Question 1

The entrepreneur

Accepted Answer

A) runs his or her own business and risks his or her own money. 
B) does not necessarily run her or his own business nor risks her or his own money. 
C) runs his or her own business,but does not necessarily risk his or her own money. 
D) does not necessarily run her or his own business,but does risk her or his own money. 
A) runs his or her own business and risks his or her own money. 
B) does not necessarily run her or his own business nor risks her or his own money. 
C) runs his or her own business,but does not necessarily risk his or her own money. 
D) does not necessarily run her or his own business,but does risk her or his own money.

Question 2

-Statement I.The definition of economics is that equilibrium is when supply and demand are equal.
Statement II.Human wants are limited because our resources are limited.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 3

-Place point A on the graph to indicate where our economy operated in 1938.

Accepted Answer

The answer of  
-Place point A on the graph...

Question 4

-The economy could reach point W if it

Accepted Answer

A) reduced the unemployment rate. 
B) achieved economic growth. 
C) decreased its quantity of land,labor and capital. 
D) shifted resources from butter production into the manufacturing guns. 
A) reduced the unemployment rate. 
B) achieved economic growth. 
C) decreased its quantity of land,labor and capital. 
D) shifted resources from butter production into the manufacturing guns.

Question 5

If our nation's maximum possible output of any one good is produced,given the output of other goods,we have attained ___________.

Accepted Answer

productive

Question 6

-If the economy was producing at point X and moved to point Y,

Accepted Answer

A) it would have moved from where the economy operates most of the time to a severe recession. 
B) it would have moved from where the economy operates most of the time to a depression. 
C) the unemployment rate would increase. 
D) it would have moved from where the economy operates most of the time to a severe recession AND the unemployment rate would increase. 
E) it would have moved from where the economy operates most of the time to a depression AND the unemployment rate would increase. 
A) it would have moved from where the economy operates most of the time to a severe recession. 
B) it would have moved from where the economy operates most of the time to a depression. 
C) the unemployment rate would increase. 
D) it would have moved from where the economy operates most of the time to a severe recession AND the unemployment rate would increase. 
E) it would have moved from where the economy operates most of the time to a depression AND the unemployment rate would increase.

Question 7

-The unemployment rate falls when we go from

Accepted Answer

A) W to X. 
B) X to W. 
C) X to Y. 
D) Y to X. 
A) W to X. 
B) X to W. 
C) X to Y. 
D) Y to X.

Question 8

If you kept your money under your mattress rather than keeping it in a savings account at your local bank,

Accepted Answer

A) you would not incur an opportunity cost. 
B) the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account. 
C) the opportunity cost of such an action would be the gas money it took to drive to the bank. 
D) None of the choices are true. 
A) you would not incur an opportunity cost. 
B) the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account. 
C) the opportunity cost of such an action would be the gas money it took to drive to the bank. 
D) None of the choices are true.

Question 9

Individuals are forced to make choices because

Accepted Answer

A) human wants are limited. 
B) the supply of resources is infinite. 
C) wants are unlimited and resources are scarce. 
D) resources are unlimiteD. 
A) human wants are limited. 
B) the supply of resources is infinite. 
C) wants are unlimited and resources are scarce. 
D) resources are unlimiteD.

Question 10

An improvement in technology will cause the

Accepted Answer

A) economy to move down the production possibility frontier. 
B) production possibility frontier to shift inward. 
C) production possibility frontier to shift outward. 
D) economy to move closer to its production possibility frontier. 
A) economy to move down the production possibility frontier. 
B) production possibility frontier to shift inward. 
C) production possibility frontier to shift outward. 
D) economy to move closer to its production possibility frontier.

Question 11

-Statement I.Technological advance pushes a country's production possibilities frontier outward.
Statement II.Our economic growth slowed down from the early 1970s compared to the two decades before the 1970s.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 12

The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines _____________.

Accepted Answer

The answer of The study of the efficient allocation of...

Question 13

Which of the following is an example of capital?

Accepted Answer

A) Money in a Swiss bank account 
B) A bulldozer 
C) A CD by Metalicca 
D) A Dracula costume for Halloween 
E) A U.S.Savings bond 
A) Money in a Swiss bank account 
B) A bulldozer 
C) A CD by Metalicca 
D) A Dracula costume for Halloween 
E) A U.S.Savings bond

Question 14

-What is the opportunity cost of going from point C to point D?

Accepted Answer

The answer of  
-What is the opportunity cost of...

Question 15

The opportunity cost for a student of attending college for a year is measured by

Accepted Answer

A) the benefit received by the student. 
B) the tuition paid for the year. 
C) the value of the most valued opportunity foregone by attending college. 
D) the total money outlays associated with attending college. 
A) the benefit received by the student. 
B) the tuition paid for the year. 
C) the value of the most valued opportunity foregone by attending college. 
D) the total money outlays associated with attending college.

Question 16

Hypothetical Production Schedule for Two-Product Economy $\begin{array}{ccc}
&\text { Units of }&\text { Units of }\
\text { Point } & \text { Hamburgers } & \text { Milk Shakes } \
\hline \text { A } & 0 & 10 \
\text { B } & 1 & 5 \
\text { C } & 2 & 3 \
\text { D } & 3 & 1 \
\text { E } & 4 & 0
\end{array}$
-What is the opportunity cost of moving from point B to point C?

Accepted Answer

The answer of Hypothetical Production Schedule for Two-Product Economy \(\begin{array}{ccc}
&\text...

Question 17

"As output of one good expands,the opportunity cost of producing additional units of this good increases," is the law of ____________.

Accepted Answer

The answer of "As output of one good expands,the opportunity...

Question 18

An inward shift in the entire production possibilities frontier

Accepted Answer

A) represents economic growth. 
B) means that the economy can produce more of both goods. 
C) occurs if there is an increase in the capital stock. 
D) takes place if there is an expansion in the labor force. 
E) means that previous levels of production are now unobtainable. 
A) represents economic growth. 
B) means that the economy can produce more of both goods. 
C) occurs if there is an increase in the capital stock. 
D) takes place if there is an expansion in the labor force. 
E) means that previous levels of production are now unobtainable.

Question 19

If point C is now 9 units of guns and 8 units of butter,the maximum units of guns possible to produce is 17 and the maximum units of butter possible to produce is 13,the production possibility curve would have shifted _____________ (outward/inward).

Accepted Answer

The answer of If point C is now 9 units...

Question 20

-Place point Z on the graph to indicate where our economy will most likely operate five years from now if we enjoyed an economic growth rate of 5 percent a year.

Accepted Answer

The answer of  
-Place point Z on the graph...

Exam 2: Resource Utilization

The entrepreneur

-Statement I.The definition of economics is that equilibrium is when supply and demand are equal. Statement II.Human wants are limited because our resources are limited.

-Place point A on the graph to indicate where our economy operated in 1938.

-The economy could reach point W if it

If our nation's maximum possible output of any one good is produced,given the output of other goods,we have attained ___________.

-If the economy was producing at point X and moved to point Y,

-The unemployment rate falls when we go from

If you kept your money under your mattress rather than keeping it in a savings account at your local bank,

Individuals are forced to make choices because

An improvement in technology will cause the

-Statement I.Technological advance pushes a country's production possibilities frontier outward. Statement II.Our economic growth slowed down from the early 1970s compared to the two decades before the 1970s.

The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines _____________.

Which of the following is an example of capital?

-What is the opportunity cost of going from point C to point D?

The opportunity cost for a student of attending college for a year is measured by

Hypothetical Production Schedule for Two-Product Economy Units of Units of Point Hamburgers Milk Shakes A 0 10 B 1 5 C 2 3 D 3 1 E 4 0 -What is the opportunity cost of moving from point B to point C?

"As output of one good expands,the opportunity cost of producing additional units of this good increases," is the law of ____________.

An inward shift in the entire production possibilities frontier

If point C is now 9 units of guns and 8 units of butter,the maximum units of guns possible to produce is 17 and the maximum units of butter possible to produce is 13,the production possibility curve would have shifted _____________ (outward/inward).

-Place point Z on the graph to indicate where our economy will most likely operate five years from now if we enjoyed an economic growth rate of 5 percent a year.

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