Question 1

An economy operating its plant and equipment at full capacity implies a capacity utilization rate of

Accepted Answer

A) 40 percent. 
B) 70 percent. 
C) 85 percent. 
D) 100 percent. 
A) 40 percent. 
B) 70 percent. 
C) 85 percent. 
D) 100 percent. C

Question 2

During the Great Depression, our economy operated ______________ the production possibilities frontier.

Accepted Answer

inside

Question 3

-A movement from point J to point M would represent

Accepted Answer

A) an increase in consumer goods, but not capital goods. 
B) an increase in capital goods, but not consumer goods. 
C) an increase in both capital goods and consumer goods. 
D) no increase in either capital goods or consumer goods. 
A) an increase in consumer goods, but not capital goods. 
B) an increase in capital goods, but not consumer goods. 
C) an increase in both capital goods and consumer goods. 
D) no increase in either capital goods or consumer goods. B

Question 4

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 5

-If we were at point ____ it would be possible to produce more heart transplants and more round-the-world trips.

Accepted Answer

A) P 
B) Q 
C) R 
D) S 
A) P 
B) Q 
C) R 
D) S

Question 6

-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 7

Which of the following would an economist classify as capital?

Accepted Answer

A) A public corporation's employees 
B) A share of stock 
C) A computer used by an accountant 
D) A deposit of silver 
A) A public corporation's employees 
B) A share of stock 
C) A computer used by an accountant 
D) A deposit of silver

Question 8

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

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 9

-Which point best represents our economy in a depression?

Accepted Answer

A) Point H 
B) Point F 
C) Point I 
D) Point G 
A) Point H 
B) Point F 
C) Point I 
D) Point G

Question 10

The production possibilities curve illustrates the basic principle that

Accepted Answer

A) an economy's capacity to produce increases in proportion to its population size. 
B) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. 
C) an economy will automatically seek that level of output at which all of its resources are employed. 
D) the production of more of any one good will in time require smaller and smaller sacrifices of other goods. 
A) an economy's capacity to produce increases in proportion to its population size. 
B) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. 
C) an economy will automatically seek that level of output at which all of its resources are employed. 
D) the production of more of any one good will in time require smaller and smaller sacrifices of other goods.

Question 11

-Place point X on the graph to indicate an unemployment rate of 10 percent.

Accepted Answer

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

Question 12

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The Soviet Union entered World War II at a full employment production level (guns vs. butter).

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 13

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 14

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 15

-If the economy were producing at 12 units of outboard motors and 8 units of robots

Accepted Answer

A) the economy would be at a point inside its production possibilities curve. 
B) the economy would be at a point outside its production possibilities curve. 
C) the economy would have unemployed resources. 
D) the economy would be at a point inside its production possibilities curve AND would have unemployed resources. 
A) the economy would be at a point inside its production possibilities curve. 
B) the economy would be at a point outside its production possibilities curve. 
C) the economy would have unemployed resources. 
D) the economy would be at a point inside its production possibilities curve AND would have unemployed resources.

Question 16

-If the economy were producing at point Z and moved to point D,

Accepted Answer

A) it could only produce more butter at the sacrifice of some gun production. 
B) it could only produce more guns at the sacrifice of some butter production. 
C) it could produce more guns and more butter at the same time. 
D) it would be impossible to produce more guns without the sacrifice of some butter production. 
A) it could only produce more butter at the sacrifice of some gun production. 
B) it could only produce more guns at the sacrifice of some butter production. 
C) it could produce more guns and more butter at the same time. 
D) it would be impossible to produce more guns without the sacrifice of some butter production.

Question 17

Which statement is true?

Accepted Answer

A) Productive efficiency has never been achieved. 
B) The U.S.economy achieved productive efficiency from mid-1997 through mid-2001. 
C) The U.S.economy achieved productive efficiency from 1980 to 1997. 
D) Our economy generally attains productive efficiency. 
A) Productive efficiency has never been achieved. 
B) The U.S.economy achieved productive efficiency from mid-1997 through mid-2001. 
C) The U.S.economy achieved productive efficiency from 1980 to 1997. 
D) Our economy generally attains productive efficiency.

Question 18

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 19

The existence of unemployment can be illustrated on a production possibilities curve by a(n)

Accepted Answer

A) point below or inside the surface of the curve. 
B) inward shift of the curve. 
C) movement down along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis. 
D) movement up along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis. 
A) point below or inside the surface of the curve. 
B) inward shift of the curve. 
C) movement down along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis. 
D) movement up along the curve if consumer goods are represented on the vertical axis and capital on the horizontal axis.

Question 20

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

Accepted Answer

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

An economy operating its plant and equipment at full capacity implies a capacity utilization rate of

During the Great Depression, our economy operated ______________ the production possibilities frontier.

-A movement from point J to point M would represent

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

-If we were at point ____ it would be possible to produce more heart transplants and more round-the-world trips.

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

Which of the following would an economist classify as capital?

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

-Which point best represents our economy in a depression?

The production possibilities curve illustrates the basic principle that

-Place point X on the graph to indicate an unemployment rate of 10 percent.

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The Soviet Union entered World War II at a full employment production level (guns vs. butter).

Which one of the following is the most accurate?

Economic growth occurs when

-If the economy were producing at 12 units of outboard motors and 8 units of robots

-If the economy were producing at point Z and moved to point D,

Which statement is true?

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

The existence of unemployment can be illustrated on a production possibilities curve by a(n)

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

A Brief Economic History of the United States

The Mixed Economy

Supply and Demand

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

Exam 2: Resource Utilization

An economy operating its plant and equipment at full capacity implies a capacity utilization rate of

During the Great Depression, our economy operated ______________ the production possibilities frontier.

-A movement from point J to point M would represent

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

-If we were at point ____ it would be possible to produce more heart transplants and more round-the-world trips.

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

Which of the following would an economist classify as capital?

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

-Which point best represents our economy in a depression?

The production possibilities curve illustrates the basic principle that

-Place point X on the graph to indicate an unemployment rate of 10 percent.

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The Soviet Union entered World War II at a full employment production level (guns vs. butter).

Which one of the following is the most accurate?

Economic growth occurs when

-If the economy were producing at 12 units of outboard motors and 8 units of robots

-If the economy were producing at point Z and moved to point D,

Which statement is true?

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

The existence of unemployment can be illustrated on a production possibilities curve by a(n)

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

A Brief Economic History of the United States

The Mixed Economy

Supply and Demand

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