Economics Test 1 Econ 5
Refer to the above diagram. This production possibilities curve is
concave (bowed-out) to the origin because of increasing opportunity costs
Refer to the diagram. The combination of computers and bicycles shown by point F:
is attainable, but entails economic inefficiency
Microeconomics
is concerned with individual economic units and specific markets
The five factors of production are
land, labor, capital, technology, and entrepreneurial ability
The economizing problem is one of deciding how to make the best use of
limited resources to satisfy unlimited wants
Refer to the diagram. The combination of computers and bicycles shown by point G is:
unattainable, given currently available resources and technology
A positive economics statement is concerned with
what is
The fallacy of composition states that
what is good for the individual isn't necessarily good for the group
Refer to the above 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
will be 4 units of bicycles
Which of the following statements is true
Full employment, price-level stability, and ecomomic growth are widely accepted economic goals in the U.S
Which of the following best illustrates the post hoc, ergo propter hoc fallacy
I took the day off work to go to the beach and that's why it rained
Which of the following is NOT a fundamental question of economics
Why Produce it?
Which of the following is real capital
a construction crane
Refer to the above diagram. Points A, B, C, D, and E show
combinations of bicycles and computers that society can produce by using its resources efficiently
Studying economics
helps one become a better-informed citizen and voter.
The type of economy where individuals answer the fundamental question of economics is
market economy
Assume an economy is operating at some point on its production possibilities curve, which shows civilian and military goods. If the output of military goods is increased, the output of civilian goods:
must be decreased
In deciding whether to study for an economics quiz or go to the movies, one is confronted by the idea of
opportunity cost
Macroeconomics approaches the study of economics from the viewpoint of
the entire economy
A production possibilities curve shows
the maximum amounts of two goods that can be produced assuming the full and efficient use of available resources