Question 1

Which of the following provides the best measure of the standard of living in an economy in a single year?

Accepted Answer

A) The Consumer Price Index 
B) The Wholesale Price Index 
C) Gross Domestic Product (GDP) 
D) Per capita Real GDP 
E) None of the above

Question 2

A three-year-old learns about the fundamental economic problem when she

Accepted Answer

A) Gets presents for her birthday 
B) Is punished for drawing on the walls 
C) Has to eat green beans for dinner 
D) Is told she can't have a toy at the store 
E) Watches her favorite cartoon

Question 3

The Following Questions Refer to the graph below. 
-Which of the following points is unattainable for Sharpland in 2012?

Accepted Answer

A) A 
B) G 
C) F 
D) D 
E) H

Question 4

If 10 units of food must be given up to produce an additional unit of education,which of the following is true?

Accepted Answer

A) The MSC of the unit of education is 10 
B) The MSB of the unit of education is 10 
C) The MSC of the food is 10 
D) The MSB of the food is 10 
E) None of the above

Question 5

With private property rights,the decision about how to use resources are made by

Accepted Answer

A) The government 
B) Private firms 
C) Individual resource owners 
D) Resource committees 
E) All of the above

Question 6

Which of the following is not a cause of poverty in LDCs? The

Accepted Answer

A) Quality of labor 
B) Stock of capital 
C) Level of technology 
D) Population density 
E) Capital accumulation rates

Question 7

Given that two countries,Alpha and Beta,have the same per capita GDP,we can be sure that the people of the two countries are equally well-off.

Accepted Answer

A) True 
 B)False

Question 8

GNP would include the value of value of Honda Accords built in Ohio.

Accepted Answer

A) True 
 B)False

Question 9

What is the MSB of a shift from the production of 20 units of food and 2 units of education to 10 units of food and 3 units of education?

Accepted Answer

A) 20 units of food 
B) 10 units of food 
C) 1 unit of education 
D) 2 units of education 
E) 3 units of education

Question 10

For economic development to occur in less-developed countries,it is important that their governments establish an economic climate in which education is stressed and capital accumulation is encourageD.

Accepted Answer

A) True 
 B)False

Question 11

If expanding an activity leads to greater MSB than MSC,social well-being is increased by the expansion.

Accepted Answer

A) True 
 B)False

Question 12

Any change for which MSB>MSC will

Accepted Answer

A) Increase social well-being 
B) Decrease social well-being 
C) Not change social well-being 
D) Cost more than it is worth to society 
E) Increase GDP

Question 13

Approximately two thirds of the world's population goes to sleep hungry at night.

Accepted Answer

A) True 
 B)False

Question 14

The Following Questions Refer to the graph below. 
-At which of the following points is the economy producing efficiently?

Accepted Answer

A) Q 
B) G 
C) N 
D) B 
E) E

Question 15

Inefficiency exists whenever the economy's output combination lies inside its production possibilities curvE.

Accepted Answer

A) True 
 B)False

Question 16

Price index numbers are used to correct data series for inflation.

Accepted Answer

A) True 
 B)False

Question 17

Cost/benefit analysis compares the MSC and MSB of an activity to determine if the level of an activity should be changeD.

Accepted Answer

A) True 
 B)False

Question 18

Technological development goes hand in hand with advancing educational levels and capital accumulation.

Accepted Answer

A) True 
 B)False

Question 19

When comparing welfare in two different countries,per capita GDP is a better measure than current dollar GDP.

Accepted Answer

A) True 
 B)False

Question 20

Unemployment will move an economy to a point below its production possibilities curvE.

Accepted Answer

A) True 
 B)False

Exam 1: Alleviating Human Misery: The Role of Economic Reasoning

Which of the following provides the best measure of the standard of living in an economy in a single year?

A three-year-old learns about the fundamental economic problem when she

The Following Questions Refer to the graph below. -Which of the following points is unattainable for Sharpland in 2012?

If 10 units of food must be given up to produce an additional unit of education,which of the following is true?

With private property rights,the decision about how to use resources are made by

Which of the following is not a cause of poverty in LDCs? The

Given that two countries,Alpha and Beta,have the same per capita GDP,we can be sure that the people of the two countries are equally well-off.

GNP would include the value of value of Honda Accords built in Ohio.

What is the MSB of a shift from the production of 20 units of food and 2 units of education to 10 units of food and 3 units of education?

For economic development to occur in less-developed countries,it is important that their governments establish an economic climate in which education is stressed and capital accumulation is encourageD.

If expanding an activity leads to greater MSB than MSC,social well-being is increased by the expansion.

Any change for which MSB>MSC will

Approximately two thirds of the world's population goes to sleep hungry at night.

The Following Questions Refer to the graph below. -At which of the following points is the economy producing efficiently?

Inefficiency exists whenever the economy's output combination lies inside its production possibilities curvE.

Price index numbers are used to correct data series for inflation.

Cost/benefit analysis compares the MSC and MSB of an activity to determine if the level of an activity should be changeD.

Technological development goes hand in hand with advancing educational levels and capital accumulation.

When comparing welfare in two different countries,per capita GDP is a better measure than current dollar GDP.

Unemployment will move an economy to a point below its production possibilities curvE.