Question 1

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets.The opportunity cost to Jeff of going to an extra hockey game is

Accepted Answer

A) four fewer $10 pizzas. 
B) five movies. 
C) 20 DVD rentals (costing $2 each). 
D) all of the choices are true. 
A) four fewer $10 pizzas. 
B) five movies. 
C) 20 DVD rentals (costing $2 each). 
D) all of the choices are true.

Question 2

A production possibilities frontier demonstrates

Accepted Answer

A) that there are limits to what a society can produce. 
B) the various choices a society can make in allocating its resources. 
C) the concept of opportunity cost. 
D) it demonstrates all of the choices stateD. 
A) that there are limits to what a society can produce. 
B) the various choices a society can make in allocating its resources. 
C) the concept of opportunity cost. 
D) it demonstrates all of the choices stateD.

Question 3

The economy usually operates at point _______.

Accepted Answer

The answer of The economy usually operates at point _______....

Question 4

Hypothetical Production Schedule for a Two-Product Economy $\begin{array}{ccc}
&Units~ of&Units~ of\
\text { Points } & \text { Consumer Goods } & \text { Capital Goods } \
\hline \mathrm{A} & 0 & 30 \
\mathrm{B} & 15 & 24 \
\mathrm{C} & 27 & 18 \
\mathrm{D} & 36 & 12 \
\mathrm{E} & 42 & 6 \
\mathrm{F} & 45 & 0
\end{array}$
-In the table above,points A through F represent _______________________ of resources.

Accepted Answer

The answer of Hypothetical Production Schedule for a Two-Product Economy...

Question 5

For most of 2009 the U.S.was in a very severe recession,with an unemployment rate approximately _____ percent while the capacity utilization rate was below ______ percent.

Accepted Answer

A) 5;85 
B) 9;70 
C) 2;90 
D) 0;100 
A) 5;85 
B) 9;70 
C) 2;90 
D) 0;100

Question 6

Economic growth is difficult for poor countries because

Accepted Answer

A) governments must fund capital production and research out of tax revenues. 
B) resources must be taken away from consumer goods to pay for technology. 
C) resources must be taken away from consumer goods to pay for capital goods. 
D) those wealthy enough to invest in domestic industries may choose to invest abroad instead. 
E) All of the choices are true. 
A) governments must fund capital production and research out of tax revenues. 
B) resources must be taken away from consumer goods to pay for technology. 
C) resources must be taken away from consumer goods to pay for capital goods. 
D) those wealthy enough to invest in domestic industries may choose to invest abroad instead. 
E) All of the choices are true.

Question 7

Which of the following statements about the concept of opportunity cost is true?

Accepted Answer

A) The opportunity cost of a decision is the cost of all possible alternatives to the good produced. 
B) Many decisions do not involve an opportunity cost. 
C) If you have an economics final and an American history final tomorrow,the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam. 
D) The opportunity cost of a college education at a school where you have to drive 100 miles per week is the cost and maintenance of owning an automobile to drive to and from school. 
A) The opportunity cost of a decision is the cost of all possible alternatives to the good produced. 
B) Many decisions do not involve an opportunity cost. 
C) If you have an economics final and an American history final tomorrow,the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam. 
D) The opportunity cost of a college education at a school where you have to drive 100 miles per week is the cost and maintenance of owning an automobile to drive to and from school.

Question 8

Which statement is true?

Accepted Answer

A) On the production possibilities frontier,unemployment is zero percent. 
B) On the production possibilities frontier,85 percent of the labor force is employed. 
C) To get out of a recession,we must move to some point closer to the production possibilities frontier. 
D) To have economic growth,we must have zero unemployment. 
A) On the production possibilities frontier,unemployment is zero percent. 
B) On the production possibilities frontier,85 percent of the labor force is employed. 
C) To get out of a recession,we must move to some point closer to the production possibilities frontier. 
D) To have economic growth,we must have zero unemployment.

Question 9

Our economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent.

Accepted Answer

A) 5;95 
B) 5;85 
C) 10;95 
D) 10;85 
A) 5;95 
B) 5;85 
C) 10;95 
D) 10;85

Question 10

Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon,because"

Accepted Answer

A) of its extreme freedom of thought. 
B) of its emphasis on independent thinking. 
C) of its steady immigration of new minds. 
D) of its risk-taking culture with no stigma attached to trying and failing. 
E) of all of the factors listed. 
A) of its extreme freedom of thought. 
B) of its emphasis on independent thinking. 
C) of its steady immigration of new minds. 
D) of its risk-taking culture with no stigma attached to trying and failing. 
E) of all of the factors listed.

Question 11

Hypothetical Production Schedule for a Two-Product Economy $\begin{array}{ccc}
&Units~ of&Units~ of\
\text { Points } & \text { Consumer Goods } & \text { Capital Goods } \
\hline \mathrm{A} & 0 & 30 \
\mathrm{B} & 15 & 24 \
\mathrm{C} & 27 & 18 \
\mathrm{D} & 36 & 12 \
\mathrm{E} & 42 & 6 \
\mathrm{F} & 45 & 0
\end{array}$
-If the economy could produce 42 consumer goods and 12 capital goods,given the current production possibilities curve,the economy would be producing ___________________ (outside/on/inside)the curve.

Accepted Answer

The answer of Hypothetical Production Schedule for a Two-Product Economy...

Question 12

The existence of unemployment can be illustrated on a production possibilities curve by a(n)

Accepted Answer

A) point below or inside the surface of the curve. 
B) inward shift of the curve. 
C) movement down along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis. 
D) movement up along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis. 
A) point below or inside the surface of the curve. 
B) inward shift of the curve. 
C) movement down along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis. 
D) movement up along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis.

Question 13

The wealth of nations is determined by the resources available to a nation and was discussed in 1776 by the famous economist,_________________.

Accepted Answer

The answer of The wealth of nations is determined by...

Question 14

-A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside)the production possibilities curve.

Accepted Answer

The answer of  
-A country producing a combination of...

Question 15

The opportunity cost of the war in Iraq would be

Accepted Answer

A) The $5 billion a month that the U.S.spends fighting the war. 
B) How the $5 billion a month to fight the war might otherwise be spent. 
C) Both of the choices are true. 
D) Neither of the choices are true. 
A) The $5 billion a month that the U.S.spends fighting the war. 
B) How the $5 billion a month to fight the war might otherwise be spent. 
C) Both of the choices are true. 
D) Neither of the choices are true.

Question 16

If we moved from point T to point R we would be

Accepted Answer

A) giving up trips for more transplants. 
B) giving up transplants for more trips. 
C) gaining both trips and transplants. 
D) losing both trips and transplants. 
A) giving up trips for more transplants. 
B) giving up transplants for more trips. 
C) gaining both trips and transplants. 
D) losing both trips and transplants.

Question 17

-The economy could produce at 8 units of outboard motors and 18 units of robots

Accepted Answer

A) immediately only under unusual circumstances such as war. 
B) if there is economic growth over a period of years. 
C) under no circumstances. 
D) immediately only under unusual circumstances such as war AND if there is economic growth over a period of years. 
A) immediately only under unusual circumstances such as war. 
B) if there is economic growth over a period of years. 
C) under no circumstances. 
D) immediately only under unusual circumstances such as war AND if there is economic growth over a period of years.

Question 18

The opportunity cost of a movement from point N to J would

Accepted Answer

A) be the lost production of some capital goods. 
B) be the lost production of some consumer goods. 
C) be slower economic growth in the future. 
D) not involve any sacrifice of either capital or consumer goods. 
A) be the lost production of some capital goods. 
B) be the lost production of some consumer goods. 
C) be slower economic growth in the future. 
D) not involve any sacrifice of either capital or consumer goods.

Question 19

Hypothetical Production Schedule for a Two-Product Economy $\begin{array}{ccc}
&Units~ of&Units~ of\
\text { Points } & \text { Consumer Goods } & \text { Capital Goods } \
\hline \text { A } & 0 & 20 \
\text { B } & 40 & 16 \
\text { C } & 72 & 12 \
\text { D } & 96 & 8 \
\text { E } & 112 & 4 \
\text { F } & 120 & 0
\end{array}$
-If the society chooses point B instead of point C,

Accepted Answer

A) economic growth is more likely. 
B) economic growth is less likely. 
C) the chances of achieving economic growth will not be affected. 
D) unemployment will result. 
A) economic growth is more likely. 
B) economic growth is less likely. 
C) the chances of achieving economic growth will not be affected. 
D) unemployment will result.

Question 20

-If the economy were producing at point Z and moved to point D,

Accepted Answer

A) it could only produce more butter at the sacrifice of some gun production. 
B) it could only produce more guns at the sacrifice of some butter production. 
C) it could produce more guns and more butter at the same time. 
D) it would be impossible to produce more guns without the sacrifice of some butter production. 
A) it could only produce more butter at the sacrifice of some gun production. 
B) it could only produce more guns at the sacrifice of some butter production. 
C) it could produce more guns and more butter at the same time. 
D) it would be impossible to produce more guns without the sacrifice of some butter production.

Exam 2: Resource Utilization

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets.The opportunity cost to Jeff of going to an extra hockey game is

A production possibilities frontier demonstrates

The economy usually operates at point _______.

Hypothetical Production Schedule for a Two-Product Economy Units\nobreakspaceof Units\nobreakspaceof Points Consumer Goods Capital Goods 0 30 15 24 27 18 36 12 42 6 45 0 -In the table above,points A through F represent _______________________ of resources.

For most of 2009 the U.S.was in a very severe recession,with an unemployment rate approximately _____ percent while the capacity utilization rate was below ______ percent.

Economic growth is difficult for poor countries because

Which of the following statements about the concept of opportunity cost is true?

Which statement is true?

Our economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent.

Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon,because"

The existence of unemployment can be illustrated on a production possibilities curve by a(n)

The wealth of nations is determined by the resources available to a nation and was discussed in 1776 by the famous economist,_________________.

-A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside)the production possibilities curve.

The opportunity cost of the war in Iraq would be

If we moved from point T to point R we would be

-The economy could produce at 8 units of outboard motors and 18 units of robots

The opportunity cost of a movement from point N to J would

Hypothetical Production Schedule for a Two-Product Economy Units\nobreakspaceof Units\nobreakspaceof Points Consumer Goods Capital Goods A 0 20 B 40 16 C 72 12 D 96 8 E 112 4 F 120 0 -If the society chooses point B instead of point C,

-If the economy were producing at point Z and moved to point D,

A Brief Economic History of the United States

The Mixed Economy

Supply and Demand

The Household Consumption Sector

The Business Investment Sector

The Government Sector

The Export-Import Sector

Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

Fiscal Policy and the National Debt

Money and Banking

The Federal Reserve and Monetary Policy

A Century of Economic Theory

Economic Growth and Productivity

Demand,supply,and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

For most of 2009 the U.S.was in a very severe recession,with an unemployment rate approximately _ percent while the capacity utilization rate was below __ percent.

Our economy would be operating at full employment with labor unemployment rate of _ percent and a capacity utilization rate of ___ percent.