Question 1

What are the three basic questions faced by every economy?

Accepted Answer

A)  What, how, and for whom will goods be produced? 
B)  When, where, and how much will be produced? 
C)  Why, where, and when will goods be produced? 
D)  How, how much, and why will goods be produced? 
A)  What, how, and for whom will goods be produced? 
B)  When, where, and how much will be produced? 
C)  Why, where, and when will goods be produced? 
D)  How, how much, and why will goods be produced?

Question 2

Over time, an increase in a nation's stock of physical capital will

Accepted Answer

A)  shift the production possibilities curve inward. 
B)  cause an economy to operate inside its production possibilities curve. 
C)  shift the production possibilities curve outward. 
D)  eliminate the basic economic problem of scarcity. 
A)  shift the production possibilities curve inward. 
B)  cause an economy to operate inside its production possibilities curve. 
C)  shift the production possibilities curve outward. 
D)  eliminate the basic economic problem of scarcity.

Question 3

The wages of house painters will tend to rise when

Accepted Answer

A)  more people recognize that house painters have very low incomes. 
B)  the alternative earning opportunities of house painters improve. 
C)  house painters can no longer find good paying alternatives for their labor. 
D)  unemployment in the economy is high and there are few alternative jobs available for house painters. 
A)  more people recognize that house painters have very low incomes. 
B)  the alternative earning opportunities of house painters improve. 
C)  house painters can no longer find good paying alternatives for their labor. 
D)  unemployment in the economy is high and there are few alternative jobs available for house painters.

Question 4

Use the table below to choose the correct answer. The table outlines the production possibilities of Robinson Crusoe and Joe Friday.   If Crusoe and Friday want to maximize their consumption possibilities,

Accepted Answer

A)  Crusoe should specialize in producing good X and Friday in producing good Y, but no trade should be allowed. 
B)  Crusoe should specialize in producing good X and Friday in producing good Y; trade should occur to maximize joint consumption. 
C)  Crusoe should specialize in producing good Y and Friday in producing good X; trade should occur to maximize joint consumption. 
D)  both individuals should strive for self-sufficiency, which always maximizes output. 
A)  Crusoe should specialize in producing good X and Friday in producing good Y, but no trade should be allowed. 
B)  Crusoe should specialize in producing good X and Friday in producing good Y; trade should occur to maximize joint consumption. 
C)  Crusoe should specialize in producing good Y and Friday in producing good X; trade should occur to maximize joint consumption. 
D)  both individuals should strive for self-sufficiency, which always maximizes output.

What are the three basic questions faced by every economy?

Over time, an increase in a nation's stock of physical capital will

The wages of house painters will tend to rise when

Use the table below to choose the correct answer. The table outlines the production possibilities of Robinson Crusoe and Joe Friday. If Crusoe and Friday want to maximize their consumption possibilities,

The Economic Approach

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad--As Model

Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy: Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Special Topics

Filters

Exam 2: Some Tools of the Economist

What are the three basic questions faced by every economy?

Over time, an increase in a nation's stock of physical capital will

The wages of house painters will tend to rise when

Use the table below to choose the correct answer. The table outlines the production possibilities of Robinson Crusoe and Joe Friday. If Crusoe and Friday want to maximize their consumption possibilities,

The Economic Approach

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad--As Model

Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy: Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Special Topics

Filters