Question 1

In order to raise our rate of economic growth our country needs to

Accepted Answer

A) Spend more on consumer goods. 
B) Use older,tried and true technology. 
C) Have its consumers save less. 
D) Have its business firms invest more. 
A) Spend more on consumer goods. 
B) Use older,tried and true technology. 
C) Have its consumers save less. 
D) Have its business firms invest more.

Question 2

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 B,the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.

Accepted Answer

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

Question 3

Which statement about entrepreneurship in America is true?

Accepted Answer

A) Alexander Graham Bell and Thomas Edison were two of the most famous American inventors who became entrepreneurs. 
B) The American entrepreneur led the way to the country's economic success. 
C) Often the entrepreneur is an innovator. 
D) The vast majority of entrepreneurs in America either work for themselves or have just one or two employees. 
E) All of the statements are true. 
A) Alexander Graham Bell and Thomas Edison were two of the most famous American inventors who became entrepreneurs. 
B) The American entrepreneur led the way to the country's economic success. 
C) Often the entrepreneur is an innovator. 
D) The vast majority of entrepreneurs in America either work for themselves or have just one or two employees. 
E) All of the statements are true.

Question 4

Referring to a production possibilities curve and the goods being compared,depict the economic event.The AIDS epidemic becomes rampant in America claiming millions of lives (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 5

John Maynard Keynes noted that

Accepted Answer

A) we could print all the money we want and still have scarcity. 
B) "to secure the greatest amount of pleasure with the least possible outlay should be the aim of all economic effort." 
C) the general notion that scarcity is due to not having enough money is an illusion. 
D) we could print all the money we want and still have scarcity AND the general notion that scarcity is due to not having enough money is an illusion. 
E) we could print all the money we want and still have scarcity AND "to secure the greatest amount of pleasure with the least possible outlay should be the aim of all economic effort." 
A) we could print all the money we want and still have scarcity. 
B) "to secure the greatest amount of pleasure with the least possible outlay should be the aim of all economic effort." 
C) the general notion that scarcity is due to not having enough money is an illusion. 
D) we could print all the money we want and still have scarcity AND the general notion that scarcity is due to not having enough money is an illusion. 
E) we could print all the money we want and still have scarcity AND "to secure the greatest amount of pleasure with the least possible outlay should be the aim of all economic effort."

Question 6

-If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be

Accepted Answer

A) 1 unit of robots. 
B) 2 units of robots. 
C) 3 units of robots. 
D) 2 units of outboard motors. 
A) 1 unit of robots. 
B) 2 units of robots. 
C) 3 units of robots. 
D) 2 units of outboard motors.

Question 7

Statement I.Our economy only rarely attains productive efficiency.
Statement II.The U.S.economy reached productive efficiency from mid-1997 through early 2001.

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 8

-Point P represents

Accepted Answer

A) a severe recession. 
B) where our economy usually operates. 
C) inflation. 
D) full employment. 
A) a severe recession. 
B) where our economy usually operates. 
C) inflation. 
D) full employment.

Question 9

Economic growth can be shown by ____________________ production possibilities curve.

Accepted Answer

A) an outward shift of the 
B) an inward shift of the 
C) a movement from one point to another along the 
D) a movement to a point inside the 
A) an outward shift of the 
B) an inward shift of the 
C) a movement from one point to another along the 
D) a movement to a point inside the

Question 10

If the country represented in this graph now can produce a maximum of 12 units of guns if it shifts all resources to gun production and could produce a maximum of 9 units of butter if it used all its resources for butter production then it would have experienced _________________.

Accepted Answer

economic decline (or

Question 11

A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.

Accepted Answer

A) This may be possible if the economy has unemployed resources. 
B) This is possible only in a fully employed economy. 
C) This is possible if the economy is producing on its production possibilities curve. 
D) None of the choices are possible. 
A) This may be possible if the economy has unemployed resources. 
B) This is possible only in a fully employed economy. 
C) This is possible if the economy is producing on its production possibilities curve. 
D) None of the choices are possible.

Question 12

Which of the following is not an institutional constraint that limits our nation's production possibilities?

Accepted Answer

A) Blue laws that restrict bars and liquor stores from opening on Sunday 
B) Restrictions on child labor 
C) The fact that Americans dislike working at night or on the weekends 
D) Workers who are "in between" jobs 
A) Blue laws that restrict bars and liquor stores from opening on Sunday 
B) Restrictions on child labor 
C) The fact that Americans dislike working at night or on the weekends 
D) Workers who are "in between" jobs

Question 13

One way to attain a faster rate of economic growth would be to shift some resources from the production of _________ goods to the production of __________ goods.

Accepted Answer

The answer of One way to attain a faster rate...

Question 14

All of the following statements are true about entrepreneurship except:

Accepted Answer

A) The entrepreneur assembles the other needed resources. 
B) The entrepreneur risks her or his own money. 
C) The entrepreneur reaps the profits or suffers the losses of the enterprise he or she creates. 
D) The term entrepreneur is synonymous with the term inventor. 
A) The entrepreneur assembles the other needed resources. 
B) The entrepreneur risks her or his own money. 
C) The entrepreneur reaps the profits or suffers the losses of the enterprise he or she creates. 
D) The term entrepreneur is synonymous with the term inventor.

Question 15

Which one of the following is the most accurate?

Accepted Answer

A) In recent years our economy was at full employment until 2010. 
B) Our economy operated outside of its production possibilities curve in 2009 and 2010. 
C) Our economy is currently operating on its production possibilities curve. 
D) Our economy is currently operation inside its production possibilities curve. 
A) In recent years our economy was at full employment until 2010. 
B) Our economy operated outside of its production possibilities curve in 2009 and 2010. 
C) Our economy is currently operating on its production possibilities curve. 
D) Our economy is currently operation inside its production possibilities curve.

Question 16

A production possibilities curve shows

Accepted Answer

A) that in order to acquire more of one good,none of the alternative good must be given up. 
B) that in order to acquire more of one good,some of the alternative good must be given up. 
C) that any amount of goods could be produced by society if people worked harder. 
D) various combinations of guns and butter that can be produced under conditions of 6 percent unemployment. 
A) that in order to acquire more of one good,none of the alternative good must be given up. 
B) that in order to acquire more of one good,some of the alternative good must be given up. 
C) that any amount of goods could be produced by society if people worked harder. 
D) various combinations of guns and butter that can be produced under conditions of 6 percent unemployment.

Question 17

The closer we are to the production possibilities frontier and the farther away we are from the origin,

Accepted Answer

A) the more unemployment there is. 
B) the less unemployment there is. 
C) the only way to produce more guns will be to give up some butter production. 
D) the only way to produce more butter will be to give up some gun production. 
A) the more unemployment there is. 
B) the less unemployment there is. 
C) the only way to produce more guns will be to give up some butter production. 
D) the only way to produce more butter will be to give up some gun production.

Question 18

We temporarily operated outside the production possibilities frontier for at least two years in which one of the following decades?

Accepted Answer

A) The 1930s 
B) The 1940s 
C) The 1970s 
D) The 1980s 
A) The 1930s 
B) The 1940s 
C) The 1970s 
D) The 1980s

Question 19

"The value of the next best alternative" defines

Accepted Answer

A) the Law of Increasing Costs. 
B) the economic problem. 
C) allocative efficiency. 
D) opportunity cost. 
A) the Law of Increasing Costs. 
B) the economic problem. 
C) allocative efficiency. 
D) opportunity cost.

Question 20

Andrew Carnegie,Steven Jobs and Sam Walton were all innovators who are also considered ____________.

Accepted Answer

The answer of Andrew Carnegie,Steven Jobs and Sam Walton were...

Exam 2: Resource Utilization

In order to raise our rate of economic growth our country needs to

Which statement about entrepreneurship in America is true?

Referring to a production possibilities curve and the goods being compared,depict the economic event.The AIDS epidemic becomes rampant in America claiming millions of lives (capital goods vs.consumer goods).

John Maynard Keynes noted that

-If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be

Statement I.Our economy only rarely attains productive efficiency. Statement II.The U.S.economy reached productive efficiency from mid-1997 through early 2001.

-Point P represents

Economic growth can be shown by ____________________ production possibilities curve.

If the country represented in this graph now can produce a maximum of 12 units of guns if it shifts all resources to gun production and could produce a maximum of 9 units of butter if it used all its resources for butter production then it would have experienced _________________.

A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.

Which of the following is not an institutional constraint that limits our nation's production possibilities?

One way to attain a faster rate of economic growth would be to shift some resources from the production of _________ goods to the production of __________ goods.

All of the following statements are true about entrepreneurship except:

Which one of the following is the most accurate?

A production possibilities curve shows

The closer we are to the production possibilities frontier and the farther away we are from the origin,

We temporarily operated outside the production possibilities frontier for at least two years in which one of the following decades?

"The value of the next best alternative" defines

Andrew Carnegie,Steven Jobs and Sam Walton were all innovators who are also considered ____________.

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

One way to attain a faster rate of economic growth would be to shift some resources from the production of _ goods to the production of __ goods.