SURVEY OF ECONOMICS UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE FULL
SOLUTION
●● Capital is best considered as:
a. the natural environment.
b. a factor of production that has been produced.
c. financial assets.
d. money.
Answer: b. a factor of production that has been produced.
●● Which of the following is an example of capital?
a. a gravel truck
b. a savings account
c. a share of General Motors stock
d. a lake
Answer: a. a gravel truck
●● If the economy produces 2 units of consumer goods per period, it
also can produce at most _______ units of capital goods per period.
a. 30
,b. 28
c. 24
d. 18
Answer: c. 24
●● The opportunity cost of producing the fourth unit of consumer goods
is ___ __units of capital goods.
a. 2
b. 4
c. 6
d. 8
Answer: d. 8
●● Points A, B, E, and F:
a. indicate combinations of guns and butter that society can produce
using all of its factors efficiently.
b. show that the opportunity cost of more guns increases, but that of
more butter decreases as more of each good is produced.
c. indicate that society wants butter more than guns.
d. indicate constant costs for guns and increasing costs for butter.
Answer: a. indicate combinations of guns and butter that society can
produce using all of its factors efficiently.
,●● Scarcity in economics means:
a. not having sufficient resources to produce all the goods and services
we want.
b. the wants of people are limited.
c. there must be poor people in rich countries.
d. economists are clearly not doing their jobs.
Answer: a. not having sufficient resources to produce all the goods and
services we want.
●● The fundamental economic questions that every economic system
must answer are:
a. what, how, and for whom.
b. what, why, and for whom.
c. when, why, and for whom.
d. how, when, and how much.
Answer: a. what, how, and for whom.
●● The opportunity cost of something is:
a. greater during periods of rising prices.
b. equal to the money cost.
c. less during periods of falling prices.
d. what is given up to acquire it.
Answer: d. what is given up to acquire it.
, ●● Technology is:
a. knowledge that can be applied to the production of goods and
services.
b. generally unlimited in modern economies.
c. a graphical illustration of the alternative combinations of goods and
services an economy can produce.
d. the resources the economy has available to produce goods and
services.
Answer: a. knowledge that can be applied to the production of goods and
services.
●● A decrease in the price of eggs, all other things unchanged, will
result in a(n):
a. increase in the demand for eggs.
b. increase in the supply of eggs.
c. greater quantity of eggs supplied.
d. greater quantity of eggs demanded.
Answer: d. greater quantity of eggs demanded.
●● If the price of chocolate-covered peanuts is 60 cents, the quantity
demanded by George is ________ bags per month.
a. 10
b. 15
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE FULL
SOLUTION
●● Capital is best considered as:
a. the natural environment.
b. a factor of production that has been produced.
c. financial assets.
d. money.
Answer: b. a factor of production that has been produced.
●● Which of the following is an example of capital?
a. a gravel truck
b. a savings account
c. a share of General Motors stock
d. a lake
Answer: a. a gravel truck
●● If the economy produces 2 units of consumer goods per period, it
also can produce at most _______ units of capital goods per period.
a. 30
,b. 28
c. 24
d. 18
Answer: c. 24
●● The opportunity cost of producing the fourth unit of consumer goods
is ___ __units of capital goods.
a. 2
b. 4
c. 6
d. 8
Answer: d. 8
●● Points A, B, E, and F:
a. indicate combinations of guns and butter that society can produce
using all of its factors efficiently.
b. show that the opportunity cost of more guns increases, but that of
more butter decreases as more of each good is produced.
c. indicate that society wants butter more than guns.
d. indicate constant costs for guns and increasing costs for butter.
Answer: a. indicate combinations of guns and butter that society can
produce using all of its factors efficiently.
,●● Scarcity in economics means:
a. not having sufficient resources to produce all the goods and services
we want.
b. the wants of people are limited.
c. there must be poor people in rich countries.
d. economists are clearly not doing their jobs.
Answer: a. not having sufficient resources to produce all the goods and
services we want.
●● The fundamental economic questions that every economic system
must answer are:
a. what, how, and for whom.
b. what, why, and for whom.
c. when, why, and for whom.
d. how, when, and how much.
Answer: a. what, how, and for whom.
●● The opportunity cost of something is:
a. greater during periods of rising prices.
b. equal to the money cost.
c. less during periods of falling prices.
d. what is given up to acquire it.
Answer: d. what is given up to acquire it.
, ●● Technology is:
a. knowledge that can be applied to the production of goods and
services.
b. generally unlimited in modern economies.
c. a graphical illustration of the alternative combinations of goods and
services an economy can produce.
d. the resources the economy has available to produce goods and
services.
Answer: a. knowledge that can be applied to the production of goods and
services.
●● A decrease in the price of eggs, all other things unchanged, will
result in a(n):
a. increase in the demand for eggs.
b. increase in the supply of eggs.
c. greater quantity of eggs supplied.
d. greater quantity of eggs demanded.
Answer: d. greater quantity of eggs demanded.
●● If the price of chocolate-covered peanuts is 60 cents, the quantity
demanded by George is ________ bags per month.
a. 10
b. 15
