Question 1

A point inside a production possibilities curve may indicate:

Accepted Answer

A)  unemployment. 
B)  the inefficient use of resources. 
C)  failure to use the best available technology. 
D)  all of the above. 
A)  unemployment. 
B)  the inefficient use of resources. 
C)  failure to use the best available technology. 
D)  all of the above.

Question 2

-Refer to the above diagram.Which line(s)show(s)a positive relationship between x and y?

Accepted Answer

A)  A only 
B)  both A and D 
C)  A,B,and D 
D)  both C and E 
A)  A only 
B)  both A and D 
C)  A,B,and D 
D)  both C and E

Question 3

If we are considering the relationship between two variables and release the "other things equal" assumption,we would expect:

Accepted Answer

A)  the relationship to change from direct to inverse. 
B)  the line representing that relationship on a graph to change locations. 
C)  the data points representing the relationship to become more randomly scattered. 
D)  the relationship to change from inverse to direct. 
A)  the relationship to change from direct to inverse. 
B)  the line representing that relationship on a graph to change locations. 
C)  the data points representing the relationship to become more randomly scattered. 
D)  the relationship to change from inverse to direct.

Question 4

-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:

Accepted Answer

A)  computers,but not bicycles,is subject to increasing opportunity costs. 
B)  bicycles,but not computers,is subject to increasing opportunity costs. 
C)  both bicycles and computers is subject to constant opportunity costs. 
D)  both bicycles and computers is subject to increasing opportunity costs. 
A)  computers,but not bicycles,is subject to increasing opportunity costs. 
B)  bicycles,but not computers,is subject to increasing opportunity costs. 
C)  both bicycles and computers is subject to constant opportunity costs. 
D)  both bicycles and computers is subject to increasing opportunity costs.

Question 5

The marginal benefit curve is:

Accepted Answer

A)  upward sloping because of increasing marginal opportunity costs. 
B)  upward sloping because successive units of a specific product yield less and less extra utility. 
C)  downward sloping because of increasing marginal opportunity costs. 
D)  downward sloping because successive units of a specific product yield less and less extra utility. 
A)  upward sloping because of increasing marginal opportunity costs. 
B)  upward sloping because successive units of a specific product yield less and less extra utility. 
C)  downward sloping because of increasing marginal opportunity costs. 
D)  downward sloping because successive units of a specific product yield less and less extra utility.

Question 6

If country A has been investing a larger proportion of its domestic output than Canada has,then,we would expect:

Accepted Answer

A)  a higher rate of growth of domestic output in country A than in Canada. 
B)  greater rightward shifts in country A's production possibilities curve as compared to Canada. 
C)  that in the long run living standards would rise more rapidly in country A than in Canada. 
D)  all of the above to happen. 
A)  a higher rate of growth of domestic output in country A than in Canada. 
B)  greater rightward shifts in country A's production possibilities curve as compared to Canada. 
C)  that in the long run living standards would rise more rapidly in country A than in Canada. 
D)  all of the above to happen.

Question 7

The output of blu ray players should be:

Accepted Answer

A)  reduced if marginal benefits exceed marginal costs. 
B)  reduced if marginal costs exceed marginal benefits. 
C)  increased if marginal costs exceed marginal benefits. 
D)  reduced to zero if their unit costs exceed the unit costs of alternative products. 
A)  reduced if marginal benefits exceed marginal costs. 
B)  reduced if marginal costs exceed marginal benefits. 
C)  increased if marginal costs exceed marginal benefits. 
D)  reduced to zero if their unit costs exceed the unit costs of alternative products.

Question 8

The study of economics is primarily concerned with:

Accepted Answer

A)  keeping private businesses from losing money. 
B)  demonstrating that capitalistic economies are superior to socialistic economies. 
C)  choices which are made in seeking to use scarce resources efficiently. 
D)  determining the most equitable distribution of society's output. 
A)  keeping private businesses from losing money. 
B)  demonstrating that capitalistic economies are superior to socialistic economies. 
C)  choices which are made in seeking to use scarce resources efficiently. 
D)  determining the most equitable distribution of society's output.

Question 9

Refer to the table below.According to the production possibilities schedule for the economy which produces two products,a combination of four tanks and 650 autos is: Production Possibilities

Accepted Answer

A)  attainable,but involves an efficient use of society's resources. 
B)  attainable,but would not be in the best interests of a strong national defence. 
C)  not attainable because it is not listed in the schedule. 
D)  not attainable because society does not have sufficient resources to produce this combination. 
A)  attainable,but involves an efficient use of society's resources. 
B)  attainable,but would not be in the best interests of a strong national defence. 
C)  not attainable because it is not listed in the schedule. 
D)  not attainable because society does not have sufficient resources to produce this combination.

Question 10

The fundamental problem of economics is:

Accepted Answer

A)  to establish a democratic political framework for the provision of social goods and services. 
B)  the establishment of prices which accurately reflect the relative scarcities of products and resources. 
C)  the scarcity of productive resources relative to material wants. 
D)  to achieve a more equitable distribution of money income in order to mitigate poverty. 
A)  to establish a democratic political framework for the provision of social goods and services. 
B)  the establishment of prices which accurately reflect the relative scarcities of products and resources. 
C)  the scarcity of productive resources relative to material wants. 
D)  to achieve a more equitable distribution of money income in order to mitigate poverty.

Question 11

-Refer to the above diagram.The slope of curve ZZ at point B is:

Accepted Answer

A)  infinity. 
B)  zero. 
C)  one. 
D)  none of the above. 
A)  infinity. 
B)  zero. 
C)  one. 
D)  none of the above.

Question 12

Some agricultural sub-Saharan nations of Africa have over-farmed and overgrazed their land to the extent that significant portions of it have turned into desert.This suggests that:

Accepted Answer

A)  the concavity of the production possibilities curves of such nations has increased. 
B)  the production possibilities curves of such nations have shifted inward. 
C)  the production possibilities curves of such nations have shifted outward. 
D)  these nations are operating at some point outside of their production possibilities curves. 
A)  the concavity of the production possibilities curves of such nations has increased. 
B)  the production possibilities curves of such nations have shifted inward. 
C)  the production possibilities curves of such nations have shifted outward. 
D)  these nations are operating at some point outside of their production possibilities curves.

Question 13

-Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more units of bicycles:

Accepted Answer

A)  cannot be realized because resources are fully employed. 
B)  will cost 1 unit of computers. 
C)  will cost 2 units of computers. 
D)  will cause some resources to become unemployed. 
A)  cannot be realized because resources are fully employed. 
B)  will cost 1 unit of computers. 
C)  will cost 2 units of computers. 
D)  will cause some resources to become unemployed.

Question 14

-Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Accepted Answer

A)  both 2 and 4. 
B)  3 only. 
C)  2 only. 
D)  1 
A)  both 2 and 4. 
B)  3 only. 
C)  2 only. 
D)  1

Question 15

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase.This is a reflection of:

Accepted Answer

A)  resource scarcity and the necessity of choice. 
B)  purposeful behaviour. 
C)  marginal costs which exceed marginal benefits. 
D)  the tradeoff problem which exists between competing goals. 
A)  resource scarcity and the necessity of choice. 
B)  purposeful behaviour. 
C)  marginal costs which exceed marginal benefits. 
D)  the tradeoff problem which exists between competing goals.

Question 16

If economic theories are solidly based on relevant facts,then there can be no question as to the character of appropriate economic policy.

Accepted Answer

A) True 
 B)False

Question 17

Refer to the graph.The movement from line A to line A' represents a change in:

Accepted Answer

A)  the slope only. 
B)  the intercept only. 
C)  both the slope and the intercept. 
D)  neither the slope nor the intercept. 
A)  the slope only. 
B)  the intercept only. 
C)  both the slope and the intercept. 
D)  neither the slope nor the intercept.

A point inside a production possibilities curve may indicate:

-Refer to the above diagram.Which line(s)show(s)a positive relationship between x and y?

If we are considering the relationship between two variables and release the "other things equal" assumption,we would expect:

-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:

The marginal benefit curve is:

If country A has been investing a larger proportion of its domestic output than Canada has,then,we would expect:

The output of blu ray players should be:

The study of economics is primarily concerned with:

Refer to the table below.According to the production possibilities schedule for the economy which produces two products,a combination of four tanks and 650 autos is: Production Possibilities

The fundamental problem of economics is:

-Refer to the above diagram.The slope of curve ZZ at point B is:

Some agricultural sub-Saharan nations of Africa have over-farmed and overgrazed their land to the extent that significant portions of it have turned into desert.This suggests that:

-Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more units of bicycles:

-Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase.This is a reflection of:

If economic theories are solidly based on relevant facts,then there can be no question as to the character of appropriate economic policy.

Refer to the graph.The movement from line A to line A' represents a change in:

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

An Introduction to Macroeconomics

Measuring the Economys Output

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, Surpluses, and Debt

Money, Banking, and Money Creation

Interest Rates and Monetary Policy

Long-Run Macroeconomic Adjustments

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 1: Limits, Alternatives, and Choices

A point inside a production possibilities curve may indicate:

-Refer to the above diagram.Which line(s)show(s)a positive relationship between x and y?

If we are considering the relationship between two variables and release the "other things equal" assumption,we would expect:

-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:

The marginal benefit curve is:

If country A has been investing a larger proportion of its domestic output than Canada has,then,we would expect:

The output of blu ray players should be:

The study of economics is primarily concerned with:

Refer to the table below.According to the production possibilities schedule for the economy which produces two products,a combination of four tanks and 650 autos is: Production Possibilities

The fundamental problem of economics is:

-Refer to the above diagram.The slope of curve ZZ at point B is:

Some agricultural sub-Saharan nations of Africa have over-farmed and overgrazed their land to the extent that significant portions of it have turned into desert.This suggests that:

-Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more units of bicycles:

-Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase.This is a reflection of:

If economic theories are solidly based on relevant facts,then there can be no question as to the character of appropriate economic policy.

Refer to the graph.The movement from line A to line A' represents a change in:

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

An Introduction to Macroeconomics

Measuring the Economys Output

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, Surpluses, and Debt

Money, Banking, and Money Creation

Interest Rates and Monetary Policy

Long-Run Macroeconomic Adjustments

International Trade

Exchange Rates and the Balance of Payments

Filters