Question 1

The first economist to point out the importance of specialization of labor was

Accepted Answer

A) Leonardo da Vinci. 
B) Adam Smith. 
C) David Ricardo. 
D) John Maynard Keynes. 
E) Enrico Caruso. 
A) Leonardo da Vinci. 
B) Adam Smith. 
C) David Ricardo. 
D) John Maynard Keynes. 
E) Enrico Caruso.

Question 2

See table below.Does production exhibit increasing costs? Which ring and machine combination will achieve the highest growth in the production of mood rings?

Accepted Answer

Production exhibits increasing cost.The

Question 3

In a market economy, government decides the answers to the three economic decisions.

Accepted Answer

A) True 
 B)False

Question 4

The U.S.government spent over $3.6 trillion in budget year 2010.

Accepted Answer

A) True 
 B)False

Question 5

Given its size, the United States does not have to worry about limitations on resources.

Accepted Answer

A) True 
 B)False

Question 6

Few bother to think about what makes Florida oranges show up daily in South Dakota supermarkets, but the people of South Dakota are likely to think a great deal about this.Why does someone take the time and energy to assure that oranges which are grown in Florida move more than 1,000 miles before they appear on grocery shelves?

Accepted Answer

In a market economy, there is profit to

Question 7

If a market system is functioning well, we can conclude that goods with

Accepted Answer

A) high opportunity costs tend to have high money costs. 
B) low opportunity costs tend to have high money costs. 
C) high opportunity costs tend to have low money costs. 
D) low opportunity costs tend to have zero money costs. 
E) high opportunity costs tend to have zero money costs. 
A) high opportunity costs tend to have high money costs. 
B) low opportunity costs tend to have high money costs. 
C) high opportunity costs tend to have low money costs. 
D) low opportunity costs tend to have zero money costs. 
E) high opportunity costs tend to have zero money costs.

Question 8

Employment discrimination is a source of

Accepted Answer

A) economic inefficiency. 
B) increased economic growth. 
C) innovation. 
D) shifting production possibilities. 
E) All of the above are correct. 
A) economic inefficiency. 
B) increased economic growth. 
C) innovation. 
D) shifting production possibilities. 
E) All of the above are correct.

Question 9

"OPEC is exploiting the United States by selling us oil at inflated prices." Agree or disagree.

Accepted Answer

Trade is voluntary and only takes place

Question 10

The total amount of consumption of a society can be increased if

Accepted Answer

A) firms allow each worker to perform multiple tasks. 
B) resources are allocated by a central planning group. 
C) individuals engage in specialization and voluntary trade. 
D) barter exchange is used in place of money. 
A) firms allow each worker to perform multiple tasks. 
B) resources are allocated by a central planning group. 
C) individuals engage in specialization and voluntary trade. 
D) barter exchange is used in place of money.

Question 11

Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?

Accepted Answer

A) Because sometimes the market does not function well. 
B) Because opportunity costs are different for different goods. 
C) Because there are trade-offs involved in any decision. 
D) Because of existence of efficient markets. 
A) Because sometimes the market does not function well. 
B) Because opportunity costs are different for different goods. 
C) Because there are trade-offs involved in any decision. 
D) Because of existence of efficient markets.

Question 12

Which of the following is an example of opportunity cost not measured by money cost?

Accepted Answer

A) the time spent eating a business lunch at a restaurant 
B) the time spent preparing a meal eaten at home 
C) the time spent studying to obtain an "A" in economics 
D) the time spent repairing a car in one's own garage 
E) All of the above are correct. 
A) the time spent eating a business lunch at a restaurant 
B) the time spent preparing a meal eaten at home 
C) the time spent studying to obtain an "A" in economics 
D) the time spent repairing a car in one's own garage 
E) All of the above are correct.

Question 13

The production possibilities frontier for a country is usually drawn

Accepted Answer

A) as a straight line, sloping downward. 
B) as a straight line, sloping upward. 
C) bowed outward from the origin. 
D) bowed inward toward the origin. 
E) as a dotted line when sloping downward and as a full line when sloping upward. 
A) as a straight line, sloping downward. 
B) as a straight line, sloping upward. 
C) bowed outward from the origin. 
D) bowed inward toward the origin. 
E) as a dotted line when sloping downward and as a full line when sloping upward.

Question 14

Figure 3-2  
-In Figure 3-2, a point such as A

Accepted Answer

A) is preferable over B. 
B) is an efficient use of resources. 
C) represents a misallocation of resources. 
D) is not obtainable. 
A) is preferable over B. 
B) is an efficient use of resources. 
C) represents a misallocation of resources. 
D) is not obtainable.

The first economist to point out the importance of specialization of labor was

See table below.Does production exhibit increasing costs? Which ring and machine combination will achieve the highest growth in the production of mood rings?

In a market economy, government decides the answers to the three economic decisions.

The U.S.government spent over $3.6 trillion in budget year 2010.

Given its size, the United States does not have to worry about limitations on resources.

If a market system is functioning well, we can conclude that goods with

Employment discrimination is a source of

"OPEC is exploiting the United States by selling us oil at inflated prices." Agree or disagree.

The total amount of consumption of a society can be increased if

Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?

Which of the following is an example of opportunity cost not measured by money cost?

The production possibilities frontier for a country is usually drawn

Figure 3-2 -In Figure 3-2, a point such as A

What Is Economics

The Economy Myth and Reality

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Production Inputs and Cost Building Blocks for Supply Analysis

Output Price and Profit the Importance of Marginal Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Externalities the Environment and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters

Exam 3: The Fundamental Economic Problem Scarcity and Choice

The first economist to point out the importance of specialization of labor was

See table below.Does production exhibit increasing costs? Which ring and machine combination will achieve the highest growth in the production of mood rings?

In a market economy, government decides the answers to the three economic decisions.

The U.S.government spent over $3.6 trillion in budget year 2010.

Given its size, the United States does not have to worry about limitations on resources.

If a market system is functioning well, we can conclude that goods with

Employment discrimination is a source of

"OPEC is exploiting the United States by selling us oil at inflated prices." Agree or disagree.

The total amount of consumption of a society can be increased if

Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?

Which of the following is an example of opportunity cost not measured by money cost?

The production possibilities frontier for a country is usually drawn

Figure 3-2 -In Figure 3-2, a point such as A

What Is Economics

The Economy Myth and Reality

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Production Inputs and Cost Building Blocks for Supply Analysis

Output Price and Profit the Importance of Marginal Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Externalities the Environment and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters