Question 1

To promote development,the governments of LDCs should pursue policies that

Accepted Answer

A) Improve the quality of labor 
B) Enhance capital accumulation 
C) Raise technology levels 
D) Increase efficiency 
E) Do all of the above 
A) Improve the quality of labor 
B) Enhance capital accumulation 
C) Raise technology levels 
D) Increase efficiency 
E) Do all of the above

Question 2

If current dollar GDP remains the same while the population declines,per capita GDP will decreasE.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the primary goal of an economy?

Accepted Answer

A) Maximizing economic growth 
B) Minimizing unemployment 
C) Minimizing the effects of scarcity 
D) Minimizing the national debt 
E) Maximizing GDP 
A) Maximizing economic growth 
B) Minimizing unemployment 
C) Minimizing the effects of scarcity 
D) Minimizing the national debt 
E) Maximizing GDP

Question 4

The Following Questions Refer to the graph below.  
-Given production possibilities curve (a),point N suggests that

Accepted Answer

A) The economy is attaining full employment,but not full production 
B) The economy is attaining full production,but not full employment 
C) The economy is using its available resources inefficiently 
D) The economy is attaining both full employment and full production 
E) Point N is unattainable 
A) The economy is attaining full employment,but not full production 
B) The economy is attaining full production,but not full employment 
C) The economy is using its available resources inefficiently 
D) The economy is attaining both full employment and full production 
E) Point N is unattainable

Question 5

A significant problem faced by developing countries is the tendency for their relatively well-educated citizens to leave their homes to work and live in the developed world where compensation for their skills is high.

Accepted Answer

A) True 
 B)False

Question 6

If everyone could have everything he or she wanted,there would be no need for economics.

Accepted Answer

A) True 
 B)False

Question 7

Cost-benefit analysis

Accepted Answer

A) Is only useful when making economic choices 
B) Applies best to financial decisions 
C) Suggests that an activity should be expanded if it yields greater marginal benefits than costs 
D) Is useful in correcting GDP numbers for inflation 
E) Suggests an activity should be expended if MSC > MSB 
A) Is only useful when making economic choices 
B) Applies best to financial decisions 
C) Suggests that an activity should be expanded if it yields greater marginal benefits than costs 
D) Is useful in correcting GDP numbers for inflation 
E) Suggests an activity should be expended if MSC > MSB

Question 8

When a private firm builds a new plant in an LDC,the country's social infrastructure is increaseD.

Accepted Answer

A) True 
 B)False

Question 9

The Following Questions Refer to the graph below.  
-In 2007,Sharpland can increase its production of food without decreasing its production of education by moving from point

Accepted Answer

A) C to D 
B) C to E 
C) D to A 
D) E to B 
E) E to G 
A) C to D 
B) C to E 
C) D to A 
D) E to B 
E) E to G

Question 10

Countries will always produce outside their production possibilities curves.

Accepted Answer

A) True 
 B)False

Question 11

The know-how and the means and methods of production available in an economy are known as

Accepted Answer

A) Technology 
B) Capital 
C) Human capital 
D) Labor 
E) Management 
A) Technology 
B) Capital 
C) Human capital 
D) Labor 
E) Management

Question 12

The quantity of goods and services per year that an economic system can produce is limiteD.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT an example of a capital resource?

Accepted Answer

A) Forests 
B) A printing press 
C) Semi-finished materials 
D) A computer technician 
E) Inventories 
A) Forests 
B) A printing press 
C) Semi-finished materials 
D) A computer technician 
E) Inventories

Question 14

Which of the following is an example of a capital resource?

Accepted Answer

A) A firm's employee 
B) Money in a firm's bank account 
C) Agricultural land 
D) A worker's productivity 
E) All of the above 
A) A firm's employee 
B) Money in a firm's bank account 
C) Agricultural land 
D) A worker's productivity 
E) All of the above

Question 15

If a country's GDP increases from $1m to $2m at the same time prices remain the same,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

The Following Questions Refer to the graph below.  
-If the economy were producing combination G initially,the cost of producing additional BD units of capital goods is the value of

Accepted Answer

A) The resources used in producing OD of capital goods 
B) The resources used in producing EF of consumer goods 
C) The resources used in producing OE of consumer goods 
D) BD units of capital goods 
E) BD units of consumer goods 
A) The resources used in producing OD of capital goods 
B) The resources used in producing EF of consumer goods 
C) The resources used in producing OE of consumer goods 
D) BD units of capital goods 
E) BD units of consumer goods

Question 17

Which of the following is not a capital resource?

Accepted Answer

A) Land 
B) Stocks and bonds 
C) Buildings 
D) Tools 
E) Mineral deposits 
A) Land 
B) Stocks and bonds 
C) Buildings 
D) Tools 
E) Mineral deposits

Question 18

To help LDCs develop,governments of DCs provide

Accepted Answer

A) Loans 
B) Grants 
C) Humanitarian aid 
D) Technical assistance 
E) All of the above 
A) Loans 
B) Grants 
C) Humanitarian aid 
D) Technical assistance 
E) All of the above

Question 19

Labor resources include

Accepted Answer

A) The equipment workers use to complete their work 
B) Only non-management personnel 
C) Any efforts of a person to produce goods 
D) Only the physical efforts of an economy's people 
E) All of the above 
A) The equipment workers use to complete their work 
B) Only non-management personnel 
C) Any efforts of a person to produce goods 
D) Only the physical efforts of an economy's people 
E) All of the above

Question 20

An increase in the labor force will bring about an outward shift in an economy's production possibilities curvE.

Accepted Answer

A) True 
 B)False

To promote development,the governments of LDCs should pursue policies that

If current dollar GDP remains the same while the population declines,per capita GDP will decreasE.

Which of the following is the primary goal of an economy?

The Following Questions Refer to the graph below. -Given production possibilities curve (a),point N suggests that

A significant problem faced by developing countries is the tendency for their relatively well-educated citizens to leave their homes to work and live in the developed world where compensation for their skills is high.

If everyone could have everything he or she wanted,there would be no need for economics.

Cost-benefit analysis

When a private firm builds a new plant in an LDC,the country's social infrastructure is increaseD.

The Following Questions Refer to the graph below. -In 2007,Sharpland can increase its production of food without decreasing its production of education by moving from point

Countries will always produce outside their production possibilities curves.

The know-how and the means and methods of production available in an economy are known as

The quantity of goods and services per year that an economic system can produce is limiteD.

Which of the following is NOT an example of a capital resource?

Which of the following is an example of a capital resource?

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

The Following Questions Refer to the graph below. -If the economy were producing combination G initially,the cost of producing additional BD units of capital goods is the value of

Which of the following is not a capital resource?

To help LDCs develop,governments of DCs provide

Labor resources include

An increase in the labor force will bring about an outward shift in an economy's production possibilities curvE.

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

To promote development,the governments of LDCs should pursue policies that

If current dollar GDP remains the same while the population declines,per capita GDP will decreasE.

Which of the following is the primary goal of an economy?

The Following Questions Refer to the graph below. -Given production possibilities curve (a),point N suggests that

A significant problem faced by developing countries is the tendency for their relatively well-educated citizens to leave their homes to work and live in the developed world where compensation for their skills is high.

If everyone could have everything he or she wanted,there would be no need for economics.

Cost-benefit analysis

When a private firm builds a new plant in an LDC,the country's social infrastructure is increaseD.

The Following Questions Refer to the graph below. -In 2007,Sharpland can increase its production of food without decreasing its production of education by moving from point

Countries will always produce outside their production possibilities curves.

The know-how and the means and methods of production available in an economy are known as

The quantity of goods and services per year that an economic system can produce is limiteD.

Which of the following is NOT an example of a capital resource?

Which of the following is an example of a capital resource?

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

The Following Questions Refer to the graph below. -If the economy were producing combination G initially,the cost of producing additional BD units of capital goods is the value of

Which of the following is not a capital resource?

To help LDCs develop,governments of DCs provide

Labor resources include

An increase in the labor force will bring about an outward shift in an economy's production possibilities curvE.

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