Question 1

As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?

Accepted Answer

A) the total amount of resources employed 
B) the level of technology 
C) the time frame under consideration 
D) the amount of each good or service produced 
A) the total amount of resources employed 
B) the level of technology 
C) the time frame under consideration 
D) the amount of each good or service produced

Question 2

What causes the production possibility curve to be bowed out?

Accepted Answer

A bowed production possibility curve ind

Question 3

The curve that represents all possible combinations of goods that can be produced is called

Accepted Answer

A) the production possibilities curve. 
B) the resource allocation curve. 
C) the efficiency curve. 
D) the supply curve. 
A) the production possibilities curve. 
B) the resource allocation curve. 
C) the efficiency curve. 
D) the supply curve.

Question 4

Why is it that all of our wants cannot be satisfied?

Accepted Answer

A) Because of shortages. 
B) Because we cannot seem to decide what we really want. 
C) Because other people try to change your mind about what you want. 
D) Because limited resources mean all the goods we want cannot be obtained. 
A) Because of shortages. 
B) Because we cannot seem to decide what we really want. 
C) Because other people try to change your mind about what you want. 
D) Because limited resources mean all the goods we want cannot be obtained.

Question 5

-Refer to the above figure. We are currently producing at point c. Which of the following statements is true?

Accepted Answer

A) Resources are not being efficiently utilized. 
B) Resources are being efficiently utilized. 
C) The only way to produce more of Goods X or Y is to have an increase in the amount of resources. 
D) The Law of Increasing Additional Cost does not hold. 
A) Resources are not being efficiently utilized. 
B) Resources are being efficiently utilized. 
C) The only way to produce more of Goods X or Y is to have an increase in the amount of resources. 
D) The Law of Increasing Additional Cost does not hold.

Question 6

-In the above figure, which of the following points indicates the efficient use of resources?

Accepted Answer

A) a 
B) f 
C) g 
D) h 
A) a 
B) f 
C) g 
D) h

Question 7

Which of the following sets of terms describes the problem of scarcity in economics?

Accepted Answer

A) Goods, land, and needs 
B) Labor, needs, and opportunity costs 
C) Choices, opportunity costs, and trade-offs 
D) Production, consumption, and wants 
A) Goods, land, and needs 
B) Labor, needs, and opportunity costs 
C) Choices, opportunity costs, and trade-offs 
D) Production, consumption, and wants

Question 8

When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?

Accepted Answer

A) the law of demand 
B) the law of supply 
C) the law of scarcity 
D) the law of increasing additional costs 
A) the law of demand 
B) the law of supply 
C) the law of scarcity 
D) the law of increasing additional costs

Question 9

If a person can make $70,000 as an accountant, $60,000 as a chef, $20,000 as a mechanic, and nothing as an opera singer, he or she has a comparative advantage in

Accepted Answer

A) accounting. 
B) being a chef. 
C) being a mechanic. 
D) opera singing. 
A) accounting. 
B) being a chef. 
C) being a mechanic. 
D) opera singing.

Question 10

One of the benefits of specialization is

Accepted Answer

A) greater output. 
B) people enjoy doing one repetitive task over and over. 
C) specialists cost less to hire. 
D) training costs are higher. 
A) greater output. 
B) people enjoy doing one repetitive task over and over. 
C) specialists cost less to hire. 
D) training costs are higher.

Question 11

"Because resources are scarce, the production of more capital goods means that fewer resources are available to produce consumption goods, so there is less current consumption." Do you agree or disagree? Explain.

Accepted Answer

Agree. Capital goods are goods that are

As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?

What causes the production possibility curve to be bowed out?

The curve that represents all possible combinations of goods that can be produced is called

Why is it that all of our wants cannot be satisfied?

-Refer to the above figure. We are currently producing at point c. Which of the following statements is true?

-In the above figure, which of the following points indicates the efficient use of resources?

Which of the following sets of terms describes the problem of scarcity in economics?

When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?

If a person can make $70,000 as an accountant, $60,000 as a chef, $20,000 as a mechanic, and nothing as an opera singer, he or she has a comparative advantage in

One of the benefits of specialization is

"Because resources are scarce, the production of more capital goods means that fewer resources are available to produce consumption goods, so there is less current consumption." Do you agree or disagree? Explain.

The Nature of Economics

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 2: Scarcity and the World of Trade-Offs

As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?

What causes the production possibility curve to be bowed out?

The curve that represents all possible combinations of goods that can be produced is called

Why is it that all of our wants cannot be satisfied?

-Refer to the above figure. We are currently producing at point c. Which of the following statements is true?

-In the above figure, which of the following points indicates the efficient use of resources?

Which of the following sets of terms describes the problem of scarcity in economics?

When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?

If a person can make $70,000 as an accountant, $60,000 as a chef, $20,000 as a mechanic, and nothing as an opera singer, he or she has a comparative advantage in

One of the benefits of specialization is

"Because resources are scarce, the production of more capital goods means that fewer resources are available to produce consumption goods, so there is less current consumption." Do you agree or disagree? Explain.

The Nature of Economics

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters