Economics 2301 LATEST ACTUAL EXAM WITH VERIFIED
QUESTIONS & CORRECT ANSWERS
Question 1.
As a consequence of the problem of scarcity,
ANSWER
individuals have to make choices from among alternatives.
Question 2.
If we are considering the relationship between two variables and release one of the other-things-equal
assumptions, we would expect
ANSWER
the line representing that relationship on a graph to shift.
Question 3.
Refer to the graph. Using Qd for quantity demanded and P for price, which of the following equations
correctly states the demand for this product?
ANSWER
P = 10 − 0.2Qd
,Question 4.
A nation can produce two products: steel and wheat. The table below is the nation's production
possibilities schedule.
A change from combination C to B means that
ANSWER
1 unit of steel is given up to get 15 more units of wheat.
Question 5.
What does "there is no such thing as a free lunch" mean in economics?
ANSWER
Scarce resources are used up to provide "freebies" and giveaways.
Question 6.
One basic difference between "labor" and "entrepreneur" is that
ANSWER
labor is hired by a firm, whereas the entrepreneur owns the firm.
Question 7.
Refer to the provided graph. Which of the following statements about combination G is true?
ANSWER
The nation may not be able to produce combination G, but it can consume that combination if
it specializes and trades with other nations.
,Question 8.
A nation can produce two products: steel and wheat. The table below is the nation's production
possibilities schedule.
Which of the following output-combinations is unattainable?
ANSWER
4 steel and 55 wheat
Question 9.
Suppose there are two economies, Alpha and Beta, which have the same production possibilities
curves. If Beta devotes more resources to produce capital goods than consumer goods as compared to
Alpha, then in the future
ANSWER
Beta will experience greater economic growth than Alpha.
Question 10.
Which of the following is a normative economic statement?
ANSWER
The government needs to revamp the Social Security program to make it sustainable.
, Question 11.
A nation can produce two products: tanks and autos. The table below is the nation's production
possibilities schedule.
If the nation produces more and more tanks, the opportunity cost of each additional tank in terms of
autos
ANSWER
increases.
Question 12.
In a command system,
ANSWER
a government-appointed planning board makes production and allocation decisions.
Question 13.
Property rights are important because they
ANSWER
encourage cooperation by improving the chances of mutually agreeable transactions.
Question 14.
In the resource market,
ANSWER
households sell resources to businesses.
QUESTIONS & CORRECT ANSWERS
Question 1.
As a consequence of the problem of scarcity,
ANSWER
individuals have to make choices from among alternatives.
Question 2.
If we are considering the relationship between two variables and release one of the other-things-equal
assumptions, we would expect
ANSWER
the line representing that relationship on a graph to shift.
Question 3.
Refer to the graph. Using Qd for quantity demanded and P for price, which of the following equations
correctly states the demand for this product?
ANSWER
P = 10 − 0.2Qd
,Question 4.
A nation can produce two products: steel and wheat. The table below is the nation's production
possibilities schedule.
A change from combination C to B means that
ANSWER
1 unit of steel is given up to get 15 more units of wheat.
Question 5.
What does "there is no such thing as a free lunch" mean in economics?
ANSWER
Scarce resources are used up to provide "freebies" and giveaways.
Question 6.
One basic difference between "labor" and "entrepreneur" is that
ANSWER
labor is hired by a firm, whereas the entrepreneur owns the firm.
Question 7.
Refer to the provided graph. Which of the following statements about combination G is true?
ANSWER
The nation may not be able to produce combination G, but it can consume that combination if
it specializes and trades with other nations.
,Question 8.
A nation can produce two products: steel and wheat. The table below is the nation's production
possibilities schedule.
Which of the following output-combinations is unattainable?
ANSWER
4 steel and 55 wheat
Question 9.
Suppose there are two economies, Alpha and Beta, which have the same production possibilities
curves. If Beta devotes more resources to produce capital goods than consumer goods as compared to
Alpha, then in the future
ANSWER
Beta will experience greater economic growth than Alpha.
Question 10.
Which of the following is a normative economic statement?
ANSWER
The government needs to revamp the Social Security program to make it sustainable.
, Question 11.
A nation can produce two products: tanks and autos. The table below is the nation's production
possibilities schedule.
If the nation produces more and more tanks, the opportunity cost of each additional tank in terms of
autos
ANSWER
increases.
Question 12.
In a command system,
ANSWER
a government-appointed planning board makes production and allocation decisions.
Question 13.
Property rights are important because they
ANSWER
encourage cooperation by improving the chances of mutually agreeable transactions.
Question 14.
In the resource market,
ANSWER
households sell resources to businesses.
