Question 1

-Which point shows where our economy was temporarily operating during World War II,when we had reduced our unemployment rate to about two percent?

Accepted Answer

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

Question 2

-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 3

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 4

Which is the most accurate statement?

Accepted Answer

A) In order to have full production,there must be full employment. 
B) In order to have full employment,there must be full production. 
C) Both statements are accurate. 
D) Neither statement is accurate. 
A) In order to have full production,there must be full employment. 
B) In order to have full employment,there must be full production. 
C) Both statements are accurate. 
D) Neither statement is accurate.

Question 5

The law of increasing costs states that

Accepted Answer

A) opportunity costs decrease as more of one good is produced. 
B) increasing resource prices are inevitable because of scarcity. 
C) opportunity costs increase as more of one good is produced. 
D) resources can be easily adapted to the production of any gooD. 
E) economic growth is always associated with inflation. 
A) opportunity costs decrease as more of one good is produced. 
B) increasing resource prices are inevitable because of scarcity. 
C) opportunity costs increase as more of one good is produced. 
D) resources can be easily adapted to the production of any gooD. 
E) economic growth is always associated with inflation.

Question 6

We can increase our rate of economic growth by

Accepted Answer

A) devoting more of our output to capital goods. 
B) devoting more of our output to improving our technology. 
C) devoting more of our output to improving the quality of our labor force. 
D) all of the choices are true. 
A) devoting more of our output to capital goods. 
B) devoting more of our output to improving our technology. 
C) devoting more of our output to improving the quality of our labor force. 
D) all of the choices are true.

Question 7

Which one of the following is the most accurate?

Accepted Answer

A) Half of recent college graduates under 25 are in positions that do not require college degrees. 
B) The outlook for college graduates in 2009 & 2010 was just as bright as graduates in 2006 & 2007. 
C) Despite the recession,nearly all college graduates of the class of 2010 found jobs appropriate to their training and educational backgrounds. 
D) All of these statements are true. 
A) Half of recent college graduates under 25 are in positions that do not require college degrees. 
B) The outlook for college graduates in 2009 & 2010 was just as bright as graduates in 2006 & 2007. 
C) Despite the recession,nearly all college graduates of the class of 2010 found jobs appropriate to their training and educational backgrounds. 
D) All of these statements are true.

Question 8

The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be

Accepted Answer

A) the cost of the movie ticket. 
B) the cost of the subway fare to get to the theater. 
C) the price of the popcorn and candy bars you snuck into the theater. 
D) a higher grade on the exam. 
E) All of the choices are truE. 
A) the cost of the movie ticket. 
B) the cost of the subway fare to get to the theater. 
C) the price of the popcorn and candy bars you snuck into the theater. 
D) a higher grade on the exam. 
E) All of the choices are truE.

Question 9

The economic problem is essentially one of deciding how to make the best use of

Accepted Answer

A) limited resources to satisfy limited wants. 
B) unlimited resources to satisfy limited wants. 
C) limited resources to satisfy unlimited wants. 
D) unlimited resources to satisfy unlimited wants. 
A) limited resources to satisfy limited wants. 
B) unlimited resources to satisfy limited wants. 
C) limited resources to satisfy unlimited wants. 
D) unlimited resources to satisfy unlimited wants.

Question 10

Statement I: Institutional constraints such as "blue laws" or child labor laws put restrictions on our capacity to produce and thus limit our production possibilities curve.
Statement II: We would be operating at full employment with an unemployment rate of five percent and a capacity utilization rate of 85 percent.

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 11

A production possibilities frontier demonstrates

Accepted Answer

A) that there are limits to what a society can produce. 
B) the various choices a society can make in allocating its resources. 
C) the concept of opportunity cost. 
D) it demonstrates all of the choices stateD. 
A) that there are limits to what a society can produce. 
B) the various choices a society can make in allocating its resources. 
C) the concept of opportunity cost. 
D) it demonstrates all of the choices stateD.

Question 12

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 13

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

Accepted Answer

A) Recruiting housewives to work in tank and airplane factories. 
B) Convincing workers who qualified for retirement to put off retirement. 
C) Pressing older machinery and equipment into use. 
D) Expansion of the work week. 
E) All of the choices are true 
A) Recruiting housewives to work in tank and airplane factories. 
B) Convincing workers who qualified for retirement to put off retirement. 
C) Pressing older machinery and equipment into use. 
D) Expansion of the work week. 
E) All of the choices are true

Question 14

-A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside)the production possibilities curve.

Accepted Answer

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

Question 15

Assuming that a society always operates on its production possibilities curve,an inward shift of the curve implies that

Accepted Answer

A) the country's capacity to produce is fixed. 
B) the country is not using its resources efficiently. 
C) the country's capacity to produce has contracted. 
D) All of the choices are true. 
A) the country's capacity to produce is fixed. 
B) the country is not using its resources efficiently. 
C) the country's capacity to produce has contracted. 
D) All of the choices are true.

Question 16

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

Accepted Answer

A) The opportunity cost of a decision only includes monetary outlays. 
B) The opportunity cost of a decision is the next best foregone alternative. 
C) Some decisions have zero opportunity cost. 
D) The opportunity cost of a college education is measured by the payments for tuition and books. 
A) The opportunity cost of a decision only includes monetary outlays. 
B) The opportunity cost of a decision is the next best foregone alternative. 
C) Some decisions have zero opportunity cost. 
D) The opportunity cost of a college education is measured by the payments for tuition and books.

Question 17

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 18

-The economy could produce at 8 units of outboard motors and 18 units of robots

Accepted Answer

A) immediately only under unusual circumstances such as war. 
B) if there is economic growth over a period of years. 
C) under no circumstances. 
D) immediately only under unusual circumstances such as war AND if there is economic growth over a period of years. 
A) immediately only under unusual circumstances such as war. 
B) if there is economic growth over a period of years. 
C) under no circumstances. 
D) immediately only under unusual circumstances such as war AND if there is economic growth over a period of years.

Question 19

-Which of the following will NOT shift an economy's production possibilities curve outward?

Accepted Answer

A) An increase in technology 
B) An improvement in the literacy rate 
C) A reduction in the unemployment rate 
D) An increase in the number of workers available 
A) An increase in technology 
B) An improvement in the literacy rate 
C) A reduction in the unemployment rate 
D) An increase in the number of workers available

Question 20

If the unemployment rate is 5 percent (full employment),our economy is operating

Accepted Answer

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

-Which point shows where our economy was temporarily operating during World War II,when we had reduced our unemployment rate to about two percent?

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

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

Which is the most accurate statement?

The law of increasing costs states that

We can increase our rate of economic growth by

Which one of the following is the most accurate?

The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be

The economic problem is essentially one of deciding how to make the best use of

A production possibilities frontier demonstrates

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.

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

-A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside)the production possibilities curve.

Assuming that a society always operates on its production possibilities curve,an inward shift of the curve implies that

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

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

-The economy could produce at 8 units of outboard motors and 18 units of robots

-Which of the following will NOT shift an economy's production possibilities curve outward?

If the unemployment rate is 5 percent (full employment),our economy is operating

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

-Which point shows where our economy was temporarily operating during World War II,when we had reduced our unemployment rate to about two percent?

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

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

Which is the most accurate statement?

The law of increasing costs states that

We can increase our rate of economic growth by

Which one of the following is the most accurate?

The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be

The economic problem is essentially one of deciding how to make the best use of

A production possibilities frontier demonstrates

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.

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

-A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside)the production possibilities curve.

Assuming that a society always operates on its production possibilities curve,an inward shift of the curve implies that

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

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

-The economy could produce at 8 units of outboard motors and 18 units of robots

-Which of the following will NOT shift an economy's production possibilities curve outward?

If the unemployment rate is 5 percent (full employment),our economy is operating

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