Question 1

If we are considering the relationship between two variables and release the "other things equal" assumption,we would expect:

Accepted Answer

A)   the relationship to change from direct to inverse.
B)   the line representing that relationship on a graph to change locations.
C)   the data points representing the relationship to become more randomly scattered.
D)   the relationship to change from inverse to direct.E) A) and B)
F) A) and D)

Question 2

-Refer to the above diagram.Which line(s) show(s) a positive relationship between x and y?

Accepted Answer

A)   A only
B)   both A and D
C)   A,B,and D
D)   both C and EE) None of the above
F) All of the above

Question 3

Refer to the table below.According to the production possibilities schedule for the economy which produces two products,a combination of four tanks and 650 autos is: Production Possibilities

Accepted Answer

A)   attainable,but involves an efficient use of society's resources.
B)   attainable,but would not be in the best interests of a strong national defence.
C)   not attainable because it is not listed in the schedule.
D)   not attainable because society does not have sufficient resources to produce this combination.E) A) and D)
F) B) and C)

Question 4

The marginal benefit curve is:

Accepted Answer

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

Question 5

The output of blu ray players should be:

Accepted Answer

A)   reduced if marginal benefits exceed marginal costs.
B)   reduced if marginal costs exceed marginal benefits.
C)   increased if marginal costs exceed marginal benefits.
D)   reduced to zero if their unit costs exceed the unit costs of alternative products.E) A) and B)
F) A) and D)

Question 6

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase.This is a reflection of:

Accepted Answer

A)   resource scarcity and the necessity of choice.
B)   purposeful behaviour.
C)   marginal costs which exceed marginal benefits.
D)   the tradeoff problem which exists between competing goals.E) A) and B)
F) A) and C)

Question 7

-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:

Accepted Answer

A)   computers,but not bicycles,is subject to increasing opportunity costs.
B)   bicycles,but not computers,is subject to increasing opportunity costs.
C)   both bicycles and computers is subject to constant opportunity costs.
D)   both bicycles and computers is subject to increasing opportunity costs.E) A) and D)
F) All of the above

Question 8

Refer to the graph.The movement from line A to line A' represents a change in:

Accepted Answer

A)   the slope only.
B)   the intercept only.
C)   both the slope and the intercept.
D)   neither the slope nor the intercept.E) B) and C)
F) A) and C)

Question 9

-Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Accepted Answer

A)   both 2 and 4.
B)   3 only.
C)   2 only.
D)   1E) All of the above
F) B) and D)

Question 10

The study of economics is primarily concerned with:

Accepted Answer

A)   keeping private businesses from losing money.
B)   demonstrating that capitalistic economies are superior to socialistic economies.
C)   choices which are made in seeking to use scarce resources efficiently.
D)   determining the most equitable distribution of society's output.E) B) and C)
F) B) and D)

Question 11

-Refer to the above diagram.The slope of curve ZZ at point B is:

Accepted Answer

A)   infinity.
B)   zero.
C)   one.
D)   none of the above.E) A) and C)
F) B) and C)

Question 12

If economic theories are solidly based on relevant facts,then there can be no question as to the character of appropriate economic policy.

Accepted Answer

A) True 
 B)False

Question 13

A point inside a production possibilities curve may indicate:

Accepted Answer

A)   unemployment.
B)   the inefficient use of resources.
C)   failure to use the best available technology.
D)   all of the above.E) B) and C)
F) C) and D)

Question 14

The fundamental problem of economics is:

Accepted Answer

A)   to establish a democratic political framework for the provision of social goods and services.
B)   the establishment of prices which accurately reflect the relative scarcities of products and resources.
C)   the scarcity of productive resources relative to material wants.
D)   to achieve a more equitable distribution of money income in order to mitigate poverty.E) C) and D)
F) A) and B)

Question 15

Some agricultural sub-Saharan nations of Africa have over-farmed and overgrazed their land to the extent that significant portions of it have turned into desert.This suggests that:

Accepted Answer

A)   the concavity of the production possibilities curves of such nations has increased.
B)   the production possibilities curves of such nations have shifted inward.
C)   the production possibilities curves of such nations have shifted outward.
D)   these nations are operating at some point outside of their production possibilities curves.E) B) and D)
F) A) and C)

Question 16

-Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more units of bicycles:

Accepted Answer

A)   cannot be realized because resources are fully employed.
B)   will cost 1 unit of computers.
C)   will cost 2 units of computers.
D)   will cause some resources to become unemployed.E) B) and C)
F) A) and B)

Question 17

If country A has been investing a larger proportion of its domestic output than Canada has,then,we would expect:

Accepted Answer

A)   a higher rate of growth of domestic output in country A than in Canada.
B)   greater rightward shifts in country A's production possibilities curve as compared to Canada.
C)   that in the long run living standards would rise more rapidly in country A than in Canada.
D)   all of the above to happen.E) A) and C)
F) C) and D)

Exam 1: Limits, Alternatives, and Choices

A point inside a production possibilities curve may indicate:

Correct Answer
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The study of economics is primarily concerned with:

Correct Answer
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Refer to the table below.According to the production possibilities schedule for the economy which produces two products,a combination of four tanks and 650 autos is: Production Possibilities

Correct Answer
verified

-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:

Correct Answer
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-Refer to the above diagram.Which line(s) show(s) a positive relationship between x and y?

Correct Answer
verified

The fundamental problem of economics is:

Correct Answer
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If economic theories are solidly based on relevant facts,then there can be no question as to the character of appropriate economic policy.

Correct Answer
verified

Refer to the graph.The movement from line A to line A' represents a change in:

Correct Answer
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-Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Correct Answer
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The marginal benefit curve is:

Correct Answer
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If country A has been investing a larger proportion of its domestic output than Canada has,then,we would expect:

Correct Answer
verified

-Refer to the above diagram.The slope of curve ZZ at point B is:

Correct Answer
verified

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase.This is a reflection of:

Correct Answer
verified

Some agricultural sub-Saharan nations of Africa have over-farmed and overgrazed their land to the extent that significant portions of it have turned into desert.This suggests that:

Correct Answer
verified

If we are considering the relationship between two variables and release the "other things equal" assumption,we would expect:

Correct Answer
verified

-Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more units of bicycles:

Correct Answer
verified

The output of blu ray players should be:

Correct Answer
verified

Exam 1: Limits, Alternatives, and Choices

A point inside a production possibilities curve may indicate:

Correct AnswerverifiedShow Answer

The study of economics is primarily concerned with:

Correct AnswerverifiedShow Answer

Refer to the table below.According to the production possibilities schedule for the economy which produces two products,a combination of four tanks and 650 autos is: Production Possibilities

Correct AnswerverifiedShow Answer

-Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:

Correct AnswerverifiedShow Answer

-Refer to the above diagram.Which line(s) show(s) a positive relationship between x and y?

Correct AnswerverifiedShow Answer

The fundamental problem of economics is:

Correct AnswerverifiedShow Answer

If economic theories are solidly based on relevant facts,then there can be no question as to the character of appropriate economic policy.

Correct AnswerverifiedShow Answer

Refer to the graph.The movement from line A to line A' represents a change in:

Correct AnswerverifiedShow Answer

-Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Correct AnswerverifiedShow Answer

The marginal benefit curve is:

Correct AnswerverifiedShow Answer

If country A has been investing a larger proportion of its domestic output than Canada has,then,we would expect:

Correct AnswerverifiedShow Answer

-Refer to the above diagram.The slope of curve ZZ at point B is:

Correct AnswerverifiedShow Answer

Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase.This is a reflection of:

Correct AnswerverifiedShow Answer

Some agricultural sub-Saharan nations of Africa have over-farmed and overgrazed their land to the extent that significant portions of it have turned into desert.This suggests that:

Correct AnswerverifiedShow Answer

If we are considering the relationship between two variables and release the "other things equal" assumption,we would expect:

Correct AnswerverifiedShow Answer

-Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more units of bicycles:

Correct AnswerverifiedShow Answer

The output of blu ray players should be:

Correct AnswerverifiedShow Answer

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