Test Bank for Macroeconomics, 9th Edition by Glenn Hubbard.pdf

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Chapter 02
o


oResource Utilization
o




MultipleoChoiceoQuestions



1. Ouroeconomyo operatesoonoitsoproductionopossibilityocurve.
A. always
B. sometimes
C. never



2. Whichostatementoisotrue?
A. EntrepreneurialoabilityoisoinoshortosupplyoinotheoU.S.
B. Land,olaboroandocapitalomayobeoconsideredopassiveoresources.
C. Theoconceptoofoopportunityocostoisoirrelevantowhenothereoisoscarcity.
D. Noneoofotheseostatementsoareotrue.



3. Whichooneoofotheofollowingoisotheomostoaccurate?
A. Inorecentoyearsoouroeconomyowasoatofulloemploymentountilo2010.
B. Ouroeconomyooperatedooutsideoofoitsoproductionopossibilitiesocurveoino2009oando2010.
C. Ouroeconomyoisocurrentlyooperatingoonoitsoproductionopossibilitiesocurve.
D. Ouroeconomyoisocurrentlyooperationoinsideoitsoproductionopossibilitiesocurve.



4. Inoouroeconomy
A. thereoisonooneedotooeconomize.
B. weorarelyohaveotooeconomize.
C. onlyotheorichohaveoto.
D. nearlyoeveryoneohasotooeconomize.



5. Theotermo"theoaffluentosociety"owasocoinedoby
A. MichaeloHarrington.
B. JohnoKennethoGalbraith.
C. KarloMarx.
D. AdamoSmith.




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6. Eachoofotheofollowingoisoanoexampleoofoanoeconomicoresourceoexcept
A. land.
B. money.
C. capital.
D. labor.



7. StatementoI.oEmploymentodiscriminationocausesounderemployment.
StatementoII.oTheoconceptoofoopportunityocostohasolittleovalidityoinotheoglobaloeconomy.
A. StatementoIoisotrueoandostatementoIIoisofalse.
B. StatementoIIoisotrueoandostatementoIoisofalse.
C. Bothostatementsoareotrue.
D. Bothostatementsoareofalse.



8. Ouroeconomyowouldobeooperatingoatofulloemploymentowitholaborounemploymentorateoofo
percentoandoaocapacityoutilizationorateoofo percent.
A. 5;o95
B. 5;o85
C. 10;o95
D. 10;o85



9. Whichostatementoisotrue?
A. Onotheoproductionopossibilitiesofrontieroweohaveozeroounemployment.
B. Onotheoproductionopossibilitiesofrontiero95opercentoofotheolaboroforceoisoemployed.
C. Toogetooutoofoaorecession,oweomustoproduceoatosomeopointobeyondoouroproductionop
ossibilitiesofrontier.
D. Toohaveoeconomicogrowth,oweomustopushotheoproductionopossibilitiesofrontieroinward.



10. Inoorderotooraiseoourorateoofoeconomicogrowthoweowouldoneedoto
A. increaseotheoleveloofocapital.
B. reduceotheoleveloofolabor.
C. spendomoreoonomilitaryogoods.
D. spendomoreoonoconsumerogoods.




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11. TheomainoreasonoourostandardoofolivingoisosoomuchohigherothanothatoofoIndiaoandoChinaoisot
hatoweohaveomore
A. land.
B. labor.
C. capital.
D. money.



12. Whichostatementoisotrue?
A. Itoisoeasierotooattainofulloemploymentothanofulloproduction.
B. EmploymentodiscriminationonoolongeroexistsoinotheoU.S.olaboromarket.
C. Weoareousuallyooperatingoonoouroproductionopossibilitiesofrontier.
D. Noneoofotheseostatementsoareotrue.



13. Theomainoeffectoofoemploymentodiscriminationois
A. Unemployment.
B. Underemployment.
C. Greateroefficiency.
D. Greateroproduction.



14. Weotemporarilyooperatedooutsideoouroproductionopossibilitiesofrontieroin
A. 1933.
B. 1943.
C. 1973.
D. 1982.



15. Whichostatementoisotrue?
A. Theoeconomicoproblemoisolimitedotoopoverty.
B. ScarcityoisonoolongeroanoeconomicoproblemoinotheoUnitedoStates.
C. Ifoweoallohadomoreomoneyothereowouldobeolessoscarcity.
D. Noneoofotheseostatementsoareotrue.




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16. StatementoI.oWhenoU.S.ounemploymentorateoisofiveopercent,oitoattainsofulloemployment.o
StatementoII.oFulloemploymentoandofulloproductionomeanovirtuallyotheosameothing.
A. StatementoIoisotrueoandostatementoIIoisofalse.
B. StatementoIIoisotrueoandostatementoIoisofalse.
C. Bothostatementsoareotrue.
D. Bothostatementsoareofalse.



17. StatementoI.oEntrepreneurialoabilityoisonotoaoresource.
StatementoII.oVirtuallyoalloofoouroresourcesoareoburiedounderotheoground.
A. StatementoIoisotrueoandostatementoIIoisofalse.
B. StatementoIIoisotrueoandostatementoIoisofalse.
C. Bothostatementsoareotrue.
D. Bothostatementsoareofalse.



18. Whichostatementoisotrue?
A. Weoareousuallyoinsideoouroproductionopossibilitiesocurve.
B. Weoareousuallyooutsideoouroproductionopossibilitiesocurve.
C. Weoareousuallyoonoouroproductionopossibilitiesocurve.
D. Noneoofotheostatementsoareotrue.




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