Question 1

The increasing cost in the law of increasing cost is a(n)____________ cost.

Accepted Answer

A) average 
B) fixed 
C) opportunity 
D) declining 
A) average 
B) fixed 
C) opportunity 
D) declining

Question 2

Each of the following statements about capital are correct except

Accepted Answer

A) capital is a "man"-made good used to produce other goods and services. 
B) japan has more capital than any other country in the world. 
C) office buildings and shopping malls are examples of capital. 
D) capital is considered a passive resource. 
A) capital is a "man"-made good used to produce other goods and services. 
B) japan has more capital than any other country in the world. 
C) office buildings and shopping malls are examples of capital. 
D) capital is considered a passive resource.

Question 3

-If our economy were operating on its production possibilities frontier,it would have the best chance of temporarily reaching point F if

Accepted Answer

A) we were at war. 
B) we were in a depression. 
C) we were in a period of inflation. 
D) we invested more in plant and equipment. 
A) we were at war. 
B) we were in a depression. 
C) we were in a period of inflation. 
D) we invested more in plant and equipment.

Question 4

Each of the following is an example of an economic resource except

Accepted Answer

A) land. 
B) money. 
C) capital. 
D) labor. 
A) land. 
B) money. 
C) capital. 
D) labor.

Question 5

Which statement is true?

Accepted Answer

A) Entrepreneurial ability is in short supply in the U.S. 
B) Land,labor and capital may be considered passive resources. 
C) The concept of opportunity cost is irrelevant when there is scarcity. 
D) None of these statements are true. 
A) Entrepreneurial ability is in short supply in the U.S. 
B) Land,labor and capital may be considered passive resources. 
C) The concept of opportunity cost is irrelevant when there is scarcity. 
D) None of these statements are true.

Question 6

-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

Question 7

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 8

The Law of Increasing Cost is based upon which of the following?

Accepted Answer

A) If units of a resource are added to a fixed proportion of other resources,eventually marginal output will decline. 
B) Economies of scale eventually outweigh diseconomies of scale. 
C) Resources become more suitable for use in the production process as the output of one good expands. 
D) All of the choices are true. 
A) If units of a resource are added to a fixed proportion of other resources,eventually marginal output will decline. 
B) Economies of scale eventually outweigh diseconomies of scale. 
C) Resources become more suitable for use in the production process as the output of one good expands. 
D) All of the choices are true.

Question 9

The opportunity cost of producing one additional truck is

Accepted Answer

A) the profit that could have been earned from selling that truck. 
B) the amount of other goods that could not be produced because productive resources were used instead to produce that truck. 
C) the price of the truck. 
D) all of the choices are true. 
A) the profit that could have been earned from selling that truck. 
B) the amount of other goods that could not be produced because productive resources were used instead to produce that truck. 
C) the price of the truck. 
D) all of the choices are true.

Question 10

Statement I.Full employment and full production mean exactly the same thing.
Statement II.You can attain full employment without attaining full production,but you cannot attain full production without attaining full employment.

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

Individuals are forced to make choices because

Accepted Answer

A) human wants are limited. 
B) the supply of resources is infinite. 
C) wants are unlimited and resources are scarce. 
D) resources are unlimiteD. 
A) human wants are limited. 
B) the supply of resources is infinite. 
C) wants are unlimited and resources are scarce. 
D) resources are unlimiteD.

Question 12

If you kept your money under your mattress rather than keeping it in a savings account at your local bank,

Accepted Answer

A) you would not incur an opportunity cost. 
B) the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account. 
C) the opportunity cost of such an action would be the gas money it took to drive to the bank. 
D) None of the choices are true. 
A) you would not incur an opportunity cost. 
B) the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account. 
C) the opportunity cost of such an action would be the gas money it took to drive to the bank. 
D) None of the choices are true.

Question 13

-What is the opportunity cost of going from point A to point B?

Accepted Answer

The answer of  
-What is the opportunity cost of...

Question 14

-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 15

Referring to a production possibilities curve and the goods being compared,depict the economic event.The literacy rate increases among workers (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 16

Statement I.Entrepreneurial ability is not a resource.
Statement II.Virtually all of our resources are buried under the ground.

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 17

-A country producing a combination of 5 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 18

A move from point H to I would

Accepted Answer

A) raise employment substantially. 
B) raise employment slightly. 
C) lower employment slightly. 
D) lower employment substantially. 
E) have no effect on employment. 
A) raise employment substantially. 
B) raise employment slightly. 
C) lower employment slightly. 
D) lower employment substantially. 
E) have no effect on employment.

Question 19

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

Accepted Answer

land;labor

Question 20

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

The increasing cost in the law of increasing cost is a(n)____________ cost.

Each of the following statements about capital are correct except

-If our economy were operating on its production possibilities frontier,it would have the best chance of temporarily reaching point F if

Each of the following is an example of an economic resource except

Which statement is true?

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

A production possibilities curve shows

The Law of Increasing Cost is based upon which of the following?

The opportunity cost of producing one additional truck is

Statement I.Full employment and full production mean exactly the same thing. Statement II.You can attain full employment without attaining full production,but you cannot attain full production without attaining full employment.

Individuals are forced to make choices because

If you kept your money under your mattress rather than keeping it in a savings account at your local bank,

-What is the opportunity cost of going from point A to point B?

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

Referring to a production possibilities curve and the goods being compared,depict the economic event.The literacy rate increases among workers (capital goods vs.consumer goods).

Statement I.Entrepreneurial ability is not a resource. Statement II.Virtually all of our resources are buried under the ground.

-A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside)the production possibilities curve.

A move from point H to I would

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

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).

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

The increasing cost in the law of increasing cost is a(n)____________ cost.

Each of the following statements about capital are correct except

-If our economy were operating on its production possibilities frontier,it would have the best chance of temporarily reaching point F if

Each of the following is an example of an economic resource except

Which statement is true?

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

A production possibilities curve shows

The Law of Increasing Cost is based upon which of the following?

The opportunity cost of producing one additional truck is

Statement I.Full employment and full production mean exactly the same thing. Statement II.You can attain full employment without attaining full production,but you cannot attain full production without attaining full employment.

Individuals are forced to make choices because

If you kept your money under your mattress rather than keeping it in a savings account at your local bank,

-What is the opportunity cost of going from point A to point B?

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

Referring to a production possibilities curve and the goods being compared,depict the economic event.The literacy rate increases among workers (capital goods vs.consumer goods).

Statement I.Entrepreneurial ability is not a resource. Statement II.Virtually all of our resources are buried under the ground.

-A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside)the production possibilities curve.

A move from point H to I would

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

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).

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

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