Question 1

People in poor countries may have difficulties achieving economic growth because:

Accepted Answer

A) their production possibilities curves slope upward instead of downward. 
B) they must cut back on current consumption to increase capital goods. 
C) they have a solid consumption base already in place. 
D) their resource bases are fully developed. 
E) the law of increasing costs makes it hard to produce more goods. 
A) their production possibilities curves slope upward instead of downward. 
B) they must cut back on current consumption to increase capital goods. 
C) they have a solid consumption base already in place. 
D) their resource bases are fully developed. 
E) the law of increasing costs makes it hard to produce more goods.

Question 2

If Bruce pays $2000 in tuition fees to the college,what is his opportunity cost?

Accepted Answer

A) $2000 minus the income the student forgoes by attending school rather than working. 
B) $2000. 
C) the income the student forgoes by attending school rather than working plus his tuition fees. 
D) there is no opportunity cost since Bruce chose to study rather than working. 
A) $2000 minus the income the student forgoes by attending school rather than working. 
B) $2000. 
C) the income the student forgoes by attending school rather than working plus his tuition fees. 
D) there is no opportunity cost since Bruce chose to study rather than working.

Question 3

Which of the following would most likely cause the production possibilities curve for DVD players and food to shift outward?

Accepted Answer

A) A choice of more food and more DVD players. 
B) A choice of more food and fewer DVD players. 
C) A choice of more DVD players and less food. 
D) An increase in the quantity of natural resources. 
A) A choice of more food and more DVD players. 
B) A choice of more food and fewer DVD players. 
C) A choice of more DVD players and less food. 
D) An increase in the quantity of natural resources.

People in poor countries may have difficulties achieving economic growth because:

If Bruce pays $2000 in tuition fees to the college,what is his opportunity cost?

Which of the following would most likely cause the production possibilities curve for DVD players and food to shift outward?

Thinking like an economist

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 2: Production possibilities and opportunity cost

People in poor countries may have difficulties achieving economic growth because:

If Bruce pays $2000 in tuition fees to the college,what is his opportunity cost?

Which of the following would most likely cause the production possibilities curve for DVD players and food to shift outward?

Thinking like an economist

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters