Question 1

Which of the following is not one of the three fundamental economic questions?

Accepted Answer

A)  What happens when you add to or subtract from a current situation? 
B)  For whom to produce? 
C)  How to produce? 
D)  What to produce? 
A)  What happens when you add to or subtract from a current situation? 
B)  For whom to produce? 
C)  How to produce? 
D)  What to produce?

Question 2

The opportunity cost of an action is:

Accepted Answer

A)  the monetary payment the action required. 
B)  the total time spent by all parties in carrying out the action. 
C)  the value of the best opportunity that must be sacrificed in order to take the action. 
D)  the cost of all alternative actions that could have been taken, added together. 
A)  the monetary payment the action required. 
B)  the total time spent by all parties in carrying out the action. 
C)  the value of the best opportunity that must be sacrificed in order to take the action. 
D)  the cost of all alternative actions that could have been taken, added together.

Question 3

A production possibilities curve shows the various combinations of two outputs that: ​

Accepted Answer

A)  ​ consumers would like to consume. 
B)  ​ producers would like to produce. 
C)  ​an economy can produce. 
D)  ​an economy should produce. 
A)  ​ consumers would like to consume. 
B)  ​ producers would like to produce. 
C)  ​an economy can produce. 
D)  ​an economy should produce.

Question 4

A production possibilities curve shows the:

Accepted Answer

A)  dollar costs of producing two different goods. 
B)  amounts of labor and capital needed to produce one good. 
C)  various combinations of goods that can be produced. 
D)  prices of different goods that are produced in an economy. 
E)  inefficient use of available resources and technology. 
A)  dollar costs of producing two different goods. 
B)  amounts of labor and capital needed to produce one good. 
C)  various combinations of goods that can be produced. 
D)  prices of different goods that are produced in an economy. 
E)  inefficient use of available resources and technology.

Question 5

The opportunity cost of attending a movie is the purchase price of a ticket.

Accepted Answer

A) True 
 B)False

Question 6

The process of accumulating capital is called:

Accepted Answer

A)  capitalization. 
B)  loanable funds. 
C)  investment. 
D)  debt management. 
A)  capitalization. 
B)  loanable funds. 
C)  investment. 
D)  debt management.

Question 7

Exhibit 2-10  Production possibilities curve data   Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The first unit of capital goods will cost the economy ____ units of consumption goods.

Accepted Answer

A)  25 
B)  2 
C)  1 
D)  23 
E)  11 
A)  25 
B)  2 
C)  1 
D)  23 
E)  11

Question 8

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

Accepted Answer

A)  A choice of more computers and less education. 
B)  A choice of more education and less computers. 
C)  A reduction in the labor force. 
D)  An increase in the quantity of resources. 
A)  A choice of more computers and less education. 
B)  A choice of more education and less computers. 
C)  A reduction in the labor force. 
D)  An increase in the quantity of resources.

Question 9

Which of the following does not illustrate opportunity cost?

Accepted Answer

A)  If I study, I must give up going to the football game. 
B)  If I buy a computer, I must do without a 35" television. 
C)  If I spend more on clothes, I must spend less on food. 
D)  All of the above illustrate opportunity cost. 
A)  If I study, I must give up going to the football game. 
B)  If I buy a computer, I must do without a 35" television. 
C)  If I spend more on clothes, I must spend less on food. 
D)  All of the above illustrate opportunity cost.

Which of the following is not one of the three fundamental economic questions?

The opportunity cost of an action is:

A production possibilities curve shows the various combinations of two outputs that:

A production possibilities curve shows the:

The opportunity cost of attending a movie is the purchase price of a ticket.

The process of accumulating capital is called:

Exhibit 2-10 Production possibilities curve data Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The first unit of capital goods will cost the economy ____ units of consumption goods.

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

Which of the following does not illustrate opportunity cost?

Introducing the Economic Way of Thinking

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

Exam 2: Production Possibilities, Opportunity Cost, and Economic Growth

Which of the following is not one of the three fundamental economic questions?

The opportunity cost of an action is:

A production possibilities curve shows the various combinations of two outputs that: ​

A production possibilities curve shows the:

The opportunity cost of attending a movie is the purchase price of a ticket.

The process of accumulating capital is called:

Exhibit 2-10 Production possibilities curve data Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The first unit of capital goods will cost the economy ____ units of consumption goods.

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

Which of the following does not illustrate opportunity cost?

Introducing the Economic Way of Thinking

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

A production possibilities curve shows the various combinations of two outputs that: