Question 1

Large firms are able to lower their costs by taking advantage of __________________.

Accepted Answer

The answer of Large firms are able to lower their...

Question 2

An increase in the unemployment rate would be shown on a production possibilities curve by

Accepted Answer

A) shifting the entire curve outward. 
B) shifting the entire curve inward. 
C) moving from a point on or near the curve to a point closer to the origin,rather than shifting the entire curve. 
D) moving from a point inside the curve to a point on or at least closer to,the curve,rather than shifting the entire curve. 
A) shifting the entire curve outward. 
B) shifting the entire curve inward. 
C) moving from a point on or near the curve to a point closer to the origin,rather than shifting the entire curve. 
D) moving from a point inside the curve to a point on or at least closer to,the curve,rather than shifting the entire curve.

Question 3

-Which set of points would show a movement from depression to full employment?

Accepted Answer

A) A movement from Point C to B 
B) A movement from Point B to A 
C) A movement from Point C to E 
D) A movement from Point D to C 
A) A movement from Point C to B 
B) A movement from Point B to A 
C) A movement from Point C to E 
D) A movement from Point D to C

Question 4

Statement I.When U.S.unemployment rate is five percent,it attains full employment.
Statement II.Full employment and full production mean virtually the same thing.

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 5

Referring to a production possibilities curve and the goods being compared,depict the economic event.Computerization in the 1990s launched thousands of new businesses in the United States (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 6

Point F

Accepted Answer

A) is where our economy operates most of the time. 
B) is unattainable. 
C) represents a severe recession. 
D) can be temporarily attained under unusual circumstances. 
A) is where our economy operates most of the time. 
B) is unattainable. 
C) represents a severe recession. 
D) can be temporarily attained under unusual circumstances.

Question 7

-Place point B on the graph to indicate where our economy operated in 1943.

Accepted Answer

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

Question 8

If the production possibilities frontier were a straight line,

Accepted Answer

A) the Law of Increasing Cost would still apply. 
B) the opportunity cost of producing one good would decrease as more of another good is produced. 
C) the opportunity cost of producing one good would increase as more of another good is produced. 
D) the opportunity cost of producing one good would remain the same as more of another good is produced. 
A) the Law of Increasing Cost would still apply. 
B) the opportunity cost of producing one good would decrease as more of another good is produced. 
C) the opportunity cost of producing one good would increase as more of another good is produced. 
D) the opportunity cost of producing one good would remain the same as more of another good is produced.

Question 9

At point S,the economy is operating at approximately _______ percent unemployment.

Accepted Answer

The answer of At point S,the economy is operating at...

Question 10

The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods,it must

Accepted Answer

A) also increase its production of nonmilitary goods. 
B) reduce its output of nonmilitary goods. 
C) suffer inflation. 
D) suffer unemployment. 
A) also increase its production of nonmilitary goods. 
B) reduce its output of nonmilitary goods. 
C) suffer inflation. 
D) suffer unemployment.

Question 11

Statement I.Resources are often referred to as "the means of production."
Statement II.Capital is a resource.

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

Economic growth occurs when

Accepted Answer

A) a large part of a country's population is poor. 
B) a society sacrifices an amount of one good for more of another along its production possibility frontier. 
C) a society acquires additional resources or when its technology advances. 
D) there is unemployment of labor but other resources are used efficiently. 
E) the combinations of goods and services that can be produced decreases. 
A) a large part of a country's population is poor. 
B) a society sacrifices an amount of one good for more of another along its production possibility frontier. 
C) a society acquires additional resources or when its technology advances. 
D) there is unemployment of labor but other resources are used efficiently. 
E) the combinations of goods and services that can be produced decreases.

Question 13

The term "the affluent society" was coined by

Accepted Answer

A) Michael Harrington. 
B) John Kenneth Galbraith. 
C) Karl Marx. 
D) Adam Smith. 
A) Michael Harrington. 
B) John Kenneth Galbraith. 
C) Karl Marx. 
D) Adam Smith.

Question 14

Assuming the inner curve is our current production possibilities frontier,points J,N and K represent

Accepted Answer

A) an inefficient use of resources. 
B) an output that is not possible to produce. 
C) points of unemployed resources. 
D) points of fully employed resources. 
A) an inefficient use of resources. 
B) an output that is not possible to produce. 
C) points of unemployed resources. 
D) points of fully employed resources.

Question 15

__________________ is attained when the maximum possible output of any one good is produced,given the output of other goods.

Accepted Answer

A) Productive efficiency 
B) Economic growth 
C) Opportunity cost 
D) Employment discrimination 
A) Productive efficiency 
B) Economic growth 
C) Opportunity cost 
D) Employment discrimination

Question 16

-How much is the unemployment rate at point Q?

Accepted Answer

The answer of  
-How much is the unemployment rate...

Question 17

An inward shift of the production possibilities curve could be caused by all of the following except

Accepted Answer

A) a war that destroys the nation's bridges,harbors and other infrastructure. 
B) a plague that wipes out one fifth of the population. 
C) a significant rise in the unemployment rate. 
D) 30 years of neglect of the nation's railroad and interstate highway systems. 
A) a war that destroys the nation's bridges,harbors and other infrastructure. 
B) a plague that wipes out one fifth of the population. 
C) a significant rise in the unemployment rate. 
D) 30 years of neglect of the nation's railroad and interstate highway systems.

Question 18

Which of the following demonstrates opportunity cost?

Accepted Answer

A) With a new strain of wheat,the wheat crop of Canada grows by 20% with no change in the productive resources devoted to wheat farming. 
B) A tax cut increases people's purchases of consumer goods and decreases state expenditures on education. 
C) The ravages of World War II reduced Japan's ability to produce goods. 
D) Flora gets a 10% raise and increases her expenditures on movies. 
A) With a new strain of wheat,the wheat crop of Canada grows by 20% with no change in the productive resources devoted to wheat farming. 
B) A tax cut increases people's purchases of consumer goods and decreases state expenditures on education. 
C) The ravages of World War II reduced Japan's ability to produce goods. 
D) Flora gets a 10% raise and increases her expenditures on movies.

Question 19

-Which point shows where our economy was operating during the low point of the Great Depression?

Accepted Answer

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

Question 20

Which statement is true?

Accepted Answer

A) Entrepreneurial ability is abundant in the U.S. 
B) The entrepreneur sets up a business and risks his or her own money. 
C) Land,labor and capital may be considered passive resources. 
D) All of the statements are true. 
A) Entrepreneurial ability is abundant in the U.S. 
B) The entrepreneur sets up a business and risks his or her own money. 
C) Land,labor and capital may be considered passive resources. 
D) All of the statements are true.

Exam 2: Resource Utilization

Large firms are able to lower their costs by taking advantage of __________________.

An increase in the unemployment rate would be shown on a production possibilities curve by

-Which set of points would show a movement from depression to full employment?

Statement I.When U.S.unemployment rate is five percent,it attains full employment. Statement II.Full employment and full production mean virtually the same thing.

Referring to a production possibilities curve and the goods being compared,depict the economic event.Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs.consumer goods).

Point F

-Place point B on the graph to indicate where our economy operated in 1943.

If the production possibilities frontier were a straight line,

At point S,the economy is operating at approximately _______ percent unemployment.

The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods,it must

Statement I.Resources are often referred to as "the means of production." Statement II.Capital is a resource.

Economic growth occurs when

The term "the affluent society" was coined by

Assuming the inner curve is our current production possibilities frontier,points J,N and K represent

__________________ is attained when the maximum possible output of any one good is produced,given the output of other goods.

-How much is the unemployment rate at point Q?

An inward shift of the production possibilities curve could be caused by all of the following except

Which of the following demonstrates opportunity cost?

-Which point shows where our economy was operating during the low point of the Great Depression?

Which statement is true?

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