ECON TEST QUESTIONS AND ANSWERS
An economy that contains both perfect and imperfect competition and both regulated
and nonregulated industries is known as - Answers - mixed economy
An economys production possibilities curve could shift outward as a result of an -
Answers - increased level of technology
which one of the following is a charecteristic of capitalism but not of communism? -
Answers - private property
Full employment describes the condition in which - Answers - 95 to 96 percent of the
civilian labor force is employed
When different regions of a country produce different goods - Answers - the country
becomes better off if the regions are pursuing their comparative advantage
Which of the following is true of scarcity - Answers - it is a basic problem of economics
that affects all nations
Economic growth can be illustrated by: - Answers - an outward shift of the production
possibilities curve
Figure 2-2 shows the production possibilities curve of an economy in the production of
consumption goods and capital goods. Currently, Point ____ is impossible to achieve -
Answers - G
Generally, in economics we study how people - Answers - make choices when
resources are scarce
An example of rational behavior in economics is - Answers - all of these
in a market economy, the goods produced go to those - Answers - who have sufficient
income and are willing to pay the price asked for those goods
Suppose the government decided to impose a tac on each child born. Then, it is likely
that - Answers - fewer children would be born
When an economic unit limits the scope of its productive efforts instead of trying to
produce everything it needs, it is engaging in - Answers - specialization
A need to make choices exist because of - Answers - both scarcity of resources and
unlimited human needs and wants
a good economic theory - Answers - explains economic behavior and predicts well
, In a cooperative form of business enterprise, a shareholder is entitled to - Answers -
one vote
a production possibilities curve is negatively sloped because of - Answers - the price of
a good falls as you move down along the curve
profits can be thought of as - Answers - all of these
Which of the following is an example of marginal analysis - Answers - A fast food
restaurant that only serves lunch and dinner trying to determine if it should open for
breakfast
If a nation is producing a combination of goods inside its production possibilities curve, it
is underutilizing its resources - Answers - true
consumer sovereignty means that consumers vote with their dollars in a market
economy, which helps determine what is produced - Answers - true
In a market economy, prices serve as a rationing mechanism - Answers - true
an economic growth rate of 3 percent would be considered unhealthy for the US
economy - Answers - false
In exercising the principle of comparative advantage, a nation with no absolute
advantage should produce a commodity in which it faces a lower opportunity cost than
its trading partners face - Answers - true
Ceteris paribus is a latin expression that means " holding everything else constant" -
Answers - true
Payment for the use of capital is made in the form of rent - Answers - false
the US economy is a mixture of perfect and imperfect competition and regulated and
non regulated industries - Answers - true
The oppurtunity cost of attending college is likely high for a high school graduate who
leaves a job grilling hamburgers than it is for someone who leaves a job working as a
computer network adminstrator - Answers - False
Laissez-faire is a policy of government nonintervention in the economy - Answers -
true
a decrease in the unemployment rate will shift an economys production possibilities
curve outward - Answers - false
An economy that contains both perfect and imperfect competition and both regulated
and nonregulated industries is known as - Answers - mixed economy
An economys production possibilities curve could shift outward as a result of an -
Answers - increased level of technology
which one of the following is a charecteristic of capitalism but not of communism? -
Answers - private property
Full employment describes the condition in which - Answers - 95 to 96 percent of the
civilian labor force is employed
When different regions of a country produce different goods - Answers - the country
becomes better off if the regions are pursuing their comparative advantage
Which of the following is true of scarcity - Answers - it is a basic problem of economics
that affects all nations
Economic growth can be illustrated by: - Answers - an outward shift of the production
possibilities curve
Figure 2-2 shows the production possibilities curve of an economy in the production of
consumption goods and capital goods. Currently, Point ____ is impossible to achieve -
Answers - G
Generally, in economics we study how people - Answers - make choices when
resources are scarce
An example of rational behavior in economics is - Answers - all of these
in a market economy, the goods produced go to those - Answers - who have sufficient
income and are willing to pay the price asked for those goods
Suppose the government decided to impose a tac on each child born. Then, it is likely
that - Answers - fewer children would be born
When an economic unit limits the scope of its productive efforts instead of trying to
produce everything it needs, it is engaging in - Answers - specialization
A need to make choices exist because of - Answers - both scarcity of resources and
unlimited human needs and wants
a good economic theory - Answers - explains economic behavior and predicts well
, In a cooperative form of business enterprise, a shareholder is entitled to - Answers -
one vote
a production possibilities curve is negatively sloped because of - Answers - the price of
a good falls as you move down along the curve
profits can be thought of as - Answers - all of these
Which of the following is an example of marginal analysis - Answers - A fast food
restaurant that only serves lunch and dinner trying to determine if it should open for
breakfast
If a nation is producing a combination of goods inside its production possibilities curve, it
is underutilizing its resources - Answers - true
consumer sovereignty means that consumers vote with their dollars in a market
economy, which helps determine what is produced - Answers - true
In a market economy, prices serve as a rationing mechanism - Answers - true
an economic growth rate of 3 percent would be considered unhealthy for the US
economy - Answers - false
In exercising the principle of comparative advantage, a nation with no absolute
advantage should produce a commodity in which it faces a lower opportunity cost than
its trading partners face - Answers - true
Ceteris paribus is a latin expression that means " holding everything else constant" -
Answers - true
Payment for the use of capital is made in the form of rent - Answers - false
the US economy is a mixture of perfect and imperfect competition and regulated and
non regulated industries - Answers - true
The oppurtunity cost of attending college is likely high for a high school graduate who
leaves a job grilling hamburgers than it is for someone who leaves a job working as a
computer network adminstrator - Answers - False
Laissez-faire is a policy of government nonintervention in the economy - Answers -
true
a decrease in the unemployment rate will shift an economys production possibilities
curve outward - Answers - false
