Question 1

Complex economic plans for many economic sectors are most associated with a

Accepted Answer

A)  feudal system. 
B)  traditional economy. 
C)  free- market system. 
D)  command economy. 
E)  mixed market system.. 
A)  feudal system. 
B)  traditional economy. 
C)  free- market system. 
D)  command economy. 
E)  mixed market system..

Question 2

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes. A movement along the production possibilities boundary could be caused by

Accepted Answer

A)  an increase in the labour supply. 
B)  the employment of previously idle resources. 
C)  the reallocation of resources between military and civilian goods. 
D)  technological progress. 
E)  the growth of productive capacity. 
A)  an increase in the labour supply. 
B)  the employment of previously idle resources. 
C)  the reallocation of resources between military and civilian goods. 
D)  technological progress. 
E)  the growth of productive capacity.

Question 3

The diagram below shows two production possibilities boundaries for Country X.   FIGURE 1- 3
-Refer to Figure 1- 3. Suppose that Country X is currently producing at point E. Country X could achieve production at point D if

Accepted Answer

A)  firms reduced output of capital goods. 
B)  sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries. 
C)  the given resources were more efficiently employed. 
D)  the given resources were fully employed. 
E)  the prices of capital goods and consumption goods fell. 
A)  firms reduced output of capital goods. 
B)  sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries. 
C)  the given resources were more efficiently employed. 
D)  the given resources were fully employed. 
E)  the prices of capital goods and consumption goods fell.

Question 4

The concept of scarcity in economics usually refers to a condition

Accepted Answer

A)  where society is not employing all of its available resources in an efficient manner. 
B)  that afflicts only poor countries. 
C)  where people's wants can never be satisfied by the available resources. 
D)  where production is efficient, but distribution is inefficient. 
E)  where too many frivolous goods and services are produced at the expense of socially desirable goods and services. 
A)  where society is not employing all of its available resources in an efficient manner. 
B)  that afflicts only poor countries. 
C)  where people's wants can never be satisfied by the available resources. 
D)  where production is efficient, but distribution is inefficient. 
E)  where too many frivolous goods and services are produced at the expense of socially desirable goods and services.

Question 5

Scarcity is likely to be

Accepted Answer

A)  a problem that will always exist. 
B)  a problem that will be solved by the proper use of available resources. 
C)  eliminated with a better understanding of economics. 
D)  a result of the work ethic. 
E)  unique to the twentieth century. 
A)  a problem that will always exist. 
B)  a problem that will be solved by the proper use of available resources. 
C)  eliminated with a better understanding of economics. 
D)  a result of the work ethic. 
E)  unique to the twentieth century.

Question 6

The opportunity cost of producing good A is defined to be

Accepted Answer

A)  the cost of having to get by using something else in place of good A. 
B)  the money cost of the factors of production used in good A. 
C)  what must be sacrificed of other goods to get an additional unit of good A. 
D)  the cheapest method of producing good A. 
E)  the retail price of good A. 
A)  the cost of having to get by using something else in place of good A. 
B)  the money cost of the factors of production used in good A. 
C)  what must be sacrificed of other goods to get an additional unit of good A. 
D)  the cheapest method of producing good A. 
E)  the retail price of good A.

Question 7

The table below shows that, in one day, Claire can complete either 3 chemistry or 2 biology lab reports, while Sam can complete either 4 chemistry or 3 biology lab reports. $$\begin{array}{l}
\begin{array} { | l | l | l | } 
\hline & \text { Chemistry L ab Reports } & \text { Biology Lab Reports } \
\hline \text { Claire } & 3 & 2 \
\hline \text { Sam } & 4 & 3 \
\hline
\end{array}\
\text { TABLE 1- } 2
\end{array}$$
-Refer to Table 1- 2. What is Claire's opportunity cost of completing 1 chemistry lab report?

Accepted Answer

A)  3 biology lab reports 
B)  2 of a biology lab report 3 
C)  2 biology lab reports 
D)  3 of a biology lab report 4 
E)  1 1 biology lab reports 2 
A)  3 biology lab reports 
B)  2 of a biology lab report 3 
C)  2 biology lab reports 
D)  3 of a biology lab report 4 
E)  1 1 biology lab reports 2

Complex economic plans for many economic sectors are most associated with a

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes. A movement along the production possibilities boundary could be caused by

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3 -Refer to Figure 1- 3. Suppose that Country X is currently producing at point E. Country X could achieve production at point D if

The concept of scarcity in economics usually refers to a condition

Scarcity is likely to be

The opportunity cost of producing good A is defined to be

Economic Theories, Data, and Graphs

Demand, Supply, and Price

Elasticity

Markets in Action

Consumer Behaviour

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, Cartels, and Price Discrimination

Imperfect Competition

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets

Interest Rates and the Capital Market

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

The Gains From International Trade

Trade Policy

Filters

Exam 1: Economic Issues and Concepts

Complex economic plans for many economic sectors are most associated with a

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes. A movement along the production possibilities boundary could be caused by

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3 -Refer to Figure 1- 3. Suppose that Country X is currently producing at point E. Country X could achieve production at point D if

The concept of scarcity in economics usually refers to a condition

Scarcity is likely to be

The opportunity cost of producing good A is defined to be

Economic Theories, Data, and Graphs

Demand, Supply, and Price

Elasticity

Markets in Action

Consumer Behaviour

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, Cartels, and Price Discrimination

Imperfect Competition

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets

Interest Rates and the Capital Market

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

The Gains From International Trade

Trade Policy

Filters