Question 1

Wants are goods and services that you

Accepted Answer

A)   desire.
B)   need.
C)   already have.
D)   can't afford.E) B) and C)
F) B) and D)

Question 2

When does a decision NOT result in an opportunity cost?

Accepted Answer

A)   When you consume an item paid for by someone else
B)   When someone else consumes an item you have paid for
C)   When the resources involved are not scarce
D)   When the work required to follow through on the decision is less than anticipatedE) B) and C)
F) A) and D)

Question 3

Moving from point to point along the production possibilities curve means that the economy is becoming more efficient.

Accepted Answer

A) True 
 B)False

Question 4

Clean air is a scarce resource.

Accepted Answer

A) True 
 B)False

Question 5

The assumption of _________ self-interest means that people will behave in ways so as to make themselves better off.

Accepted Answer

The answer of The assumption of _________ self-interest means that...

Question 6

Economic theory asserts that altruistic behavior is irrational.

Accepted Answer

A) True 
 B)False

Question 7

Figure 1.2
-If the economy starts at point B in Figure 1.2, what is the opportunity cost of producing an additional 75 units of military goods?

Accepted Answer

A)   65 units of civilian goods
B)   150 units of civilian goods
C)   235 units of civilian goods
D)   300 units of civilian goodsE) C) and D)
F) None of the above

Question 8

Economics is a social science.

Accepted Answer

A) True 
 B)False

Question 9

Opportunity cost is always

Accepted Answer

A)   a financial cost.
B)   the result of a poor decision.
C)   a forgone alternative.
D)   unmeasurable.E) A) and B)
F) B) and C)

Question 10

Which points on a production possibilities graph represent efficient outcomes?

Accepted Answer

Those lyin...

Question 11

By choosing the right point along its production possibilities curve, an economy can eliminate scarcity.

Accepted Answer

A) True 
 B)False

Question 12

The production possibilities curve represents the maximum combination of outputs that can be produced, given a fixed amount of resources.

Accepted Answer

A) True 
 B)False

Question 13

Scarcity did not exist before the science of economics.

Accepted Answer

A) True 
 B)False

Question 14

What type of opportunity cost does society incur when productive resources are devoted to military uses?

Accepted Answer

The value those reso...

Question 15

Opportunity costs arise when _________ are made.

Accepted Answer

The answer of Opportunity costs arise when _________ are made....

Question 16

Even wealthy individuals face trade-offs.

Accepted Answer

A) True 
 B)False

Question 17

Figure 1.3
-If an economy is producing at point B in Figure 1.3,

Accepted Answer

A)   it is producing 3000 units of housewares and 3000 units of consumer electronics.
B)   it is producing 3000 units of housewares and 2500 units of consumer electronics.
C)   it is producing 2500 units of housewares and 3000 units of consumer electronics.
D)   it is producing 2500 units of housewares and 2500 units of consumer electronics.E) A) and C)
F) A) and B)

Question 18

What might cause a country to operate within its production possibilities curve?

Accepted Answer

A)   Unemployment
B)   Total efficiency in industry
C)   A new resource being discovered
D)   A lack of modern products being producedE) All of the above
F) C) and D)

Question 19

We live with unlimited wants in a world of limited resources.

Accepted Answer

A) True 
 B)False

Question 20

Figure 1.2
-At point C in Figure 1.2,

Accepted Answer

A)   275 units of labor are being used to produce 235 units of civilian goods.
B)   the economy is producing 275 units of military goods and 235 units of civilian goods.
C)   the economy is producing 235 units of military goods and 275 units of civilian goods.
D)   society's resources are being inefficiently used.E) A) and C)
F) B) and C)

Exam 1: Economics and the World of Scarcity

What might cause a country to operate within its production possibilities curve?

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The production possibilities curve represents the maximum combination of outputs that can be produced, given a fixed amount of resources.

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Which points on a production possibilities graph represent efficient outcomes?

Correct AnswerverifiedThose lyin...View AnswerShow Answer

What type of opportunity cost does society incur when productive resources are devoted to military uses?

Correct AnswerverifiedThe value those reso...View AnswerShow Answer

Moving from point to point along the production possibilities curve means that the economy is becoming more efficient.

Correct AnswerverifiedShow Answer

Clean air is a scarce resource.

Correct AnswerverifiedShow Answer

Opportunity costs arise when _________ are made.

Correct AnswerverifiedShow Answer

The assumption of _________ self-interest means that people will behave in ways so as to make themselves better off.

Correct AnswerverifiedShow Answer

Opportunity cost is always

Correct AnswerverifiedShow Answer

Even wealthy individuals face trade-offs.

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Wants are goods and services that you

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By choosing the right point along its production possibilities curve, an economy can eliminate scarcity.

Correct AnswerverifiedShow Answer

Figure 1.2 -At point C in Figure 1.2,

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Figure 1.3 -If an economy is producing at point B in Figure 1.3,

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Economic theory asserts that altruistic behavior is irrational.

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We live with unlimited wants in a world of limited resources.

Correct AnswerverifiedShow Answer

Scarcity did not exist before the science of economics.

Correct AnswerverifiedShow Answer

When does a decision NOT result in an opportunity cost?

Correct AnswerverifiedShow Answer

Economics is a social science.

Correct AnswerverifiedShow Answer

Figure 1.2 -If the economy starts at point B in Figure 1.2, what is the opportunity cost of producing an additional 75 units of military goods?

Correct AnswerverifiedShow Answer

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Those lyin...
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The value those reso...
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