Question 1

-Refer to the above diagram.The variables X and Y are:

Accepted Answer

A)   inversely related.
B)   directly related.
C)   unrelated.
D)   negatively related.E) All of the above
F) C) and D)

Question 2

As used in economics,the notion of scarce resources means that:

Accepted Answer

A)   mineral deposits are only available in finite amounts.
B)   resources are not so plentiful that all individuals' material wants can be fulfilled.
C)   some resources are free while others have price tags on them.
D)   the quantities available of some resources exceed the demand for them.E) B) and C)
F) C) and D)

Question 3

-Refer to the above graph.Which of the following schedules correctly reflects "demand"?

Accepted Answer

A)   schedule (
A)  
B)   schedule (
B)  
C)   schedule (
C)  
D)   schedule (
D)  E) None of the above
F) A) and B)

Question 4

One of the basic economic defences of economic growth rests on the conclusion that:

Accepted Answer

A)   growth makes workers less obsolete and more secure in employment.
B)   growth reduces the cost of "common property" resources to society.
C)   growth makes the gap between unlimited wants and scarce resources less acute.
D)   a growth-oriented society has a relatively equitable income distribution.E) A) and B)
F) None of the above

Question 5

A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the:

Accepted Answer

A)   price of one product has decreased in relation to the other.
B)   prices of both products have decreased in the same proportion.
C)   marginal utilities derived from both products have decreased.
D)   consumer's money income has increased but the prices of both products have increased proportionately more.E) B) and C)
F) A) and D)

Question 6

-Refer to the above diagram.Which line(s) show(s) a positive vertical intercept?

Accepted Answer

A)   A and D only
B)   B and C only
C)   A,D,and E
D)   A,D,and BE) A) and C)
F) A) and D)

Question 7

The marginal cost curve is:

Accepted Answer

A)   upsloping because of increasing marginal opportunity costs.
B)   upsloping because successive units of a specific product yield less and less extra utility.
C)   downsloping because of increasing marginal opportunity costs.
D)   downsloping because successive units of a specific product yield less and less extra utility.E) B) and D)
F) C) and D)

Question 8

Refer to the diagram below.The concept of opportunity cost is best represented by the: 1 to PP2. B)  move from B on PP1 to E on PP2. C)  move from B on PP1 to C on PP1. D)  move from D inside PP1 to B on PP1." class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)   shift of the production possibilities curve from PP1 to PP2.
B)   move from B on PP1 to E on PP2.
C)   move from B on PP1 to C on PP1.
D)   move from D inside PP1 to B on PP1.E) A) and B)
F) None of the above

Question 9

-Refer to the above diagram.The combination of computers and bicycles shown by point G is:

Accepted Answer

A)   attainable,but too costly.
B)   unattainable,given currently available resources and technology.
C)   attainable,but involves unemployment.
D)   irrelevant because it is inconsistent with consumer preferences.E) B) and C)
F) All of the above

Question 10

Which of the following statements pertains to macroeconomics?

Accepted Answer

A)   Because the minimum wage was raised,Mrs.Beepath decided to enter the labour force.
B)   A decline in the price of soybeans caused farmer Wanek to plant more land in wheat.
C)   The national productivity rate grew by 1.4 percent last year.
D)   The Pumpkin Center Chartered Bank increased its interest rate on consumer loans by 1 percent.E) A) and B)
F) B) and D)

Question 11

1. B)  is Q2. C)  is Q3. D)  is greater than Q3." class="answers-bank-image d-inline" rel="preload" >
-Refer to the above diagram for athletic shoes.The optimal output of shoes:

Accepted Answer

A)   is Q1.
B)   is Q2.
C)   is Q3.
D)   is greater than Q3.E) A) and D)
F) B) and C)

Question 12

Assume that if the interest rate that businesses must pay to borrow funds were 20 percent,it would be unprofitable for businesses to invest in new machinery and equipment so that investment would be zero.But if the interest rate were 16 percent,businesses would find it profitable to invest $10 billion.If the interest rate were 12 percent,$20 billion would be invested.Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate.
-Refer to the above information.Using i and I to indicate the interest rate and investment (in billions of dollars) respectively,which of the following is the correct tabular presentation of the described relationship?

Accepted Answer

A)   column (
A)  
B)   column (
B)  
C)   column (
C)  
D)   column (
D)  E) None of the above
F) A) and B)

Question 13

The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

Accepted Answer

A) True 
 B)False  True

Question 14

Positive statements are expressions of value judgments.

Accepted Answer

A) True 
 B)False

Question 15

The typical production possibilities curve is:

Accepted Answer

A)   an upward sloping line which is concave to the origin.
B)   a downward sloping line which is convex to the origin.
C)   a downward sloping line which is concave to the origin.
D)   a straight upward sloping line.E) A) and B)
F) A) and C)

Question 16

The following production possibilities table represents an economy which is producing two products,tanks and autos.Refer to the table,in moving from possibility C to D,the cost of a tank in terms of autos is:

Accepted Answer

A)   50
B)   100
C)   200
D)   300E) All of the above
F) B) and C) C

Question 17

When a provincial government chooses to build more roads,the required resources are no longer available for spending on public education.This dilemma illustrates the concept of:

Accepted Answer

A)   marginal analysis.
B)   full employment.
C)   full production.
D)   opportunity cost.E) A) and B)
F) A) and C)

Question 18

If the output of product X is such that marginal benefit equals marginal cost:

Accepted Answer

A)   the correct amount of resources is being allocated to X's production.
B)   the value of producing X and the value of producing alternative products with available resources is the same.
C)   there can be no net gain to society by allocating either more or less resources to producing X.
D)   all of the above are true.E) None of the above
F) B) and C)

Question 19

The institution that coordinates actions of consumers and producers to establish prices for goods and services is known as:

Accepted Answer

A)   a market.
B)   a monopoly.
C)   a production possibilities curve.
D)   consumer sovereignty.E) A) and B)
F) B) and D) A

Question 20

In moving along a given budget line:

Accepted Answer

A)   the prices of both products and money income are assumed to be constant.
B)   each point on the line will be equally satisfactory to consumers.
C)   money income varies,but the prices of the two goods are constant.
D)   the prices of both products are assumed to vary,but money income is constant.E) All of the above
F) A) and B)

Exam 1: Limits, Alternatives, and Choices

-Refer to the above diagram.The variables X and Y are:

Correct Answer
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As used in economics,the notion of scarce resources means that:

Correct Answer
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-Refer to the above graph.Which of the following schedules correctly reflects "demand"?

Correct Answer
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One of the basic economic defences of economic growth rests on the conclusion that:

Correct Answer
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A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the:

Correct Answer
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-Refer to the above diagram.Which line(s) show(s) a positive vertical intercept?

Correct Answer
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The marginal cost curve is:

Correct Answer
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Refer to the diagram below.The concept of opportunity cost is best represented by the:

Correct Answer
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-Refer to the above diagram.The combination of computers and bicycles shown by point G is:

Correct Answer
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Which of the following statements pertains to macroeconomics?

Correct Answer
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-Refer to the above diagram for athletic shoes.The optimal output of shoes:

Correct Answer
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Correct Answer
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The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

Correct Answer
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True

Positive statements are expressions of value judgments.

Correct Answer
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The typical production possibilities curve is:

Correct Answer
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The following production possibilities table represents an economy which is producing two products,tanks and autos.Refer to the table,in moving from possibility C to D,the cost of a tank in terms of autos is:

Correct Answer
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C

When a provincial government chooses to build more roads,the required resources are no longer available for spending on public education.This dilemma illustrates the concept of:

Correct Answer
verified

If the output of product X is such that marginal benefit equals marginal cost:

Correct Answer
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The institution that coordinates actions of consumers and producers to establish prices for goods and services is known as:

Correct Answer
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A

In moving along a given budget line:

Correct Answer
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Exam 1: Limits, Alternatives, and Choices

-Refer to the above diagram.The variables X and Y are:

Correct AnswerverifiedShow Answer

As used in economics,the notion of scarce resources means that:

Correct AnswerverifiedShow Answer

-Refer to the above graph.Which of the following schedules correctly reflects "demand"?

Correct AnswerverifiedShow Answer

One of the basic economic defences of economic growth rests on the conclusion that:

Correct AnswerverifiedShow Answer

A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the:

Correct AnswerverifiedShow Answer

-Refer to the above diagram.Which line(s) show(s) a positive vertical intercept?

Correct AnswerverifiedShow Answer

The marginal cost curve is:

Correct AnswerverifiedShow Answer

Refer to the diagram below.The concept of opportunity cost is best represented by the:

Correct AnswerverifiedShow Answer

-Refer to the above diagram.The combination of computers and bicycles shown by point G is:

Correct AnswerverifiedShow Answer

Which of the following statements pertains to macroeconomics?

Correct AnswerverifiedShow Answer

-Refer to the above diagram for athletic shoes.The optimal output of shoes:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

Correct AnswerverifiedTrue

Positive statements are expressions of value judgments.

Correct AnswerverifiedShow Answer

The typical production possibilities curve is:

Correct AnswerverifiedShow Answer

The following production possibilities table represents an economy which is producing two products,tanks and autos.Refer to the table,in moving from possibility C to D,the cost of a tank in terms of autos is:

Correct AnswerverifiedC

When a provincial government chooses to build more roads,the required resources are no longer available for spending on public education.This dilemma illustrates the concept of:

Correct AnswerverifiedShow Answer

If the output of product X is such that marginal benefit equals marginal cost:

Correct AnswerverifiedShow Answer

The institution that coordinates actions of consumers and producers to establish prices for goods and services is known as:

Correct AnswerverifiedA

In moving along a given budget line:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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True

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C

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A

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