Question 1

When an economy is operating efficiently, which is TRUE?

Accepted Answer

A)   All resources are fully employed.
B)   It would be possible to increase the output of 1 good without decreasing the output of the other.
C)   Resources are not fully employed or current technology is not being fully utilized.
D)   This economy is operating to the right of its production possibilities curve (PP
C)  .E) B) and D)
F) A) and B)

Question 2

Economic goods are items that

Accepted Answer

A)   are used only by economists.
B)   provide satisfaction to users.
C)   cannot be sold at any price in the market.
D)   individuals would pay to get rid off.E) B) and C)
F) C) and D)

Question 3

Which of the following is the best example of scarcity?

Accepted Answer

A)   The Talking Teddy is a surprise holiday hit, resulting in long lines of consumers trying to purchase the limited number of available Teddies.
B)   Fred only gets a 10-hour lunch break and each day must decide between working out at the gym or socializing with his colleagues.
C)   The local market's buy-one-get-one-free sale on strawberries results in more people wanting the berries than producers are able and willing to supply.
D)   Pokemon Go is the most popular cell-phone app that can be downloaded free from an app store.E) A) and B)
F) A) and C)

Question 4

The opportunity cost of attending college might best be described as

Accepted Answer

A)   the money that must be paid in order to attend college.
B)   the lowest-valued alternative use of the student's time.
C)   the highest-valued alternative use of the student's time.
D)   the value that the student attaches to not working.E) A) and B)
F) A) and C)

Question 5

Efficiency is achieved

Accepted Answer

A)   when output is being produced at a point inside a production possibilities curve.
B)   when producers are getting the maximum possible output from the available resources.
C)   when consumers are able to buy everything that they want.
D)   when prices of all goods and services go to zero.E) B) and C)
F) A) and D)

Question 6

Which of the following statements about scarcity is TRUE?

Accepted Answer

A)   Scarcity is no longer a problem for industrialized countries.
B)   Scarcity exists in all societies.
C)   Scarcity is a problem only for greedy people.
D)   Scarcity is a problem only in countries that do not use markets to organize economic activity.E) C) and D)
F) B) and C)

Question 7

Which of the following statements is FALSE about opportunity cost?

Accepted Answer

A)   Cost is always foregone opportunity.
B)   Opportunity cost is the next best alternative.
C)   When a person buys two items, the concept of opportunity cost applies even though she can afford to buy both items.
D)   Opportunity cost exists only for goods with monetary values.E) A) and B)
F) A) and C)

Question 8

Trading off capital goods for increasing amounts of consumer goods today will most likely result in

Accepted Answer

A)   increased long-term growth.
B)   decreased long-term growth.
C)   decreased prices in consumer goods.
D)   increases in the quantity of consumer goods.E) A) and C)
F) B) and C)

Question 9

Natural gas found in Oklahoma is an example of

Accepted Answer

A)   physical capital.
B)   land.
C)   human capital.
D)   labor.E) B) and C)
F) None of the above

Question 10

If a CEO can type faster than her secretary, then

Accepted Answer

A)   the CEO has a comparative advantage in typing.
B)   the CEO has neither a comparative advantage in typing, nor in management.
C)   the CEO should still continue performing CEO duties since the CEO has a comparative advantage in management, and the secretary should continue typing.
D)   the CEO should still continue performing CEO duties as well as typing since he has a comparative advantage in both management, and typing.E) None of the above
F) A) and B)

Question 11

The accumulated training and education that you have is

Accepted Answer

A)   physical capital.
B)   entrepreneurship.
C)   economic goods.
D)   human capital.E) B) and C)
F) A) and D)

Exam 2: Scarcity and the World of Trade-Offs

The opportunity cost of attending college might best be described as

Correct Answer
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Which of the following statements is FALSE about opportunity cost?

Correct Answer
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Natural gas found in Oklahoma is an example of

Correct Answer
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When an economy is operating efficiently, which is TRUE?

Correct Answer
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The accumulated training and education that you have is

Correct Answer
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Trading off capital goods for increasing amounts of consumer goods today will most likely result in

Correct Answer
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Which of the following is the best example of scarcity?

Correct Answer
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Which of the following statements about scarcity is TRUE?

Correct Answer
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If a CEO can type faster than her secretary, then

Correct Answer
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Economic goods are items that

Correct Answer
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Efficiency is achieved

Correct Answer
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Exam 2: Scarcity and the World of Trade-Offs

The opportunity cost of attending college might best be described as

Correct AnswerverifiedShow Answer

Which of the following statements is FALSE about opportunity cost?

Correct AnswerverifiedShow Answer

Natural gas found in Oklahoma is an example of

Correct AnswerverifiedShow Answer

When an economy is operating efficiently, which is TRUE?

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The accumulated training and education that you have is

Correct AnswerverifiedShow Answer

Trading off capital goods for increasing amounts of consumer goods today will most likely result in

Correct AnswerverifiedShow Answer

Which of the following is the best example of scarcity?

Correct AnswerverifiedShow Answer

Which of the following statements about scarcity is TRUE?

Correct AnswerverifiedShow Answer

If a CEO can type faster than her secretary, then

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Economic goods are items that

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Efficiency is achieved

Correct AnswerverifiedShow Answer

Correct Answer
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