Question 1

Table 3-2
  
-In Table 3-2,from point C,the opportunity cost of 3 more units of cotton would be

Accepted Answer

A)  4 units of corn. 
B)  8 units of corn. 
C)  14 units of corn. 
D)  16 units of corn. 
A)  4 units of corn. 
B)  8 units of corn. 
C)  14 units of corn. 
D)  16 units of corn.

Question 2

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 b

Question 3

Hutch Technology makes computer monitors,which sell for $100 each.What is the opportunity cost of ten monitors?

Accepted Answer

A)  $1,000. 
B)  the other goods that could be produced with the resources that produce the ten monitors 
C)  the profits that Hutch earns when it sells the ten monitors 
D)  the profits that Hutch loses if it does not produce the monitors 
E)  All of the above are correct. 
A)  $1,000. 
B)  the other goods that could be produced with the resources that produce the ten monitors 
C)  the profits that Hutch earns when it sells the ten monitors 
D)  the profits that Hutch loses if it does not produce the monitors 
E)  All of the above are correct.

Question 4

All actions and purchases,even those of wealthy people,involve a sacrifice.

Accepted Answer

A) True 
 B)False

Question 5

List the three coordination decisions made by every economy.

Accepted Answer

A)  Where? When? How? 
B)  How? What? To whom? 
C)  Why? Where? What? 
D)  When? To Whom? Where? 
A)  Where? When? How? 
B)  How? What? To whom? 
C)  Why? Where? What? 
D)  When? To Whom? Where?

Question 6

The opportunity cost of any decision is the forgone value of the next best alternative that is not chosen.

Accepted Answer

A) True 
 B)False

Question 7

Ex-London School of Economics student Mick Jagger sang,"You can't always get what you want,but if you try sometime,you just might find you can get what you need." Another statement of the basic economic principle expressed in this lyric is that

Accepted Answer

A)  rational decisions are not always possible. 
B)  you can allocate your resources to what gives you the highest value. 
C)  you can create the supply to meet your own demand. 
D)  you can maximize social welfare by making optimal decisions. 
A)  rational decisions are not always possible. 
B)  you can allocate your resources to what gives you the highest value. 
C)  you can create the supply to meet your own demand. 
D)  you can maximize social welfare by making optimal decisions.

Question 8

Figure 3-6
  
-In Figure 3-6 assume this economy is currently operating at point D.What is the opportunity cost of moving to B?

Accepted Answer

A)  about 200 bushels of wheat 
B)  200 bushels of soybeans 
C)  Infinite, B cannot be produced at any cost. 
D)  0 
A)  about 200 bushels of wheat 
B)  200 bushels of soybeans 
C)  Infinite, B cannot be produced at any cost. 
D)  0

Question 9

An optimal decision is one that chooses the most desirable from among all possibilities that are available.

Accepted Answer

A) True 
 B)False

Question 10

If the quantity of one good that must be forgone increases as successive units of another good are produced,then there is said to be increasing opportunity cost between the two goods.

Accepted Answer

A) True 
 B)False

Question 11

Efficient production can be carried out anywhere on or below the production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 12

A production possibilities curve has a downward slope because

Accepted Answer

A)  increased production of one good always reduces the additional profit of production. 
B)  decreased production of one good is associated with lower profit from that good. 
C)  economists have a negative view of life and human nature. 
D)  increased production of one good always reduces production of the other. 
E)  increased production of one good necessarily causes production of other goods to increase. 
A)  increased production of one good always reduces the additional profit of production. 
B)  decreased production of one good is associated with lower profit from that good. 
C)  economists have a negative view of life and human nature. 
D)  increased production of one good always reduces production of the other. 
E)  increased production of one good necessarily causes production of other goods to increase.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The concept of opportunity cost is more applicable to society as a whole than it is for an individual household.

Accepted Answer

A) True 
 B)False

Question 15

President Barack Obama pushed forward a national health care plan to increase the availability of medical care for all Americans.How would one determine the opportunity cost of the proposal?

Accepted Answer

Every decision by government has an oppo

Question 16

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 17

A market economy allocates resources primarily in accordance with orders from government bureaucrats.

Accepted Answer

A) True 
 B)False

Question 18

The scarcity of physical resources is far more fundamental to the study of economics than the scarcity of funds.

Accepted Answer

A) True 
 B)False

Question 19

Economics examines the options open to households and business firms,but ignores the options of governments and entire societies.

Accepted Answer

A) True 
 B)False

Question 20

The statement "Resources employed in producing X are better suited to making Y" is another way of saying resources

Accepted Answer

A)  are specialized. 
B)  are scarce. 
C)  are used inefficiently. 
D)  are unproductive. 
E)  have no opportunity cost. 
A)  are specialized. 
B)  are scarce. 
C)  are used inefficiently. 
D)  are unproductive. 
E)  have no opportunity cost.

Table 3-2 -In Table 3-2,from point C,the opportunity cost of 3 more units of cotton would be

Hutch Technology makes computer monitors,which sell for $100 each.What is the opportunity cost of ten monitors?

All actions and purchases,even those of wealthy people,involve a sacrifice.

List the three coordination decisions made by every economy.

The opportunity cost of any decision is the forgone value of the next best alternative that is not chosen.

Ex-London School of Economics student Mick Jagger sang,"You can't always get what you want,but if you try sometime,you just might find you can get what you need." Another statement of the basic economic principle expressed in this lyric is that

Figure 3-6 -In Figure 3-6 assume this economy is currently operating at point D.What is the opportunity cost of moving to B?

An optimal decision is one that chooses the most desirable from among all possibilities that are available.

If the quantity of one good that must be forgone increases as successive units of another good are produced,then there is said to be increasing opportunity cost between the two goods.

Efficient production can be carried out anywhere on or below the production possibilities frontier.

A production possibilities curve has a downward slope because

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

The concept of opportunity cost is more applicable to society as a whole than it is for an individual household.

President Barack Obama pushed forward a national health care plan to increase the availability of medical care for all Americans.How would one determine the opportunity cost of the proposal?

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

A market economy allocates resources primarily in accordance with orders from government bureaucrats.

The scarcity of physical resources is far more fundamental to the study of economics than the scarcity of funds.

Economics examines the options open to households and business firms,but ignores the options of governments and entire societies.

The statement "Resources employed in producing X are better suited to making Y" is another way of saying resources

What Is Economics?

The Economy: Myth and Reality

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters

Exam 3: The Fundamental Economic Problem: Scarcity and Choice

Table 3-2 -In Table 3-2,from point C,the opportunity cost of 3 more units of cotton would be

Hutch Technology makes computer monitors,which sell for $100 each.What is the opportunity cost of ten monitors?

All actions and purchases,even those of wealthy people,involve a sacrifice.

List the three coordination decisions made by every economy.

The opportunity cost of any decision is the forgone value of the next best alternative that is not chosen.

Ex-London School of Economics student Mick Jagger sang,"You can't always get what you want,but if you try sometime,you just might find you can get what you need." Another statement of the basic economic principle expressed in this lyric is that

Figure 3-6 -In Figure 3-6 assume this economy is currently operating at point D.What is the opportunity cost of moving to B?

An optimal decision is one that chooses the most desirable from among all possibilities that are available.

If the quantity of one good that must be forgone increases as successive units of another good are produced,then there is said to be increasing opportunity cost between the two goods.

Efficient production can be carried out anywhere on or below the production possibilities frontier.

A production possibilities curve has a downward slope because

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

The concept of opportunity cost is more applicable to society as a whole than it is for an individual household.

President Barack Obama pushed forward a national health care plan to increase the availability of medical care for all Americans.How would one determine the opportunity cost of the proposal?

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

A market economy allocates resources primarily in accordance with orders from government bureaucrats.

The scarcity of physical resources is far more fundamental to the study of economics than the scarcity of funds.

Economics examines the options open to households and business firms,but ignores the options of governments and entire societies.

The statement "Resources employed in producing X are better suited to making Y" is another way of saying resources

What Is Economics?

The Economy: Myth and Reality

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters