Question 1

An example of forgoing present benefits in order to receive future benefits is

Accepted Answer

A)  production. 
B)  saving. 
C)  consumption. 
D)  growth. 
A)  production. 
B)  saving. 
C)  consumption. 
D)  growth.

Question 2

Which of the following would an economist classify as capital?

Accepted Answer

A)  a $50 bill 
B)  a corporate bond 
C)  a post office employee 
D)  a guitar used by a musician 
A)  a $50 bill 
B)  a corporate bond 
C)  a post office employee 
D)  a guitar used by a musician

Question 3

Refer to the information provided in Figure 2.4 below to answer the questions that follow.   Figure 2.4
-According to Figure 2.4, the optimal point for the economy is

Accepted Answer

A)  A. 
B)  B. 
C)  F. 
D)  indeterminate from the information given. 
A)  A. 
B)  B. 
C)  F. 
D)  indeterminate from the information given.

Question 4

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

Accepted Answer

A)  increases. 
B)  decreases. 
C)  initially increases, then decreases. 
D)  initially decreases, then increases. 
A)  increases. 
B)  decreases. 
C)  initially increases, then decreases. 
D)  initially decreases, then increases.

Question 5

Refer to the information provided in Table 2.1 below to answer the following questions.
Table 2.1
 $$\begin{array} { | c | c | c | } 
\hline & \text { Krystal } & \text { Mark } \
\hline \text { Writing Poerns } & 8 & 12 \
\hline \text { Writing TV Comrnercials } & 2 & 4 \
\hline
\end{array}$$
-Refer to Table 2.1. For Krystal, the opportunity cost of writing one TV commercial is

Accepted Answer

A)  1/4 of a poem. 
B)  2 poems. 
C)  4 poems. 
D)  6 poems. 
A)  1/4 of a poem. 
B)  2 poems. 
C)  4 poems. 
D)  6 poems.

Question 6

Because resources are scarce, the opportunity cost of investment in capital is

Accepted Answer

A)  zero. 
B)  forgone future consumption. 
C)  forgone present consumption. 
D)  infinite. 
A)  zero. 
B)  forgone future consumption. 
C)  forgone present consumption. 
D)  infinite.

Question 7

Refer to the information provided in Figure 2.5 below to answer the questions that follow.   Figure 2.5
-Refer to Figure 2.5. The best point for society would be

Accepted Answer

A)  Point C, as at this point there are approximately equal amounts of LCD and plasma televisions being produced. 
B)  either Point B or Point C, as the total amount being produced at either of these points is approximately the same. 
C)  at any of the labeled points, as all of the points represent an efficient allocation of resources. 
D)  indeterminate from this information, as we don't have any information about the society's desires. 
A)  Point C, as at this point there are approximately equal amounts of LCD and plasma televisions being produced. 
B)  either Point B or Point C, as the total amount being produced at either of these points is approximately the same. 
C)  at any of the labeled points, as all of the points represent an efficient allocation of resources. 
D)  indeterminate from this information, as we don't have any information about the society's desires.

Question 8

An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is

Accepted Answer

A)  efficient, as it is on the production possibility frontier. 
B)  inefficient, as the combination of goods and services produced is not what people want. 
C)  efficient, as the economy is producing goods at the lowest possible cost. 
D)  inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed. 
A)  efficient, as it is on the production possibility frontier. 
B)  inefficient, as the combination of goods and services produced is not what people want. 
C)  efficient, as the economy is producing goods at the lowest possible cost. 
D)  inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed.

Question 9

The production possibility frontier is used to illustrate the concept of

Accepted Answer

A)  the laissez-faire economy. 
B)  opportunity costs. 
C)  equilibrium. 
D)  aggregate demand. 
A)  the laissez-faire economy. 
B)  opportunity costs. 
C)  equilibrium. 
D)  aggregate demand.

Question 10

In a free market system, the amount of output that any one household gets depends on its

Accepted Answer

A)  income. 
B)  wealth. 
C)  wage and interest income. 
D)  income and wealth. 
A)  income. 
B)  wealth. 
C)  wage and interest income. 
D)  income and wealth.

An example of forgoing present benefits in order to receive future benefits is

Which of the following would an economist classify as capital?

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4, the optimal point for the economy is

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

Refer to the information provided in Table 2.1 below to answer the following questions. Table 2.1 Krystal Mark Writing Poerns 8 12 Writing TV Comrnercials 2 4 -Refer to Table 2.1. For Krystal, the opportunity cost of writing one TV commercial is

Because resources are scarce, the opportunity cost of investment in capital is

Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5 -Refer to Figure 2.5. The best point for society would be

An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is

The production possibility frontier is used to illustrate the concept of

In a free market system, the amount of output that any one household gets depends on its

The Scope and Method of Economics

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Social Choice

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing and Transitional Economies

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Exam 2: The Economic Problem: Scarcity and Choice

An example of forgoing present benefits in order to receive future benefits is

Which of the following would an economist classify as capital?

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4, the optimal point for the economy is

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

Refer to the information provided in Table 2.1 below to answer the following questions. Table 2.1 Krystal Mark Writing Poerns 8 12 Writing TV Comrnercials 2 4 -Refer to Table 2.1. For Krystal, the opportunity cost of writing one TV commercial is

Because resources are scarce, the opportunity cost of investment in capital is

Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5 -Refer to Figure 2.5. The best point for society would be

An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is

The production possibility frontier is used to illustrate the concept of

In a free market system, the amount of output that any one household gets depends on its

The Scope and Method of Economics

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Social Choice

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing and Transitional Economies

Filters