Question 1

-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 2

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

Accepted Answer

A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities would shift outward. 
D) the economy would shift resources from producing butter to producing guns. 
E) the economy would shift resources from producing guns to producing butter. 
A) the unemployment rate would increase. 
B) the unemployment rate would decrease. 
C) the production possibilities would shift outward. 
D) the economy would shift resources from producing butter to producing guns. 
E) the economy would shift resources from producing guns to producing butter.

Question 3

-How much is the unemployment rate at point Q?

Accepted Answer

The answer of  
-How much is the unemployment rate...

Question 4

During 2009 and 2010, ______ of Americans under 25 were unemployed.

Accepted Answer

A) one-half 
B) one-third 
C) one-quarter 
D) three-quarters 
A) one-half 
B) one-third 
C) one-quarter 
D) three-quarters

Question 5

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 6

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The SARS epidemic spreads rapidly throughout Toronto, Canada claiming millions of lives (capital 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 7

-If point C is now 9 units of guns and 8 units of butter, the maximum units of guns possible to produce is 17 and the maximum units of butter possible to produce is 13, the production possibility curve would have shifted _____________ (outward/inward).

Accepted Answer

The answer of  
-If point C is now 9...

Question 8

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The economy moves from full employment to a serious recession (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 9

-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 10

Hypothetical Production Schedule for Two-Product Economy  
-What is the opportunity cost of moving from point D to point C?

Accepted Answer

The answer of Hypothetical Production Schedule for Two-Product Economy ...

Question 11

The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods, it must

Accepted Answer

A) also increase its production of nonmilitary goods. 
B) reduce its output of nonmilitary goods. 
C) suffer inflation. 
D) suffer unemployment. 
A) also increase its production of nonmilitary goods. 
B) reduce its output of nonmilitary goods. 
C) suffer inflation. 
D) suffer unemployment.

Question 12

Unemployment means

Accepted Answer

A) the same as underemployment. 
B) a recession. 
C) slow economic growth. 
D) that not all resources are being used. 
A) the same as underemployment. 
B) a recession. 
C) slow economic growth. 
D) that not all resources are being used.

Question 13

-Assuming the inner curve is our current production possibilities frontier, which of the following points would eventually lead to the greatest level of economic growth?

Accepted Answer

A) Point J 
B) Point N 
C) Point K 
D) Point P 
A) Point J 
B) Point N 
C) Point K 
D) Point P

Question 14

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 15

-If the economy was producing at point X and moved to point Y,

Accepted Answer

A) it would have moved from where the economy operates most of the time to a severe recession. 
B) it would have moved from where the economy operates most of the time to a depression. 
C) the unemployment rate would increase. 
D) it would have moved from where the economy operates most of the time to a severe recession AND the unemployment rate would increase. 
E) it would have moved from where the economy operates most of the time to a depression AND the unemployment rate would increase. 
A) it would have moved from where the economy operates most of the time to a severe recession. 
B) it would have moved from where the economy operates most of the time to a depression. 
C) the unemployment rate would increase. 
D) it would have moved from where the economy operates most of the time to a severe recession AND the unemployment rate would increase. 
E) it would have moved from where the economy operates most of the time to a depression AND the unemployment rate would increase.

Question 16

The main reason our standard of living is so much higher than that of India and China is that we have more

Accepted Answer

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

Question 17

-If the unemployment rate is 7 percent, our economy is operating

Accepted Answer

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

Question 18

-The opportunity cost of moving from point T to point Q would be

Accepted Answer

A) giving up trips around the world. 
B) giving up heart transplants. 
C) gaining trips around the world. 
D) gaining heart transplants. 
A) giving up trips around the world. 
B) giving up heart transplants. 
C) gaining trips around the world. 
D) gaining heart transplants.

Question 19

-Assuming the inner curve is our current production possibilities frontier, points J, N and K represent

Accepted Answer

A) an inefficient use of resources. 
B) an output that is not possible to produce. 
C) points of unemployed resources. 
D) points of fully employed resources. 
A) an inefficient use of resources. 
B) an output that is not possible to produce. 
C) points of unemployed resources. 
D) points of fully employed resources.

Question 20

Employment discrimination leads to the _________________ of labor.

Accepted Answer

The answer of Employment discrimination leads to the _________________ of...

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

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

-How much is the unemployment rate at point Q?

During 2009 and 2010, ______ of Americans under 25 were unemployed.

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

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The SARS epidemic spreads rapidly throughout Toronto, Canada claiming millions of lives (capital vs. consumer goods).

-If point C is now 9 units of guns and 8 units of butter, the maximum units of guns possible to produce is 17 and the maximum units of butter possible to produce is 13, the production possibility curve would have shifted _____________ (outward/inward).

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The economy moves from full employment to a serious recession (capital goods vs. consumer goods).

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

Hypothetical Production Schedule for Two-Product Economy -What is the opportunity cost of moving from point D to point C?

The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods, it must

Unemployment means

-Assuming the inner curve is our current production possibilities frontier, which of the following points would eventually lead to the greatest level of economic growth?

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

-If the economy was producing at point X and moved to point Y,

The main reason our standard of living is so much higher than that of India and China is that we have more

-If the unemployment rate is 7 percent, our economy is operating

-The opportunity cost of moving from point T to point Q would be

-Assuming the inner curve is our current production possibilities frontier, points J, N and K represent

Employment discrimination leads to the _________________ of labor.

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

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

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

-How much is the unemployment rate at point Q?

During 2009 and 2010, ______ of Americans under 25 were unemployed.

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

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The SARS epidemic spreads rapidly throughout Toronto, Canada claiming millions of lives (capital vs. consumer goods).

-If point C is now 9 units of guns and 8 units of butter, the maximum units of guns possible to produce is 17 and the maximum units of butter possible to produce is 13, the production possibility curve would have shifted _____________ (outward/inward).

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The economy moves from full employment to a serious recession (capital goods vs. consumer goods).

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

Hypothetical Production Schedule for Two-Product Economy -What is the opportunity cost of moving from point D to point C?

The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods, it must

Unemployment means

-Assuming the inner curve is our current production possibilities frontier, which of the following points would eventually lead to the greatest level of economic growth?

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

-If the economy was producing at point X and moved to point Y,

The main reason our standard of living is so much higher than that of India and China is that we have more

-If the unemployment rate is 7 percent, our economy is operating

-The opportunity cost of moving from point T to point Q would be

-Assuming the inner curve is our current production possibilities frontier, points J, N and K represent

Employment discrimination leads to the _________________ of labor.

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