Question 1

Statement I: When the unemployment rate is five percent,we are inside our production possibilities frontier.
Statement II: Full production means that the nation's resources are being allocated in the most efficient manner possible.

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) All of the above
F) None of the above

Question 2

The production possibilities curve illustrates the basic principle that

Accepted Answer

A)  an economy's capacity to produce increases in proportion to its population size.
B)  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.
C)  an economy will automatically seek that level of output at which all of its resources are employed.
D)  the production of more of any one good will in time require smaller and smaller sacrifices of other goods.E) A) and B)
F) B) and D)

Question 3

The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines _____________.

Accepted Answer

The answer of The study of the efficient allocation of...

Question 4

-Statement I.Technological advance pushes a country's production possibilities frontier outward.
Statement II.Our economic growth slowed down from the early 1970s compared to the two decades before the 1970s.

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) All of the above
F) A) and D)

Question 5

-If the economy were producing at point E and moved to point B the opportunity cost in terms of lost production of outboard motors would be

Accepted Answer

A)  16 units of outboard motors.
B)  14 units of outboard motors.
C)  12 units of outboard motors.
D)  10 units of outboard motors.E) A) and D)
F) B) and D)

Question 6

If you own a building and you decide to use that building to open a restaurant,

Accepted Answer

A)  there are no sunk costs involved in this decision.
B)  there is no opportunity cost of using this building for a restaurant because you own it.
C)  the only cost relevant to this decision is the price you paid for the building.
D)  there is an opportunity cost of using this building for a restaurant because it could have been used in other ways.E) A) and B)
F) A) and C)

Question 7

Under the current economic situation,which point would represent an unattainable combination of resources?

Accepted Answer

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

Question 8

At point S,the economy is operating at approximately _______ percent unemployment.

Accepted Answer

The answer of At point S,the economy is operating at...

Question 9

Statement I: In the modern global economy,if our steel industry were operating at full capacity we could easily get steel from other steel-producing countries.
Statement II: The only constraints on our production possibilities frontier are physical constraints such as the number of steel factories available,etc.

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) B) and D)
F) A) and D)

Question 10

-Assuming the inner curve is our current production possibilities frontier,points J,N and K represent

Accepted Answer

A)  an inefficient use of resources.
B)  an output that is not possible to produce.
C)  points of unemployed resources.
D)  points of fully employed resources.E) A) and D)
F) C) and D)

Question 11

If our unemployment rate is 5% and our capacity utilization rate is 85-90%,our economy is at __________.

Accepted Answer

The answer of If our unemployment rate is 5% and...

Question 12

We could increase the production of both heart transplants and round-the-world trips if we moved to point T from point

Accepted Answer

A)  P.
B)  Q.
C)  R.
D)  S.E) B) and D)
F) None of the above

Question 13

An inward shift in the entire production possibilities frontier

Accepted Answer

A)  represents economic growth.
B)  means that the economy can produce more of both goods.
C)  occurs if there is an increase in the capital stock.
D)  takes place if there is an expansion in the labor force.
E)  means that previous levels of production are now unobtainablE.F) A) and E)
G) None of the above

Question 14

In our economy

Accepted Answer

A)  there is no need to economize.
B)  we rarely have to economize.
C)  only the rich have to.
D)  nearly everyone has to economize.E) A) and C)
F) A) and B)

Question 15

To raise our rate of economic growth,we need more and better _______ as well as more and better _______.

Accepted Answer

The answer of To raise our rate of economic growth,we...

Question 16

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

Accepted Answer

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

Question 17

Which point best represents our economy in a depression?

Accepted Answer

A)  Point H
B)  Point F
C)  Point I
D)  Point GE) None of the above
F) B) and D)

Question 18

If our economy is operating at peak efficiency,it is on its __________________________.

Accepted Answer

production...

Question 19

Referring to a production possibilities curve and the goods being compared,depict the economic event.Widespread use of the assembly line revolutionizes U.S.industry in the early 20th century (capital 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 curveF) None of the above
G) A) and B)

Question 20

In 1943-1945

Accepted Answer

A)  there was substantial unemployment in the U.S.
B)  there was substantial excess plant and equipment in the U.S.
C)  the U.S.had not yet completed its recovery from the depression.
D)  we were temporarily operating at a point beyond our production possibilities frontier.The unemployment rate was at less than 2% from 1943-1945.E) A) and B)
F) A) and C)

Exam 2: Resource Utilization

Which point best represents our economy in a depression?

Correct Answer
verified

Statement I: When the unemployment rate is five percent,we are inside our production possibilities frontier. Statement II: Full production means that the nation's resources are being allocated in the most efficient manner possible.

Correct Answer
verified

-Statement I.Technological advance pushes a country's production possibilities frontier outward. Statement II.Our economic growth slowed down from the early 1970s compared to the two decades before the 1970s.

Correct Answer
verified

Under the current economic situation,which point would represent an unattainable combination of resources?

Correct Answer
verified

We could increase the production of both heart transplants and round-the-world trips if we moved to point T from point

Correct Answer
verified

-If the economy were producing at point E and moved to point B the opportunity cost in terms of lost production of outboard motors would be

Correct Answer
verified

At point S,the economy is operating at approximately _______ percent unemployment.

Correct Answer
verified

If our unemployment rate is 5% and our capacity utilization rate is 85-90%,our economy is at __________.

Correct Answer
verified

The production possibilities curve illustrates the basic principle that

Correct Answer
verified

In 1943-1945

Correct Answer
verified

In our economy

Correct Answer
verified

An inward shift in the entire production possibilities frontier

Correct Answer
verified

-Assuming the inner curve is our current production possibilities frontier,points J,N and K represent

Correct Answer
verified

The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines _____________.

Correct Answer
verified

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

Correct Answer
verified

To raise our rate of economic growth,we need more and better _ as well as more and better _.

Correct Answer
verified

Referring to a production possibilities curve and the goods being compared,depict the economic event.Widespread use of the assembly line revolutionizes U.S.industry in the early 20th century (capital vs.consumer goods) .

Correct Answer
verified

If you own a building and you decide to use that building to open a restaurant,

Correct Answer
verified

Correct Answer
verified

If our economy is operating at peak efficiency,it is on its __________________________.

Correct Answer
verified
production...
View Answer

Exam 2: Resource Utilization

Which point best represents our economy in a depression?

Correct AnswerverifiedShow Answer

Statement I: When the unemployment rate is five percent,we are inside our production possibilities frontier. Statement II: Full production means that the nation's resources are being allocated in the most efficient manner possible.

Correct AnswerverifiedShow Answer

-Statement I.Technological advance pushes a country's production possibilities frontier outward. Statement II.Our economic growth slowed down from the early 1970s compared to the two decades before the 1970s.

Correct AnswerverifiedShow Answer

Under the current economic situation,which point would represent an unattainable combination of resources?

Correct AnswerverifiedShow Answer

We could increase the production of both heart transplants and round-the-world trips if we moved to point T from point

Correct AnswerverifiedShow Answer

-If the economy were producing at point E and moved to point B the opportunity cost in terms of lost production of outboard motors would be

Correct AnswerverifiedShow Answer

At point S,the economy is operating at approximately _______ percent unemployment.

Correct AnswerverifiedShow Answer

If our unemployment rate is 5% and our capacity utilization rate is 85-90%,our economy is at __________.

Correct AnswerverifiedShow Answer

The production possibilities curve illustrates the basic principle that

Correct AnswerverifiedShow Answer

In 1943-1945

Correct AnswerverifiedShow Answer

In our economy

Correct AnswerverifiedShow Answer

An inward shift in the entire production possibilities frontier

Correct AnswerverifiedShow Answer

-Assuming the inner curve is our current production possibilities frontier,points J,N and K represent

Correct AnswerverifiedShow Answer

The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines _____________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To raise our rate of economic growth,we need more and better _______ as well as more and better _______.

Correct AnswerverifiedShow Answer

Referring to a production possibilities curve and the goods being compared,depict the economic event.Widespread use of the assembly line revolutionizes U.S.industry in the early 20th century (capital vs.consumer goods) .

Correct AnswerverifiedShow Answer

If you own a building and you decide to use that building to open a restaurant,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If our economy is operating at peak efficiency,it is on its __________________________.

Correct Answerverifiedproduction...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

To raise our rate of economic growth,we need more and better _ as well as more and better _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
production...
View Answer