Question 1

If our unemployment rate is 5% and our capacity utilization rate is 85-90%,our economy is at __________.

Accepted Answer

The answer of If our unemployment rate is 5% and...

Question 2

If we are operating inside our production possibilities frontier,

Accepted Answer

A) it is possible the economy is in a recession. 
B) it is possible the economy is in a depression. 
C) it is possible that the economy is in neither a recession or a depression. 
D) All of the choices are correct. 
A) it is possible the economy is in a recession. 
B) it is possible the economy is in a depression. 
C) it is possible that the economy is in neither a recession or a depression. 
D) All of the choices are correct.

Question 3

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

Accepted Answer

A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities would shift outward. 
D) the economy would shift resources from producing butter to producing guns. 
E) the economy would shift resources from producing guns to producing butter. 
A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities would shift outward. 
D) the economy would shift resources from producing butter to producing guns. 
E) the economy would shift resources from producing guns to producing butter.

Question 4

Which of the following will shift an economy's production possibilities curve inward?

Accepted Answer

A) An improvement in technology 
B) An increase in the unemployment rate 
C) A decrease in land,labor or capital 
D) A decrease in the unemployment rate 
A) An improvement in technology 
B) An increase in the unemployment rate 
C) A decrease in land,labor or capital 
D) A decrease in the unemployment rate

Question 5

Entrepreneurship is

Accepted Answer

A) the financial capital necessary to launch a new business. 
B) the talent to develop new products and processes and to organize production to make goods and services available. 
C) unskilled labor. 
D) the physical capital resources used to produce goods and services. 
A) the financial capital necessary to launch a new business. 
B) the talent to develop new products and processes and to organize production to make goods and services available. 
C) unskilled labor. 
D) the physical capital resources used to produce goods and services.

Question 6

The reason that opportunity costs arise is that

Accepted Answer

A) people have unlimited wants. 
B) there are no alternative decisions that could be made. 
C) an economy relies on money to facilitate exchange of goods and services. 
D) resources are scarce. 
A) people have unlimited wants. 
B) there are no alternative decisions that could be made. 
C) an economy relies on money to facilitate exchange of goods and services. 
D) resources are scarce.

Question 7

An inward shift of the production possibilities curve

Accepted Answer

A) represents an economic decline. 
B) means that the previous levels of production are now unobtainable except under unusual circumstances such as war. 
C) means that the economy can produce more of both goods. 
D) All of the choices are true. 
E) represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war. 
A) represents an economic decline. 
B) means that the previous levels of production are now unobtainable except under unusual circumstances such as war. 
C) means that the economy can produce more of both goods. 
D) All of the choices are true. 
E) represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.

Question 8

An increase in the rate of economic growth curve could be caused by all of the following except

Accepted Answer

A) a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. 
B) a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. 
C) an increase in immigration that increases the country's labor force by 20 percent. 
D) an increase in research and development spending for space technology that improves the quality of the nation's capital stock. 
A) a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. 
B) a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. 
C) an increase in immigration that increases the country's labor force by 20 percent. 
D) an increase in research and development spending for space technology that improves the quality of the nation's capital stock.

Question 9

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 economy produces 12 capital goods and 40 consumer goods,

Accepted Answer

A) it is producing outside its production possibilities curve. 
B) this combination of output will most likely result in economic growth. 
C) the ability to produce more consumer goods can only be realized by sacrificing capital goods. 
D) this economy has some unemployed resources. 
A) it is producing outside its production possibilities curve. 
B) this combination of output will most likely result in economic growth. 
C) the ability to produce more consumer goods can only be realized by sacrificing capital goods. 
D) this economy has some unemployed resources.

Question 10

Under the current economic situation,which point would represent an unattainable combination of resources?

Accepted Answer

A) Point A 
B) Point D 
C) Point C 
D) Point E 
A) Point A 
B) Point D 
C) Point C 
D) Point E

Question 11

-Imagine that country X is at point X of this production possibilities frontier and country Y is at point Y.

Accepted Answer

A) Country X will probably grow faster then country Y. 
B) Country Y will probably grow faster then country X. 
C) The two countries will probably grow at about the same speed. 
D) There is no way of predicting which country will grow faster. 
A) Country X will probably grow faster then country Y. 
B) Country Y will probably grow faster then country X. 
C) The two countries will probably grow at about the same speed. 
D) There is no way of predicting which country will grow faster.

Question 12

-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

Accepted Answer

A) 2 units of outboard motors. 
B) 4 units of outboard motors. 
C) 12 units of outboard motors. 
D) 11 units of robots. 
A) 2 units of outboard motors. 
B) 4 units of outboard motors. 
C) 12 units of outboard motors. 
D) 11 units of robots.

Question 13

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 is producing at point D,the opportunity cost of shifting resources from consumer goods to gain 6 capital goods is _______ consumer goods.

Accepted Answer

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

Question 14

If the economy is operating at a 7 percent unemployment rate we are operating

Accepted Answer

A) inside the production possibilities curve. 
B) on the production possibilities curve. 
C) outside the production possibilities curve. 
A) inside the production possibilities curve. 
B) on the production possibilities curve. 
C) outside the production possibilities curve.

Question 15

The production possibilities curve illustrates the basic principle that

Accepted Answer

A) an economy's capacity to produce increases in proportion to its population size. 
B) if all the resources of an economy are in use,more of one good can be produced only if less of another good is produced. 
C) an economy will automatically seek that level of output at which all of its resources are employed. 
D) the production of more of any one good will in time require smaller and smaller sacrifices of other goods. 
A) an economy's capacity to produce increases in proportion to its population size. 
B) if all the resources of an economy are in use,more of one good can be produced only if less of another good is produced. 
C) an economy will automatically seek that level of output at which all of its resources are employed. 
D) the production of more of any one good will in time require smaller and smaller sacrifices of other goods.

Question 16

Employment discrimination leads to the _________________ of labor.

Accepted Answer

The answer of Employment discrimination leads to the _________________ of...

Question 17

The four economic resources are: __________,__________,___________ and _________.

Accepted Answer

land;labor

Question 18

Statement I: In the modern global economy,if our steel industry were operating at full capacity we could easily get steel from other steel-producing countries.
Statement II: The only constraints on our production possibilities frontier are physical constraints such as the number of steel factories available,etc.

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 19

People are forced to economize because of

Accepted Answer

A) competition. 
B) pressure to conform. 
C) scarcity. 
D) the absence of money. 
E) the presence of taxes. 
A) competition. 
B) pressure to conform. 
C) scarcity. 
D) the absence of money. 
E) the presence of taxes.

Question 20

-If our economy was operating at point O (where the two axes come together),we would have an unemployment rate of ______ percent.

Accepted Answer

A) 0 
B) 5 
C) 50 
D) 95 
E) 100 
A) 0 
B) 5 
C) 50 
D) 95 
E) 100

Exam 2: Resource Utilization

If our unemployment rate is 5% and our capacity utilization rate is 85-90%,our economy is at __________.

If we are operating inside our production possibilities frontier,

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

Which of the following will shift an economy's production possibilities curve inward?

Entrepreneurship is

The reason that opportunity costs arise is that

An inward shift of the production possibilities curve

An increase in the rate of economic growth curve could be caused by all of the following except

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 economy produces 12 capital goods and 40 consumer goods,

Under the current economic situation,which point would represent an unattainable combination of resources?

-Imagine that country X is at point X of this production possibilities frontier and country Y is at point Y.

-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

If the economy is operating at a 7 percent unemployment rate we are operating

The production possibilities curve illustrates the basic principle that

Employment discrimination leads to the _________________ of labor.

The four economic resources are: __________,__________,___________ and _________.

People are forced to economize because of

-If our economy was operating at point O (where the two axes come together),we would have an unemployment rate of ______ percent.

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

The four economic resources are: ____,,_ and ___.