ETS Exam Study Sets: Economics Questions And All Answers Solved.

ETS Exam Study Sets: Economics
Questions And All Answers Solved.
The social science concerned with the use of scarce resources like land and labor used to fulfill unlimited
human wants.

A) Accounting

B) Marketing

C) Finance

D) Economics - Answer C) Economics



Inputs used to produce the goods and services that humans want

A) Resources

B) Capital

C) Money

D) Labor - Answer A) Resources



Tangible item that is used to satisfy wants:

A) Service

B) Good

C) Money

D) Goal - Answer A) Good



Intangible activity used to satisfy wants - Answer service



Human effort, both physical and mental is also known as

A) Strength

B) Work

C) Labor

D) Movement - Answer C) Labor

, Explain Positive vs. Normative Economics - Answer Positive economics is what something is and can be
measured



The cost incurred by choosing one option over the alternative

A) Fixed Cost

B) Missing Cost

C) Choosing Cost

D) Opportunity Cost - Answer D) Opportunity Cost



Explain the Production possibilities frontier - Answer A graph that shows the trade off between two
goods. Producing on the curve means resources are fully employed.



true or false: Producing on the Curve of the PPF means resources are not fully employed - Answer False



Which part of the PPF means resources are impossible to produce at that level?

A) Inside the curve

B) Outside the Curve

C) On the Curve

D) None of the above - Answer C) on the curve



True or false: The shape of the production possibilities frontier reflects the law of increasing opportunity
cost - Answer true



True or false: As more of one good is produced, larger and larger quantities of the alternative must be
sacrificed - Answer true



If move resources become available, the PPF shifts:

A) Inward

B) outward