ECON211- EXAM #1 (UNL)

The budget line shows a. all possible combinations of two goods that yield the same level of utility to the consumer b. the amount of product X that a consumer is willing to give up to obtain one more unit of product Y. c. the minimum amount of two goods that a consumer can purchase with a specific money income d. all possible combinations of two goods that can be purchased, given money income and the prices of the goods

d. all possible combinations of two goods that can be purchased, given money income and the prices of the goods

The law of increasing opportunity costs state that a. the sum of the costs of producing a particular good cannot rise above the current market price of the good b. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so. c. if the sum of the costs of producing a particular good rises by a specified percentage, the price of that good must rise by a greater relative amount d. if the prices of all the resources used to produce goods increase, the cost of producing any particular good will increase at the same rate

b. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so.

Refer to the diagram. If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost: a. will be zero because unemployed resources are available b. will be 4 units of bicycles c. will be 2 units of bicycles d. of doing so cannot be determined from the information given

b. will be 4 units of bicycles

Refer to the diagram. Which on of the following would shift the production possibilities curve from PP1 to PP2.. a. an increase in consumer prices b. an outbreak of the Zika virus leading to an epidemic c. a reduction in hourly wages d. immigration of skilled workers into the economy

d. immigration of skilled workers into the economy

Unemployment a. can exist at any point on a production possibilities curve b. is illustrated by a point outside the production possibilities curve c. causes the production possibilities curve to shift outward d. is illustrated by a point inside the production possibilities curve

d. is illustrated by a point inside the production possibilities curve

Which of the following is not considered by economists to be an economic resource? a. factory workers b. computers at a retail store c. a forest d. money

d. money

Which of the following is a land resource? a. an oil drilling rig b. a machine for detecting earthquakes c. a farmer d. natural gas

d. natural gas

An increase in money income a. increases the slope of the budget line b. shifts the consumer's budget line to the left c. has no effect on the budget line d. shifts the consumer's budget line to the right

d. shifts the consumer's budget line to the right

Which of the following lists includes only capital resources (and therefore no labor or land resources) a. autos owned by a car rental firm, computers at the car rental agency, vans used to shuttle rental customers to and from the airport b. the owner of a new start-up firm, a chemistry lab, a researcher c. a hydroelectric dam, water behind the damn, power lines d. an ice arena, a professional hockey player, hockey uniforms

a. autos owned by a car rental firm, computers at the car rental agency, vans used to shuttle rental customers to and from the airport

A normative statement is one that a. is based on value judgements b. applies only to macroeconomics c. is based on the law of averages d. applies only to microeconomics

a. is based on value judgements

Microeconomics is concerned with a. positive economics, but not normative economics b. a detailed examination of specific economic units that make up the economic system c. establishing an overall view of the operation of the economic system d. the aggregate or total levels of income, employment, and output

b. a detailed examination of specific economic units that make up the economic system

Refer to the table. For these data, the law of increasing opportunity costs is reflected in the fact that ... a. the economy's resources are presumed o be scarce b. larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods c. the production possibilities data would graph as a straight downward sloping line d. the amount of consumer goods that must be sacrificed to get more capital goods diminishes beyond a point

b. larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods

Which of the following is associated with macroeconomics? a. a study of the trend of pecan prices since the second world war b. a case study of pricing and production in the textbook industry c. an empirical investigation of the general price level and unemployment rates since 1990 d. an examination of the incomes of professional athletes

c. an empirical investigation of the general price level and unemployment rates since 1990

economic theories a. are useless because they are not based in laboratory experimentation b. are abstractions and therefore of no application to real situations c. are generalizations based on hypothesis tested and supported with observed facts d. that are true for individual economic units are never true for the economy as a whole

c. are generalizations based on hypothesis tested and supported with observed facts

Economics may best be defined as the.. a. study of why people are rational b. empirical testing of value judgments through the use of logic c. the social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity d. interactions between macro and micro considerations

c. the social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity