Question 1

Assuming that a society always operates on its production possibilities curve,an outward shift of the curve implies

Accepted Answer

A)  economic growth has occurred.
B)  the society is making more efficient use of its available resources.
C)  consumer demand has increased.
D)  the present value of capital resources has increaseD.E) A) and D)
F) All of the above

Question 2

People are forced to economize because of

Accepted Answer

A)  competition.
B)  pressure to conform.
C)  scarcity.
D)  the absence of money.
E)  the presence of taxes.F) A) and D)
G) A) and E)

Question 3

Hypothetical Production Schedule for a Two-Product Economy 
-If the economy produces 27 consumer goods and 12 capital goods,the economy would be producing __________________ (outside/on/inside)the production possibilities curve.

Accepted Answer

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

Question 4

-If we were at point ____ it would be possible to produce more heart transplants and more round-the-world trips.

Accepted Answer

A)  P
B)  Q
C)  R
D)  SE) B) and D)
F) All of the above

Question 5

Which of the following is the most accurate statement?

Accepted Answer

A)  Employment discrimination has been diminished,but has not yet been wiped out.
B)  Federal laws do not restrict child labor.
C)  Underemployment of women,blacks and other Americans has increased substantially since the 1950s.
D)  Although there was substantial employment discrimination in the past,there is virtually none today.E) A) and D)
F) B) and C)

Question 6

-Point P represents

Accepted Answer

A)  a severe recession.
B)  where our economy usually operates.
C)  inflation.
D)  full employment.E) C) and D)
F) A) and B)

Question 7

Assuming that full employment of labor is considered 5 percent unemployment,in 1998 and 1999 our economy operated ____________ the production possibilities frontier.

Accepted Answer

The answer of Assuming that full employment of labor is...

Question 8

Referring to a production possibilities curve and the goods being compared,depict the economic event.The SARS epidemic spreads rapidly throughout Toronto,Canada claiming millions of lives (capital vs.consumer goods) .

Accepted Answer

A)  A movement from a point inside the curve to a point on or near the curve
B)  A movement from a point on or near the curve to a point inside the curve
C)  A shift in the entire curve to the right (outward) 
D)  A shift in the entire curve to the left (inward) 
E)  A movement along the curveF) A) and E)
G) A) and D)

Question 9

Referring to a production possibilities curve and the goods being compared,depict the economic event.The bubonic plague (Black Death) in the 1300s killed one-third of Europe's population (capital goods vs.consumer goods) .

Accepted Answer

A)  A movement from a point inside the curve to a point on or near the curve
B)  A movement from a point on or near the curve to a point inside the curve
C)  A shift in the entire curve to the right (outward) 
D)  A shift in the entire curve to the left (inward) 
E)  A movement along the curveF) None of the above
G) B) and E)

Question 10

If an economy is operating on its production possibility frontier,which of the following statements is true?

Accepted Answer

A)  Products are produced using inefficient production technology.
B)  The capacity utilization rate is less than full production.
C)  The economy's labor force is fully employed.
D)  A fall in the price of an input will enable the economy to produce outside the production possibility frontier.E) A) and D)
F) None of the above

Question 11

If our nation is operating at full production,not only are we using our most ________ technology,but we are utilizing our land,labor,capital and entrepreneurial ability at their most _______________.

Accepted Answer

up-to-date...

Question 12

According to the law of increasing costs,as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

Accepted Answer

A)  the cost of reducing 70 percent of the dust in the factory will be the same as the cost of reducing the first 50 percent of the dust in the factory.
B)  the cost of reducing 70 percent of the dust in the factory will be less than the cost of reducing the first 50 percent of the dust in the factory.
C)  the cost of reducing 70 percent of the dust in the factory will be greater than the cost of reducing the first 50 percent of the dust in the factory.D) B) and C)
E) A) and C)

Question 13

-If the economy were producing at point F,

Accepted Answer

A)  it would not be using its resources efficiently.
B)  it would be in a recession.
C)  it could gain units of guns without having to sacrifice units of butter.
D)  it would be specializing exclusively in butter production.E) B) and C)
F) A) and C)

Question 14

Hypothetical Production Schedule for a Two-Product Economy 
-If the economy could produce 42 consumer goods and 12 capital goods,given the current production possibilities curve,the economy would be producing ___________________ (outside/on/inside)the curve.

Accepted Answer

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

Question 15

Each of the following is an example of capital,except

Accepted Answer

A)  an office building.
B)  gold in a gold mine.
C)  an assembly line.
D)  a computer system.E) A) and B)
F) A) and C)

Question 16

The opportunity cost of a movement from point N to J would

Accepted Answer

A)  be the lost production of some capital goods.
B)  be the lost production of some consumer goods.
C)  be slower economic growth in the future.
D)  not involve any sacrifice of either capital or consumer goods.E) A) and B)
F) None of the above

Question 17

Our nation

Accepted Answer

A)  has sometimes attained productive efficiency.
B)  usually attains productive efficiency.
C)  never attained productive efficiency.D) A) and B)
E) A) and C)

Question 18

Which statement is true?

Accepted Answer

A)  Entrepreneurial ability is abundant in the U.S.
B)  The entrepreneur sets up a business and risks his or her own money.
C)  Land,labor and capital may be considered passive resources.
D)  All of the statements are true.E) None of the above
F) All of the above

Question 19

Which statement is true?

Accepted Answer

A)  Entrepreneurial ability is considered a passive resource.
B)  All entrepreneurs are inventors.
C)  The entrepreneur has been the central figure in the long economic success in the U.S.
D)  The basic payment made to the owners of capital is rent.E) A) and D)
F) A) and C)

Question 20

-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

Accepted Answer

A)  2 units of outboard motors.
B)  4 units of outboard motors.
C)  12 units of outboard motors.
D)  11 units of robots.E) A) and D)
F) A) and C)

Exam 2: Resource Utilization

Assuming that a society always operates on its production possibilities curve,an outward shift of the curve implies

Correct AnswerverifiedShow Answer

Hypothetical Production Schedule for a Two-Product Economy -If the economy could produce 42 consumer goods and 12 capital goods,given the current production possibilities curve,the economy would be producing ___________________ (outside/on/inside)the curve.

Correct AnswerverifiedShow Answer

If our nation is operating at full production,not only are we using our most ________ technology,but we are utilizing our land,labor,capital and entrepreneurial ability at their most _______________.

Correct Answerverifiedup-to-date...View AnswerShow Answer

Which of the following is the most accurate statement?

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Referring to a production possibilities curve and the goods being compared,depict the economic event.The bubonic plague (Black Death) in the 1300s killed one-third of Europe's population (capital goods vs.consumer goods) .

Correct AnswerverifiedShow Answer

The opportunity cost of a movement from point N to J would

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If an economy is operating on its production possibility frontier,which of the following statements is true?

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-Point P represents

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People are forced to economize because of

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Our nation

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Which statement is true?

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Each of the following is an example of capital,except

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-If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be

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-If we were at point ____ it would be possible to produce more heart transplants and more round-the-world trips.

Correct AnswerverifiedShow Answer

Referring to a production possibilities curve and the goods being compared,depict the economic event.The SARS epidemic spreads rapidly throughout Toronto,Canada claiming millions of lives (capital vs.consumer goods) .

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Which statement is true?

Correct AnswerverifiedShow Answer

-If the economy were producing at point F,

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Assuming that full employment of labor is considered 5 percent unemployment,in 1998 and 1999 our economy operated ____________ the production possibilities frontier.

Correct AnswerverifiedShow Answer

According to the law of increasing costs,as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

Correct AnswerverifiedShow Answer

Hypothetical Production Schedule for a Two-Product Economy -If the economy produces 27 consumer goods and 12 capital goods,the economy would be producing __________________ (outside/on/inside)the production possibilities curve.

Correct AnswerverifiedShow Answer

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If our nation is operating at full production,not only are we using our most technology,but we are utilizing our land,labor,capital and entrepreneurial ability at their most _______.

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