Question 1

The fundamental economic problem is

Accepted Answer

A) Inflation 
B) That resources are scarce relative to wants 
C) Supply and demand 
D) How to make more money 
E) Unemployment 
A) Inflation 
B) That resources are scarce relative to wants 
C) Supply and demand 
D) How to make more money 
E) Unemployment

Question 2

The Following Questions Refer to the graph below.  
-Which of the following would allow Mary Ann to produce 110 coconut cream pies?

Accepted Answer

A) Decrease in production of grass huts 
B) An improvement in her means and methods of pie production 
C) A decrease in the resources used for making grass huts 
D) Putting all of her resources into producing coconut cream pies 
E) Finding a better way to produce grass huts 
A) Decrease in production of grass huts 
B) An improvement in her means and methods of pie production 
C) A decrease in the resources used for making grass huts 
D) Putting all of her resources into producing coconut cream pies 
E) Finding a better way to produce grass huts

Question 3

In a lesser-developed country,a high rate of population growth

Accepted Answer

A) Stimulates demand for products and accelerates the development process 
B) Seldom occurs 
C) Is not a serious problem,since the rate of growth in GDP always exceeds the rate of population increase 
D) May be a problem since,as development begins,the higher rate of population growth impedes the growth of per capita income 
E) Is beneficial for economic development 
A) Stimulates demand for products and accelerates the development process 
B) Seldom occurs 
C) Is not a serious problem,since the rate of growth in GDP always exceeds the rate of population increase 
D) May be a problem since,as development begins,the higher rate of population growth impedes the growth of per capita income 
E) Is beneficial for economic development

Question 4

Suppose that Gross Domestic Product for 2012 is $600 million and the price index for that year (2005 = 100)is 300.GDP for 2012 in constant (2005)dollars is

Accepted Answer

A) Impossible to determine with this information 
B) $200,000,000 
C) $20,000 
D) $200,000 
E) $2,000,000 
A) Impossible to determine with this information 
B) $200,000,000 
C) $20,000 
D) $200,000 
E) $2,000,000

Question 5

In year 1,an economy produces 10m cars at a price of $15,000 each.In year 2,the economy produces 10m cars,but the price of each car is $20,000.Which of the following is true?

Accepted Answer

A) Real GDP has increased 
B) Real GDP has decreased 
C) Current dollar GDP has increased 
D) Current dollar GDP has decreased 
E) Productivity has increased 
A) Real GDP has increased 
B) Real GDP has decreased 
C) Current dollar GDP has increased 
D) Current dollar GDP has decreased 
E) Productivity has increased

Question 6

When comparing the performance of economies in terms of the average well-being of their inhabitants,which measure is most appropriate?

Accepted Answer

A) Real GDP 
B) GDP 
C) Real GDP per capita 
D) GDP per capita 
E) Base year GDP 
A) Real GDP 
B) GDP 
C) Real GDP per capita 
D) GDP per capita 
E) Base year GDP

Question 7

Which of the following is an organization through which DCs jointly assist LDCs?

Accepted Answer

A) The World Bank 
B) NATO 
C) The Federal Reserve 
D) NAFTA 
E) The WTO 
A) The World Bank 
B) NATO 
C) The Federal Reserve 
D) NAFTA 
E) The WTO

Question 8

The fundamental economic problem is how to make money.

Accepted Answer

A) True 
 B)False

Question 9

The Following Questions Refer to the graph below.  
-Mary Ann's straight line PPC indicates that the opportunity cost of coconut cream pies is

Accepted Answer

A) Increasing 
B) Decreasing 
C) Constant 
D) 100 
E) 0 
A) Increasing 
B) Decreasing 
C) Constant 
D) 100 
E) 0

Question 10

The Following Questions Refer to the graph below.  
-A movement from point g to point e in 2012 is optimal only if

Accepted Answer

A) People in Sharpland like education more than food B) People in Sharpland like food more than education C) The MSC > MSB D) The MSC < MSB E) Point c is not an option A) People in Sharpland like education more than food B) People in Sharpland like food more than education C) The MSC > MSB D) The MSC < MSB E) Point c is not an option

Question 11

If a movement along the production possibilities curve yields greater benefits to society than costs,the movement will increase social well-being.

Accepted Answer

A) True 
 B)False

Question 12

Developing countries can shift their production possibility curves out through

Accepted Answer

A) Improvements of labor force quality 
B) Capital accumulation 
C) Technological development 
D) Discovery of new natural resources 
E) All of the above 
A) Improvements of labor force quality 
B) Capital accumulation 
C) Technological development 
D) Discovery of new natural resources 
E) All of the above

Question 13

The Following Questions Refer to the graph below.  
-Given production possibilities curve (b),point Q

Accepted Answer

A) Can be reached through an improvement in technology 
B) Represents some degree of inefficiency in the use of resources 
C) Can be reached if the birth rate is reduced 
D) Can be reached if the output of consumer goods is increased while the output of capital goods is reduced 
E) Is undesirable 
A) Can be reached through an improvement in technology 
B) Represents some degree of inefficiency in the use of resources 
C) Can be reached if the birth rate is reduced 
D) Can be reached if the output of consumer goods is increased while the output of capital goods is reduced 
E) Is undesirable

Question 14

The opportunity cost borne by society when an additional unit of a good is produced is

Accepted Answer

A) Marginal social cost 
B) Marginal social benefit 
C) Cost/benefit analysis 
D) Scarcity rent 
E) GDP 
A) Marginal social cost 
B) Marginal social benefit 
C) Cost/benefit analysis 
D) Scarcity rent 
E) GDP

Question 15

If a country's GDP increases from $1,000 to $2,000 at the same time prices double,real GDP will

Accepted Answer

A) Rise 
B) Fall 
C) Stay the same 
D) Fluctuate 
E) Be unable to be determined 
A) Rise 
B) Fall 
C) Stay the same 
D) Fluctuate 
E) Be unable to be determined

Question 16

Roads and bridges are examples of social infrastructurE.

Accepted Answer

A) True 
 B)False

Question 17

Why is there "no such thing as a free lunch"?

Accepted Answer

A) You end up buying the next time 
B) You often get stuck with the check 
C) The time you spend eating lunch could be spent some other way 
D) "Free" lunches often aren't good and make you sick later on 
E) You don't always get what you want to eat 
A) You end up buying the next time 
B) You often get stuck with the check 
C) The time you spend eating lunch could be spent some other way 
D) "Free" lunches often aren't good and make you sick later on 
E) You don't always get what you want to eat

Question 18

Which of the following is a technique used to determine the optimal level of an economic activity?

Accepted Answer

A) Cost/benefit analysis 
B) Production possibilities curve analysis 
C) GDP analysis 
D) Opportunity cost analysis 
E) None of the above 
A) Cost/benefit analysis 
B) Production possibilities curve analysis 
C) GDP analysis 
D) Opportunity cost analysis 
E) None of the above

Question 19

Real per capita GDP is defined as

Accepted Answer

A) Population/real GDP 
B) GDP/population 
C) Real GDP/price index 
D) Real GDP/population 
E) Price index/GDP 
A) Population/real GDP 
B) GDP/population 
C) Real GDP/price index 
D) Real GDP/population 
E) Price index/GDP

Question 20

Given the amounts of resources available for an economy,GDP

Accepted Answer

A) Will be determined solely by the amounts of labor and capital present 
B) Will be larger the better the techniques of production used 
C) Can increase only if there is an increase in the quantities of these resources 
D) Will usually be equitably divided among the population 
E) Will not change over time 
A) Will be determined solely by the amounts of labor and capital present 
B) Will be larger the better the techniques of production used 
C) Can increase only if there is an increase in the quantities of these resources 
D) Will usually be equitably divided among the population 
E) Will not change over time

The fundamental economic problem is

The Following Questions Refer to the graph below. -Which of the following would allow Mary Ann to produce 110 coconut cream pies?

In a lesser-developed country,a high rate of population growth

Suppose that Gross Domestic Product for 2012 is $600 million and the price index for that year (2005 = 100)is 300.GDP for 2012 in constant (2005)dollars is

In year 1,an economy produces 10m cars at a price of $15,000 each.In year 2,the economy produces 10m cars,but the price of each car is $20,000.Which of the following is true?

When comparing the performance of economies in terms of the average well-being of their inhabitants,which measure is most appropriate?

Which of the following is an organization through which DCs jointly assist LDCs?

The fundamental economic problem is how to make money.

The Following Questions Refer to the graph below. -Mary Ann's straight line PPC indicates that the opportunity cost of coconut cream pies is

The Following Questions Refer to the graph below. -A movement from point g to point e in 2012 is optimal only if

If a movement along the production possibilities curve yields greater benefits to society than costs,the movement will increase social well-being.

Developing countries can shift their production possibility curves out through

The Following Questions Refer to the graph below. -Given production possibilities curve (b),point Q

The opportunity cost borne by society when an additional unit of a good is produced is

If a country's GDP increases from $1,000 to $2,000 at the same time prices double,real GDP will

Roads and bridges are examples of social infrastructurE.

Why is there "no such thing as a free lunch"?

Which of the following is a technique used to determine the optimal level of an economic activity?

Real per capita GDP is defined as

Given the amounts of resources available for an economy,GDP

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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Exam 1: Alleviating Human Misery: The Role of Economic Reasoning

The fundamental economic problem is

The Following Questions Refer to the graph below. -Which of the following would allow Mary Ann to produce 110 coconut cream pies?

In a lesser-developed country,a high rate of population growth

Suppose that Gross Domestic Product for 2012 is $600 million and the price index for that year (2005 = 100)is 300.GDP for 2012 in constant (2005)dollars is

In year 1,an economy produces 10m cars at a price of $15,000 each.In year 2,the economy produces 10m cars,but the price of each car is $20,000.Which of the following is true?

When comparing the performance of economies in terms of the average well-being of their inhabitants,which measure is most appropriate?

Which of the following is an organization through which DCs jointly assist LDCs?

The fundamental economic problem is how to make money.

The Following Questions Refer to the graph below. -Mary Ann's straight line PPC indicates that the opportunity cost of coconut cream pies is

The Following Questions Refer to the graph below. -A movement from point g to point e in 2012 is optimal only if

If a movement along the production possibilities curve yields greater benefits to society than costs,the movement will increase social well-being.

Developing countries can shift their production possibility curves out through

The Following Questions Refer to the graph below. -Given production possibilities curve (b),point Q

The opportunity cost borne by society when an additional unit of a good is produced is

If a country's GDP increases from $1,000 to $2,000 at the same time prices double,real GDP will

Roads and bridges are examples of social infrastructurE.

Why is there "no such thing as a free lunch"?

Which of the following is a technique used to determine the optimal level of an economic activity?

Real per capita GDP is defined as

Given the amounts of resources available for an economy,GDP

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters