Posted by Johnny on Wednesday, June 17, 2009 at 9:51pm.
5. The problem of determining what goods and services society should produce:
A.exists because we can produce more than we need or want.
B.exists because there are not enough resources to provide all the goods and services that people want to purchase.
C.would not exist if all goods and services were scarce.
D.would not exist if government owned all of the resources.
(I picked B)
8. When markets fail: (Points: 3)
A- government intervention may help.
B- the market realizes the maximum possible gains from trade given the available resources.
C- there may still be an efficient allocation of resources.
D- no goods and services are produced.
(I picked A.)
9. The models used in economics:
A- are usually limited to variables that are directly related.
B-are essentially not reliable because they are not testable in the real world.
C-are of necessity unrealistic and not related to the real world.
D-emphasize basic relationships by abstracting from complexities in the everyday world.
(I picked D)
11. The fact that a society's production possibilities curve is bowed out or concave to the origin of a graph demonstrates the law of:
A-increasing opportunity cost.
B-decreasing opportunity cost.
C-constant opportunity cost.
D-concave opportunity cost.
(I picked B)
15. Trade can be beneficial to an economy because:
A-it results in a more efficient use of the combined resources of some of the trading countries, even though it reduces efficiency in others.
B-more goods and services can be obtained at lower opportunity cost.
C-it prevents specialization in those activities in which countries have a comparative advantage.
D-it prevents unemployment.
(I picked B)
17. The primary difference between a change in demand and a change in the quantity demanded is: (Points: 3)
A-a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve.
B-a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve.
C-both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
D-both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
( I picked B)
24. A shift to the left of a supply curve is caused by: (Points: 3)
A-an increase in the number of sellers.
B-a technological improvement.
C-an increase in the cost of an input.
D-an increase in the number of buyers.
(I picked C)
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