Question 1

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

Accepted Answer

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

Question 2

Entrepreneurship is

Accepted Answer

A) the financial capital necessary to launch a new business. 
B) the talent to develop new products and processes and to organize production to make goods and services available. 
C) unskilled labor. 
D) the physical capital resources used to produce goods and services. 
A) the financial capital necessary to launch a new business. 
B) the talent to develop new products and processes and to organize production to make goods and services available. 
C) unskilled labor. 
D) the physical capital resources used to produce goods and services.

Question 3

Which statement is true?

Accepted Answer

A) On the production possibilities frontier, we have five percent unemployment of labor. 
B) On the production possibilities frontier, 85 percent of capital is employed. 
C) If we moved closer to the origin and further away from the production possibilities frontier, unemployment would increase. 
D) To have economic growth, we must push the production possibilities frontier outward. 
E) All of the statements are true. 
A) On the production possibilities frontier, we have five percent unemployment of labor. 
B) On the production possibilities frontier, 85 percent of capital is employed. 
C) If we moved closer to the origin and further away from the production possibilities frontier, unemployment would increase. 
D) To have economic growth, we must push the production possibilities frontier outward. 
E) All of the statements are true.

Question 4

Each of the following is an example of an economic resource except

Accepted Answer

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

Question 5

-If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be

Accepted Answer

A) 1 unit of robots. 
B) 2 units of robots. 
C) 3 units of robots. 
D) 2 units of outboard motors. 
A) 1 unit of robots. 
B) 2 units of robots. 
C) 3 units of robots. 
D) 2 units of outboard motors.

Question 6

Our economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent.

Accepted Answer

A) 5; 95 
B) 5; 85 
C) 10; 95 
D) 10; 85 
A) 5; 95 
B) 5; 85 
C) 10; 95 
D) 10; 85

Question 7

As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become larger and larger. This is an illustration of

Accepted Answer

A) the law of demand. 
B) the law of large numbers. 
C) the law of supply. 
D) decreasing opportunity costs. 
E) increasing opportunity costs. 
A) the law of demand. 
B) the law of large numbers. 
C) the law of supply. 
D) decreasing opportunity costs. 
E) increasing opportunity costs.

Question 8

Statement I. Labor and capital are resources. Statement II. Scarcity has been largely eliminated from our economy.

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 9

The law of increasing costs states that

Accepted Answer

A) opportunity costs decrease as more of one good is produced. 
B) increasing resource prices are inevitable because of scarcity. 
C) opportunity costs increase as more of one good is produced. 
D) resources can be easily adapted to the production of any good. 
E) economic growth is always associated with inflation. 
A) opportunity costs decrease as more of one good is produced. 
B) increasing resource prices are inevitable because of scarcity. 
C) opportunity costs increase as more of one good is produced. 
D) resources can be easily adapted to the production of any good. 
E) economic growth is always associated with inflation.

Question 10

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

Accepted Answer

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

Question 11

Individuals are forced to make choices because

Accepted Answer

A) human wants are limited. 
B) the supply of resources is infinite. 
C) wants are unlimited and resources are scarce. 
D) resources are unlimited. 
A) human wants are limited. 
B) the supply of resources is infinite. 
C) wants are unlimited and resources are scarce. 
D) resources are unlimited.

Question 12

-A movement from point N to point L would represent

Accepted Answer

A) an increase in both consumer goods and capital goods. 
B) a decrease in both consumer goods and capital goods. 
C) an increase in consumer goods, but a decrease in capital goods. 
D) an increase in capital goods, but a decrease in consumer goods. 
A) an increase in both consumer goods and capital goods. 
B) a decrease in both consumer goods and capital goods. 
C) an increase in consumer goods, but a decrease in capital goods. 
D) an increase in capital goods, but a decrease in consumer goods.

Question 13

-If we are currently at point T, we can get to point S in the long run

Accepted Answer

A) through economic growth over a period of years. 
B) immediately by using our resources more efficiently. 
C) immediately by reducing the unemployment rate. 
D) immediately through technological development. 
E) only if there is a depression. 
A) through economic growth over a period of years. 
B) immediately by using our resources more efficiently. 
C) immediately by reducing the unemployment rate. 
D) immediately through technological development. 
E) only if there is a depression.

Question 14

In the context of the global economy, our capacity utilization rate __________________ than it was just a few decades ago.

Accepted Answer

A) is much more important 
B) is much less important 
C) has the same importance 
A) is much more important 
B) is much less important 
C) has the same importance

Question 15

Our economy is generally operating _________ the production possibilities curve.

Accepted Answer

A) inside 
B) outside 
C) on 
A) inside 
B) outside 
C) on

Question 16

According to the law of increasing costs, as the United States expends more of its resources on reducing air pollution,

Accepted Answer

A) the quantity of other goods that must be given up for further reductions in air pollution will decrease. 
B) the quantity of other goods that must be given up for further reductions in air pollution will increase. 
C) the social cost of additional air pollution will increase. 
D) there will be no change in the marginal cost of reducing air pollution. 
A) the quantity of other goods that must be given up for further reductions in air pollution will decrease. 
B) the quantity of other goods that must be given up for further reductions in air pollution will increase. 
C) the social cost of additional air pollution will increase. 
D) there will be no change in the marginal cost of reducing air pollution.

Question 17

Hypothetical Production Schedule for a Two-Product Economy  
-If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.

Accepted Answer

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

Question 18

In order to raise our rate of economic growth we would need to

Accepted Answer

A) increase the level of capital. 
B) reduce the level of labor. 
C) spend more on military goods. 
D) spend more on consumer goods. 
A) increase the level of capital. 
B) reduce the level of labor. 
C) spend more on military goods. 
D) spend more on consumer goods.

Question 19

We temporarily operated outside our production possibilities frontier in

Accepted Answer

A) 1933. 
B) 1943. 
C) 1973. 
D) 1982. 
A) 1933. 
B) 1943. 
C) 1973. 
D) 1982.

Question 20

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

Accepted Answer

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

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

Entrepreneurship is

Which statement is true?

Each of the following is an example of an economic resource except

-If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be

Our economy would be operating at full employment with labor unemployment rate of _ percent and a capacity utilization rate of ___ percent.

As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become larger and larger. This is an illustration of

Statement I. Labor and capital are resources. Statement II. Scarcity has been largely eliminated from our economy.

The law of increasing costs states that

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

Individuals are forced to make choices because

-A movement from point N to point L would represent

-If we are currently at point T, we can get to point S in the long run

In the context of the global economy, our capacity utilization rate __________________ than it was just a few decades ago.

Our economy is generally operating _________ the production possibilities curve.

According to the law of increasing costs, as the United States expends more of its resources on reducing air pollution,

Hypothetical Production Schedule for a Two-Product Economy -If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.

In order to raise our rate of economic growth we would need to

We temporarily operated outside our production possibilities frontier in

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

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

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

Entrepreneurship is

Which statement is true?

Each of the following is an example of an economic resource except

-If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be

Our economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent.

As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become larger and larger. This is an illustration of

Statement I. Labor and capital are resources. Statement II. Scarcity has been largely eliminated from our economy.

The law of increasing costs states that

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

Individuals are forced to make choices because

-A movement from point N to point L would represent

-If we are currently at point T, we can get to point S in the long run

In the context of the global economy, our capacity utilization rate __________________ than it was just a few decades ago.

Our economy is generally operating _________ the production possibilities curve.

According to the law of increasing costs, as the United States expends more of its resources on reducing air pollution,

Hypothetical Production Schedule for a Two-Product Economy -If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.

In order to raise our rate of economic growth we would need to

We temporarily operated outside our production possibilities frontier in

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

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

Our economy would be operating at full employment with labor unemployment rate of _ percent and a capacity utilization rate of ___ percent.