Question 1

An example of forgoing present benefits in order to receive future benefits is

Accepted Answer

A)   production.
B)   saving.
C)   consumption.
D)   growth.E) A) and C)
F) All of the above

Question 2

Refer to the information provided in Figure 2.4 below to answer the questions that follow.  Figure 2.4
-According to Figure 2.4, the optimal point for the economy is

Accepted Answer

A)   A.
B)   B.
C)   F.
D)   indeterminate from the information given.E) C) and D)
F) A) and B)

Question 3

Refer to the information provided in Figure 2.5 below to answer the questions that follow.  Figure 2.5
-Refer to Figure 2.5. The best point for society would be

Accepted Answer

A)   Point C, as at this point there are approximately equal amounts of LCD and plasma televisions being produced.
B)   either Point B or Point C, as the total amount being produced at either of these points is approximately the same.
C)   at any of the labeled points, as all of the points represent an efficient allocation of resources.
D)   indeterminate from this information, as we don't have any information about the society's desires.E) None of the above
F) C) and D)

Question 4

The production possibility frontier is used to illustrate the concept of

Accepted Answer

A)   the laissez-faire economy.
B)   opportunity costs.
C)   equilibrium.
D)   aggregate demand.E) A) and B)
F) A) and C)

Question 5

In a free market system, the amount of output that any one household gets depends on its

Accepted Answer

A)   income.
B)   wealth.
C)   wage and interest income.
D)   income and wealth.E) All of the above
F) None of the above

Question 6

Refer to the information provided in Table 2.1 below to answer the following questions.
Table 2.1
   Krystal  Mark  Writing Poerns 812 Writing TV Comrnercials 24\begin{array} { | c | c | c | } \hline & 	ext { Krystal } & 	ext { Mark } \\hline 	ext { Writing Poerns } & 8 & 12 \\hline 	ext { Writing TV Comrnercials } & 2 & 4 \\hline\end{array} Writing Poerns  Writing TV Comrnercials ​ Krystal 82​ Mark 124​​ 
-Refer to Table 2.1. For Krystal, the opportunity cost of writing one TV commercial is

Accepted Answer

A)   1/4 of a poem.
B)   2 poems.
C)   4 poems.
D)   6 poems. E) B) and C)
F) All of the above

Question 7

An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is

Accepted Answer

A)   efficient, as it is on the production possibility frontier.
B)   inefficient, as the combination of goods and services produced is not what people want.
C)   efficient, as the economy is producing goods at the lowest possible cost.
D)   inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed.E) A) and C)
F) A) and D)

Question 8

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

Accepted Answer

A)   increases.
B)   decreases.
C)   initially increases, then decreases.
D)   initially decreases, then increases.E) A) and D)
F) A) and C)

Question 9

Because resources are scarce, the opportunity cost of investment in capital is

Accepted Answer

A)   zero.
B)   forgone future consumption.
C)   forgone present consumption.
D)   infinite.E) A) and B)
F) B) and C)

Question 10

Which of the following would an economist classify as capital?

Accepted Answer

A)   a $50 bill
B)   a corporate bond
C)   a post office employee
D)   a guitar used by a musicianE) B) and C)
F) All of the above

Exam 2: The Economic Problem: Scarcity and Choice

Because resources are scarce, the opportunity cost of investment in capital is

Correct Answer
verified

Which of the following would an economist classify as capital?

Correct Answer
verified

In a free market system, the amount of output that any one household gets depends on its

Correct Answer
verified

An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is

Correct Answer
verified

Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5 -Refer to Figure 2.5. The best point for society would be

Correct Answer
verified

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4, the optimal point for the economy is

Correct Answer
verified

The production possibility frontier is used to illustrate the concept of

Correct Answer
verified

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

Correct Answer
verified

An example of forgoing present benefits in order to receive future benefits is

Correct Answer
verified

Correct Answer
verified

Exam 2: The Economic Problem: Scarcity and Choice

Because resources are scarce, the opportunity cost of investment in capital is

Correct AnswerverifiedShow Answer

Which of the following would an economist classify as capital?

Correct AnswerverifiedShow Answer

In a free market system, the amount of output that any one household gets depends on its

Correct AnswerverifiedShow Answer

An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is

Correct AnswerverifiedShow Answer

Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5 -Refer to Figure 2.5. The best point for society would be

Correct AnswerverifiedShow Answer

Refer to the information provided in Figure 2.4 below to answer the questions that follow. Figure 2.4 -According to Figure 2.4, the optimal point for the economy is

Correct AnswerverifiedShow Answer

The production possibility frontier is used to illustrate the concept of

Correct AnswerverifiedShow Answer

As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

Correct AnswerverifiedShow Answer

An example of forgoing present benefits in order to receive future benefits is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified