Question 1

Every social system confronts scarcity and so must

Accepted Answer

A) produce only free goods. 
B) try to produce outside its production possibilities frontiers. 
C) economize. 
D) allocate goods by government edict. 
A) produce only free goods. 
B) try to produce outside its production possibilities frontiers. 
C) economize. 
D) allocate goods by government edict.

Question 2

Which statement is true?

Accepted Answer

A) It is easier to attain full employment than full production. 
B) Employment discrimination no longer exists in the U.S.labor market. 
C) We are usually operating on our production possibilities frontier. 
D) None of these statements are true. 
A) It is easier to attain full employment than full production. 
B) Employment discrimination no longer exists in the U.S.labor market. 
C) We are usually operating on our production possibilities frontier. 
D) None of these statements are true.

Question 3

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 4

For most of World War II, our economy temporarily operated ____________ our production possibilities frontier.

Accepted Answer

The answer of For most of World War II, our...

Question 5

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

Accepted Answer

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

Question 6

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets. The opportunity cost to Jeff of going to an extra hockey game is

Accepted Answer

A) four fewer $10 pizzas. 
B) five movies. 
C) 20 DVD rentals (costing $2 each). 
D) all of the choices are true. 
A) four fewer $10 pizzas. 
B) five movies. 
C) 20 DVD rentals (costing $2 each). 
D) all of the choices are true.

Question 7

Which of the following is not a factor of production?

Accepted Answer

A) Land 
B) Money 
C) Capital 
D) Labor 
E) Entrepreneurship 
A) Land 
B) Money 
C) Capital 
D) Labor 
E) Entrepreneurship

Question 8

Which one of the following is the most accurate?

Accepted Answer

A) Half of recent college graduates under 25 are in positions that do not require college degrees. 
B) The outlook for college graduates in 2009 & 2010 was just as bright as graduates in 2006 & 2007. 
C) Despite the recession, nearly all college graduates of the class of 2010 found jobs appropriate to their training and educational backgrounds. 
D) All of these statements are true. 
A) Half of recent college graduates under 25 are in positions that do not require college degrees. 
B) The outlook for college graduates in 2009 & 2010 was just as bright as graduates in 2006 & 2007. 
C) Despite the recession, nearly all college graduates of the class of 2010 found jobs appropriate to their training and educational backgrounds. 
D) All of these statements are true.

Question 9

-The opportunity cost of a movement from point N to J would

Accepted Answer

A) be the lost production of some capital goods. 
B) be the lost production of some consumer goods. 
C) be slower economic growth in the future. 
D) not involve any sacrifice of either capital or consumer goods. 
A) be the lost production of some capital goods. 
B) be the lost production of some consumer goods. 
C) be slower economic growth in the future. 
D) not involve any sacrifice of either capital or consumer goods.

Question 10

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Suppose the United States was at full employment in 2003 just before invading Iraq. Although the war was won quickly, winning the peace took a decade (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 11

If the economy is operating at a 7 percent unemployment rate we are operating

Accepted Answer

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

Question 12

If our nation is operating at full production, not only are we using our most ________ technology, but we are utilizing our land, labor, capital and entrepreneurial ability at their most _______________.

Accepted Answer

up-to-date

Question 13

The central fact of economics is

Accepted Answer

A) production. 
B) distribution. 
C) equilibrium. 
D) efficiency. 
E) scarcity. 
A) production. 
B) distribution. 
C) equilibrium. 
D) efficiency. 
E) scarcity.

Question 14

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 15

-Assuming the inner curve is our current production possibilities frontier, our economy usually operates at ____.

Accepted Answer

A) Point P 
B) Point O 
C) Point N 
D) Point L 
A) Point P 
B) Point O 
C) Point N 
D) Point L

Question 16

-Which movement between two points represents economic growth?

Accepted Answer

A) J to K 
B) K to L 
C) L to M 
D) M to N 
A) J to K 
B) K to L 
C) L to M 
D) M to N

Question 17

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 18

A small Caribbean island-country produces only pineapples and rum. If resources are used efficiently in the economy,

Accepted Answer

A) it will not be possible to produce more rum without decreasing the production of pineapples. 
B) it will be possible to produce more pineapples without decreasing the production of rum. 
C) it will be producing on its production possibilities curve. 
D) it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve. 
E) it will be possible to produce more pineapples without decreasing the production of rum AND it will be producing on its production possibilities curve. 
A) it will not be possible to produce more rum without decreasing the production of pineapples. 
B) it will be possible to produce more pineapples without decreasing the production of rum. 
C) it will be producing on its production possibilities curve. 
D) it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve. 
E) it will be possible to produce more pineapples without decreasing the production of rum AND it will be producing on its production possibilities curve.

Question 19

Imagine that country X is at point X of this production possibilities frontier and country Y is at point Y in the figure above.

Accepted Answer

A) Country X will probably grow faster then country Y. 
B) Country Y will probably grow faster then country X. 
C) The two countries will probably grow at about the same speed. 
D) There is no way of predicting which country will grow faster. 
A) Country X will probably grow faster then country Y. 
B) Country Y will probably grow faster then country X. 
C) The two countries will probably grow at about the same speed. 
D) There is no way of predicting which country will grow faster.

Question 20

Statement I: When the unemployment rate is five percent, we are inside our production possibilities frontier. Statement II: Full production means that the nation's resources are being allocated in the most efficient manner possible.

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.

Every social system confronts scarcity and so must

Which statement is true?

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

For most of World War II, our economy temporarily operated ____________ our production possibilities frontier.

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

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets. The opportunity cost to Jeff of going to an extra hockey game is

Which of the following is not a factor of production?

Which one of the following is the most accurate?

-The opportunity cost of a movement from point N to J would

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Suppose the United States was at full employment in 2003 just before invading Iraq. Although the war was won quickly, winning the peace took a decade (guns vs. butter).

If the economy is operating at a 7 percent unemployment rate we are operating

If our nation is operating at full production, not only are we using our most technology, but we are utilizing our land, labor, capital and entrepreneurial ability at their most _______.

The central fact of economics is

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

-Assuming the inner curve is our current production possibilities frontier, our economy usually operates at ____.

-Which movement between two points represents economic growth?

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

A small Caribbean island-country produces only pineapples and rum. If resources are used efficiently in the economy,

Imagine that country X is at point X of this production possibilities frontier and country Y is at point Y in the figure above.

Statement I: When the unemployment rate is five percent, we are inside our production possibilities frontier. Statement II: Full production means that the nation's resources are being allocated in the most efficient manner possible.

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

Every social system confronts scarcity and so must

Which statement is true?

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

For most of World War II, our economy temporarily operated ____________ our production possibilities frontier.

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

Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets. The opportunity cost to Jeff of going to an extra hockey game is

Which of the following is not a factor of production?

Which one of the following is the most accurate?

-The opportunity cost of a movement from point N to J would

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Suppose the United States was at full employment in 2003 just before invading Iraq. Although the war was won quickly, winning the peace took a decade (guns vs. butter).

If the economy is operating at a 7 percent unemployment rate we are operating

If our nation is operating at full production, not only are we using our most ________ technology, but we are utilizing our land, labor, capital and entrepreneurial ability at their most _______________.

The central fact of economics is

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

-Assuming the inner curve is our current production possibilities frontier, our economy usually operates at ____.

-Which movement between two points represents economic growth?

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

A small Caribbean island-country produces only pineapples and rum. If resources are used efficiently in the economy,

Imagine that country X is at point X of this production possibilities frontier and country Y is at point Y in the figure above.

Statement I: When the unemployment rate is five percent, we are inside our production possibilities frontier. Statement II: Full production means that the nation's resources are being allocated in the most efficient manner possible.

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

If our nation is operating at full production, not only are we using our most technology, but we are utilizing our land, labor, capital and entrepreneurial ability at their most _______.