November 21st, 2009
Which statement is true about the recession of 1990-91?
a. It was the worst recession we have had since World War II.
b. It was the mildest recession we have had since World War II.
c. Our recovery from it was one of the strongest since World War II.
d. Our recovery from it was one of the weakest since World War II.
2.
A nation’s production possibilities curve is bowed out from the origin because:
a.
resources are not equally efficient in producing every good.
b.
the originator of the idea drew it this way and modern economists follow this convention.
c.
resources are scarce.
d.
wants are virtually unlimited.
3.
Which of the following is assumed in constructing a typical production possibilities curve?
a.
the economy is using its resources inefficiently.
b.
resources are perfectly shiftable among alternative uses.
c.
production technology is fixed.
d.
the economy is engaging in international trade.
4.
Which one of the following expressions best states the idea of opportunity cost?
a.
“A penny saved is a penny earned.”
b.
“He who hesitates is lost.”
c.
“There is no such thing as a free lunch.”
d.
“All that glitters is not gold.”
5.
Unemployment and/or productive inefficiencies:
a.
cause the production possibilities curve to shift outward.
b.
can exist at any point on a production possibilities curve.
c.
are both illustrated by a point outside the production possibilities curve.
d.
are both illustrated by a point inside the production possibilities curve.
6.
Which of the following would be most likely to shift the production possibilities curve to the right?
a.
a sudden and substantial expansion of consumer wants
b.
an improvement in the literacy level and general level of education
c.
a decline in the size of the population and labor force
d.
shifting resources from the production of capital goods to the production of consumer goods.
7.
The negative slope of the production possibilities curve is a graphical way of indicating that:
a.
any economy “can have its cake and eat it too.”
b.
to produce more of one product we must do with less of another.
c.
the principle of increasing opportunity costs applies to only parts of the economy.
d.
consumers buy more when prices are low than when prices are high.
8.
Which one of the following statements is correct?
a.
Relative scarcity is no longer a central idea in economics because we are in an age of abundance.
b.
Most production possibilities curves are convex to the origin.
c.
The production possibilities curve shows society’s preferences for consumer goods relative to capital goods.
d.
The central concept underlying the production possibilities curve is that of limited resources.
9. Economics may best be defined as the:
a.
interaction between macro and micro considerations.
b.
social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants.
c.
empirical testing of value judgments through the use of logic.
d.
use of policy to refute facts and hypotheses.
10.
You should decide to go to a movie:
a.
if the marginal cost of the movie exceeds its marginal benefit.
b.
if the marginal benefit of the movie exceeds its marginal cost.
c.
if your income will allow you to buy a ticket.
d.
because movies are enjoyable.
11.
The production possibilities curve illustrates the basic principle that:
a.
the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
b.
an economy will automatically obtain full employment of its resources.
c.
if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
d.
an economy’s capacity to produce increases in proportion to its population size.
12.
Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates:
a.
distorted priorities.
b.
opportunity costs.
c.
increasing opportunity costs.
d.
productive efficiency.
13.
Which of the following is a capital resource?
a.
a computer programmer
b.
a corporate bond issued by a computer manufacturer
c.
silicone (sand) used to make computer chips
d.
a piece of software used by a firm
14.
The fundamental problem of economics is:
a.
to establish a democratic political framewo
Image taken on 2007-11-01 09:31:15 by San Mateo County Library. Image Source. (Used with permission)
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1 Comment
i don’t think anyones gonna do your homework for you..
i tried it :/
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