Exam 1: The Challenge of Economics

The market mechanism:

When society searches for the optimal method of producing goods and services,it is responding to the:

Entrepreneurship refers to:

In the model where we assume that all five parcels of land are NOT the same,the relationship between food and timber produced when all land is in use is:

Which of the following is NOT an example of land,or a natural resource?

Figure 1.2 - Relating grades and hours studied -In Figure 1.2,a grade-point average of 1.0 is associated with how many hours of study time per week?

Figure 1.2 - Relating grades and hours studied -Based on Figure 1.2,if a student studies 40 hours per week,he or she will:

If government intervention fails to improve economic outcomes,the result is known as:

Pollution is an example of an externality.

What are the factors of production? How do these factors play a role in an economy answering the three basic economic questions?

Economic theories can be used to do all of the following EXCEPT:

Ceteris paribus which of the following events would most likely cause the production possibilities curve to shift inward?

The United States relies primarily on central planning to allocate resources.

All economies must decide what to produce,how to produce it,and who gets the output.

Which of the following is NOT an assumption under which the production possibilities curve is drawn?

Which of the following statements about production possibilities is true?

Which of the following statements is consistent with central planning?

Figure 1.2 - Relating grades and hours studied -Figure 1.2 suggests that the relationship between the variables is:

Which of the following is associated with microeconomics?

If one variable increases when the other variable increases,then the drawn curve is: