Question 1

Which of the following does not illustrate the concept of opportunity cost?

Accepted Answer

A)  Between 1990 and 1997,the state of California laid off 10,000 of its university employees to have the money to hire 10,000 employees for its prison system.
B)  By reducing its unemployment rate,the United States dramatically increased its production of both civilian and war goods in the early years of World War II.
C)  A computer whiz at M.I.T.gives up her senior year at the university to take a high-paying position at a new company,Socrates.com.
D)  The Secretary of the Interior must choose between enforcing a law that would save the spotted owl,an endangered species or the loss of 500 logging jobs.

Question 2

For most of 2009 the U.S.was in a very severe recession,with an unemployment rate approximately _____ percent while the capacity utilization rate was below ______ percent.

Accepted Answer

A)  5;85
B)  9;70
C)  2;90
D)  0;100

Question 3

Which of the following is not an institutional constraint that limits our nation's production possibilities?

Accepted Answer

A)  Blue laws that restrict bars and liquor stores from opening on Sunday
B)  Restrictions on child labor
C)  The fact that Americans dislike working at night or on the weekends
D)  Workers who are "in between" jobs

Question 4

Referring to a production possibilities curve and the goods being compared,depict the economic event.Suppose the United States was at full employment in 2003 just before invading Iraq.Although the war was won quickly,winning the peace took a decade (guns vs.butter) .

Accepted Answer

A)  A movement from a point inside the curve to a point on or near the curve
B)  A movement from a point on or near the curve to a point inside the curve
C)  A shift in the entire curve to the right (outward) 
D)  A shift in the entire curve to the left (inward) 
E)  A movement along the curve

Question 5

If our nation's maximum possible output of any one good is produced,given the output of other goods,we have attained ___________.

Accepted Answer

productive...

Question 6

Referring to a production possibilities curve and the goods being compared,depict the economic event.Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs.consumer goods) .

Accepted Answer

A)  A movement from a point inside the curve to a point on or near the curve
B)  A movement from a point on or near the curve to a point inside the curve
C)  A shift in the entire curve to the right (outward) 
D)  A shift in the entire curve to the left (inward) 
E)  A movement along the curve

Question 7

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

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 rate

Question 8

Every social system confronts scarcity and so must

Accepted Answer

A)  produce only free goods.
B)  try to produce outside its production possibilities frontiers.
C)  economize.
D)  allocate goods by government edict.

Question 9

"The value of the next best alternative" defines

Accepted Answer

A)  the Law of Increasing Costs.
B)  the economic problem.
C)  allocative efficiency.
D)  opportunity cost.

Question 10

-Which point shows where our economy was operating during the low point of the Great Depression?

Accepted Answer

A)  Point A
B)  Point B
C)  Point C
D)  Point D
E)  Point E

Question 11

-If the economy were producing at point Z and moved to point D,

Accepted Answer

A)  it could only produce more butter at the sacrifice of some gun production.
B)  it could only produce more guns at the sacrifice of some butter production.
C)  it could produce more guns and more butter at the same time.
D)  it would be impossible to produce more guns without the sacrifice of some butter production.

Question 12

Which of the following statements about full employment is true?

Accepted Answer

A)  Liberal economists insist that an unemployment rate of 4 percent constitutes full employment.
B)  Conservative economists feel that an unemployment rate of 6 percent is a realistic portrayal of full employment.
C)  Economists cannot agree on what constitutes full employment,thus 5% represents a reasonable compromise.
D)  All of these choices are true.

Question 13

An increase in the rate of economic growth curve could be caused by all of the following except

Accepted Answer

A)  a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce.
B)  a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods.
C)  an increase in immigration that increases the country's labor force by 20 percent.
D)  an increase in research and development spending for space technology that improves the quality of the nation's capital stock.

Question 14

Which of the following is an example of capital?

Accepted Answer

A)  Money in a Swiss bank account
B)  A bulldozer
C)  A CD by Metalicca
D)  A Dracula costume for Halloween
E)  A U.S.Savings bond

Question 15

Employment discrimination leads to the _________________ of labor.

Accepted Answer

The answer of Employment discrimination leads to the _________________ of...

Question 16

-Place point Z on the graph to indicate where our economy will most likely operate five years from now if we enjoyed an economic growth rate of 5 percent a year.

Accepted Answer

The answer of 
-Place point Z on the graph to...

Question 17

Andrew Carnegie,Steven Jobs and Sam Walton were all innovators who are also considered ____________.

Accepted Answer

The answer of Andrew Carnegie,Steven Jobs and Sam Walton were...

Question 18

The value of the next best alternative defines __________________.

Accepted Answer

The answer of The value of the next best alternative...

Question 19

-Place point Y on the graph to indicate a deep depression.

Accepted Answer

The answer of 
-Place point Y on the graph to...

Question 20

Economic growth can be shown by ____________________ production possibilities curve.

Accepted Answer

A)  an outward shift of the
B)  an inward shift of the
C)  a movement from one point to another along the
D)  a movement to a point inside the

Exam 2: Resource Utilization

Andrew Carnegie,Steven Jobs and Sam Walton were all innovators who are also considered ____________.

Correct AnswerverifiedShow Answer

Employment discrimination leads to the _________________ of labor.

Correct AnswerverifiedShow Answer

-If the economy were producing at point Z and moved to point D,

Correct AnswerverifiedShow Answer

Which of the following is not an institutional constraint that limits our nation's production possibilities?

Correct AnswerverifiedShow Answer

Which of the following statements about full employment is true?

Correct AnswerverifiedShow Answer

"The value of the next best alternative" defines

Correct AnswerverifiedShow Answer

Economic growth can be shown by ____________________ production possibilities curve.

Correct AnswerverifiedShow Answer

-Place point Y on the graph to indicate a deep depression.

Correct AnswerverifiedShow Answer

If our nation's maximum possible output of any one good is produced,given the output of other goods,we have attained ___________.

Correct Answerverifiedproductive...View AnswerShow Answer

Referring to a production possibilities curve and the goods being compared,depict the economic event.Suppose the United States was at full employment in 2003 just before invading Iraq.Although the war was won quickly,winning the peace took a decade (guns vs.butter) .

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is an example of capital?

Correct AnswerverifiedShow Answer

Which of the following does not illustrate the concept of opportunity cost?

Correct AnswerverifiedShow Answer

For most of 2009 the U.S.was in a very severe recession,with an unemployment rate approximately _____ percent while the capacity utilization rate was below ______ percent.

Correct AnswerverifiedShow Answer

The value of the next best alternative defines __________________.

Correct AnswerverifiedShow Answer

An increase in the rate of economic growth curve could be caused by all of the following except

Correct AnswerverifiedShow Answer

-Which point shows where our economy was operating during the low point of the Great Depression?

Correct AnswerverifiedShow Answer

Every social system confronts scarcity and so must

Correct AnswerverifiedShow Answer

Referring to a production possibilities curve and the goods being compared,depict the economic event.Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs.consumer goods) .

Correct AnswerverifiedShow Answer

-Place point Z on the graph to indicate where our economy will most likely operate five years from now if we enjoyed an economic growth rate of 5 percent a year.

Correct AnswerverifiedShow Answer

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productive...
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For most of 2009 the U.S.was in a very severe recession,with an unemployment rate approximately _ percent while the capacity utilization rate was below __ percent.

Correct Answer
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