ECO 201 Unit 1 Exam Questions and Answers Fully Solved
For Questions 1, 2 and 3: The graph above represents the PPF for two goods X and Y1. Which point,or
points are inefficient?
a.A
b.B
c.C
d.D
e. Cand D - Answers A
2.Which points are efficient?
a.A only
b.B only
c.A and D
d.B and C
e.None of these are correct. - Answers None of these are correct
3.Which is the best or optimal point for society?
a.A
b.B
c.C
d.D
e.We cannot tell. - Answers We cannot tell
4.True or False uncertain: We always want to be on a point on the PPF.
a.True. On the PPF is always best for Society.
b.Uncertain society must decide what the best outcome is.
c.False. It is better society to be inside the PPF conserve resources
d.Uncertain. On the PPF may not be efficient
e.None of these - Answers Uncertain. On the PPF may not be efficient
, 5. True or false: Computers are not capital:
a.True, capital is a resource and computers are technology.
b.False, it is more efficient to use technology than capital as they are complements
c.True, computers are technology and capital is another form of resource.
d.False, technology is the same thing as computers.
e.None of these are correct. - Answers None of these are correct.
The PPC can shift out:
a.Today with less unemployment today.
b.Tomorrow if we increase the amount of resources today.
c.Today with an increased amount of capital produced today.
d.Tomorrow if technology increases tomorrow.
e.We assume the PPC is always fixed. - Answers Tomorrow if we increase the amount of resources
today.
7.Land is paid
a.Rent
b.Wage
c.Rate of return
d.All of these
e.None of these - Answers Wage
Changes in technology will:
a.Shift demand to the left.
b.Shift the PPF.
c.Change the quantity supplied.
d.All of these
e.None of these - Answers Shift the PPF.
9.The only reason for international trade is import goods that a nation cannot produce themselves.
For Questions 1, 2 and 3: The graph above represents the PPF for two goods X and Y1. Which point,or
points are inefficient?
a.A
b.B
c.C
d.D
e. Cand D - Answers A
2.Which points are efficient?
a.A only
b.B only
c.A and D
d.B and C
e.None of these are correct. - Answers None of these are correct
3.Which is the best or optimal point for society?
a.A
b.B
c.C
d.D
e.We cannot tell. - Answers We cannot tell
4.True or False uncertain: We always want to be on a point on the PPF.
a.True. On the PPF is always best for Society.
b.Uncertain society must decide what the best outcome is.
c.False. It is better society to be inside the PPF conserve resources
d.Uncertain. On the PPF may not be efficient
e.None of these - Answers Uncertain. On the PPF may not be efficient
, 5. True or false: Computers are not capital:
a.True, capital is a resource and computers are technology.
b.False, it is more efficient to use technology than capital as they are complements
c.True, computers are technology and capital is another form of resource.
d.False, technology is the same thing as computers.
e.None of these are correct. - Answers None of these are correct.
The PPC can shift out:
a.Today with less unemployment today.
b.Tomorrow if we increase the amount of resources today.
c.Today with an increased amount of capital produced today.
d.Tomorrow if technology increases tomorrow.
e.We assume the PPC is always fixed. - Answers Tomorrow if we increase the amount of resources
today.
7.Land is paid
a.Rent
b.Wage
c.Rate of return
d.All of these
e.None of these - Answers Wage
Changes in technology will:
a.Shift demand to the left.
b.Shift the PPF.
c.Change the quantity supplied.
d.All of these
e.None of these - Answers Shift the PPF.
9.The only reason for international trade is import goods that a nation cannot produce themselves.
