Exam 1: Limits, Alternatives, and Choices

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule: Refer to the above table. Which of the following output-combinations is unattainable:

All of the following would affect the position and shape of a nation's production possibilities curve, except:

Which pitfall to sound economic reasoning is illustrated when a person comments that "capitalists focus only on profits and don't care about their workers"?

In a graph showing the relationship between variables X and Y, ceteris paribus means that:

Refer to the above production possibilities curves. Curve (a) is the current curve for the economy. Focusing on curve (a), point N suggests that the economy currently produces:

Which of the following would not be considered a capital resource by economists?

In a graph of the production possibilities curve, the two axes of the graph indicate the:

The law of increasing opportunity costs states that:

Refer to the above graph. Which of the following statements about combination G is true?

The question below are based on the following four sets of data-pairs: (1) A and B, (2) C and D, (3) E and F, and (4) G and H. In each set, the independent variable is in the left column and the dependent variable is in the right column. Which of the four sets of data pairs shows an inverse relationship between the independent and dependent variable?

Economists have difficulty applying the scientific method because:

Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. What is the slope of the budget line, if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis?

Refer to the following table which shows the quantities of corn demanded at various levels of corn price (hypothetical data). Which curve in the graph shown above best represents the data in the table?

The economic principle that "unemployment rate will tend to increase as the economy moves into a recession" is an example of:

Economic growth is shown as an increase in production from inside the production possibilities curve out toward a point on the possibilities curve.

The following graph is the production possibilities curve of a nation: Refer to the above graph. The marginal opportunity cost of the fourth unit of bread is:

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule: Refer to the above table. If the nation uses all of its resources to produce only wheat, then its production combination will be:

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities: Refer to the above table. In moving from combination C to B, the opportunity cost of producing 100 more autos is:

Which of the following statements regarding people's wants is true?

The budget line shows the various incomes that an individual can earn from different jobs.