Question 1

The production possibility frontier is a graph that shows

Accepted Answer

A) all the combinations of goods and services that are consumed over time if all of society's resources are used efficiently. 
B) the amount of goods and services consumed at various average price levels. 
C) the rate at which an economy's output will grow over time if all resources are used efficiently. 
D) all the combinations of goods and services that can be produced if all of society's resources are used efficiently. 
A) all the combinations of goods and services that are consumed over time if all of society's resources are used efficiently. 
B) the amount of goods and services consumed at various average price levels. 
C) the rate at which an economy's output will grow over time if all resources are used efficiently. 
D) all the combinations of goods and services that can be produced if all of society's resources are used efficiently.

Question 2

Which of the following does NOT constitute an act of "investment" as economists use the term?

Accepted Answer

A) The city council authorizes the construction of a new fire station. 
B) A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share. 
C) An accountant attends a seminar on changes in the federal tax code. 
D) A department store increases its inventory of football jerseys before the Super Bowl. 
A) The city council authorizes the construction of a new fire station. 
B) A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share. 
C) An accountant attends a seminar on changes in the federal tax code. 
D) A department store increases its inventory of football jerseys before the Super Bowl.

Question 3

The government produces only what the market is willing to pay for.

Accepted Answer

A) True 
 B)False

Question 4

Refer to the information provided in Figure 2.4 below to answer the questions that follow.   Figure 2.4
-According to Figure 2.4,which point cannot be produced with the current state of technology?

Accepted Answer

A) A 
B) B 
C) C 
D) F 
A) A 
B) B 
C) C 
D) F

Question 5

An example of an investment is

Accepted Answer

A) the purchase of a share of Google stock. 
B) the purchase of an Exxon Mobil bond. 
C) the purchase of a Hewlett Packard laser printer for use by a business. 
D) all of the above. 
A) the purchase of a share of Google stock. 
B) the purchase of an Exxon Mobil bond. 
C) the purchase of a Hewlett Packard laser printer for use by a business. 
D) all of the above.

Question 6

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 7

Refer to the information provided in Figure 2.6 below to answer the questions that follow.   Figure 2.6
-Refer to Figure 2.6.Which of the following is most likely to shift the production possibility frontier from ppf1 to ppf2?

Accepted Answer

A) a change in consumer tastes 
B) the purchase of stocks on the New York Stock Exchange 
C) moving resources from capital to consumer goods 
D) an increase in the general educational level of the population 
A) a change in consumer tastes 
B) the purchase of stocks on the New York Stock Exchange 
C) moving resources from capital to consumer goods 
D) an increase in the general educational level of the population

Question 8

Economic growth shifts a society's production possibility frontier away from the origin.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is NOT true for a command economy?

Accepted Answer

A) Consumers have some choices concerning what they buy. 
B) The government decides what is produced. 
C) The amount of a good supplied always equals the amount of the good demanded. 
D) The state decides how to distribute what is produced. 
A) Consumers have some choices concerning what they buy. 
B) The government decides what is produced. 
C) The amount of a good supplied always equals the amount of the good demanded. 
D) The state decides how to distribute what is produced.

Question 10

Refer to the information provided in Figure 2.1 below to answer the questions that follow.   Figure 2.1
-Refer to Figure 2.1.Macroland's production possibility frontier is bowed out from the origin due to

Accepted Answer

A) decreasing opportunity costs. 
B) trade. 
C) unemployment. 
D) specialized resources. 
A) decreasing opportunity costs. 
B) trade. 
C) unemployment. 
D) specialized resources.

The production possibility frontier is a graph that shows

Which of the following does NOT constitute an act of "investment" as economists use the term?

The government produces only what the market is willing to pay for.

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4,which point cannot be produced with the current state of technology?

An example of an investment 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

Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6 -Refer to Figure 2.6.Which of the following is most likely to shift the production possibility frontier from ppf1 to ppf2?

Economic growth shifts a society's production possibility frontier away from the origin.

Which of the following statements is NOT true for a command economy?

Refer to the information provided in Figure 2.1 below to answer the questions that follow. Figure 2.1 -Refer to Figure 2.1.Macroland's production possibility frontier is bowed out from the origin due to

The Scope and Method of Economics

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade,comparative Advantage,and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

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Exam 2: The Economic Problem: Scarcity and Choice

The production possibility frontier is a graph that shows

Which of the following does NOT constitute an act of "investment" as economists use the term?

The government produces only what the market is willing to pay for.

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4,which point cannot be produced with the current state of technology?

An example of an investment 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

Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6 -Refer to Figure 2.6.Which of the following is most likely to shift the production possibility frontier from ppf1 to ppf2?

Economic growth shifts a society's production possibility frontier away from the origin.

Which of the following statements is NOT true for a command economy?

Refer to the information provided in Figure 2.1 below to answer the questions that follow. Figure 2.1 -Refer to Figure 2.1.Macroland's production possibility frontier is bowed out from the origin due to

The Scope and Method of Economics

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade,comparative Advantage,and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

Filters