Question 1

Education and training of workers would best be categorized as

Accepted Answer

A) land. 
B) labor. 
C) physical capital. 
D) human capital. 
A) land. 
B) labor. 
C) physical capital. 
D) human capital.

Question 2

Scarcity exists because

Accepted Answer

A) there is a disruption in the distribution of goods caused by bad weather. 
B) there is a shortage of goods caused by war. 
C) there are not enough resources available to produce all the goods that people want. 
D) there is a shortage of qualified workers throughout the world. 
A) there is a disruption in the distribution of goods caused by bad weather. 
B) there is a shortage of goods caused by war. 
C) there are not enough resources available to produce all the goods that people want. 
D) there is a shortage of qualified workers throughout the world.

Question 3

The only way that a society can produce outside the production possibilities curve is

Accepted Answer

A) through economic growth. 
B) by producing efficiently. 
C) by obeying the Law of Increasing Additional Cost. 
D) to use the concept of opportunity cost. 
A) through economic growth. 
B) by producing efficiently. 
C) by obeying the Law of Increasing Additional Cost. 
D) to use the concept of opportunity cost.

Question 4

Inefficient use of resources is shown on the production possibilities curve

Accepted Answer

A) by an inward shifting of the curve. 
B) by a point inside the curve. 
C) by a point near the top of the curve. 
D) by a point outside the curve. 
A) by an inward shifting of the curve. 
B) by a point inside the curve. 
C) by a point near the top of the curve. 
D) by a point outside the curve.

Question 5

Suppose the current unemployment rate is 15 percent. If it rises to 20 percent

Accepted Answer

A) the economy will move up along the production possibilities curve. 
B) the economy will move closer to the production possibilities curve. 
C) the production possibilities curve will shift inward. 
D) the economy will operate farther inside the production possibilities curve. 
A) the economy will move up along the production possibilities curve. 
B) the economy will move closer to the production possibilities curve. 
C) the production possibilities curve will shift inward. 
D) the economy will operate farther inside the production possibilities curve.

Question 6

Scarcity and shortages differ in that

Accepted Answer

A) scarcity is caused by natural disasters and shortages are caused by mistakes people make. 
B) scarcity is a condition of human life while shortages are usually temporary phenomena related to an imbalance between the amount desired and the amount produced. 
C) scarcity is a type of shortage but shortage is a broader concept. 
D) shortages apply to resource markets while scarcity applies to product markets. 
A) scarcity is caused by natural disasters and shortages are caused by mistakes people make. 
B) scarcity is a condition of human life while shortages are usually temporary phenomena related to an imbalance between the amount desired and the amount produced. 
C) scarcity is a type of shortage but shortage is a broader concept. 
D) shortages apply to resource markets while scarcity applies to product markets.

Question 7

-Refer to the above figure. Given our current level of technology and resources, the unobtainable point(s)of production would be

Accepted Answer

A) points a and c. 
B) point a. 
C) point b. 
D) point c. 
A) points a and c. 
B) point a. 
C) point b. 
D) point c.

Question 8

The opportunity cost of going to college for a student receiving a scholarship

Accepted Answer

A) is the income that she would have earned if she did not go to college. 
B) is the risk of dropping out. 
C) is the food and living expenses that she has to purchase while in college. 
D) is zero because she does not have to pay tuition. 
A) is the income that she would have earned if she did not go to college. 
B) is the risk of dropping out. 
C) is the food and living expenses that she has to purchase while in college. 
D) is zero because she does not have to pay tuition.

Question 9

The most basic concept of economics is

Accepted Answer

A) self-interest. 
B) scarcity. 
C) demand. 
D) rationality. 
A) self-interest. 
B) scarcity. 
C) demand. 
D) rationality.

Question 10

A man-made resource such as a building or a machine is an example of which resource?

Accepted Answer

A) entrepreneurial ability 
B) labor 
C) physical capital 
D) human capital 
A) entrepreneurial ability 
B) labor 
C) physical capital 
D) human capital

Question 11

Division of labor

Accepted Answer

A) increases the amount of capital in the economy. 
B) leads to an increase in the amount of output in the economy. 
C) makes economic goods possible. 
D) is not possible for service goods. 
A) increases the amount of capital in the economy. 
B) leads to an increase in the amount of output in the economy. 
C) makes economic goods possible. 
D) is not possible for service goods.

Question 12

Explain why even the most affluent people, businesses and counties never solve the problem of scarcity.

Accepted Answer

Scarcity is a problem that is never comp

Question 13

Economic growth appears on a production possibilities curve as

Accepted Answer

A) the curve shifting out away from the origin. 
B) the curve shifting in toward the origin. 
C) a change in the slope of the curve. 
D) the points outside the production possibilities curve. 
A) the curve shifting out away from the origin. 
B) the curve shifting in toward the origin. 
C) a change in the slope of the curve. 
D) the points outside the production possibilities curve.

Question 14

Explain the difference between human needs and wants.

Accepted Answer

Needs are objectively undefinable. Needs

Question 15

A production possibilities curve will shift outward or to the right for all of the following reasons EXCEPT

Accepted Answer

A) an increase in the unemployment rate. 
B) an increase in the quality of the labor force. 
C) an improvement in production technology. 
D) a discovery of a new source of renewable energy. 
A) an increase in the unemployment rate. 
B) an increase in the quality of the labor force. 
C) an improvement in production technology. 
D) a discovery of a new source of renewable energy.

Question 16

To have more consumer goods in the future, we must

Accepted Answer

A) produce more capital goods today. 
B) lower current income. 
C) get government involved in the production process. 
D) stop producing all goods today. 
A) produce more capital goods today. 
B) lower current income. 
C) get government involved in the production process. 
D) stop producing all goods today.

Question 17

A factory can be thought of as

Accepted Answer

A) a land and labor combination. 
B) a trade-off with land. 
C) physical capital. 
D) a type of entrepreneurship. 
A) a land and labor combination. 
B) a trade-off with land. 
C) physical capital. 
D) a type of entrepreneurship.

Question 18

Which factor of production includes water?

Accepted Answer

A) physical capital 
B) human capital 
C) land 
D) entrepreneurship 
A) physical capital 
B) human capital 
C) land 
D) entrepreneurship

Question 19

Which of the following is NOT an example of investment in human capital?

Accepted Answer

A) a medical student's internship 
B) the purchase of a personal computer for playing games 
C) A mechanic attends a training workshop on a new type of engine. 
D) Johnny learns how to read. 
A) a medical student's internship 
B) the purchase of a personal computer for playing games 
C) A mechanic attends a training workshop on a new type of engine. 
D) Johnny learns how to read.

Question 20

With specialization

Accepted Answer

A) opportunity costs tend to be constant. 
B) there are greater gains in material well being. 
C) there is more emphasis on self-reliance. 
D) society is more productive while individuals are less productive. 
A) opportunity costs tend to be constant. 
B) there are greater gains in material well being. 
C) there is more emphasis on self-reliance. 
D) society is more productive while individuals are less productive.

Education and training of workers would best be categorized as

Scarcity exists because

The only way that a society can produce outside the production possibilities curve is

Inefficient use of resources is shown on the production possibilities curve

Suppose the current unemployment rate is 15 percent. If it rises to 20 percent

Scarcity and shortages differ in that

-Refer to the above figure. Given our current level of technology and resources, the unobtainable point(s)of production would be

The opportunity cost of going to college for a student receiving a scholarship

The most basic concept of economics is

A man-made resource such as a building or a machine is an example of which resource?

Division of labor

Explain why even the most affluent people, businesses and counties never solve the problem of scarcity.

Economic growth appears on a production possibilities curve as

Explain the difference between human needs and wants.

A production possibilities curve will shift outward or to the right for all of the following reasons EXCEPT

To have more consumer goods in the future, we must

A factory can be thought of as

Which factor of production includes water?

Which of the following is NOT an example of investment in human capital?

With specialization

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

Education and training of workers would best be categorized as

Scarcity exists because

The only way that a society can produce outside the production possibilities curve is

Inefficient use of resources is shown on the production possibilities curve

Suppose the current unemployment rate is 15 percent. If it rises to 20 percent

Scarcity and shortages differ in that

-Refer to the above figure. Given our current level of technology and resources, the unobtainable point(s)of production would be

The opportunity cost of going to college for a student receiving a scholarship

The most basic concept of economics is

A man-made resource such as a building or a machine is an example of which resource?

Division of labor

Explain why even the most affluent people, businesses and counties never solve the problem of scarcity.

Economic growth appears on a production possibilities curve as

Explain the difference between human needs and wants.

A production possibilities curve will shift outward or to the right for all of the following reasons EXCEPT

To have more consumer goods in the future, we must

A factory can be thought of as

Which factor of production includes water?

Which of the following is NOT an example of investment in human capital?

With specialization

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