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