Question 1

-At point S, the economy is operating at approximately _______ percent unemployment.

Accepted Answer

The answer of  
-At point S, the economy is...

Question 2

Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards. The opportunity cost to Tommy of an extra packet of Pokemon cards is

Accepted Answer

A) one video game rental. 
B) two video game rentals. 
C) the cost of the Pokemon cards. 
D) he does not incur an opportunity cost. 
A) one video game rental. 
B) two video game rentals. 
C) the cost of the Pokemon cards. 
D) he does not incur an opportunity cost.

Question 3

Which one of the following resources is not underemployed?

Accepted Answer

A) The use of Manhattan Island in New York City for growing corn. 
B) The use of farmland in the Iowa and Illinois corn belt for buildings to do stock market research. 
C) An automobile factory that is shut down for two months to be retooled for a model change. 
D) Limiting all men to the fields of school teaching and social work. 
A) The use of Manhattan Island in New York City for growing corn. 
B) The use of farmland in the Iowa and Illinois corn belt for buildings to do stock market research. 
C) An automobile factory that is shut down for two months to be retooled for a model change. 
D) Limiting all men to the fields of school teaching and social work.

Question 4

For most of 2009 the U.S. was in a very severe recession, with an unemployment rate approximately _____ percent while the capacity utilization rate was below ______ percent.

Accepted Answer

A) 5; 85 
B) 9; 70 
C) 2; 90 
D) 0; 100 
A) 5; 85 
B) 9; 70 
C) 2; 90 
D) 0; 100

Question 5

Examples of employment discrimination would include

Accepted Answer

A) the legendary Negro league pitcher Satchel Paige who was not allowed to pitch in the major leagues until he was in his late 40s. 
B) the large majority of women in the 1950s and 1960s who were typists or secretaries. 
C) the attitude that typing, filing and other clerical positions were "women's work". 
D) all of the examples are true. 
A) the legendary Negro league pitcher Satchel Paige who was not allowed to pitch in the major leagues until he was in his late 40s. 
B) the large majority of women in the 1950s and 1960s who were typists or secretaries. 
C) the attitude that typing, filing and other clerical positions were "women's work". 
D) all of the examples are true.

Question 6

-If war breaks out and the economy is at full employment, we would move from

Accepted Answer

A) W to X. 
B) X to W. 
C) X to Y. 
D) Y to X. 
A) W to X. 
B) X to W. 
C) X to Y. 
D) Y to X.

Question 7

-If the economy was producing at point D and moved to point C

Accepted Answer

A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities frontier would shift outward. 
D) the production possibilities frontier would shift inward. 
E) None of these choices are true. 
A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities frontier would shift outward. 
D) the production possibilities frontier would shift inward. 
E) None of these choices are true.

Question 8

__________________ is attained when the maximum possible output of any one good is produced, given the output of other goods.

Accepted Answer

A) Productive efficiency 
B) Economic growth 
C) Opportunity cost 
D) Employment discrimination 
A) Productive efficiency 
B) Economic growth 
C) Opportunity cost 
D) Employment discrimination

Question 9

-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 10

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 11

The law of increasing costs is based on each of the following, except

Accepted Answer

A) the law of scarcity. 
B) the law of diminishing returns. 
C) diseconomies of scale. 
D) factor suitability. 
A) the law of scarcity. 
B) the law of diminishing returns. 
C) diseconomies of scale. 
D) factor suitability.

Question 12

Which of the following does not illustrate the concept of opportunity cost?

Accepted Answer

A) Between 1990 and 1997, the state of California laid off 10,000 of its university employees to have the money to hire 10,000 employees for its prison system. 
B) By reducing its unemployment rate, the United States dramatically increased its production of both civilian and war goods in the early years of World War II. 
C) A computer whiz at M.I.T.gives up her senior year at the university to take a high-paying position at a new company, Socrates.com. 
D) The Secretary of the Interior must choose between enforcing a law that would save the spotted owl, an endangered species or the loss of 500 logging jobs. 
A) Between 1990 and 1997, the state of California laid off 10,000 of its university employees to have the money to hire 10,000 employees for its prison system. 
B) By reducing its unemployment rate, the United States dramatically increased its production of both civilian and war goods in the early years of World War II. 
C) A computer whiz at M.I.T.gives up her senior year at the university to take a high-paying position at a new company, Socrates.com. 
D) The Secretary of the Interior must choose between enforcing a law that would save the spotted owl, an endangered species or the loss of 500 logging jobs.

Question 13

-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 14

Hypothetical Production Schedule for a Two-Product Economy  
-If the society chooses point B instead of point C,

Accepted Answer

A) economic growth is more likely. 
B) economic growth is less likely. 
C) the chances of achieving economic growth will not be affected. 
D) unemployment will result. 
A) economic growth is more likely. 
B) economic growth is less likely. 
C) the chances of achieving economic growth will not be affected. 
D) unemployment will result.

Question 15

If we are operating inside our production possibilities frontier,

Accepted Answer

A) it is possible the economy is in a recession. 
B) it is possible the economy is in a depression. 
C) it is possible that the economy is in neither a recession or a depression. 
D) All of the choices are correct. 
A) it is possible the economy is in a recession. 
B) it is possible the economy is in a depression. 
C) it is possible that the economy is in neither a recession or a depression. 
D) All of the choices are correct.

Question 16

-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 17

If an economy is operating on its production possibility frontier, which of the following statements is true?

Accepted Answer

A) Products are produced using inefficient production technology. 
B) The capacity utilization rate is less than full production. 
C) The economy's labor force is fully employed. 
D) A fall in the price of an input will enable the economy to produce outside the production possibility frontier. 
A) Products are produced using inefficient production technology. 
B) The capacity utilization rate is less than full production. 
C) The economy's labor force is fully employed. 
D) A fall in the price of an input will enable the economy to produce outside the production possibility frontier.

Question 18

-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 19

Japan could shift its production possibilities curve outward (to the right) if

Accepted Answer

A) it could buy some islands in the Pacific Ocean, thus increasing its available amount of land. 
B) it could devote more of its output to military goods. 
C) it could devote more of its output to producing consumer goods. 
D) all of the choices are true. 
A) it could buy some islands in the Pacific Ocean, thus increasing its available amount of land. 
B) it could devote more of its output to military goods. 
C) it could devote more of its output to producing consumer goods. 
D) all of the choices are true.

Question 20

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.

-At point S, the economy is operating at approximately _______ percent unemployment.

Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards. The opportunity cost to Tommy of an extra packet of Pokemon cards is

Which one of the following resources is not underemployed?

For most of 2009 the U.S. was in a very severe recession, with an unemployment rate approximately _ percent while the capacity utilization rate was below __ percent.

Examples of employment discrimination would include

-If war breaks out and the economy is at full employment, we would move from

-If the economy was producing at point D and moved to point C

__________________ is attained when the maximum possible output of any one good is produced, given the output of other goods.

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

Which statement about entrepreneurship in America is true?

The law of increasing costs is based on each of the following, except

Which of the following does not illustrate the concept of opportunity cost?

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

Hypothetical Production Schedule for a Two-Product Economy -If the society chooses point B instead of point C,

If we are operating inside our production possibilities frontier,

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

If an economy is operating on its production possibility frontier, which of the following statements is true?

-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 _________________.

Japan could shift its production possibilities curve outward (to the right) if

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

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

-At point S, the economy is operating at approximately _______ percent unemployment.

Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards. The opportunity cost to Tommy of an extra packet of Pokemon cards is

Which one of the following resources is not underemployed?

For most of 2009 the U.S. was in a very severe recession, with an unemployment rate approximately _____ percent while the capacity utilization rate was below ______ percent.

Examples of employment discrimination would include

-If war breaks out and the economy is at full employment, we would move from

-If the economy was producing at point D and moved to point C

__________________ is attained when the maximum possible output of any one good is produced, given the output of other goods.

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

Which statement about entrepreneurship in America is true?

The law of increasing costs is based on each of the following, except

Which of the following does not illustrate the concept of opportunity cost?

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

Hypothetical Production Schedule for a Two-Product Economy -If the society chooses point B instead of point C,

If we are operating inside our production possibilities frontier,

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

If an economy is operating on its production possibility frontier, which of the following statements is true?

-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 _________________.

Japan could shift its production possibilities curve outward (to the right) if

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

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

For most of 2009 the U.S. was in a very severe recession, with an unemployment rate approximately _ percent while the capacity utilization rate was below __ percent.