Question 1

The production possibilities curve shows all possible combinations of

Accepted Answer

A) two goods that are desired by society. 
B) two goods that can be efficiently produced with a given set of resources. 
C) two goods that can be purchased given the prices of the goods. 
D) two goods that two countries can trade with each other. 
A) two goods that are desired by society. 
B) two goods that can be efficiently produced with a given set of resources. 
C) two goods that can be purchased given the prices of the goods. 
D) two goods that two countries can trade with each other.

Question 2

Samia has decided that with the two hours in between classes she can do one of 3 things.She has ranked her choices,from highest to lowest as,(1)chat with her friends,(2)study economics or (3)take a nap.The opportunity cost of chatting with her friends is

Accepted Answer

A) the combined value of studying economics and taking a nap. 
B) the value of studying economics,the next best use of time. 
C) the value of chatting with her friends. 
D) zero since she does not pay her friends to talk to her. 
A) the combined value of studying economics and taking a nap. 
B) the value of studying economics,the next best use of time. 
C) the value of chatting with her friends. 
D) zero since she does not pay her friends to talk to her.

Question 3

Economic growth can be pictured in a production possibilities curve diagram by

Accepted Answer

A) making the production possibilities curve more bowed out. 
B) making the production possibilities curve less bowed out. 
C) shifting the production possibilities curve out. 
D) shifting the production possibilities curve in. 
A) making the production possibilities curve more bowed out. 
B) making the production possibilities curve less bowed out. 
C) shifting the production possibilities curve out. 
D) shifting the production possibilities curve in.

Question 4

Education increases the stock of which factor of production?

Accepted Answer

A) physical capital 
B) human capital 
C) land 
D) entrepreneurship 
A) physical capital 
B) human capital 
C) land 
D) entrepreneurship

Question 5

All of the following are economic resources,or factors of production EXCEPT

Accepted Answer

A) land. 
B) physical capital. 
C) money. 
D) entrepreneurship. 
A) land. 
B) physical capital. 
C) money. 
D) entrepreneurship.

Question 6

Specialization and the division of labor typically result in

Accepted Answer

A) cost overruns. 
B) increased output. 
C) decreased output. 
D) a greater reliance upon imports. 
A) cost overruns. 
B) increased output. 
C) decreased output. 
D) a greater reliance upon imports.

Question 7

Scarcity exists because

Accepted Answer

A) there is a disruption in the distribution of goods caused by bad weather. 
B) there is a shortage of goods caused by war. 
C) there are not enough resources available to produce all the goods that people want. 
D) there is a shortage of qualified workers throughout the world. 
A) there is a disruption in the distribution of goods caused by bad weather. 
B) there is a shortage of goods caused by war. 
C) there are not enough resources available to produce all the goods that people want. 
D) there is a shortage of qualified workers throughout the world.

Question 8

The opportunity cost of going to college full time away from home is

Accepted Answer

A) the income you could have earned from a full-time job. 
B) the funds you would have saved if you had not paid the tuition. 
C) the time you could have spent with friends back home. 
D) All of the above are correct. 
A) the income you could have earned from a full-time job. 
B) the funds you would have saved if you had not paid the tuition. 
C) the time you could have spent with friends back home. 
D) All of the above are correct.

Question 9

You like to sleep until 11:00 am during the semester.What is the opportunity cost of attending an 8:00 am class?

Accepted Answer

A) nothing,since you can go back to bed later 
B) sleep 
C) obtaining the notes from the 8:00 am class 
D) the money you spend on coffee to stay awake 
A) nothing,since you can go back to bed later 
B) sleep 
C) obtaining the notes from the 8:00 am class 
D) the money you spend on coffee to stay awake

Question 10

-Refer to the above figure.Production at Point F

Accepted Answer

A) is not attainable given the underlying assumptions of the production possibilities curve (PP
C) . 
B) would not be desirable. 
C) can only be attained by giving up Point E. 
D) can be attained only if a society desired more goods and services. 
A) is not attainable given the underlying assumptions of the production possibilities curve (PP
C) . 
B) would not be desirable. 
C) can only be attained by giving up Point E. 
D) can be attained only if a society desired more goods and services.

Question 11

The existence of scarcity means that

Accepted Answer

A) there are not enough resources to satisfy unlimited human wants. 
B) firms will increase their production to eliminate the scarcity. 
C) the government will step in to eliminate the scarcity. 
D) firms working with the government will allocate resources to eliminate the scarcity. 
A) there are not enough resources to satisfy unlimited human wants. 
B) firms will increase their production to eliminate the scarcity. 
C) the government will step in to eliminate the scarcity. 
D) firms working with the government will allocate resources to eliminate the scarcity.

Question 12

In economics,international trade is based on the existence of

Accepted Answer

A) absolute advantage between countries. 
B) relative advantage between countries. 
C) comparative advantage between countries. 
D) output advantage between countries. 
A) absolute advantage between countries. 
B) relative advantage between countries. 
C) comparative advantage between countries. 
D) output advantage between countries.

Question 13

"Wants" as an economic concept includes

Accepted Answer

A) both material and nonmaterial desires. 
B) only the purchase of necessary basic goods. 
C) only the desire for luxury goods. 
D) only those goods that can be purchased with one's paycheck. 
A) both material and nonmaterial desires. 
B) only the purchase of necessary basic goods. 
C) only the desire for luxury goods. 
D) only those goods that can be purchased with one's paycheck.

Question 14

"Because resources are scarce,the production of more capital goods means that fewer resources are available to produce consumption goods,so there is less current consumption." Do you agree or disagree? Explain.

Accepted Answer

Agree.Capital goods are goods that are u

Question 15

-Refer to the above figure.Between points f and g,the opportunity cost of producing 75 more bushels of wheat is

Accepted Answer

A) 1 bushel of beans. 
B) 4 bushels of beans. 
C) 25 bushels of beans. 
D) 100 bushels of beans. 
A) 1 bushel of beans. 
B) 4 bushels of beans. 
C) 25 bushels of beans. 
D) 100 bushels of beans.

Question 16

Scarcity is

Accepted Answer

A) a situation of shortage after a hurricane. 
B) a permanent human condition relative to the nearly limitless nature of human desires. 
C) represented by long lines at stores. 
D) the same thing as poverty. 
A) a situation of shortage after a hurricane. 
B) a permanent human condition relative to the nearly limitless nature of human desires. 
C) represented by long lines at stores. 
D) the same thing as poverty.

Question 17

Which of the following is the best example of scarcity?

Accepted Answer

A) The Talking Teddy is a surprise holiday hit,resulting in long lines of consumers trying to purchase the limited number of available Teddies. 
B) Fred only gets a 10-hour lunch break and each day must decide between working out at the gym or socializing with his colleagues. 
C) The local market's buy-one-get-one-free sale on strawberries results in more people wanting the berries than producers are able and willing to supply. 
D) There is a bumper crop of strawberries,and stores have more berries than they can sell. 
A) The Talking Teddy is a surprise holiday hit,resulting in long lines of consumers trying to purchase the limited number of available Teddies. 
B) Fred only gets a 10-hour lunch break and each day must decide between working out at the gym or socializing with his colleagues. 
C) The local market's buy-one-get-one-free sale on strawberries results in more people wanting the berries than producers are able and willing to supply. 
D) There is a bumper crop of strawberries,and stores have more berries than they can sell.

Question 18

Stephanie has decided to eat lunch between classes.She has ranked her choices,from highest to lowest as,(1)turkey sandwich,(2)tuna sandwich,(3)slice of cheese pizza,(4)cheeseburger.The opportunity cost of the eating turkey sandwich is

Accepted Answer

A) the combined value of the tuna sandwich,slice of cheese pizza and cheeseburger. 
B) the value of tuna sandwich,the next best choice. 
C) the value of the cheeseburger. 
D) zero since she has satisfied a want. 
A) the combined value of the tuna sandwich,slice of cheese pizza and cheeseburger. 
B) the value of tuna sandwich,the next best choice. 
C) the value of the cheeseburger. 
D) zero since she has satisfied a want.

Question 19

Two factories make wooden chairs.If the workers in factory A make each chair from start to finish and the workers in factory B divide labor,one would assume

Accepted Answer

A) the chairs in factory A are of higher quality. 
B) the workers in factory B have more job satisfaction. 
C) factory B can take advantage of division of labor and produce more efficiently. 
D) factory A can take advantage of division of labor and produce more efficiently 
A) the chairs in factory A are of higher quality. 
B) the workers in factory B have more job satisfaction. 
C) factory B can take advantage of division of labor and produce more efficiently. 
D) factory A can take advantage of division of labor and produce more efficiently

Question 20

Are all goods economic goods? Are all economic goods also goods? Explain.

Accepted Answer

Not all goods are economic goods.Economi

Exam 2: Scarcity and the World of Trade-Offs

The production possibilities curve shows all possible combinations of

Samia has decided that with the two hours in between classes she can do one of 3 things.She has ranked her choices,from highest to lowest as,(1)chat with her friends,(2)study economics or (3)take a nap.The opportunity cost of chatting with her friends is

Economic growth can be pictured in a production possibilities curve diagram by

Education increases the stock of which factor of production?

All of the following are economic resources,or factors of production EXCEPT

Specialization and the division of labor typically result in

Scarcity exists because

The opportunity cost of going to college full time away from home is

You like to sleep until 11:00 am during the semester.What is the opportunity cost of attending an 8:00 am class?

-Refer to the above figure.Production at Point F

The existence of scarcity means that

In economics,international trade is based on the existence of

"Wants" as an economic concept includes

"Because resources are scarce,the production of more capital goods means that fewer resources are available to produce consumption goods,so there is less current consumption." Do you agree or disagree? Explain.

-Refer to the above figure.Between points f and g,the opportunity cost of producing 75 more bushels of wheat is

Scarcity is

Which of the following is the best example of scarcity?

Stephanie has decided to eat lunch between classes.She has ranked her choices,from highest to lowest as,(1)turkey sandwich,(2)tuna sandwich,(3)slice of cheese pizza,(4)cheeseburger.The opportunity cost of the eating turkey sandwich is

Two factories make wooden chairs.If the workers in factory A make each chair from start to finish and the workers in factory B divide labor,one would assume

Are all goods economic goods? Are all economic goods also goods? Explain.

The Nature of Economics

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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