• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
 
 
Lesson-4TutorialMultiple-choice Questions
 1. From the viewpoint of economics, your college education can be thought of as aninvestment in a factor of production. Which of the following factor is most appropriate?a) Natural resources b) Labor c) Physical capitald) Human capitale) Entrepreneurship2. A Production Possibilities Curve (PPC) illustrates the concept of scarcity. Which of thefollowing item will be most likely to result in a shift of the PPC outward, indicating theability to produce more goods?a) An increase in population b) A decrease in the price of steelc) Reducing the federal debtd) Signing a trade agreement with Chinae) Making more consumption goods3. Which of the following questions is outside the scope of economics?a) What is the likely impact of the transfer of Hong Kong back to theChinese? b) When a paper mill closes in a small southern town, who is most likely to be out of work for a long time?c) When you graduate from college, how might you best go about choosing a job?d) How should society balance the needs of the environment against theneeds of industry?e) None of the above. All are within the scope of economic study.4. The study of economics is generally divided into two major sub-divisions--macroeconomics and microeconomics. Which statement is correct about the division?a) Macroeconomics deals with unemployment, inflation, the budget deficitand the trade deficit. b) Macroeconomics deals only with individual markets.c) All the topics in macroeconomics are bigger than those inmicroeconomics.
 
 d) Microeconomics is limited to the study of individual choices whilemacroeconomics deals with group decisions.e) Only macroeconomics deals with prices.5. Which of the following is not a way we can use the study of macroeconomics?a) To understand how a national economy works b) To understand the grand debates over economic policyc) To decide between two types of automobiles when we are buying a newcar d) To make informed business decisionse) To help decide which candidate for office is most likely to have asuccessful economic policy6.
 
Which of the following is not a way we can use the study of microeconomics?a) To understand how markets work  b) To understand the full impact of our trade deficit with Japanc) To make personal or managerial decisionsd) To evaluate the merits of specific public policiese) To help decide between two automobiles when we are buying a new car 7.
 
The process of “thinking like an economist” involves three basic items. Which of thefollowing five does not belong to the process?a) Economists use assumptions to simplify matters. b) Economists deal only in items which have prices.c) Economists explore the relationship between two variables, holding other variables fixed.d) Economists think in marginal terms.e) Economists consider opportunity costs.8.
 
If a society is operating on its Production Possibilities Curve (PPC) with respect tothousands of computers and numbers of space missions, and is producing 300,000computers and 5 space missions in order to increase the number of space missions, itshoulda) Give up some computers b) Produce more computers as wellc) Pay scientists mored) Shift federal spending from military to sciencee) Develop a new type of rocket9.
 
The problem of scarcity
 
 a) exists only in market economies b) could be eliminated if we could force prices to fallc) means that there are shortages of some goodsd) exists because human wants exceed available resourcese) can be eliminated by government intervention10.
 
If Josiah is producing inside his Production Possibilities Curve (PPC), hea) can increase production of goods with no increase in resources b) is fully using his resourcesc) is optimizingd) is unaffected by costs and technologye) can do no better than he is currently doing11. The following table gives production possibilities for an economy that can producetwo goods, lobsters and boats. Graph the Production Possibilities Curve (PPC), accordingto the information given in table 1.1 and putting lobsters on the horizontal axis. Use your graph to answer the first four questions. As this economy produces more and morelobsters, the slope of the PPC:
Lobsters BoatsA
0 10
B
100 9
C
200 7
D
300 4
E
400 0Table 1.1a) Increases b) Is constantc) Decreasesd) Cannot be determinedA) If the economy is producing at point C:a) We can produce more lobsters and more boats. b) We cannot produce any more lobsters.c) We cannot produce any more boats.d) We can produce more lobsters only by giving up some boats.e) The economy is not efficient.B) At point B, to get one more boat, this economy needs to:a) Give up one lobster 
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...