Question 1

Technology is:

Accepted Answer

A) knowledge that can be applied to the production of goods and services. 
B) generally unlimited in modern economies. 
C) a graphical illustration of the alternative combinations of goods and services an economy can produce. 
D) the resources the economy has available to produce goods and services. 
A) knowledge that can be applied to the production of goods and services. 
B) generally unlimited in modern economies. 
C) a graphical illustration of the alternative combinations of goods and services an economy can produce. 
D) the resources the economy has available to produce goods and services. A

Question 2

Use the following to answer questions 
Exhibit: Production Possibilities Schedule 1  
-(Exhibit: Production Possibilities Schedule 1)
If the economy produces 10 units of capital goods per period, it also can produce at most _______ unit(s)
Of consumer goods per period.

Accepted Answer

A) 5 
B) 4 
C) 3 
D) 2 
A) 5 
B) 4 
C) 3 
D) 2 B

Question 3

The three broad types of resources used to produce goods and services are also known as:

Accepted Answer

A) economic systems. 
B) factors of production. 
C) production possibilities. 
D) financial capital. 
A) economic systems. 
B) factors of production. 
C) production possibilities. 
D) financial capital. B

Question 4

Use the following to answer questions 
Exhibit: Sugar and Freight Trains  
-(Exhibit: Sugar and Freight Trains)
Suppose the economy is operating at point C.The opportunity cost of producing the fourth freight train would be:

Accepted Answer

A) 19 tons of sugar. 
B) 45 tons of sugar. 
C) 80 tons of sugar. 
D) 3 freight trains. 
A) 19 tons of sugar. 
B) 45 tons of sugar. 
C) 80 tons of sugar. 
D) 3 freight trains.

Question 5

In enforcing the legal system, the government in a market capitalist economy acts to:

Accepted Answer

A) enforce contracts. 
B) enforce property rights. 
C) discourage fraud. 
D) do all of the above. 
A) enforce contracts. 
B) enforce property rights. 
C) discourage fraud. 
D) do all of the above.

Question 6

Use the following to answer questions 
Exhibit: Production Possibilities Curve 2
  
-(Exhibit: Production Possibilities Curve 2)
The economy will experience its least growth by operating at point:

Accepted Answer

A) N. 
B) P. 
C) Q. 
D) R. 
A) N. 
B) P. 
C) Q. 
D) R.

Question 7

Government's role of taxing some citizens and transferring income to others is considered:

Accepted Answer

A) enforcing a legal system. 
B) providing certain goods and services. 
C) redistributing income. 
D) maintaining the money supply. 
A) enforcing a legal system. 
B) providing certain goods and services. 
C) redistributing income. 
D) maintaining the money supply.

Question 8

The gains or benefits from trade are:

Accepted Answer

A) A result of more efficient resource utilization. 
B) based on different wage rates in different countries. 
C) greater when rich nations trade with poor nations. 
D) based on the principle of absolute advantage. 
A) A result of more efficient resource utilization. 
B) based on different wage rates in different countries. 
C) greater when rich nations trade with poor nations. 
D) based on the principle of absolute advantage.

Question 9

Any point inside a production possibilities curve indicates:

Accepted Answer

A) unemployment and/or inefficiency. 
B) that the law of increasing opportunity costs is no longer valid. 
C) that society doesn't want more of either good. 
D) that economic growth is no longer possible. 
A) unemployment and/or inefficiency. 
B) that the law of increasing opportunity costs is no longer valid. 
C) that society doesn't want more of either good. 
D) that economic growth is no longer possible.

Question 10

Natural resources are resources that occur in nature, while capital is a produced good that is used to produce another good.

Accepted Answer

A) True 
 B)False

Question 11

For a factor of production to be called capital it must:

Accepted Answer

A) be produced. 
B) occur in the natural environment. 
C) be a part of human skill. 
D) be a result of a stock issue. 
A) be produced. 
B) occur in the natural environment. 
C) be a part of human skill. 
D) be a result of a stock issue.

Question 12

In general, production possibilities curves are "bowed out" because:

Accepted Answer

A) it's wasteful to produce too much of any one good. 
B) people generally prefer to consume goods in appropriate combinations. 
C) of the law of increasing opportunity cost. 
D) of the law of demand. 
A) it's wasteful to produce too much of any one good. 
B) people generally prefer to consume goods in appropriate combinations. 
C) of the law of increasing opportunity cost. 
D) of the law of demand.

Question 13

An increase in capital goods and a decrease in consumer goods will:

Accepted Answer

A) eventually lead to a shift to the right of the production possibilities curve. 
B) increase a nation's capacity to produce. 
C) lead to more rapid economic growth. 
D) do all of the above. 
A) eventually lead to a shift to the right of the production possibilities curve. 
B) increase a nation's capacity to produce. 
C) lead to more rapid economic growth. 
D) do all of the above.

Question 14

The law of increasing opportunity cost results in a constant slope of the production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 15

Use the following to answer questions 
Exhibit: Strawberries and Submarines  
-(Exhibit: Strawberries and Submarines)
The downward slope of the production possibilities curve implies that resources:

Accepted Answer

A) must be used efficiently. 
B) are scarce. 
C) should not be wasted. 
D) should be allocated so that approximately equal amounts of both goods are produced. 
A) must be used efficiently. 
B) are scarce. 
C) should not be wasted. 
D) should be allocated so that approximately equal amounts of both goods are produced.

Question 16

If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of manufacturing sweaters is higher in the United States than in Britain, then the United States will:

Accepted Answer

A) export both sweaters and machinery to Britain. 
B) import both sweaters and machinery from Britain. 
C) export sweaters to Britain and import machinery from Britain. 
D) import sweaters from Britain and export machinery to Britain. 
A) export both sweaters and machinery to Britain. 
B) import both sweaters and machinery from Britain. 
C) export sweaters to Britain and import machinery from Britain. 
D) import sweaters from Britain and export machinery to Britain.

Question 17

Economists are generally in support of:

Accepted Answer

A) government restrictions on trade. 
B) free international trade. 
C) tariffs to restrict trade. 
D) subsidizing exports. 
A) government restrictions on trade. 
B) free international trade. 
C) tariffs to restrict trade. 
D) subsidizing exports.

Question 18

Use the following to answer questions 
Exhibit: Bicycles and Radishes 2  
-(Exhibit: Bicycles and Radishes 2)
The country depicted in this exhibit is currently operating at point M.It could achieve production at point I only if it:

Accepted Answer

A) used its resources more efficiently. 
B) devoted more resources to radish production. 
C) devoted more resources to bicycle production. 
D) increased the quantities of capital, natural resources, or labor available or improved its technology. 
A) used its resources more efficiently. 
B) devoted more resources to radish production. 
C) devoted more resources to bicycle production. 
D) increased the quantities of capital, natural resources, or labor available or improved its technology.

Question 19

The textbook classifies technology as _______ and entrepreneurs as _______ .

Accepted Answer

A) knowledge; persons who seek profit by finding new ways to organize factors of production 
B) capital; labor 
C) labor skills; capital 
D) a factor of production; a factor of production 
A) knowledge; persons who seek profit by finding new ways to organize factors of production 
B) capital; labor 
C) labor skills; capital 
D) a factor of production; a factor of production

Question 20

The factors of production are:

Accepted Answer

A) money, labor, natural resources, and capital. 
B) technology, human capital, and natural resources. 
C) money, capital, and natural resources. 
D) labor, capital, and natural resources. 
A) money, labor, natural resources, and capital. 
B) technology, human capital, and natural resources. 
C) money, capital, and natural resources. 
D) labor, capital, and natural resources.

Technology is:

Use the following to answer questions Exhibit: Production Possibilities Schedule 1 -(Exhibit: Production Possibilities Schedule 1) If the economy produces 10 units of capital goods per period, it also can produce at most _______ unit(s) Of consumer goods per period.

The three broad types of resources used to produce goods and services are also known as:

Use the following to answer questions Exhibit: Sugar and Freight Trains -(Exhibit: Sugar and Freight Trains) Suppose the economy is operating at point C.The opportunity cost of producing the fourth freight train would be:

In enforcing the legal system, the government in a market capitalist economy acts to:

Use the following to answer questions Exhibit: Production Possibilities Curve 2 -(Exhibit: Production Possibilities Curve 2) The economy will experience its least growth by operating at point:

Government's role of taxing some citizens and transferring income to others is considered:

The gains or benefits from trade are:

Any point inside a production possibilities curve indicates:

Natural resources are resources that occur in nature, while capital is a produced good that is used to produce another good.

For a factor of production to be called capital it must:

In general, production possibilities curves are "bowed out" because:

An increase in capital goods and a decrease in consumer goods will:

The law of increasing opportunity cost results in a constant slope of the production possibilities curve.

Use the following to answer questions Exhibit: Strawberries and Submarines -(Exhibit: Strawberries and Submarines) The downward slope of the production possibilities curve implies that resources:

If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of manufacturing sweaters is higher in the United States than in Britain, then the United States will:

Economists are generally in support of:

Use the following to answer questions Exhibit: Bicycles and Radishes 2 -(Exhibit: Bicycles and Radishes 2) The country depicted in this exhibit is currently operating at point M.It could achieve production at point I only if it:

The textbook classifies technology as _ and entrepreneurs as _ .

The factors of production are:

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Exam 2: Confronting Scarcity: Choices in Production

Technology is:

Use the following to answer questions Exhibit: Production Possibilities Schedule 1 -(Exhibit: Production Possibilities Schedule 1) If the economy produces 10 units of capital goods per period, it also can produce at most _______ unit(s) Of consumer goods per period.

The three broad types of resources used to produce goods and services are also known as:

Use the following to answer questions Exhibit: Sugar and Freight Trains -(Exhibit: Sugar and Freight Trains) Suppose the economy is operating at point C.The opportunity cost of producing the fourth freight train would be:

In enforcing the legal system, the government in a market capitalist economy acts to:

Use the following to answer questions Exhibit: Production Possibilities Curve 2 -(Exhibit: Production Possibilities Curve 2) The economy will experience its least growth by operating at point:

Government's role of taxing some citizens and transferring income to others is considered:

The gains or benefits from trade are:

Any point inside a production possibilities curve indicates:

Natural resources are resources that occur in nature, while capital is a produced good that is used to produce another good.

For a factor of production to be called capital it must:

In general, production possibilities curves are "bowed out" because:

An increase in capital goods and a decrease in consumer goods will:

The law of increasing opportunity cost results in a constant slope of the production possibilities curve.

Use the following to answer questions Exhibit: Strawberries and Submarines -(Exhibit: Strawberries and Submarines) The downward slope of the production possibilities curve implies that resources:

If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of manufacturing sweaters is higher in the United States than in Britain, then the United States will:

Economists are generally in support of:

Use the following to answer questions Exhibit: Bicycles and Radishes 2 -(Exhibit: Bicycles and Radishes 2) The country depicted in this exhibit is currently operating at point M.It could achieve production at point I only if it:

The textbook classifies technology as _______ and entrepreneurs as _______ .

The factors of production are:

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

The textbook classifies technology as _ and entrepreneurs as _ .