Question 1

Use the following to answer questions 
Exhibit: Guns and Butter  
-(Exhibit: Guns and Butter)
The combination of guns and butter at point H:

Accepted Answer

A) can be obtained, but would cost too much. 
B) cannot be attained given the level of technology and the factors of production available. 
C) has no meaning since it does not relate to the preferences of consumers. 
D) Is attainable but would increase unemployment. 
A) can be obtained, but would cost too much. 
B) cannot be attained given the level of technology and the factors of production available. 
C) has no meaning since it does not relate to the preferences of consumers. 
D) Is attainable but would increase unemployment.

Question 2

Use the following to answer questions 
Exhibit: Production Possibilities Curve 2
  
-(Exhibit: Production Possibilities Curve 2)
The point representing a combination of consumer goods and capital goods that would result from underutilization or inefficient use of society's available resources is point:

Accepted Answer

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

Question 3

An economic system is the set of rules that define _______ and _______.

Accepted Answer

A) resources; prices 
B) who gets to vote; when elections will be held 
C) market prices; factors of production 
D) how an economy's resources are to be owned; how decisions about the resources are to be made 
A) resources; prices 
B) who gets to vote; when elections will be held 
C) market prices; factors of production 
D) how an economy's resources are to be owned; how decisions about the resources are to be made

Question 4

Specialization arises because

Accepted Answer

A) some people don't like doing some tasks. 
B) differences in the costs of production give some producers a comparative advantage in the production of particular goods or services. 
C) the government directs resources into certain activities. 
D) inefficient production forces producers to trade. 
A) some people don't like doing some tasks. 
B) differences in the costs of production give some producers a comparative advantage in the production of particular goods or services. 
C) the government directs resources into certain activities. 
D) inefficient production forces producers to trade.

Question 5

An economy is said to have a comparative advantage in the production of a good if it can:

Accepted Answer

A) produce that good with more resources than another economy. 
B) produce that good with a higher opportunity cost than another economy. 
C) produce that good outside its production possibilities curve. 
D) produce the good at a lower opportunity cost than another economy. 
A) produce that good with more resources than another economy. 
B) produce that good with a higher opportunity cost than another economy. 
C) produce that good outside its production possibilities curve. 
D) produce the good at a lower opportunity cost than another economy.

Question 6

The present position of a nation on its production possibilities curve will influence the future position of the production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 7

Efficient production exists when the economy is:

Accepted Answer

A) operating inside its production possibilities curve. 
B) operating on its production possibilities curve. 
C) operating outside its production possibilities curve. 
D) moving beyond its production possibilities curve. 
A) operating inside its production possibilities curve. 
B) operating on its production possibilities curve. 
C) operating outside its production possibilities curve. 
D) moving beyond its production possibilities curve.

Question 8

Money is a factor of production because it is part of capital.

Accepted Answer

A) True 
 B)False

Question 9

Use the following to answer questions 
Exhibit: Consumer and Capital Goods  
-(Exhibit: Consumer and Capital Goods)
If the economy is on Curve 1, it:

Accepted Answer

A) will grow more quickly if it chooses point X. 
B) will move to Curve 2 more quickly if it chooses point Y. 
C) will find that choosing either point X or point Y will result in the same growth rate. 
D) is at full employment at point X, but has unemployment at point Y. 
A) will grow more quickly if it chooses point X. 
B) will move to Curve 2 more quickly if it chooses point Y. 
C) will find that choosing either point X or point Y will result in the same growth rate. 
D) is at full employment at point X, but has unemployment at point Y.

Use the following to answer questions Exhibit: Guns and Butter -(Exhibit: Guns and Butter) The combination of guns and butter at point H:

Use the following to answer questions Exhibit: Production Possibilities Curve 2 -(Exhibit: Production Possibilities Curve 2) The point representing a combination of consumer goods and capital goods that would result from underutilization or inefficient use of society's available resources is point:

An economic system is the set of rules that define _ and _.

Specialization arises because

An economy is said to have a comparative advantage in the production of a good if it can:

The present position of a nation on its production possibilities curve will influence the future position of the production possibilities curve.

Efficient production exists when the economy is:

Money is a factor of production because it is part of capital.

Use the following to answer questions Exhibit: Consumer and Capital Goods -(Exhibit: Consumer and Capital Goods) If the economy is on Curve 1, it:

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

Use the following to answer questions Exhibit: Guns and Butter -(Exhibit: Guns and Butter) The combination of guns and butter at point H:

Use the following to answer questions Exhibit: Production Possibilities Curve 2 -(Exhibit: Production Possibilities Curve 2) The point representing a combination of consumer goods and capital goods that would result from underutilization or inefficient use of society's available resources is point:

An economic system is the set of rules that define _______ and _______.

Specialization arises because

An economy is said to have a comparative advantage in the production of a good if it can:

The present position of a nation on its production possibilities curve will influence the future position of the production possibilities curve.

Efficient production exists when the economy is:

Money is a factor of production because it is part of capital.

Use the following to answer questions Exhibit: Consumer and Capital Goods -(Exhibit: Consumer and Capital Goods) If the economy is on Curve 1, it:

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

An economic system is the set of rules that define _ and _.