econ 10

Who wrote The Wealth of Nations, a book that man credit with establishing economics as a discipline? Karl Marx David Ricardo Adam Smith John Maynard Keynes John Stuart Mill

Adam Smith

All points inside the production possibility curve represent: efficient production points. Inefficient production points. nonfeasible production points. economic growth. a shortage of economic resources.

Inefficient production points.

If there is a tremendous natural disaster, the effect can be shown by: a point interior to the production possibility curve. an outward expansion of the production possibility curve. a movement from one point to another along the production possibility curve. an inward contraction of the production possibility curve. a flatter slope of the production possibility curve.

an inward contraction of the production possibility curve.

If an economy has to sacrifice increasing amounts of good × for each unit of good y produced, then its production possibility curve ls: bowed out from the origin. bowed in toward the origin. a straight line. a vertical line. a horizontal line.

bowed out from the origin.

All points on the production possibility curve represent: a shortage of economic resources. inefficient production points. nonfeasible production points. economic growth. efficient production points.

efficient production points.

Economists are generally in support of: government restrictions on trade. free international trade. tariffs to restrict trade. subsidizing exports. import quotas to protect domestic producers.

free international trade.

An economy is said to have a comparative advantage if it: can produce more of all goods than another economy. can produce less of all goods than another economy. has the highest opportunity cost for producing a particular good. has the lowest opportunity cost for producing a particular good. has more economic resources than another country.

has the lowest opportunity cost for producing a particular good.

The skills, training, and education possessed by workers contribute to economic growth and are known as: saving. technological capital. natural resources. output of labor. human capital.

human capital.

When overall price levels rise over time, this is referred to as: deflation. inflation. purchasing power parity. the consumer price index. the foreign exchange index.

inflation

If technology advances, then: more output can be obtained from the same inputs. more inputs are needed to produce the same output. less output can be obtained from the same inputs. less can be obtained even with more inputs. the same amount of output can be obtained from the same inputs.

more output can be obtained from the same inputs

All points outside the production possibility curve represent: efficient production points. inefficient production points. nonfeasible production points. economic growth. a surplus of economic resources

nonfeasible production points.

An economy is efficient if it is; possible to produce more of all goods and services. possible to produce more of one good without producing less of another. not possible to produce more of one good without producing less of another good. providing each person with an equal quantity of goods and services. entirely run by the government.

not possible to produce more of one good without producing less of another good.

Standard of living in a country can be best measured by: nominal GDP per capita. real GDP per capita the productivity growth rate. the business cycles. the quantity of money in circulation per capita.

real GDP per capita

Gains from trade arise because or specialization in Production. specialization in consumption marginal analysis. individual choice. laissez-faire government policies

specialization in Production

In one hour, the United States can produce 25 tons of steel or 250 automobiles. In one hour, Japan can produce 30 tons of steel or 275 automobiles. This information implies that: Japan has a comparative advantage in the production of automobiles. the United States has an absolute advantage in the production of steel. Japan has a comparative advantage in the production of both goods. the United States has a comparative advantage in the production of automobiles. the United States should export steel to Japan in exchange for automobiles.

the United States has a comparative advantage in the production of automobiles.

Human capital refers to: output per worker. the education and knowledge embodied in the workforce. society's investment in capital goods. people working with capital goods. management information systems.

the education and knowledge embodied in the workforce.

Specialization and trade usually lead to: lower economic growth. the exchange of goods and services in markets, lower living standards. higher prices. less efficiency.

the exchange of goods and services in markets,

The economy's factors of production are not equally suitable for producing different types of goods. This principle generates: economic growth. technical efficiency. resource underutilization. the law of increasing opportunity cost. the law of demand.

the law of increasing opportunity cost.