Question 1

The fact that resources are _________ means we cannot satisfy all of our unlimited wants.

Accepted Answer

The answer of The fact that resources are _________ means...

Question 2

Figure 1.3
-If an economy is producing at point A in Figure 1.3,

Accepted Answer

A)   it is producing 3300 units of housewares and 3300 units of consumer electronics.
B)   it is producing 3300 units of housewares and 1800 units of consumer electronics.
C)   it is producing 1800 units of housewares and 3300 units of consumer electronics.
D)   it is producing 1800 units of housewares and 1800 units of consumer electronics.

Question 3

Technology can cause the production possibilities curve to shift outward because

Accepted Answer

A)   it increases costs and contributes to lower production rates.
B)   production will increase, thereby raising the standard of living.
C)   production will fall, but jobs will be saved.
D)   it causes increases in unemployment.

Question 4

Economic theory aims to _________ human behavior

Accepted Answer

A)   explain
B)   predict
C)   change
D)   criticize

Question 5

All points lying on the production possibilities curve are _________ .

Accepted Answer

The answer of All points lying on the production possibilities...

Question 6

Economic theory asserts that the world is better off when people make decisions so as to benefit others rather than to benefit themselves.

Accepted Answer

A) True 
 B)False

Question 7

The assumption of rational self-interest implies that people will choose to enrich themselves even if doing so violates the rights or property of others.

Accepted Answer

A) True 
 B)False

Question 8

The production possibilities curve represents

Accepted Answer

A)   possible combinations of maximum levels of output of two goods.
B)   the trade-offs between self-interest and altruism.
C)   the trade-offs between efficiency and equity.
D)   the trade-offs between technology and ecology.

Question 9

When does the production possibilities curve shift outward?

Accepted Answer

When econo...

Question 10

The slope of the production possibilities curves tells you

Accepted Answer

A)   how much of one good must be sacrificed in order to produce more of the other.
B)   the size of the labor force.
C)   the quantity of all inputs available for productive uses.
D)   the length of time required to switch between two different economic activities.

Question 11

Economic growth results from

Accepted Answer

A)   lower prices.
B)   higher unemployment.
C)   an increase in productive resources.
D)   an increase in government involvement in economic decision-making.

Question 12

The downward slope of the _________ _________ _________ reflects the fact that trade-offs must be made in choosing which goods will be produced.

Accepted Answer

production...

Question 13

Economics has traditionally been referred to as the _________ science.

Accepted Answer

A)   dismal
B)   poorest
C)   most creative
D)   first

Question 14

Figure 1.3
-What change would occur if the economy moves from point C to point B in Figure 1.3?

Accepted Answer

A)   Previously unemployed resources would be used to produce housewares.
B)   Previously unemployed resources would be used to produce consumer electronics.
C)   Resources previously devoted to producing consumer electronics would be used to produce housewares.
D)   Resources previously devoted to producing housewares would be used to produce consumer electronics.

Question 15

A rightward shift of the production possibilities curve reflects _________ _________ .

Accepted Answer

The answer of A rightward shift of the production possibilities...

Question 16

In the graph of a production possibilities curve, both the horizontal and vertical axes measure the annual quantities of goods produced.

Accepted Answer

A) True 
 B)False

Question 17

The assumption of rational self-interest in economics means that economists try to predict human behavior based on the idea that people will not consistently make choice that leave themselves worse off.

Accepted Answer

A) True 
 B)False

Question 18

All points on the production possibilities curve are efficient.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the following statements is TRUE?

Accepted Answer

A)   All points on the production possibilities curve represent an equal distribution of income.
B)   The slope of the production possibilities curve reveals the current rate of economic growth.
C)   When the economy is operating efficiently, it will be at a point inside its production possibilities curve.
D)   Points outside the production possibilities curve are unattainable given current technology and resources.

Question 20

Figure 1.1
-If the farmer is producing 9,000 bushels of soybeans at point B in Figure 1, then the maximum quantity of corn he can produce is

Accepted Answer

A)   0 bushels.
B)   7,000 bushels.
C)   9,000 bushels.
D)   10,000 bushels.

Exam 1: Economics and the World of Scarcity

Which one of the following statements is TRUE?

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Figure 1.1 -If the farmer is producing 9,000 bushels of soybeans at point B in Figure 1, then the maximum quantity of corn he can produce is

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The fact that resources are _________ means we cannot satisfy all of our unlimited wants.

Correct AnswerverifiedShow Answer

The assumption of rational self-interest in economics means that economists try to predict human behavior based on the idea that people will not consistently make choice that leave themselves worse off.

Correct AnswerverifiedShow Answer

Economics has traditionally been referred to as the _________ science.

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Figure 1.3 -If an economy is producing at point A in Figure 1.3,

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Figure 1.3 -What change would occur if the economy moves from point C to point B in Figure 1.3?

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All points lying on the production possibilities curve are _________ .

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Economic theory asserts that the world is better off when people make decisions so as to benefit others rather than to benefit themselves.

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The slope of the production possibilities curves tells you

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A rightward shift of the production possibilities curve reflects _________ _________ .

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Economic growth results from

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The assumption of rational self-interest implies that people will choose to enrich themselves even if doing so violates the rights or property of others.

Correct AnswerverifiedShow Answer

The production possibilities curve represents

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The downward slope of the _________ _________ _________ reflects the fact that trade-offs must be made in choosing which goods will be produced.

Correct Answerverifiedproduction...View AnswerShow Answer

Economic theory aims to _________ human behavior

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All points on the production possibilities curve are efficient.

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When does the production possibilities curve shift outward?

Correct AnswerverifiedWhen econo...View AnswerShow Answer

In the graph of a production possibilities curve, both the horizontal and vertical axes measure the annual quantities of goods produced.

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Technology can cause the production possibilities curve to shift outward because

Correct AnswerverifiedShow Answer

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A rightward shift of the production possibilities curve reflects _ _ .

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The downward slope of the _____ _ _____ reflects the fact that trade-offs must be made in choosing which goods will be produced.

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production...
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When econo...
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