Question 1

If the unemployment rate is 5 percent (full employment) ,our economy is operating

Accepted Answer

A)  inside the production curve.
B)  on the production curve.
C)  outside the production curve.D) A) and C)
E) All of the above

Question 2

Assuming that a society always operates on its production possibilities curve,an inward shift of the curve implies that

Accepted Answer

A)  the country's capacity to produce is fixed.
B)  the country is not using its resources efficiently.
C)  the country's capacity to produce has contracted.
D)  All of the choices are true.E) B) and C)
F) A) and B)

Question 3

-What is the opportunity cost of going from point D to point C?

Accepted Answer

The answer of 
-What is the opportunity cost of going...

Question 4

The economic problem is essentially one of deciding how to make the best use of

Accepted Answer

A)  limited resources to satisfy limited wants.
B)  unlimited resources to satisfy limited wants.
C)  limited resources to satisfy unlimited wants.
D)  unlimited resources to satisfy unlimited wants.E) C) and D)
F) A) and B)

Question 5

Statement I.Our economy only rarely attains productive efficiency.
Statement II.The U.S.economy reached productive efficiency from mid-1997 through early 2001.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) None of the above
F) A) and D)

Question 6

Which is the most accurate statement?

Accepted Answer

A)  In order to have full production,there must be full employment.
B)  In order to have full employment,there must be full production.
C)  Both statements are accurate.
D)  Neither statement is accurate.E) A) and D)
F) B) and C)

Question 7

-Which point shows where our economy was temporarily operating during World War II,when we had reduced our unemployment rate to about two percent?

Accepted Answer

A)  Point A
B)  Point B
C)  Point C
D)  Point DE) A) and B)
F) A) and D)

Question 8

Which of the following will shift an economy's production possibilities curve inward?

Accepted Answer

A)  An improvement in technology
B)  An increase in the unemployment rate
C)  A decrease in land,labor or capital
D)  A decrease in the unemployment rateE) None of the above
F) A) and D)

Question 9

Which of the following statements about the concept of opportunity cost is true?

Accepted Answer

A)  The opportunity cost of a decision only includes monetary outlays.
B)  The opportunity cost of a decision is the next best foregone alternative.
C)  Some decisions have zero opportunity cost.
D)  The opportunity cost of a college education is measured by the payments for tuition and books.E) A) and D)
F) A) and B)

Question 10

A production possibilities frontier demonstrates

Accepted Answer

A)  that there are limits to what a society can produce.
B)  the various choices a society can make in allocating its resources.
C)  the concept of opportunity cost.
D)  it demonstrates all of the choices stateD.E) All of the above
F) A) and B)

Question 11

The law of increasing costs states that

Accepted Answer

A)  opportunity costs decrease as more of one good is produced.
B)  increasing resource prices are inevitable because of scarcity.
C)  opportunity costs increase as more of one good is produced.
D)  resources can be easily adapted to the production of any gooD.
E)  economic growth is always associated with inflation.F) A) and E)
G) A) and D)

Question 12

-The economy could produce at 8 units of outboard motors and 18 units of robots

Accepted Answer

A)  immediately only under unusual circumstances such as war.
B)  if there is economic growth over a period of years.
C)  under no circumstances.
D)  immediately only under unusual circumstances such as war AND if there is economic growth over a period of years.E) A) and B)
F) A) and C)

Question 13

-Which of the following will NOT shift an economy's production possibilities curve outward?

Accepted Answer

A)  An increase in technology
B)  An improvement in the literacy rate
C)  A reduction in the unemployment rate
D)  An increase in the number of workers availableE) A) and B)
F) C) and D)

Question 14

The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be

Accepted Answer

A)  the cost of the movie ticket.
B)  the cost of the subway fare to get to the theater.
C)  the price of the popcorn and candy bars you snuck into the theater.
D)  a higher grade on the exam.
E)  All of the choices are truE.F) B) and C)
G) A) and D)

Question 15

Statement I.When U.S.unemployment rate is five percent,it attains full employment.
Statement II.Full employment and full production mean virtually the same thing.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and D)
F) B) and D)

Question 16

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

Accepted Answer

A)  Recruiting housewives to work in tank and airplane factories.
B)  Convincing workers who qualified for retirement to put off retirement.
C)  Pressing older machinery and equipment into use.
D)  Expansion of the work week.
E)  All of the choices are trueF) B) and D)
G) None of the above

Question 17

Which one of the following is the most accurate?

Accepted Answer

A)  Half of recent college graduates under 25 are in positions that do not require college degrees.
B)  The outlook for college graduates in 2009 & 2010 was just as bright as graduates in 2006 & 2007.
C)  Despite the recession,nearly all college graduates of the class of 2010 found jobs appropriate to their training and educational backgrounds.
D)  All of these statements are true.E) A) and B)
F) A) and C)

Question 18

We can increase our rate of economic growth by

Accepted Answer

A)  devoting more of our output to capital goods.
B)  devoting more of our output to improving our technology.
C)  devoting more of our output to improving the quality of our labor force.
D)  all of the choices are true.E) All of the above
F) A) and C)

Question 19

-A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside)the production possibilities curve.

Accepted Answer

The answer of 
-A country producing a combination of 9...

Question 20

Statement I: Institutional constraints such as "blue laws" or child labor laws put restrictions on our capacity to produce and thus limit our production possibilities curve.
Statement II: We would be operating at full employment with an unemployment rate of five percent and a capacity utilization rate of 85 percent.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and D)
F) A) and C)

Exam 2: Resource Utilization

-Which of the following will NOT shift an economy's production possibilities curve outward?

Correct Answer
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Which of the following will shift an economy's production possibilities curve inward?

Correct Answer
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Correct Answer
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-The economy could produce at 8 units of outboard motors and 18 units of robots

Correct Answer
verified

The law of increasing costs states that

Correct Answer
verified

Which of the following statements about the concept of opportunity cost is true?

Correct Answer
verified

-A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside)the production possibilities curve.

Correct Answer
verified

Which is the most accurate statement?

Correct Answer
verified

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

Correct Answer
verified

Statement I.Our economy only rarely attains productive efficiency. Statement II.The U.S.economy reached productive efficiency from mid-1997 through early 2001.

Correct Answer
verified

If the unemployment rate is 5 percent (full employment) ,our economy is operating

Correct Answer
verified

Which one of the following is the most accurate?

Correct Answer
verified

Statement I.When U.S.unemployment rate is five percent,it attains full employment. Statement II.Full employment and full production mean virtually the same thing.

Correct Answer
verified

-What is the opportunity cost of going from point D to point C?

Correct Answer
verified

-Which point shows where our economy was temporarily operating during World War II,when we had reduced our unemployment rate to about two percent?

Correct Answer
verified

A production possibilities frontier demonstrates

Correct Answer
verified

The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be

Correct Answer
verified

The economic problem is essentially one of deciding how to make the best use of

Correct Answer
verified

Assuming that a society always operates on its production possibilities curve,an inward shift of the curve implies that

Correct Answer
verified

We can increase our rate of economic growth by

Correct Answer
verified

Exam 2: Resource Utilization

-Which of the following will NOT shift an economy's production possibilities curve outward?

Correct AnswerverifiedShow Answer

Which of the following will shift an economy's production possibilities curve inward?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

-The economy could produce at 8 units of outboard motors and 18 units of robots

Correct AnswerverifiedShow Answer

The law of increasing costs states that

Correct AnswerverifiedShow Answer

Which of the following statements about the concept of opportunity cost is true?

Correct AnswerverifiedShow Answer

-A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside)the production possibilities curve.

Correct AnswerverifiedShow Answer

Which is the most accurate statement?

Correct AnswerverifiedShow Answer

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

Correct AnswerverifiedShow Answer

Statement I.Our economy only rarely attains productive efficiency. Statement II.The U.S.economy reached productive efficiency from mid-1997 through early 2001.

Correct AnswerverifiedShow Answer

If the unemployment rate is 5 percent (full employment) ,our economy is operating

Correct AnswerverifiedShow Answer

Which one of the following is the most accurate?

Correct AnswerverifiedShow Answer

Statement I.When U.S.unemployment rate is five percent,it attains full employment. Statement II.Full employment and full production mean virtually the same thing.

Correct AnswerverifiedShow Answer

-What is the opportunity cost of going from point D to point C?

Correct AnswerverifiedShow Answer

-Which point shows where our economy was temporarily operating during World War II,when we had reduced our unemployment rate to about two percent?

Correct AnswerverifiedShow Answer

A production possibilities frontier demonstrates

Correct AnswerverifiedShow Answer

The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be

Correct AnswerverifiedShow Answer

The economic problem is essentially one of deciding how to make the best use of

Correct AnswerverifiedShow Answer

Assuming that a society always operates on its production possibilities curve,an inward shift of the curve implies that

Correct AnswerverifiedShow Answer

We can increase our rate of economic growth by

Correct AnswerverifiedShow Answer

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