D089 Questions WITH CORRECT |\ |\ |\ |\
ANSWERS
Which set of questions is answered when a society decides how
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
to distribute its scarce resources?
|\ |\ |\ |\
What, when, and how to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\
How, why, and when to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\
What, why, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
What, how, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
What, how, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
A local government is making public policy decisions about
|\ |\ |\ |\ |\ |\ |\ |\ |\
spending funds. The residents have differing opinions on whether
|\ |\ |\ |\ |\ |\ |\ |\
the funds should be used for road repair, school expansion,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
health care increases, or construction of a senior center. The
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
local government must decide the priority.
|\ |\ |\ |\ |\
Which economic question is this decision an example of?
|\ |\ |\ |\ |\ |\ |\ |\
What to produce |\ |\
Why to produce it |\ |\ |\
How to produce it |\ |\ |\
,When to produce it |\ |\ |\
What to produce |\ |\
A newspaper is trying to help citizens understand economic
|\ |\ |\ |\ |\ |\ |\ |\ |\
principles. Which misconception should the article address?
|\ |\ |\ |\ |\ |\
Consistent rising prices often results in inflation of goods and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
services.
Printing too much money causes the price of goods to increase.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Increasing the money supply raises the standard of living for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consumers in the long run. |\ |\ |\ |\
Inflation decreases the value of money and makes goods more
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
expensive.
Increasing the money supply raises the standard of living for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consumers in the long run. |\ |\ |\ |\
Which scenario covers a topic included in microeconomics?
|\ |\ |\ |\ |\ |\ |\
As a result of a hard freeze, the price of cherries increases.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
An economist compares the gross domestic product between the
|\ |\ |\ |\ |\ |\ |\ |\ |\
United States and China |\ |\ |\
The government changes the tax policy to boost economic
|\ |\ |\ |\ |\ |\ |\ |\ |\
growth in the United States. |\ |\ |\ |\
The Federal Reserve responds to an increase in inflation by
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
changing the interest rate. |\ |\ |\
,As a result of a hard freeze, the price of cherries increases.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
What accurately characterizes capital?
|\ |\ |\
It is in the form of cash.
|\ |\ |\ |\ |\ |\
It is reliant on a natural resource.
|\ |\ |\ |\ |\ |\
It must be in the form of physical objects.
|\ |\ |\ |\ |\ |\ |\ |\
It can be in the form of intellectual discoveries.
|\ |\ |\ |\ |\ |\ |\ |\
It can be in the form of intellectual discoveries.
|\ |\ |\ |\ |\ |\ |\ |\
Why is the circular flow model used?
|\ |\ |\ |\ |\ |\
To describe how factors of production affect growth and decline
|\ |\ |\ |\ |\ |\ |\ |\ |\
To illustrate how capitalism and socialism differ as an economic
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
form
To describe the interaction of businesses and households in
|\ |\ |\ |\ |\ |\ |\ |\ |\
markets
To illustrate primarily the use of labor and natural resources in an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
economy
|\
To describe the interaction of businesses and households in
|\ |\ |\ |\ |\ |\ |\ |\ |\
markets
, What is a result of increasing opportunity costs?
|\ |\ |\ |\ |\ |\ |\
To consume more of one good, a consumer becomes more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more efficient. |\
To produce more of one good, the economy gives up more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more of other goods. |\ |\ |\
As an economy produces a greater variety of goods, the cost of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
each good increases. |\ |\
When consumers do not want what producers make, increased
|\ |\ |\ |\ |\ |\ |\ |\ |\
opportunity for trade is missed. |\ |\ |\ |\
To produce more of one good, the economy gives up more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more of other goods. |\ |\ |\
How would a production possibility frontier be drawn for an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
economy that produces two goods with homogeneous resources?
|\ |\ |\ |\ |\ |\ |\
As a constant slope, downward from left to right
|\ |\ |\ |\ |\ |\ |\ |\
As a ray out of the origin, with a constant slope
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
As a semicircle centered on the origin, sloping downward from
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
left to right
|\ |\
As a limited line, downward from left to right, that does not touch
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
either axis
|\ |\
As a constant slope, downward from left to right
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS
Which set of questions is answered when a society decides how
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
to distribute its scarce resources?
|\ |\ |\ |\
What, when, and how to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\
How, why, and when to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\
What, why, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
What, how, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
What, how, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
A local government is making public policy decisions about
|\ |\ |\ |\ |\ |\ |\ |\ |\
spending funds. The residents have differing opinions on whether
|\ |\ |\ |\ |\ |\ |\ |\
the funds should be used for road repair, school expansion,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
health care increases, or construction of a senior center. The
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
local government must decide the priority.
|\ |\ |\ |\ |\
Which economic question is this decision an example of?
|\ |\ |\ |\ |\ |\ |\ |\
What to produce |\ |\
Why to produce it |\ |\ |\
How to produce it |\ |\ |\
,When to produce it |\ |\ |\
What to produce |\ |\
A newspaper is trying to help citizens understand economic
|\ |\ |\ |\ |\ |\ |\ |\ |\
principles. Which misconception should the article address?
|\ |\ |\ |\ |\ |\
Consistent rising prices often results in inflation of goods and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
services.
Printing too much money causes the price of goods to increase.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Increasing the money supply raises the standard of living for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consumers in the long run. |\ |\ |\ |\
Inflation decreases the value of money and makes goods more
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
expensive.
Increasing the money supply raises the standard of living for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consumers in the long run. |\ |\ |\ |\
Which scenario covers a topic included in microeconomics?
|\ |\ |\ |\ |\ |\ |\
As a result of a hard freeze, the price of cherries increases.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
An economist compares the gross domestic product between the
|\ |\ |\ |\ |\ |\ |\ |\ |\
United States and China |\ |\ |\
The government changes the tax policy to boost economic
|\ |\ |\ |\ |\ |\ |\ |\ |\
growth in the United States. |\ |\ |\ |\
The Federal Reserve responds to an increase in inflation by
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
changing the interest rate. |\ |\ |\
,As a result of a hard freeze, the price of cherries increases.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
What accurately characterizes capital?
|\ |\ |\
It is in the form of cash.
|\ |\ |\ |\ |\ |\
It is reliant on a natural resource.
|\ |\ |\ |\ |\ |\
It must be in the form of physical objects.
|\ |\ |\ |\ |\ |\ |\ |\
It can be in the form of intellectual discoveries.
|\ |\ |\ |\ |\ |\ |\ |\
It can be in the form of intellectual discoveries.
|\ |\ |\ |\ |\ |\ |\ |\
Why is the circular flow model used?
|\ |\ |\ |\ |\ |\
To describe how factors of production affect growth and decline
|\ |\ |\ |\ |\ |\ |\ |\ |\
To illustrate how capitalism and socialism differ as an economic
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
form
To describe the interaction of businesses and households in
|\ |\ |\ |\ |\ |\ |\ |\ |\
markets
To illustrate primarily the use of labor and natural resources in an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
economy
|\
To describe the interaction of businesses and households in
|\ |\ |\ |\ |\ |\ |\ |\ |\
markets
, What is a result of increasing opportunity costs?
|\ |\ |\ |\ |\ |\ |\
To consume more of one good, a consumer becomes more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more efficient. |\
To produce more of one good, the economy gives up more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more of other goods. |\ |\ |\
As an economy produces a greater variety of goods, the cost of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
each good increases. |\ |\
When consumers do not want what producers make, increased
|\ |\ |\ |\ |\ |\ |\ |\ |\
opportunity for trade is missed. |\ |\ |\ |\
To produce more of one good, the economy gives up more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more of other goods. |\ |\ |\
How would a production possibility frontier be drawn for an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
economy that produces two goods with homogeneous resources?
|\ |\ |\ |\ |\ |\ |\
As a constant slope, downward from left to right
|\ |\ |\ |\ |\ |\ |\ |\
As a ray out of the origin, with a constant slope
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
As a semicircle centered on the origin, sloping downward from
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
left to right
|\ |\
As a limited line, downward from left to right, that does not touch
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
either axis
|\ |\
As a constant slope, downward from left to right
|\ |\ |\ |\ |\ |\ |\ |\
