Question 1

​Exhibit 3-9  
-Refer to Exhibit 3-9. In order to move from Point D to Point C, the economy will have to give up:

Accepted Answer

A) ​200 bushels of wheat. 
B) ​nothing. 
C) ​200 bushels of soybeans. 
D) ​100 bushels of wheat. 
A) ​200 bushels of wheat. 
B) ​nothing. 
C) ​200 bushels of soybeans. 
D) ​100 bushels of wheat.

Question 2

Which of the following would be likely to shift a nation's production possibilities curve outward?

Accepted Answer

A) ​a decrease in the production of capital goods 
B) ​an increase in the production of consumer goods 
C) ​an increase in the number of retired workers 
D) ​none of the above 
A) ​a decrease in the production of capital goods 
B) ​an increase in the production of consumer goods 
C) ​an increase in the number of retired workers 
D) ​none of the above

Question 3

The production possibilities curve marks the boundary between attainable and unattainable combinations of output.

Accepted Answer

A) True 
 B)False

Question 4

​Exhibit 3-2  
-Refer to Exhibit 3-2. In the circular flow diagram, payments for goods and services:

Accepted Answer

A) ​flow in a clockwise direction. 
B) ​flow in a counterclockwise direction. 
C) ​are received by firms in the factor market. 
D) ​none of the above 
A) ​flow in a clockwise direction. 
B) ​flow in a counterclockwise direction. 
C) ​are received by firms in the factor market. 
D) ​none of the above

Question 5

​Exhibit 3-9  
-Refer to Exhibit 3-9. Assume the economy is operating at Point D in the figure. The opportunity cost of moving to Point B is:

Accepted Answer

A) ​about 200 bushels of wheat. 
B) ​about 200 bushels of soybeans. 
C) ​infinite, as Point B cannot be produced at any cost. 
D) ​zero. 
A) ​about 200 bushels of wheat. 
B) ​about 200 bushels of soybeans. 
C) ​infinite, as Point B cannot be produced at any cost. 
D) ​zero.

Question 6

A market system:

Accepted Answer

A) ​produces answers to a society's "what" and "who" questions, but not the "for whom" question. 
B) ​produces answers to a society's "what" and "for whom" questions, but not the "how" question. 
C) ​produces answers to a society's "how" and "for whom" questions, but not the "what" question. 
D) ​produces answers to a society's "what," "how," and "for whom" questions. 
A) ​produces answers to a society's "what" and "who" questions, but not the "for whom" question. 
B) ​produces answers to a society's "what" and "for whom" questions, but not the "how" question. 
C) ​produces answers to a society's "how" and "for whom" questions, but not the "what" question. 
D) ​produces answers to a society's "what," "how," and "for whom" questions.

Question 7

​Exhibit 3-7  
-Refer to Exhibit 3-7. The diagram represents a tradeoff in an economy between prison cells and classrooms. Which position represents the choice to allocate the greatest amount of resources to producing classrooms?

Accepted Answer

A) ​Point A 
B) ​Point B 
C) ​Point C 
D) ​None of the above are correct.Points on the frontier show the efficient combinations of resources that produce equal quantities of both outputs. 
A) ​Point A 
B) ​Point B 
C) ​Point C 
D) ​None of the above are correct.Points on the frontier show the efficient combinations of resources that produce equal quantities of both outputs.

Question 8

Which of the following best distinguishes a "command economy" from a "market economy?"

Accepted Answer

A) ​A command economy is more efficient than a market economy because decision making is centralized. 
B) ​There is scarcity in command economies, but not in market economies. 
C) ​Command economies are less prone to inflation than are market economies. 
D) ​Production and distribution decisions are made by central planners in a command economy, but not in a market economy. 
A) ​A command economy is more efficient than a market economy because decision making is centralized. 
B) ​There is scarcity in command economies, but not in market economies. 
C) ​Command economies are less prone to inflation than are market economies. 
D) ​Production and distribution decisions are made by central planners in a command economy, but not in a market economy.

Question 9

​Exhibit 3-14  
-Refer to Exhibit 3-14. Which move to the new production possibilities curve will lead to more food and the same level of housing?

Accepted Answer

A) ​A to B 
B) ​B to C 
C) ​A to C 
D) ​C to B 
A) ​A to B 
B) ​B to C 
C) ​A to C 
D) ​C to B

Question 10

​Exhibit 3-4  
-Refer to Exhibit 3-4. Currently, Point ____ is impossible to achieve.

Accepted Answer

A) ​A 
B) ​C 
C) ​E 
D) ​G 
A) ​A 
B) ​C 
C) ​E 
D) ​G

Question 11

A market economy answers the question "what" goods will be produced by focusing on

Accepted Answer

A) ​dollar votes. 
B) ​least-cost method of production. 
C) ​who can afford these goods. 
D) ​none of the above 
A) ​dollar votes. 
B) ​least-cost method of production. 
C) ​who can afford these goods. 
D) ​none of the above

Question 12

The bowed production possibilities curve represents:

Accepted Answer

A) ​constant opportunity costs. 
B) ​decreasing opportunity costs. 
C) ​increasing opportunity costs. 
D) ​none of the above 
A) ​constant opportunity costs. 
B) ​decreasing opportunity costs. 
C) ​increasing opportunity costs. 
D) ​none of the above

Question 13

Does economic growth eliminate scarcity?

Accepted Answer

​Growth does not eliminate scarcity. Whe

Question 14

Which of the following would be likely to expand a production possibilities curve?

Accepted Answer

A) ​a decrease in unemployment 
B) ​a decrease in price levels 
C) ​an increase in price levels 
D) ​none of the above 
A) ​a decrease in unemployment 
B) ​a decrease in price levels 
C) ​an increase in price levels 
D) ​none of the above

Question 15

A move from an abnormally high rate of unemployment toward a more typical level of unemployment would:

Accepted Answer

A) ​shift the production possibilities curve inward. 
B) ​shift the production possibilities curve outward. 
C) ​move society from a point inside the production possibilities curve toward the curve. 
D) ​move society from a point on the production possibilities curve to a point beyond the production possibilities curve. 
A) ​shift the production possibilities curve inward. 
B) ​shift the production possibilities curve outward. 
C) ​move society from a point inside the production possibilities curve toward the curve. 
D) ​move society from a point on the production possibilities curve to a point beyond the production possibilities curve.

Question 16

​Exhibit 3-6  
-Refer to Exhibit 3-6. In the diagram, Point A is:

Accepted Answer

A) ​unattainable. 
B) ​efficient. 
C) ​preferable to Point D. 
D) ​inefficient. 
A) ​unattainable. 
B) ​efficient. 
C) ​preferable to Point D. 
D) ​inefficient.

Question 17

​Exhibit 3-13  
-Refer to Exhibit 3-13. The opportunity cost of producing an additional cupcake equals:

Accepted Answer

A) ​10 cakes 
B) ​4 cakes 
C) ​1/4 of a cake 
D) ​none of the above 
A) ​10 cakes 
B) ​4 cakes 
C) ​1/4 of a cake 
D) ​none of the above

Question 18

​Exhibit 3-4  
-Refer to Exhibit 3-4. The opportunity cost of one more unit of a consumption good is greater at Point ____ than at Point ____.

Accepted Answer

A) ​D; E 
B) ​E; D 
C) ​B; A 
D) ​None of the above.The opportunity cost of a good is constant everywhere along the production possibilities curve. 
A) ​D; E 
B) ​E; D 
C) ​B; A 
D) ​None of the above.The opportunity cost of a good is constant everywhere along the production possibilities curve.

Question 19

​Exhibit 3-4  
-Refer to Exhibit 3-4. Considering only points on the frontier, the economy will experience the least amount of economic growth over time (ceteris paribus) if it chooses to produce at:

Accepted Answer

A) ​Point A. 
B) ​Point C. 
C) ​Point F. 
D) ​none of the above 
A) ​Point A. 
B) ​Point C. 
C) ​Point F. 
D) ​none of the above

Question 20

The opportunity cost of a particular good tends to increase with its rate of output because some resources cannot be easily adapted from the production of one good or service to another.

Accepted Answer

A) True 
 B)False

Exam 3: Scarcity, Trade-Offs, and Production Possibilities

​Exhibit 3-9 -Refer to Exhibit 3-9. In order to move from Point D to Point C, the economy will have to give up:

Which of the following would be likely to shift a nation's production possibilities curve outward?

The production possibilities curve marks the boundary between attainable and unattainable combinations of output.

​Exhibit 3-2 -Refer to Exhibit 3-2. In the circular flow diagram, payments for goods and services:

​Exhibit 3-9 -Refer to Exhibit 3-9. Assume the economy is operating at Point D in the figure. The opportunity cost of moving to Point B is:

A market system:

​Exhibit 3-7 -Refer to Exhibit 3-7. The diagram represents a tradeoff in an economy between prison cells and classrooms. Which position represents the choice to allocate the greatest amount of resources to producing classrooms?

Which of the following best distinguishes a "command economy" from a "market economy?"

​Exhibit 3-14 -Refer to Exhibit 3-14. Which move to the new production possibilities curve will lead to more food and the same level of housing?

​Exhibit 3-4 -Refer to Exhibit 3-4. Currently, Point ____ is impossible to achieve.

A market economy answers the question "what" goods will be produced by focusing on

The bowed production possibilities curve represents:

Does economic growth eliminate scarcity?

Which of the following would be likely to expand a production possibilities curve?

A move from an abnormally high rate of unemployment toward a more typical level of unemployment would:

​Exhibit 3-6 -Refer to Exhibit 3-6. In the diagram, Point A is:

​Exhibit 3-13 -Refer to Exhibit 3-13. The opportunity cost of producing an additional cupcake equals:

​Exhibit 3-4 -Refer to Exhibit 3-4. The opportunity cost of one more unit of a consumption good is greater at Point ____ than at Point ____.

​Exhibit 3-4 -Refer to Exhibit 3-4. Considering only points on the frontier, the economy will experience the least amount of economic growth over time (ceteris paribus) if it chooses to produce at:

The opportunity cost of a particular good tends to increase with its rate of output because some resources cannot be easily adapted from the production of one good or service to another.

The Role and Method of Economics

Eight Powerful Ideas

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

Exhibit 3-9 -Refer to Exhibit 3-9. In order to move from Point D to Point C, the economy will have to give up:

Exhibit 3-2 -Refer to Exhibit 3-2. In the circular flow diagram, payments for goods and services:

Exhibit 3-9 -Refer to Exhibit 3-9. Assume the economy is operating at Point D in the figure. The opportunity cost of moving to Point B is:

Exhibit 3-7 -Refer to Exhibit 3-7. The diagram represents a tradeoff in an economy between prison cells and classrooms. Which position represents the choice to allocate the greatest amount of resources to producing classrooms?

Exhibit 3-14 -Refer to Exhibit 3-14. Which move to the new production possibilities curve will lead to more food and the same level of housing?

Exhibit 3-4 -Refer to Exhibit 3-4. Currently, Point ____ is impossible to achieve.

Exhibit 3-6 -Refer to Exhibit 3-6. In the diagram, Point A is:

Exhibit 3-13 -Refer to Exhibit 3-13. The opportunity cost of producing an additional cupcake equals:

Exhibit 3-4 -Refer to Exhibit 3-4. The opportunity cost of one more unit of a consumption good is greater at Point than at Point .

Exhibit 3-4 -Refer to Exhibit 3-4. Considering only points on the frontier, the economy will experience the least amount of economic growth over time (ceteris paribus) if it chooses to produce at: