.Company C15 per hr.15 per hr.Company D20 per hr.25 per hr. Which manufacturing company has the comparative advantage for car parts?

Revolt · Accepted Answer

Company B

Question 3

When prices drop below the point where supply and demand meet, it results in

Revolt · Accepted Answer

disequilibrium.

Question 4

Why is pure competition considered an unsustainable system?

Revolt · Accepted Answer

Few barriers exist to entry, meaning that the market inevitably floods.

Question 5

Look at the chart comparing the price of graphic T-shirts to the quantity supplied.

Revolt · Accepted Answer

supply schedule.

Question 6

The graph shows a point of equilibrium.If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Revolt · Accepted Answer

The price needs to increase

Question 7

Equilibrium occurs when supply and demand coordinate to

Revolt · Accepted Answer

set prices and production.

Question 8

A possible result of disequilibrium is

Revolt · Accepted Answer

excess demand.

Question 9

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

Revolt · Accepted Answer

the amount the company receives from the sale of all of its computer parts.

Question 10

best

Revolt · Accepted Answer

efficient

Unit 2 Test Answers

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