Question 1

Use the figure The Production Possibilities Frontier I. Which point is unattainable?
​
Figure: The Production Possibilities Frontier I

Accepted Answer

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

Question 2

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing onions?
​

Accepted Answer

A)  $800 
B)  $1,000 
C)  $1,300 
D)  $400 
A)  $800 
B)  $1,000 
C)  $1,300 
D)  $400

Question 3

Use the figure The Production Possibilities Frontier III. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point:
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  G 
B)  J 
C)  I 
D)  K 
A)  G 
B)  J 
C)  I 
D)  K

Question 4

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the highest?
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  H 
B)  I 
C)  J 
D)  K 
A)  H 
B)  I 
C)  J 
D)  K

Question 5

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

Accepted Answer

A)  How much money can be earned? 
B)  What should be produced? 
C)  How should it be produced? 
D)  For whom should it be produced? 
A)  How much money can be earned? 
B)  What should be produced? 
C)  How should it be produced? 
D)  For whom should it be produced?

Question 6

Goh is deciding on whether he should hire another worker or buy another piece of machinery. Which of the three fundamental economic questions is he trying to answer?

Accepted Answer

A)  What to produce? 
B)  Is the economy efficient? 
C)  How to produce goods? 
D)  For whom to produce? 
A)  What to produce? 
B)  Is the economy efficient? 
C)  How to produce goods? 
D)  For whom to produce?

Question 7

The concept of the "invisible hand" in economics as described by Adam Smith states that:

Accepted Answer

A)  all our actions are coordinated by the desires of a benevolent dictator. 
B)  the selfish pursuit of profit leads to consumers getting more of what they want. 
C)  magicians are the only agents who have purely economic motives. 
D)  our efforts to help out neighbors are not economic activity. 
A)  all our actions are coordinated by the desires of a benevolent dictator. 
B)  the selfish pursuit of profit leads to consumers getting more of what they want. 
C)  magicians are the only agents who have purely economic motives. 
D)  our efforts to help out neighbors are not economic activity.

Question 8

Scientists in Elizaland discover a new source of energy. What happens to the production possibilities frontier (PPF) in Elizaland?

Accepted Answer

A)  It changes shape. 
B)  Its slope decreases. 
C)  It shifts out. 
D)  It shifts in. 
A)  It changes shape. 
B)  Its slope decreases. 
C)  It shifts out. 
D)  It shifts in.

Question 9

Use the table Possible Output Combinations Using All Available Resources I. What is true about the combination of one ukulele and four bowls?
​

Accepted Answer

A)  The combination is efficient. 
B)  The combination is inefficient. 
C)  The combination is unattainable. 
D)  The combination is attainable if there is growth. 
A)  The combination is efficient. 
B)  The combination is inefficient. 
C)  The combination is unattainable. 
D)  The combination is attainable if there is growth.

Question 10

Use the table Possible Output Combinations Using All Available Resources I. What combination of production of ukuleles and wooden bowls indicates that there are idle resources?
​

Accepted Answer

A)  zero ukuleles and 10 wooden bowls 
B)  two ukuleles and five wooden bowls 
C)  three ukuleles and four wooden bowls 
D)  five ukuleles and zero wooden bowls 
A)  zero ukuleles and 10 wooden bowls 
B)  two ukuleles and five wooden bowls 
C)  three ukuleles and four wooden bowls 
D)  five ukuleles and zero wooden bowls

Question 11

Use the figure The Production Possibilities Frontier III. If this economy is currently producing a combination of output represented by point H, what is the opportunity cost of producing five more gloves?
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  six sunglasses 
B)  five sunglasses 
C)  ten sunglasses 
D)  zero sunglasses 
A)  six sunglasses 
B)  five sunglasses 
C)  ten sunglasses 
D)  zero sunglasses

Question 12

A massive plague results in a decrease in workers who are available in Elizaland. What happens to the production possibilities frontier (PPF) in Elizaland?

Accepted Answer

A)  It changes shape. 
B)  Its slope decreases. 
C)  It shifts out. 
D)  It shifts in. 
A)  It changes shape. 
B)  Its slope decreases. 
C)  It shifts out. 
D)  It shifts in.

Question 13

Use the figure The Production Possibilities Frontier II. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point:
​
Figure: The Production Possibilities Frontier II
​

Accepted Answer

A)  R. 
B)  T. 
C)  V. 
D)  S. 
A)  R. 
B)  T. 
C)  V. 
D)  S.

Question 14

The study of all decision making under uncertainty is called:

Accepted Answer

A)  ceteris paribus. 
B)  economics. 
C)  normative. 
D)  positive. 
A)  ceteris paribus. 
B)  economics. 
C)  normative. 
D)  positive.

Question 15

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the lowest?
​
Figure: The Production Possibilities Frontier III

Accepted Answer

A)  H 
B)  I 
C)  L 
D)  K 
A)  H 
B)  I 
C)  L 
D)  K

Question 16

Which of the following is a macroeconomic topic?

Accepted Answer

A)  The gasoline tax in Oregon is higher than the gasoline tax in Kentucky. 
B)  A drought has increased the price of wheat in Australia. 
C)  The inflation rate in the European Union is higher than it is in the United States. 
D)  If the government subsidizes vaccinations, fewer children will contract measles. 
A)  The gasoline tax in Oregon is higher than the gasoline tax in Kentucky. 
B)  A drought has increased the price of wheat in Australia. 
C)  The inflation rate in the European Union is higher than it is in the United States. 
D)  If the government subsidizes vaccinations, fewer children will contract measles.

Question 17

Which of the following is an example of normative economics?

Accepted Answer

A)  The city of Seattle is among the U.S. cities with the highest cost of living. 
B)  A higher carbon tax will likely reduce electricity consumption and improve air quality in our cities. 
C)  Minneapolis has been rated as one of the cleanest cities in the United States. 
D)  Our city leaders must spend more money on crime prevention and hire more police officers. 
A)  The city of Seattle is among the U.S. cities with the highest cost of living. 
B)  A higher carbon tax will likely reduce electricity consumption and improve air quality in our cities. 
C)  Minneapolis has been rated as one of the cleanest cities in the United States. 
D)  Our city leaders must spend more money on crime prevention and hire more police officers.

Question 18

Use the figure The Production Possibilities Frontier II. What point represents a combination of output that is produced if some resources are idle?
​
Figure: The Production Possibilities Frontier II
​

Accepted Answer

A)  R 
B)  S 
C)  V 
D)  U 
A)  R 
B)  S 
C)  V 
D)  U

Question 19

Oliver's lumberyard is deciding on whether he should produce more sheets of plywood or more hardwood flooring. Which of the three fundamental economic questions is he trying to answer?

Accepted Answer

A)  What to produce? 
B)  Is the economy efficient? 
C)  How to produce goods? 
D)  For whom to produce? 
A)  What to produce? 
B)  Is the economy efficient? 
C)  How to produce goods? 
D)  For whom to produce?

Question 20

Which of the following is a microeconomic topic?

Accepted Answer

A)  The unemployment rate in Oregon is about 4 percent. 
B)  Real gross domestic product in the United States decreased by about 1.5 percent between 2009 and 2010. 
C)  The gross domestic product of Mexico has steadily increased since 2010. 
D)  Consumers have recently shown a strong preference for ridesharing services rather than conventional taxicabs. 
A)  The unemployment rate in Oregon is about 4 percent. 
B)  Real gross domestic product in the United States decreased by about 1.5 percent between 2009 and 2010. 
C)  The gross domestic product of Mexico has steadily increased since 2010. 
D)  Consumers have recently shown a strong preference for ridesharing services rather than conventional taxicabs.

Use the figure The Production Possibilities Frontier I. Which point is unattainable? Figure: The Production Possibilities Frontier I

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing onions?

Use the figure The Production Possibilities Frontier III. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point: Figure: The Production Possibilities Frontier III

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the highest? Figure: The Production Possibilities Frontier III

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

Goh is deciding on whether he should hire another worker or buy another piece of machinery. Which of the three fundamental economic questions is he trying to answer?

The concept of the "invisible hand" in economics as described by Adam Smith states that:

Scientists in Elizaland discover a new source of energy. What happens to the production possibilities frontier (PPF) in Elizaland?

Use the table Possible Output Combinations Using All Available Resources I. What is true about the combination of one ukulele and four bowls?

Use the table Possible Output Combinations Using All Available Resources I. What combination of production of ukuleles and wooden bowls indicates that there are idle resources?

Use the figure The Production Possibilities Frontier III. If this economy is currently producing a combination of output represented by point H, what is the opportunity cost of producing five more gloves? Figure: The Production Possibilities Frontier III

A massive plague results in a decrease in workers who are available in Elizaland. What happens to the production possibilities frontier (PPF) in Elizaland?

Use the figure The Production Possibilities Frontier II. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point: Figure: The Production Possibilities Frontier II

The study of all decision making under uncertainty is called:

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the lowest? Figure: The Production Possibilities Frontier III

Which of the following is a macroeconomic topic?

Which of the following is an example of normative economics?

Use the figure The Production Possibilities Frontier II. What point represents a combination of output that is produced if some resources are idle? Figure: The Production Possibilities Frontier II

Oliver's lumberyard is deciding on whether he should produce more sheets of plywood or more hardwood flooring. Which of the three fundamental economic questions is he trying to answer?

Which of the following is a microeconomic topic?

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 1: Foundations of Economics

Use the figure The Production Possibilities Frontier I. Which point is unattainable? ​ Figure: The Production Possibilities Frontier I

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing onions? ​

Use the figure The Production Possibilities Frontier III. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point: ​ Figure: The Production Possibilities Frontier III

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the highest? ​ Figure: The Production Possibilities Frontier III

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

Goh is deciding on whether he should hire another worker or buy another piece of machinery. Which of the three fundamental economic questions is he trying to answer?

The concept of the "invisible hand" in economics as described by Adam Smith states that:

Scientists in Elizaland discover a new source of energy. What happens to the production possibilities frontier (PPF) in Elizaland?

Use the table Possible Output Combinations Using All Available Resources I. What is true about the combination of one ukulele and four bowls? ​

Use the table Possible Output Combinations Using All Available Resources I. What combination of production of ukuleles and wooden bowls indicates that there are idle resources? ​

Use the figure The Production Possibilities Frontier III. If this economy is currently producing a combination of output represented by point H, what is the opportunity cost of producing five more gloves? ​ Figure: The Production Possibilities Frontier III

A massive plague results in a decrease in workers who are available in Elizaland. What happens to the production possibilities frontier (PPF) in Elizaland?

Use the figure The Production Possibilities Frontier II. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point: ​ Figure: The Production Possibilities Frontier II ​

The study of all decision making under uncertainty is called:

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the lowest? ​ Figure: The Production Possibilities Frontier III

Which of the following is a macroeconomic topic?

Which of the following is an example of normative economics?

Use the figure The Production Possibilities Frontier II. What point represents a combination of output that is produced if some resources are idle? ​ Figure: The Production Possibilities Frontier II ​

Oliver's lumberyard is deciding on whether he should produce more sheets of plywood or more hardwood flooring. Which of the three fundamental economic questions is he trying to answer?

Which of the following is a microeconomic topic?

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Use the figure The Production Possibilities Frontier I. Which point is unattainable? Figure: The Production Possibilities Frontier I

Use the table Galena's Value of Farm Production. The value of different crops that Galena can grow on her farm are given in this table. What is Galena's opportunity cost of growing onions?

Use the figure The Production Possibilities Frontier III. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point: Figure: The Production Possibilities Frontier III

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the highest? Figure: The Production Possibilities Frontier III

Use the table Possible Output Combinations Using All Available Resources I. What is true about the combination of one ukulele and four bowls?

Use the table Possible Output Combinations Using All Available Resources I. What combination of production of ukuleles and wooden bowls indicates that there are idle resources?

Use the figure The Production Possibilities Frontier III. If this economy is currently producing a combination of output represented by point H, what is the opportunity cost of producing five more gloves? Figure: The Production Possibilities Frontier III

Use the figure The Production Possibilities Frontier II. An economy that wants to produce an efficient combination of goods would NOT choose the combination of goods represented by point: Figure: The Production Possibilities Frontier II

Use the figure The Production Possibilities Frontier III. At which point is the opportunity cost of producing gloves the lowest? Figure: The Production Possibilities Frontier III

Use the figure The Production Possibilities Frontier II. What point represents a combination of output that is produced if some resources are idle? Figure: The Production Possibilities Frontier II