American Military University - ECON 201 / ECON201 Quiz 1

ECON201 Quiz Week 1 Question 1 of 15 The branch of economics that examines the impact of choices on aggregates in the economy is: A. positive economics. B. normative economics. C. macroeconomics. D. microeconomics. Question 2 of 15 When we are forced to make choices we are facing the concept of: A. ceteris paribus. B. free goods. C. scarcity. D. the margin. Question 3 of 15 An economic system is the set of rules that define and . A. resources; prices B. who gets to vote; when elections will be held C. market prices; factors of production D. how an economy's resources are to be owned; how decisions about the resources are to be made Question 4 of 15 In a market capitalist economy: A. factors of production are owned privately and decisions about their use are basically made by individuals. B. factors of production are owned by the government but decisions about their use are made privately. C. private ownership exists but decisions about resource allocation are usually made centrally by the government. D. there is no role for the government. Question 5 of 15 The branch of economics that examines the choices of consumers and firms is: A. positive economics. B. normative economics. C. macroeconomics. D. microeconomics. Question 6 of 15 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. Question 7 of 15 The basic concern of economics is: A. to keep business firms from losing money. B. to prove that capitalism is better than socialism. C. to study the choices people make. D. to use unlimited resources to produce goods and services to satisfy limited wants. Question 8 of 15 Whenever a choice is made: A. the value of all the other choices that could have been made is called opportunity cost. B. normative economics is encountered. C. the problem of "all other things unchanged" results. D. the opportunity cost of that choice is value of the next best alternative Question 9 of 15 Economics is different from other social sciences because it gives special emphasis to the study of ; it is similar to other social sciences because they are all concerned with the study of . A. unlimited resources; economic systems B. human interactions; limited resources C. opportunity costs; choices D. social behavior; scarcity Question 10 of 15 Exhibit: Production Possibilities Curve-Military and Civilian Goods) A movement from point G to H on Curve 1 would: A. require giving up military goods in order to get more civilian goods. B. indicate that, in this economy, there is no scarcity. C. require giving up civilian goods to get more military goods. D. require greater efficiency in the production of civilian goods. Question 11 of 15 Part 2 of 3 - PPC 1 Exhibit: Production Possibilities Curve-Military and Civilian Goods) If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that: A. resources are fully employed. B. economic growth has taken place. C. there is inefficiency and/or unemployment. D. the economy is maximizing its economic objectives. Question 12 of 15 Part 2 of 3 - PPC 1 Exhibit: Production Possibilities Curve-Military and Civilian Goods) If the economy is represented by Curve 1, then: A. point E is unattainable at the present time. B. point G is superior to point H. C. point H is superior to point G. D. factors of production are not being used efficiently. Question 13 of 15 Part 3 of 3 - PPS 1 Exhibit: Production Possibilities Schedule) If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is units of consumer goods per period. A. 0 B. 6 C. 8 D. 14 Question 14 of 15 Part 3 of 3 - PPS 1 Exhibit: Production Possibilities Schedule) If an economy is producing at alternative W, the opportunity cost to it of producing at X is unit(s) of consumer goods per period. A. 0 B. 1 C. 4 D. 18 Question 15 of 15 a Part 3 of 3 - PPS 1 Exhibit: Production Possibilities Schedule) A move from alternative Y to alternative X would: A. result in greater unemployment. B. decrease potential growth. C. increase potential growth. D. result in greater underemployment.