Question 1

Labor resources consist of all efforts of mind and muscle that are available for use in production processes.

Accepted Answer

A) True 
 B)False

Question 2

A country can shift out its production possibilities curve by

Accepted Answer

A)  Improving its technology
B)  Shifting its production from one good to another
C)  Experiencing a population drop
D)  Using its farmland more productively
E)  All of the above

Question 3

The fundamental economic problem involves

Accepted Answer

A)  Overpopulation
B)  Inflation and unemployment
C)  Scarce resources and unlimited wants
D)  Cheap foreign labor
E)  Supply and demand

Question 4

The bow shape of the production possibilities curve reflects

Accepted Answer

A)   The opportunity cost concept
B)   The concept of increasing opportunity costs
C)   The concept of diminishing marginal returns
D)   The marginal social cost/marginal social benefit principle
E)   None of the above

Question 5

Per capita GDP is a near-perfect measure of an economy's standard of living because it takes into account the distribution of the economy's income among the population.

Accepted Answer

A) True 
 B)False

Question 6

Nowhere in the world today experiences faminE.

Accepted Answer

A) True 
 B)False

Question 7

The means for satisfying wants are

Accepted Answer

A)  Insatiable
B)  Unlimited
C)  Infinite
D)  Scarce
E)  Unavailable

Question 8

If population in a country falls while GDP stays the same,the country's

Accepted Answer

A)  Real GDP falls
B)  Real GDP rises
C)  Per capita GDP rises
D)  Per capita GDP falls
E)  Welfare falls C

Question 9

Poverty is primarily a result of rapid population growth in much of the underdeveloped worlD.

Accepted Answer

A) True 
 B)False  False

Question 10

The Following Questions Refer to the graph below. 
-Which point does not represent efficient production for Sharpland in 2007?

Accepted Answer

A)  A
B)  B
C)  C
D)  D
E)  E

Question 11

An improvement in education leads to an outward shift in the production possibilities curvE.

Accepted Answer

A) True 
 B)False

Question 12

A production possibilities curve shows the possible trade-off of one good for another in production under conditions of full employment.

Accepted Answer

A) True 
 B)False

Question 13

Which of the follow best describes human wants and desires? They

Accepted Answer

A)  Are unlimited in the aggregate
B)  Stop after a person attains the things necessary for life
C)  Do not include "extras" like variety
D)  Are not affected by what others have
E)  Do not change once we attain our desired set of goods

Question 14

Technology refers to the known means and methods available for combining resources to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 15

The fact that resources are rarely perfectly substitutable gives the production possibilities curve its bow shapE.

Accepted Answer

A) True 
 B)False

Question 16

Gross Domestic Product (GDP) is defined as

Accepted Answer

A)  The total volume of goods and services produced in the economy in a year's time
B)  The value of all goods produced in the economy in a year's time,minus production of capital goods
C)  The value of all goods and services produced in final form in the economy in a year's time using domestically owned resources
D)  The value of all goods and services that could possibly be produced in the economy in a year's time
E)  None of the above E

Question 17

Without increasing opportunity costs,a production possibilities curve will be a straight linE.

Accepted Answer

A) True 
 B)False

Question 18

The Following Questions Refer to the graph below. 
-Which of the following best explains the shift of Sharpland's PPC between 2007 and 2012? An increase in

Accepted Answer

A)  The number of tractors
B)  General technology
C)  Agricultural land resources
D)  The quality and quantity of teachers
E)  The demand for schooling

Question 19

In 2011,a country produces 2 bushels of wheat,each selling for $5.In 2012,the country also produces 2 bushels of wheat,but each bushel sells for $10.Which of the following is true?

Accepted Answer

A)  Real GDP did not change between 2011 and 2012
B)  Real GDP doubled between 2011 and 2012
C)  GDP did not change between 2011 and 2012
D)  GDP increased by 50% between 2011 and 2012
E)  None of the above is true

Question 20

Marginal social cost refers to the

Accepted Answer

A)   Cost incurred due to an action undertaken by society
B)   Total expenditures by society on a good like a public park
C)   Cost borne by society when 1 more unit of a good is produced
D)   Cost to society of sub-standard production
E)   Cost to society when an additional unit of a social good is produced

Exam 1: Alleviating Human Misery: The Role of Economic Reasoning

Labor resources consist of all efforts of mind and muscle that are available for use in production processes.

Correct AnswerverifiedShow Answer

A country can shift out its production possibilities curve by

Correct AnswerverifiedShow Answer

The fundamental economic problem involves

Correct AnswerverifiedShow Answer

The bow shape of the production possibilities curve reflects

Correct AnswerverifiedShow Answer

Per capita GDP is a near-perfect measure of an economy's standard of living because it takes into account the distribution of the economy's income among the population.

Correct AnswerverifiedShow Answer

Nowhere in the world today experiences faminE.

Correct AnswerverifiedShow Answer

The means for satisfying wants are

Correct AnswerverifiedShow Answer

If population in a country falls while GDP stays the same,the country's

Correct AnswerverifiedC

Poverty is primarily a result of rapid population growth in much of the underdeveloped worlD.

Correct AnswerverifiedFalse

The Following Questions Refer to the graph below. -Which point does not represent efficient production for Sharpland in 2007?

Correct AnswerverifiedShow Answer

An improvement in education leads to an outward shift in the production possibilities curvE.

Correct AnswerverifiedShow Answer

A production possibilities curve shows the possible trade-off of one good for another in production under conditions of full employment.

Correct AnswerverifiedShow Answer

Which of the follow best describes human wants and desires? They

Correct AnswerverifiedShow Answer

Technology refers to the known means and methods available for combining resources to produce goods and services.

Correct AnswerverifiedShow Answer

The fact that resources are rarely perfectly substitutable gives the production possibilities curve its bow shapE.

Correct AnswerverifiedShow Answer

Gross Domestic Product (GDP) is defined as

Correct AnswerverifiedE

Without increasing opportunity costs,a production possibilities curve will be a straight linE.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Which of the following best explains the shift of Sharpland's PPC between 2007 and 2012? An increase in

Correct AnswerverifiedShow Answer

In 2011,a country produces 2 bushels of wheat,each selling for $5.In 2012,the country also produces 2 bushels of wheat,but each bushel sells for $10.Which of the following is true?

Correct AnswerverifiedShow Answer

Marginal social cost refers to the

Correct AnswerverifiedShow Answer

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C

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False

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E

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