Question 1

"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 2

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 3

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 4

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 5

The central fact of economics is

Accepted Answer

A) production. 
B) distribution. 
C) equilibrium. 
D) efficiency. 
E) scarcity. 
A) production. 
B) distribution. 
C) equilibrium. 
D) efficiency. 
E) scarcity.

Question 6

Which of the following is not a factor of production?

Accepted Answer

A) Land 
B) Money 
C) Capital 
D) Labor 
E) Entrepreneurship 
A) Land 
B) Money 
C) Capital 
D) Labor 
E) Entrepreneurship

Question 7

-Assuming the inner curve is our current production possibilities frontier,our economy usually operates at ____.

Accepted Answer

A) Point P 
B) Point O 
C) Point N 
D) Point L 
A) Point P 
B) Point O 
C) Point N 
D) Point L

Question 8

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets.The opportunity cost to Jeff of going to an extra hockey game is

Accepted Answer

A) four fewer $10 pizzas. 
B) five movies. 
C) 20 DVD rentals (costing $2 each). 
D) all of the choices are true. 
A) four fewer $10 pizzas. 
B) five movies. 
C) 20 DVD rentals (costing $2 each). 
D) all of the choices are true.

Question 9

Which of the following statements about the concept of opportunity cost is true?

Accepted Answer

A) The opportunity cost of a decision is the cost of all possible alternatives to the good produced. 
B) Many decisions do not involve an opportunity cost. 
C) If you have an economics final and an American history final tomorrow,the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam. 
D) The opportunity cost of a college education at a school where you have to drive 100 miles per week is the cost and maintenance of owning an automobile to drive to and from school. 
A) The opportunity cost of a decision is the cost of all possible alternatives to the good produced. 
B) Many decisions do not involve an opportunity cost. 
C) If you have an economics final and an American history final tomorrow,the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam. 
D) The opportunity cost of a college education at a school where you have to drive 100 miles per week is the cost and maintenance of owning an automobile to drive to and from school.

Question 10

-Which movement between two points represents economic growth?

Accepted Answer

A) J to K 
B) K to L 
C) L to M 
D) M to N 
A) J to K 
B) K to L 
C) L to M 
D) M to N

Question 11

-A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside)the production possibilities curve.

Accepted Answer

The answer of  
-A country temporarily producing a combination...

Question 12

Hypothetical Production Schedule for a Two-Product Economy  
-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 13

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 14

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 15

-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 16

Hypothetical Production Schedule for a Two-Product Economy  
-If the economy were producing at point E and moves to point D,

Accepted Answer

A) resources will shift from producing capital goods to producing consumer goods. 
B) resources will shift from producing consumer goods to producing capital goods. 
C) more capital goods can be produced without any sacrifice in consumer goods production. 
D) more consumer goods can be produced without any sacrifice in capital goods production. 
A) resources will shift from producing capital goods to producing consumer goods. 
B) resources will shift from producing consumer goods to producing capital goods. 
C) more capital goods can be produced without any sacrifice in consumer goods production. 
D) more consumer goods can be produced without any sacrifice in capital goods production.

Question 17

In the American economy,the central figure is the _______________.

Accepted Answer

The answer of In the American economy,the central figure is...

Question 18

A small economy produces only pizzas and jeans.If resources are used inefficiently in the economy,

Accepted Answer

A) it will be possible to produce more pizzas without decreasing the production of jeans. 
B) the economy will be operating at a point on its production possibilities curve. 
C) the economy will be operating at a point outside its production possibilities curve. 
D) it will not be possible to produce more jeans or pizzas. 
A) it will be possible to produce more pizzas without decreasing the production of jeans. 
B) the economy will be operating at a point on its production possibilities curve. 
C) the economy will be operating at a point outside its production possibilities curve. 
D) it will not be possible to produce more jeans or pizzas.

Question 19

Which statement is true?

Accepted Answer

A) On the production possibilities frontier,unemployment is zero percent. 
B) On the production possibilities frontier,85 percent of the labor force is employed. 
C) To get out of a recession,we must move to some point closer to the production possibilities frontier. 
D) To have economic growth,we must have zero unemployment. 
A) On the production possibilities frontier,unemployment is zero percent. 
B) On the production possibilities frontier,85 percent of the labor force is employed. 
C) To get out of a recession,we must move to some point closer to the production possibilities frontier. 
D) To have economic growth,we must have zero unemployment.

Question 20

-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.

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

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

If the production possibilities frontier were a straight line,

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.

The central fact of economics is

Which of the following is not a factor of production?

-Assuming the inner curve is our current production possibilities frontier,our economy usually operates at ____.

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets.The opportunity cost to Jeff of going to an extra hockey game is

Which of the following statements about the concept of opportunity cost is true?

-Which movement between two points represents economic growth?

-A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside)the production possibilities curve.

Hypothetical Production Schedule for a Two-Product Economy -If the economy produces 12 capital goods and 40 consumer goods,

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

The entrepreneur

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

Hypothetical Production Schedule for a Two-Product Economy -If the economy were producing at point E and moves to point D,

In the American economy,the central figure is the _______________.

A small economy produces only pizzas and jeans.If resources are used inefficiently in the economy,

Which statement is true?

-The economy could reach point W if it

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

Income Distribution and Poverty

International Trade

International Finance

Filters

Exam 2: Resource Utilization

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

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

If the production possibilities frontier were a straight line,

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.

The central fact of economics is

Which of the following is not a factor of production?

-Assuming the inner curve is our current production possibilities frontier,our economy usually operates at ____.

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets.The opportunity cost to Jeff of going to an extra hockey game is

Which of the following statements about the concept of opportunity cost is true?

-Which movement between two points represents economic growth?

-A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside)the production possibilities curve.

Hypothetical Production Schedule for a Two-Product Economy -If the economy produces 12 capital goods and 40 consumer goods,

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

The entrepreneur

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

Hypothetical Production Schedule for a Two-Product Economy -If the economy were producing at point E and moves to point D,

In the American economy,the central figure is the _______________.

A small economy produces only pizzas and jeans.If resources are used inefficiently in the economy,

Which statement is true?

-The economy could reach point W if it

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

Income Distribution and Poverty

International Trade

International Finance

Filters