ECON-103:Quiz1

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Author:
dldeluca21
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61112
Filename:
ECON-103:Quiz1
Updated:
2011-01-21 11:03:41
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economics
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economics
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  1. Economic resources used in the production process are called?
    Factors of production
  2. The model shows the goods and services the economy is capable of producing is the...
    production possibilities
  3. The three broad types of factors of production are:
    • 1. capital
    • 2. labor
    • 3. natural resources
  4. Capital is best considered as:
    a factor of production that has been produced.
  5. Human effort that can be applied in the production process is called:
    labor
  6. An example of capital is:
    a factory building
  7. Increasing the level of education in the United States will:
    lead to workers possessing greater human capital.
  8. The set of acquired skills and abilities that workers bring to the production of goods and services is:
    human capital
  9. Technology is:
    knowledge that can be applied to the production of goods and services.
  10. The production possibilities curve represents the fact that:
    if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
  11. If Farmer Sam MacDonald can produce 200 pounds of cabbages and 0 pounds of potatoes or 0 pounds of cabbages and 100 pounds of potatoes and faces a linear production possibilities curve for his farm, the opportunity cost of producing an additional pound of potatoes is _______ pound(s) of cabbage.
    2
  12. The slope of a typical production possibilities curve is:
    Negative
  13. The concept of comparative advantage is based upon:
    relative opportunity cost
  14. An economy is said to have a comparative advantage in the production of a good if it can:
    produce the good at a lower opportunity cost than another economy.
  15. The law of increasing opportunity costs is a result of the fact that:
    resources are not equally produced in all output categories
  16. The fact that a society's production possibilities curve is bowed out from the origin of a graph demonstrates the law of:
    increasing opportunity cost
  17. If a production possibilities curve were bowed in or convex to the origin of a graph, it would demonstrate:
    decreasing opportunity cost
  18. If an economy is producing a level of output that is on its production possibilities curve, the economy
    has no idle resources and is using resources efficiently.
  19. If an economy is producing a combination of goods that places it inside the production possibilities curve then it has:
    idle factors of production or inefficient use of resources.
  20. If an economy is operating efficiently and with full employment, the production of more of one commodity will necessarily lead to less of something else being produced because of:
    scarcity
  21. Assume an economy is operating on its production possibilities curve, which shows the production of military and civilian goods. If the output of military goods is increased, the output of civilian goods:
    must decrease
  22. When making a choice to do more of one activity, the highest-valued other choice society does not make is called_______________, and it is measured_____________.
    opportunity cost; by the slope of the production possibilities curve at that level.
  23. International trade is possible in part through:
    speacialization in the production of goods.
  24. If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of manufacturing sweater is higher in the United States than in Britain, then the United States will:
    import sweaters from Britain and export machinery to Britain.
  25. Trade can be beneficial to an economy because:
    more goods and services can be obtained at lower opportunity cost.
  26. Economists are generally in support of:
    subsidizing exports
  27. If two countries participate in free trade:
    both countries as a whole will gain from the trade.
  28. When a nation experiences economic growth:
    its production possibilities curve shifts outward.
  29. If the United States decides to allocate more resources to capital goods and less to consumer goods, the United States will obtain a greater degree of:
    economic growth
  30. A source of economic growth is:
    more factors of production
  31. A source of economic growth is:
    advances in technology
  32. The best example of a market capitalist economy is:
    the United States
  33. The best example of a command socialist economy is:
    Cuba
  34. Before its political collapse, the former Soviet Union had a(n):
    command socialist economy
  35. In a market capitalist economy:
    factors of production are owned privately and decisions about their use are basically made by individuals.
  36. Government's role of protecting property rights is considered:
    enforcing a legal system
  37. Government's role of providing national defense is considered:
    providing certain goods and services
  38. Government's role of taxing some citizens and transferring income to others is considered:
    redistributing income
  39. In a market capitalist economy, which of the following is not an accepted role for government?
    All of the above are acceptable roles for government.
  40. There are several advantages that a market economy possesses. These do not include the fact that market economies:
    tend to prevent entrepreneurial activity that would result in large accumulations of wealth in the hands of a few people.

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