Question 1

Given the equation: quantity of good X = 280 - 40 (price of good X) , the quantity of good X would be zero if its price were:

Accepted Answer

A)   $5.00.
B)   $7.00.
C)   $35.00.
D)   not enough information to answer the question.

Question 2

Because of scarcity, people must make choices and choices involve tradeoffs--i.e., giving up one thing to get something else.

Accepted Answer

A) True 
 B)False

Question 3

Given that Q = 300 - 60P, where Q is quantity and P is price:

Accepted Answer

A)   if P = $2, then Q =180.
B)   if P = $5, then Q = 0.
C)   both of the above.
D)   none of the above.

Question 4

Use the following figure.

-If the economy represented in the production possibilities figure moved from point Y to point X, it would experience:

Accepted Answer

A)   economic growth.
B)   an opportunity cost equal to the amount of good A it would give up.
C)   an opportunity cost equal to the amount of good B it would give up.
D)   no opportunity cost since it would continue to operate at full employment.

Question 5

When a society is producing the maximum amount of output from its resources, it is producing:

Accepted Answer

A)   equitably.
B)   beyond its production possibilities frontier.
C)   efficiently.
D)   without scarcity.

Question 6

Use the following figure.

-The economy represented in the production possibilities figure would gain more of good B and give up some of good A by moving from point:

Accepted Answer

A)   V to point X.
B)   W to point X.
C)   Y to point V.
D)   Y to point W.

Question 7

Economic growth is illustrated using a production possibilities curve by:

Accepted Answer

A)   a leftward shift of the curve.
B)   a rightward shift of the curve.
C)   moving from one point on the curve to another point on the curve.
D)   moving from a point inside, or to the left of, the curve to a point on the curve.

Question 8

Which of the following statements is true?

Accepted Answer

A)   Land refers only to farm land, oil, and coal reserves.
B)   Money is important for economic activity, but it is not a factor of production.
C)   Stocks and bonds are included in the factor of production category termed capital.
D)   Labor refers to unskilled workers; all other human effort is classified as entrepreneurship.

Question 9

A tractor used to harvest corn crops on a farm is:

Accepted Answer

A)   land
B)   labor
C)   capital.
D)   entrepreneurship.

Question 10

The opportunity cost of a purchase is best measured by:

Accepted Answer

A)   the amount of time it took to make the purchase.
B)   the quantity of resources used to produce the purchase.
C)   the number of workers needed to manufacture the purchase.
D)   the alternative purchase that is forgone.

Question 11

What is economic growth, and how would it be illustrated using a production possibilities curve?

Accepted Answer

Economic growth represents an ...

Question 12

We could produce all of the goods and services needed to satisfy people's material wants and needs if resources were used effectively.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an example of a capital good?

Accepted Answer

A)   In-line skates.
B)   Frozen yogurt.
C)   A cash register.
D)   Food donated to flood victims.

Question 14

An economist has developed a model to explain the relationship between people losing their jobs and the frequency with which individuals experience severe emotional distress. The study is limited to urban areas with large populations, and uses information supplied by people meeting with local counselors for treatment. The study supports a theory that job loss can play a key role in explaining who will experience severe emotional distress.
-The information supplied by the people meeting with local counselors provides the:

Accepted Answer

A)   data for the model.
B)   variables for the model.
C)   conclusions for the model.
D)   assumptions for the model.

Question 15

Use the following production possibilities curve.

-Which of the following statements is true?

Accepted Answer

A)   There is no opportunity cost when going from point B to point C.
B)   The economy cannot go from point B to point C because it is at full employment at point B.
C)   The opportunity cost of going from point B to point C is the amount of good Y that must be given up.
D)   The opportunity cost of going from point B to point C is the amount of good X that must be given up.

Question 16

Economic theories are:

Accepted Answer

A)   always expressed in terms of mathematical equations.
B)   actions, such as tax cuts, to change economic conditions.
C)   formal explanations of the relationships between economic variables.
D)   all of the above.

Question 17

There would be no need to study economics if scarcity were eliminated.

Accepted Answer

A) True 
 B)False

Question 18

-If you were to draw a production possibilities curve based on these numbers, the curve would:

Accepted Answer

A)   be a straight line.
B)   slope downward to the right.
C)   identify which of the possible combinations of capital goods and consumer goods is best for this economy.
D)   all of the above.

Question 19

Why must choices be made about economic matters, and why would you expect people's choices to differ?

Accepted Answer

Choices must be made because r...

Question 20

An engineer employed by a city is an example of:

Accepted Answer

A)   land.
B)   labor.
C)   capital.
D)   entrepreneurship.

Exam 1: Introduction to Economics

Use the following production possibilities curve. -Which of the following statements is true?

Correct Answer
verified

We could produce all of the goods and services needed to satisfy people's material wants and needs if resources were used effectively.

Correct Answer
verified

Use the following figure. -If the economy represented in the production possibilities figure moved from point Y to point X, it would experience:

Correct Answer
verified

A tractor used to harvest corn crops on a farm is:

Correct Answer
verified

Use the following figure. -The economy represented in the production possibilities figure would gain more of good B and give up some of good A by moving from point:

Correct Answer
verified

There would be no need to study economics if scarcity were eliminated.

Correct Answer
verified

Given the equation: quantity of good X = 280 - 40 (price of good X) , the quantity of good X would be zero if its price were:

Correct Answer
verified

Correct Answer
verified

Why must choices be made about economic matters, and why would you expect people's choices to differ?

Correct Answer
verified
Choices must be made because r...
View Answer

Which of the following is an example of a capital good?

Correct Answer
verified

What is economic growth, and how would it be illustrated using a production possibilities curve?

Correct Answer
verified
Economic growth represents an ...
View Answer

Economic growth is illustrated using a production possibilities curve by:

Correct Answer
verified

An engineer employed by a city is an example of:

Correct Answer
verified

Given that Q = 300 - 60P, where Q is quantity and P is price:

Correct Answer
verified

When a society is producing the maximum amount of output from its resources, it is producing:

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

-If you were to draw a production possibilities curve based on these numbers, the curve would:

Correct Answer
verified

Economic theories are:

Correct Answer
verified

The opportunity cost of a purchase is best measured by:

Correct Answer
verified

Because of scarcity, people must make choices and choices involve tradeoffs--i.e., giving up one thing to get something else.

Correct Answer
verified

Exam 1: Introduction to Economics

Use the following production possibilities curve. -Which of the following statements is true?

Correct AnswerverifiedShow Answer

We could produce all of the goods and services needed to satisfy people's material wants and needs if resources were used effectively.

Correct AnswerverifiedShow Answer

Use the following figure. -If the economy represented in the production possibilities figure moved from point Y to point X, it would experience:

Correct AnswerverifiedShow Answer

A tractor used to harvest corn crops on a farm is:

Correct AnswerverifiedShow Answer

Use the following figure. -The economy represented in the production possibilities figure would gain more of good B and give up some of good A by moving from point:

Correct AnswerverifiedShow Answer

There would be no need to study economics if scarcity were eliminated.

Correct AnswerverifiedShow Answer

Given the equation: quantity of good X = 280 - 40 (price of good X) , the quantity of good X would be zero if its price were:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why must choices be made about economic matters, and why would you expect people's choices to differ?

Correct AnswerverifiedChoices must be made because r...View AnswerShow Answer

Which of the following is an example of a capital good?

Correct AnswerverifiedShow Answer

What is economic growth, and how would it be illustrated using a production possibilities curve?

Correct AnswerverifiedEconomic growth represents an ...View AnswerShow Answer

Economic growth is illustrated using a production possibilities curve by:

Correct AnswerverifiedShow Answer

An engineer employed by a city is an example of:

Correct AnswerverifiedShow Answer

Given that Q = 300 - 60P, where Q is quantity and P is price:

Correct AnswerverifiedShow Answer

When a society is producing the maximum amount of output from its resources, it is producing:

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

-If you were to draw a production possibilities curve based on these numbers, the curve would:

Correct AnswerverifiedShow Answer

Economic theories are:

Correct AnswerverifiedShow Answer

The opportunity cost of a purchase is best measured by:

Correct AnswerverifiedShow Answer

Because of scarcity, people must make choices and choices involve tradeoffs--i.e., giving up one thing to get something else.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Choices must be made because r...
View Answer

Correct Answer
verified

Correct Answer
verified
Economic growth represents an ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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