Question 1

Which of the following would be categorized as "land"?

Accepted Answer

A) timber 
B) human capital 
C) buildings 
D) entrepreneurship 
A) timber 
B) human capital 
C) buildings 
D) entrepreneurship

Question 2

In economics, the term physical capital

Accepted Answer

A) refers to funds used by businesses to acquire goods and services. 
B) refers to all manufactured resources used for production. 
C) refers to the process of raising funds through the stock market. 
D) defines the stock of merchandise already produced. 
A) refers to funds used by businesses to acquire goods and services. 
B) refers to all manufactured resources used for production. 
C) refers to the process of raising funds through the stock market. 
D) defines the stock of merchandise already produced.

Question 3

"Wants" as an economic concept includes

Accepted Answer

A) both material and nonmaterial desires. 
B) only the purchase of necessary basic goods. 
C) only the desire for luxury goods. 
D) only those goods that can be purchased with one's paycheck. 
A) both material and nonmaterial desires. 
B) only the purchase of necessary basic goods. 
C) only the desire for luxury goods. 
D) only those goods that can be purchased with one's paycheck.

Question 4

Suppose you order a slice of pepperoni pizza and a soda at a shopping mall food court. What are examples of the opportunity costs of this decision?

Accepted Answer

The opportunity cost of an action is the

Question 5

From the economist's point of view

Accepted Answer

A) wants and needs are exactly the same. 
B) a want is a lifesaving necessity. 
C) needs are objectively undefinable. 
D) we all have wants but only very poor people have needs. 
A) wants and needs are exactly the same. 
B) a want is a lifesaving necessity. 
C) needs are objectively undefinable. 
D) we all have wants but only very poor people have needs.

Question 6

Whenever a society forgoes current consumption to invest in capital goods,

Accepted Answer

A) it will have less to consume next year. 
B) it will be easier for that society to consume less in the future because people will become accustomed to less. 
C) that society can consume more in the future. 
D) it will be forced to produce fewer capital goods in the future. 
A) it will have less to consume next year. 
B) it will be easier for that society to consume less in the future because people will become accustomed to less. 
C) that society can consume more in the future. 
D) it will be forced to produce fewer capital goods in the future.

Question 7

A point outside a society's production possibilities curve is one that is

Accepted Answer

A) unattainable given the resources of the society. 
B) technologically inefficient. 
C) undesirable given the implied underemployment of resources. 
D) desirable since it satisfies the desires of the population. 
A) unattainable given the resources of the society. 
B) technologically inefficient. 
C) undesirable given the implied underemployment of resources. 
D) desirable since it satisfies the desires of the population.

Question 8

Comparative advantage is the ability to

Accepted Answer

A) perform an activity at a lower opportunity cost. 
B) determine who your best trading partners are. 
C) determine the best use of capital goods. 
D) convince others of the best choices to make in their own self-interest. 
A) perform an activity at a lower opportunity cost. 
B) determine who your best trading partners are. 
C) determine the best use of capital goods. 
D) convince others of the best choices to make in their own self-interest.

Question 9

When a country specializes and trades with other countries, it is most likely that it specializes in goods for which

Accepted Answer

A) it has a comparative advantage. 
B) it has an absolute advantage. 
C) it has no advantage. 
D) are very costly to produce. 
A) it has a comparative advantage. 
B) it has an absolute advantage. 
C) it has no advantage. 
D) are very costly to produce.

Question 10

Technology is

Accepted Answer

A) society's pool of knowledge of how to produce goods and services. 
B) a resource like land or physical capital. 
C) computers and lasers. 
D) not obtainable by engaging in activities that increase human capital. 
A) society's pool of knowledge of how to produce goods and services. 
B) a resource like land or physical capital. 
C) computers and lasers. 
D) not obtainable by engaging in activities that increase human capital.

Question 11

Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets of corn that can be produced, when all resources are fully employed. Production Possibilities
Good A B C D E
 
Based on the above information

Accepted Answer

A) there is no trade-off between smartphones and tablets. 
B) the opportunity cost of producing 30 instead of 20 smartphones is 120 tablets. 
C) the opportunity cost of producing 40 instead of 30 smartphones is 30 tablets. 
D) the opportunity cost of producing 90 instead of 50 tablets is 50 smartphones. 
A) there is no trade-off between smartphones and tablets. 
B) the opportunity cost of producing 30 instead of 20 smartphones is 120 tablets. 
C) the opportunity cost of producing 40 instead of 30 smartphones is 30 tablets. 
D) the opportunity cost of producing 90 instead of 50 tablets is 50 smartphones.

Question 12

-The shape of the production possibilities curve in the above figure indicates that

Accepted Answer

A) production of corn is characterized by increasing costs while the production of cloth is characterized by decreasing costs. 
B) production of both corn and cloth is characterized by increasing costs. 
C) production of both corn and cloth is characterized by constant costs. 
D) production of corn is characterized by constant costs and the production of cloth is characterized by increasing costs. 
A) production of corn is characterized by increasing costs while the production of cloth is characterized by decreasing costs. 
B) production of both corn and cloth is characterized by increasing costs. 
C) production of both corn and cloth is characterized by constant costs. 
D) production of corn is characterized by constant costs and the production of cloth is characterized by increasing costs.

Question 13

If a CEO can type faster than her secretary, then

Accepted Answer

A) the CEO has a comparative advantage in typing. 
B) the CEO has neither a comparative advantage in typing, nor in management. 
C) the CEO should still continue performing CEO duties since the CEO has a comparative advantage in management, and the secretary should continue typing. 
D) the CEO should still continue performing CEO duties as well as typing since he has a comparative advantage in both management, and typing. 
A) the CEO has a comparative advantage in typing. 
B) the CEO has neither a comparative advantage in typing, nor in management. 
C) the CEO should still continue performing CEO duties since the CEO has a comparative advantage in management, and the secretary should continue typing. 
D) the CEO should still continue performing CEO duties as well as typing since he has a comparative advantage in both management, and typing.

Question 14

The discovery of new natural resources will cause

Accepted Answer

A) the economy to move closer to the production possibilities curve. 
B) the production possibilities curve to shift up and to the right. 
C) an upward movement along the curve. 
D) the curve to shift back and to the left. 
A) the economy to move closer to the production possibilities curve. 
B) the production possibilities curve to shift up and to the right. 
C) an upward movement along the curve. 
D) the curve to shift back and to the left.

Question 15

Economic goods are defined as

Accepted Answer

A) tangible items only. 
B) services only. 
C) anything from which an individual derives satisfaction. 
D) any item which is available in sufficient quantity at zero price. 
A) tangible items only. 
B) services only. 
C) anything from which an individual derives satisfaction. 
D) any item which is available in sufficient quantity at zero price.

Question 16

Using productive resources to make capital goods requires that we

Accepted Answer

A) get everyone to agree on the best use of those resources. 
B) get government approval of our plan to make capital goods. 
C) forgo some level of current consumption. 
D) prove that the existence of the capital goods will not cause any environmental damage. 
A) get everyone to agree on the best use of those resources. 
B) get government approval of our plan to make capital goods. 
C) forgo some level of current consumption. 
D) prove that the existence of the capital goods will not cause any environmental damage.

Question 17

-In the above figure, the opportunity cost of moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles is

Accepted Answer

A) 25 guitars. 
B) 75 ukuleles. 
C) 25 ukuleles. 
D) 50 guitars. 
A) 25 guitars. 
B) 75 ukuleles. 
C) 25 ukuleles. 
D) 50 guitars.

Question 18

Which of the following is a TRUE statement?

Accepted Answer

A) All goods are economic goods. 
B) All economic goods are goods, but not all goods are economic goods. 
C) Economic goods and goods mean the same thing. 
D) Economic goods do not include services while goods do include services. 
A) All goods are economic goods. 
B) All economic goods are goods, but not all goods are economic goods. 
C) Economic goods and goods mean the same thing. 
D) Economic goods do not include services while goods do include services.

Question 19

Which of the following items would be considered scarce?

Accepted Answer

A) water 
B) diamonds 
C) potato chips 
D) All of the above are scarce. 
A) water 
B) diamonds 
C) potato chips 
D) All of the above are scarce.

Question 20

A point outside a production possibilities curve indicates

Accepted Answer

A) that resources are not being used efficiently. 
B) that resources are being used very efficiently. 
C) opportunity costs are constant. 
D) an output combination that is unobtainable with the current resource and technology levels. 
A) that resources are not being used efficiently. 
B) that resources are being used very efficiently. 
C) opportunity costs are constant. 
D) an output combination that is unobtainable with the current resource and technology levels.

Which of the following would be categorized as "land"?

In economics, the term physical capital

"Wants" as an economic concept includes

Suppose you order a slice of pepperoni pizza and a soda at a shopping mall food court. What are examples of the opportunity costs of this decision?

From the economist's point of view

Whenever a society forgoes current consumption to invest in capital goods,

A point outside a society's production possibilities curve is one that is

Comparative advantage is the ability to

When a country specializes and trades with other countries, it is most likely that it specializes in goods for which

Technology is

Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets of corn that can be produced, when all resources are fully employed. Production Possibilities Good A B C D E Based on the above information

-The shape of the production possibilities curve in the above figure indicates that

If a CEO can type faster than her secretary, then

The discovery of new natural resources will cause

Economic goods are defined as

Using productive resources to make capital goods requires that we

-In the above figure, the opportunity cost of moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles is

Which of the following is a TRUE statement?

Which of the following items would be considered scarce?

A point outside a production possibilities curve indicates

The Nature of Economics

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 2: Scarcity and the World of Trade-Offs

Which of the following would be categorized as "land"?

In economics, the term physical capital

"Wants" as an economic concept includes

Suppose you order a slice of pepperoni pizza and a soda at a shopping mall food court. What are examples of the opportunity costs of this decision?

From the economist's point of view

Whenever a society forgoes current consumption to invest in capital goods,

A point outside a society's production possibilities curve is one that is

Comparative advantage is the ability to

When a country specializes and trades with other countries, it is most likely that it specializes in goods for which

Technology is

Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets of corn that can be produced, when all resources are fully employed. Production Possibilities Good A B C D E Based on the above information

-The shape of the production possibilities curve in the above figure indicates that

If a CEO can type faster than her secretary, then

The discovery of new natural resources will cause

Economic goods are defined as

Using productive resources to make capital goods requires that we

-In the above figure, the opportunity cost of moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles is

Which of the following is a TRUE statement?

Which of the following items would be considered scarce?

A point outside a production possibilities curve indicates

The Nature of Economics

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters