Question 1

Exhibit 1-5 
-Refer to Exhibit 1-5. The production possibilities curve representing the given schedule would be a

Accepted Answer

A)  negatively sloped curve that bows outward.
B)  negatively sloped straight line.
C)  positively sloped curve that bows outward.
D)  positively sloped curve that bows inward.
E)  positively sloped straight line.

Question 2

The production possibilities curve is immovable, meaning that it is fixed regardless of the availability of resources.

Accepted Answer

A) True 
 B)False

Question 3

Economics deals with how

Accepted Answer

A)  individuals make decisions to use scarce resources in order to satisfy their unlimited wants.
B)  to run a business successfully.
C)  individuals become rich.
D)  society can eliminate scarcity.
E)  society creates more resources in order to raise its standard of living.

Question 4

Choices are necessary only for individuals but not for the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 5

Exhibit 1-2 
-According to Exhibit 1-2, if Anne and Sam joined forces, the number of meals served would increase by

Accepted Answer

A)   8.
B)   20.
C)   12.
D)   4.
E)   5.

Question 6

A resource is not scarce if

Accepted Answer

A)  there is more of it than people want.
B)  it can be found in any store.
C)  people have enough money to pay for it.
D)  it has a low opportunity cost.
E)  its supply exceeds its demand.

Question 7

The opportunity cost of a choice is the

Accepted Answer

A)  benefit associated with making that choice.
B)  value of the next best activity not chosen.
C)  fair market price of whatever is chosen.
D)  dollar amount paid to purchase what is chosen.
E)  consequence associated with failure.

Question 8

Moving from a point on the production possibilities curve to another point on the same curve implies a gain in production efficiency.

Accepted Answer

A) True 
 B)False

Question 9

If an economy produces only smartphones and toys, then producing more and more smartphones will most likely require

Accepted Answer

A)  giving up a decreasing amount of the production of toys.
B)  giving up an increasing amount of the production of toys.
C)  gaining an increasing amount of the production of toys.
D)  gaining a decreasing amount of the production of toys.
E)  no change in toy production.

Question 10

Which of the following is held constant when constructing a production possibilities curve for the economy?

Accepted Answer

A)  The opportunity cost
B)  The price level
C)  The amount of resources
D)  The combination of goods produced
E)  The costs of resources used in production

Question 11

For an economy to attain what is currently impossible is

Accepted Answer

A)  a problem involving choice and scarcity, the choice being between current consumption and investment.
B)  an economic problem but is never taken seriously.
C)  an economic problem of supply and demand.
D)  not an economic problem because one cannot choose something that does not exist.
E)  not an economic problem because future production is not a viable alternative to current production.

Question 12

What does a market economy use to determine the "what is produced, how, and for whom" problems?

Accepted Answer

A)  A price system
B)  The government
C)  An election
D)  A tax system
E)  Command and control

Question 13

After purchasing a can of soda from a convenience store, David complained that the store had charged too much for the soda. Comment.

Accepted Answer

If David purchased the soda on a volunta...

Question 14

Economics is the study of how individuals become wealthy.

Accepted Answer

A) True 
 B)False

Question 15

James is a computer genius earning $2 million last year while working at a software company. He is also planning to enroll as an MBA student at Stanford University. What is his opportunity cost of earning the graduate MBA degree? How does it compare to your opportunity cost of a year in college?

Accepted Answer

One of the opportunity costs of one more...

Question 16

Josie has two classes: Biology and math. She finds out that the grades for both classes has improved without spending more time studying. Using the production possibilities curve, Josie's situation can be represented by

Accepted Answer

A)  moving from a point on the production possibilities curve to a point inside the curve.
B)  a movement along the curve from the axis for biology to the axis for math.
C)  a movement along the curve from the axis for math to the axis for biology.
D)  an inward shift of the curve.
E)  an outward shift of the curve.

Exam 1: The Central Idea

What does a market economy use to determine the "what is produced, how, and for whom" problems?

Correct Answer
verified

Josie has two classes: Biology and math. She finds out that the grades for both classes has improved without spending more time studying. Using the production possibilities curve, Josie's situation can be represented by

Correct Answer
verified

James is a computer genius earning $2 million last year while working at a software company. He is also planning to enroll as an MBA student at Stanford University. What is his opportunity cost of earning the graduate MBA degree? How does it compare to your opportunity cost of a year in college?

Correct Answer
verified
One of the opportunity costs of one more...
View Answer

The production possibilities curve is immovable, meaning that it is fixed regardless of the availability of resources.

Correct Answer
verified

Choices are necessary only for individuals but not for the economy as a whole.

Correct Answer
verified

For an economy to attain what is currently impossible is

Correct Answer
verified

Exhibit 1-5 -Refer to Exhibit 1-5. The production possibilities curve representing the given schedule would be a

Correct Answer
verified

Economics is the study of how individuals become wealthy.

Correct Answer
verified

The opportunity cost of a choice is the

Correct Answer
verified

Which of the following is held constant when constructing a production possibilities curve for the economy?

Correct Answer
verified

Economics deals with how

Correct Answer
verified

Exhibit 1-2 -According to Exhibit 1-2, if Anne and Sam joined forces, the number of meals served would increase by

Correct Answer
verified

If an economy produces only smartphones and toys, then producing more and more smartphones will most likely require

Correct Answer
verified

Moving from a point on the production possibilities curve to another point on the same curve implies a gain in production efficiency.

Correct Answer
verified

After purchasing a can of soda from a convenience store, David complained that the store had charged too much for the soda. Comment.

Correct Answer
verified
If David purchased the soda on a volunta...
View Answer

A resource is not scarce if

Correct Answer
verified

Exam 1: The Central Idea

What does a market economy use to determine the "what is produced, how, and for whom" problems?

Correct AnswerverifiedShow Answer

Josie has two classes: Biology and math. She finds out that the grades for both classes has improved without spending more time studying. Using the production possibilities curve, Josie's situation can be represented by

Correct AnswerverifiedShow Answer

James is a computer genius earning $2 million last year while working at a software company. He is also planning to enroll as an MBA student at Stanford University. What is his opportunity cost of earning the graduate MBA degree? How does it compare to your opportunity cost of a year in college?

Correct AnswerverifiedOne of the opportunity costs of one more...View AnswerShow Answer

The production possibilities curve is immovable, meaning that it is fixed regardless of the availability of resources.

Correct AnswerverifiedShow Answer

Choices are necessary only for individuals but not for the economy as a whole.

Correct AnswerverifiedShow Answer

For an economy to attain what is currently impossible is

Correct AnswerverifiedShow Answer

Exhibit 1-5 -Refer to Exhibit 1-5. The production possibilities curve representing the given schedule would be a

Correct AnswerverifiedShow Answer

Economics is the study of how individuals become wealthy.

Correct AnswerverifiedShow Answer

The opportunity cost of a choice is the

Correct AnswerverifiedShow Answer

Which of the following is held constant when constructing a production possibilities curve for the economy?

Correct AnswerverifiedShow Answer

Economics deals with how

Correct AnswerverifiedShow Answer

Exhibit 1-2 -According to Exhibit 1-2, if Anne and Sam joined forces, the number of meals served would increase by

Correct AnswerverifiedShow Answer

If an economy produces only smartphones and toys, then producing more and more smartphones will most likely require

Correct AnswerverifiedShow Answer

Moving from a point on the production possibilities curve to another point on the same curve implies a gain in production efficiency.

Correct AnswerverifiedShow Answer

After purchasing a can of soda from a convenience store, David complained that the store had charged too much for the soda. Comment.

Correct AnswerverifiedIf David purchased the soda on a volunta...View AnswerShow Answer

A resource is not scarce if

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
One of the opportunity costs of one more...
View Answer

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If David purchased the soda on a volunta...
View Answer

Correct Answer
verified