Exam 1: The Challenge of Economics

A HEADLINE article in the text indicates that North Korea is expanding its missile programs.Assume North Korea is currently on its production possibilities curve.If the increase in missile production results in a decrease in food production,this is an example of:

Figure 1.1 - Production-possibilities curve -Society might be able to produce this combination if new resources were discovered but cannot produce it with current resources.Select the appropriate point.(See Figure 1.1)

Ceteris paribus,which of the following will most likely cause an inward shift of the production possibilities curve?

The slope of a curve is given by the formula:

Which of the following is an example of government failure?

Investment refers to all of the following except:

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

If the market mechanism causes the economy to arrive at the wrong mix of output,there is:

Assuming the level of resources and technology are constant,if France decreases the size of its military,then:

Economic growth is represented by:

The primary concern of economics is the study of:

The essential signal of the market mechanism is:

Figure 1.2 - Relating grades and hours studied -Based on Figure 1.2,if a student wants to achieve a grade-point average of 2.0,he or she should study:

Figure 1.1 - Production Possibilities and Opportunity Costs: Linear Model versus Non-Linear Model In the linear production possibilities model,we assume each of five equally-sized parcels of land contributes the same to the production of food and timber: 6 units of timber or 3 units of food. By contrast,in the non-linear model,we will assume that there are five different types of land in equal-sized plots and that each plot may contribute as follows to the production of -Assuming all parcels of land are the same,when all land is in use,one more unit of timber produced will require…

Ceteris paribus,which of the following is least likely to contribute to economic growth?