Question 1

-Which point shows where our economy was operating during the low point of the Great Depression?

Accepted Answer

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

Question 2

Andrew Carnegie, Steven Jobs and Sam Walton were all innovators who are also considered ____________.

Accepted Answer

The answer of Andrew Carnegie, Steven Jobs and Sam Walton...

Question 3

If a nation is currently operating at a point inside its production possibilities curve, it

Accepted Answer

A) must shift resources from producing one good to produce more of an alternative good. 
B) is fully employing all of its resources. 
C) is operating beyond its possible capacity. 
D) is utilizing its resources efficiently. 
E) none of the choices are true. 
A) must shift resources from producing one good to produce more of an alternative good. 
B) is fully employing all of its resources. 
C) is operating beyond its possible capacity. 
D) is utilizing its resources efficiently. 
E) none of the choices are true.

Question 4

-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

Accepted Answer

A) 2 units of outboard motors. 
B) 4 units of outboard motors. 
C) 12 units of outboard motors. 
D) 11 units of robots. 
A) 2 units of outboard motors. 
B) 4 units of outboard motors. 
C) 12 units of outboard motors. 
D) 11 units of robots.

Question 5

Unlimited wants need not be a problem if

Accepted Answer

A) resources are also unlimited. 
B) resources are flexible in what they can do. 
C) resources are basic energy resources like oil. 
D) resources are human resources such as skilled labor. 
E) resources cannot be captured in a war. 
A) resources are also unlimited. 
B) resources are flexible in what they can do. 
C) resources are basic energy resources like oil. 
D) resources are human resources such as skilled labor. 
E) resources cannot be captured in a war.

Question 6

-Point P represents

Accepted Answer

A) a severe recession. 
B) where our economy usually operates. 
C) inflation. 
D) full employment. 
A) a severe recession. 
B) where our economy usually operates. 
C) inflation. 
D) full employment.

Question 7

An outward shift in the entire production possibilities frontier

Accepted Answer

A) represents economic decline. 
B) means that previous levels of production are now unobtainable. 
C) means that the only way the economy can increase the production of one good is by producing less of an alternative good. 
D) represents economic growth. 
A) represents economic decline. 
B) means that previous levels of production are now unobtainable. 
C) means that the only way the economy can increase the production of one good is by producing less of an alternative good. 
D) represents economic growth.

Question 8

-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 9

-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.

Question 10

The opportunity cost of the war in Iraq would be

Accepted Answer

A) The $5 billion a month that the U.S.spends fighting the war. 
B) How the $5 billion a month to fight the war might otherwise be spent. 
C) Both of the choices are true. 
D) Neither of the choices are true. 
A) The $5 billion a month that the U.S.spends fighting the war. 
B) How the $5 billion a month to fight the war might otherwise be spent. 
C) Both of the choices are true. 
D) Neither of the choices are true.

Question 11

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

Accepted Answer

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

Question 12

The opportunity cost for a student of attending college for a year is measured by

Accepted Answer

A) the benefit received by the student. 
B) the tuition paid for the year. 
C) the value of the most valued opportunity foregone by attending college. 
D) the total money outlays associated with attending college. 
A) the benefit received by the student. 
B) the tuition paid for the year. 
C) the value of the most valued opportunity foregone by attending college. 
D) the total money outlays associated with attending college.

Question 13

"The value of the next best alternative" defines

Accepted Answer

A) the Law of Increasing Costs. 
B) the economic problem. 
C) allocative efficiency. 
D) opportunity cost. 
A) the Law of Increasing Costs. 
B) the economic problem. 
C) allocative efficiency. 
D) opportunity cost.

Question 14

-Place point Y on the graph to indicate a deep depression.

Accepted Answer

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

Question 15

Capital refers to

Accepted Answer

A) "man"-made goods used to produce other goods or services. 
B) the work and time for which employees are paid. 
C) natural resources as well as "man"-made goods. 
D) the person who assembles the needed resources to start a business. 
A) "man"-made goods used to produce other goods or services. 
B) the work and time for which employees are paid. 
C) natural resources as well as "man"-made goods. 
D) the person who assembles the needed resources to start a business.

Question 16

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 17

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 18

Which of the following statements does not reflect the concept of factor suitability?

Accepted Answer

A) It is one of the three concepts that explain the Law of Increasing Cost. 
B) If the economy is shifting from butter to gun production, the butter makers will give the gun makers their worst workers. 
C) Too many farmers work one field, eventually it will lead to less production. 
D) All farmland is not equally well-suited for producing corn. 
A) It is one of the three concepts that explain the Law of Increasing Cost. 
B) If the economy is shifting from butter to gun production, the butter makers will give the gun makers their worst workers. 
C) Too many farmers work one field, eventually it will lead to less production. 
D) All farmland is not equally well-suited for producing corn.

Question 19

The term "the affluent society" was coined by

Accepted Answer

A) Michael Harrington. 
B) John Kenneth Galbraith. 
C) Karl Marx. 
D) Adam Smith. 
A) Michael Harrington. 
B) John Kenneth Galbraith. 
C) Karl Marx. 
D) Adam Smith.

Question 20

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.

-Which point shows where our economy was operating during the low point of the Great Depression?

Andrew Carnegie, Steven Jobs and Sam Walton were all innovators who are also considered ____________.

If a nation is currently operating at a point inside its production possibilities curve, it

-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

Unlimited wants need not be a problem if

-Point P represents

An outward shift in the entire production possibilities frontier

-A move from point H to I would

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

The opportunity cost of the war in Iraq would be

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

The opportunity cost for a student of attending college for a year is measured by

"The value of the next best alternative" defines

-Place point Y on the graph to indicate a deep depression.

Capital refers to

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

Which of the following statements does not reflect the concept of factor suitability?

The term "the affluent society" was coined by

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

-Which point shows where our economy was operating during the low point of the Great Depression?

Andrew Carnegie, Steven Jobs and Sam Walton were all innovators who are also considered ____________.

If a nation is currently operating at a point inside its production possibilities curve, it

-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

Unlimited wants need not be a problem if

-Point P represents

An outward shift in the entire production possibilities frontier

-A move from point H to I would

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

The opportunity cost of the war in Iraq would be

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

The opportunity cost for a student of attending college for a year is measured by

"The value of the next best alternative" defines

-Place point Y on the graph to indicate a deep depression.

Capital refers to

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

Which of the following statements does not reflect the concept of factor suitability?

The term "the affluent society" was coined by

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