Question 1

Statement I.Labor and capital are resources.
Statement II.Scarcity has been largely eliminated from our economy.

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 2

We temporarily operated outside our production possibilities frontier in

Accepted Answer

A) 1933. 
B) 1943. 
C) 1973. 
D) 1982. 
A) 1933. 
B) 1943. 
C) 1973. 
D) 1982.

Question 3

In our economy

Accepted Answer

A) there is no need to economize. 
B) we rarely have to economize. 
C) only the rich have to. 
D) nearly everyone has to economize. 
A) there is no need to economize. 
B) we rarely have to economize. 
C) only the rich have to. 
D) nearly everyone has to economize.

Question 4

-If the economy was producing at point D and moved to point C

Accepted Answer

A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities frontier would shift outward. 
D) the production possibilities frontier would shift inwarD. 
E) None of these choices are true. 
A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities frontier would shift outward. 
D) the production possibilities frontier would shift inwarD. 
E) None of these choices are true.

Question 5

In order to raise our rate of economic growth we would need to

Accepted Answer

A) increase the level of capital. 
B) reduce the level of labor. 
C) spend more on military goods. 
D) spend more on consumer goods. 
A) increase the level of capital. 
B) reduce the level of labor. 
C) spend more on military goods. 
D) spend more on consumer goods.

Question 6

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

Accepted Answer

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

Question 7

Japan could shift its production possibilities curve outward (to the right)if

Accepted Answer

A) it could buy some islands in the Pacific Ocean,thus increasing its available amount of land. 
B) it could devote more of its output to military goods. 
C) it could devote more of its output to producing consumer goods. 
D) all of the choices are true. 
A) it could buy some islands in the Pacific Ocean,thus increasing its available amount of land. 
B) it could devote more of its output to military goods. 
C) it could devote more of its output to producing consumer goods. 
D) all of the choices are true.

Question 8

Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards.The opportunity cost to Tommy of an extra packet of Pokemon cards is

Accepted Answer

A) one video game rental. 
B) two video game rentals. 
C) the cost of the Pokemon cards. 
D) he does not incur an opportunity cost. 
A) one video game rental. 
B) two video game rentals. 
C) the cost of the Pokemon cards. 
D) he does not incur an opportunity cost.

Question 9

Which statement is true?

Accepted Answer

A) The economic problem is limited to poverty. 
B) Scarcity is no longer an economic problem in the United States. 
C) If we all had more money there would be less scarcity. 
D) None of these statements are true. 
A) The economic problem is limited to poverty. 
B) Scarcity is no longer an economic problem in the United States. 
C) If we all had more money there would be less scarcity. 
D) None of these statements are true.

Question 10

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

Accepted Answer

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

Question 11

Which of the following statements does not reflect the concept of factor suitability?

Accepted Answer

A) It is one of the three concepts that explain the Law of Increasing Cost. 
B) If the economy is shifting from butter to gun production,the butter makers will give the gun makers their worst workers. 
C) Too many farmers work one field,eventually it will lead to less production. 
D) All farmland is not equally well-suited for producing corn. 
A) It is one of the three concepts that explain the Law of Increasing Cost. 
B) If the economy is shifting from butter to gun production,the butter makers will give the gun makers their worst workers. 
C) Too many farmers work one field,eventually it will lead to less production. 
D) All farmland is not equally well-suited for producing corn.

Question 12

Referring to a production possibilities curve and the goods being compared,depict the economic event.The economy moves from full employment to a serious recession (capital goods vs.consumer goods).

Accepted Answer

A) A movement from a point inside the curve to a point on or near the curve 
B) A movement from a point on or near the curve to a point inside the curve 
C) A shift in the entire curve to the right (outward) 
D) A shift in the entire curve to the left (inward) 
E) A movement along the curve 
A) A movement from a point inside the curve to a point on or near the curve 
B) A movement from a point on or near the curve to a point inside the curve 
C) A shift in the entire curve to the right (outward) 
D) A shift in the entire curve to the left (inward) 
E) A movement along the curve

Question 13

During 2009 and 2010,______ of Americans under 25 were unemployed.

Accepted Answer

A) one-half 
B) one-third 
C) one-quarter 
D) three-quarters 
A) one-half 
B) one-third 
C) one-quarter 
D) three-quarters

Question 14

Entrepreneurs

Accepted Answer

A) receive most of their income through inheritance. 
B) receive interest payments for their services. 
C) undertake risky activities in order to earn profits. 
D) are unemployed except during economic boom periods. 
A) receive most of their income through inheritance. 
B) receive interest payments for their services. 
C) undertake risky activities in order to earn profits. 
D) are unemployed except during economic boom periods.

Question 15

-If the economy were producing at 12 units of outboard motors and 8 units of robots

Accepted Answer

A) the economy would be at a point inside its production possibilities curve. 
B) the economy would be at a point outside its production possibilities curve. 
C) the economy would have unemployed resources. 
D) the economy would be at a point inside its production possibilities curve AND would have unemployed resources. 
A) the economy would be at a point inside its production possibilities curve. 
B) the economy would be at a point outside its production possibilities curve. 
C) the economy would have unemployed resources. 
D) the economy would be at a point inside its production possibilities curve AND would have unemployed resources.

Question 16

For most of World War II,our economy temporarily operated ____________ our production possibilities frontier.

Accepted Answer

The answer of For most of World War II,our economy...

Question 17

Statement I: An outward shift in the production possibilities frontier shows economic growth for a country.
Statement II: Our economy generally operates inside the production possibilities frontier.

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 18

A move from point H to I would

Accepted Answer

A) raise employment substantially. 
B) raise employment slightly. 
C) lower employment slightly. 
D) lower employment substantially. 
E) have no effect on employment. 
A) raise employment substantially. 
B) raise employment slightly. 
C) lower employment slightly. 
D) lower employment substantially. 
E) have no effect on employment.

Question 19

In the 1950s

Accepted Answer

A) more women were unemployed than underemployed. 
B) more women were underemployed than unemployed. 
C) about the same number of women were unemployed as underemployed. 
A) more women were unemployed than underemployed. 
B) more women were underemployed than unemployed. 
C) about the same number of women were unemployed as underemployed.

Question 20

Which of the following would NOT be an opportunity cost of fighting the war in Iraq?

Accepted Answer

A) The $5 billion per month spent on research to cure breast cancer. 
B) A $5 billion per month cut in income taxes. 
C) A $5 billion per month investment in high speed rail systems between 12 major cities in the country. 
D) The $5 billion per month cost of fighting the war. 
E) A $5 billion per month program that invested in low-income housing across the country. 
A) The $5 billion per month spent on research to cure breast cancer. 
B) A $5 billion per month cut in income taxes. 
C) A $5 billion per month investment in high speed rail systems between 12 major cities in the country. 
D) The $5 billion per month cost of fighting the war. 
E) A $5 billion per month program that invested in low-income housing across the country.

Exam 2: Resource Utilization

Statement I.Labor and capital are resources. Statement II.Scarcity has been largely eliminated from our economy.

We temporarily operated outside our production possibilities frontier in

In our economy

-If the economy was producing at point D and moved to point C

In order to raise our rate of economic growth we would need to

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

Japan could shift its production possibilities curve outward (to the right)if

Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards.The opportunity cost to Tommy of an extra packet of Pokemon cards is

Which statement is true?

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

Which of the following statements does not reflect the concept of factor suitability?

Referring to a production possibilities curve and the goods being compared,depict the economic event.The economy moves from full employment to a serious recession (capital goods vs.consumer goods).

During 2009 and 2010,______ of Americans under 25 were unemployed.

Entrepreneurs

-If the economy were producing at 12 units of outboard motors and 8 units of robots

For most of World War II,our economy temporarily operated ____________ our production possibilities frontier.

Statement I: An outward shift in the production possibilities frontier shows economic growth for a country. Statement II: Our economy generally operates inside the production possibilities frontier.

A move from point H to I would

In the 1950s

Which of the following would NOT be an opportunity cost of fighting the war in Iraq?

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