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Following is the production possibilities frontier for an economy producing two goods Good A and Good B.




Question 1;Following is the production possibilities frontier for an economy producing two goods Good A;and Good B. Identify the correct statement.;Production Possibilities Schedule;Good A;Good B;Choice 1;100;0;Choice 2;90;20;Choice 3;70;40;Choice 4;40;60;Choice 5;0;80;Select one;a. The opportunity cost of producing more of A decreases as A increases.;b. The opportunity cost of producing more of B decreases as B increases.;c. If this economy fully and efficiently employs all its resources, it can produce 100 units of A;and 80 units of B.;d. This economy can produce 70 units of A and 40 units of B.;e. This economy can produce 100 units of A and 20 units of B.;Question 2;Which of the following conditions will be true for a nation operating at a point lying inside its;production possibilities frontier?;Select one;a. The nation is not utilizing its resources efficiently.;b. The nation is producing the maximum output that can be produced with a limited quantity;of resources.;c. The nation is producing the maximum output that can be produced with its unlimited;quantity of resources.;d. The nation is clearly utilizing its resources efficiently.;e. The nation has experienced a technological breakthrough in one of its key industries.;Question 3;A point outside the production possibilities frontier [PPF];Select one;a. is attainable if all resources are used efficiently;b. will never be attainable, even if the quantity of resources increases;c. represents inefficient use of resources;d. represents more resources than are currently available;e. may be due to unemployment;Question 4;If the production (supply) of two goods is complementary, a decrease in the price of one will;Select one;a. decrease supply of the other;b. increase supply of the other;c. decrease the price of the other;d. increase the quantity supplied of the other;Question 5;Demand for goods and services (feedstocks) that go into final products (such as milk into ice;cream) is;Select one;a. direct demand;b. utility;c. derived demand;d. product demand;Question 6;The effect on sales of a decrease in price is an increase in;Select one;a. the quantity demanded;b. demand;c. the quantity supplied;d. supply;Question 7;Economics is the study of how people cope with;Select one;a. limited time and unlimited income;b. limited human wants;c. unlimited resources;d. greed;e. scarcity;Question 8;A shift in the demand curve expresses a relation between the quantity and;Select one;a. price;b. a price that is 50% above the average pricing of comparable items;c. All of the above;d. income levels;Question 9;Arc price elasticity measures elasticity;Select one;a. at a spot/point on a function;b. using an arithmetic average of two point elasticities;c. before nonprice effects;d. over a given range along a price function;Question 10;A demand curve expresses the relation between the quantity demanded and;Select one;a. advertising;b. income;c. price;d. All of the above;Question 11;Which of the following is a microeconomic concern?;Select one;a. The unemployment level for a country;b. The rate of economic growth in the United States;c. How to maintain or improve the profits of a particular firm;d. The national output of the United States;e. Inflation;Question 12;Given today's fierce global competitive environment, a decrease in mandatory payments by;employers to health care companies and providers for overhead health care benefits for workers;would lead to an increase in the;Select one;a. the quantity supplied of workers;b. demand for workers;c. supply of workers;d. the quantity demanded of workers;Question 13;The amount of a product that people are willing and able to purchase at a specific price is;referred to as the;Select one;a. consumption function;b. demand;c. purchasing power;d. law of demand;e. quantity demanded;Question 14;If you have a choice of consuming two apples plus three oranges, or one candy bar, the;opportunity cost of the candy bar is;Select one;a. two apples or three oranges, whichever you value more;b. three oranges;c. two apples;d. two apples and three oranges;e. the difference in the prices of the three options;Question 15;Demand is the total quantity of a good or service that customers;Select one;a. are willing and able to purchase;b. need;c. are willing to purchase;d. are able to purchase;Question 16;Supply is the total quantity of a good or service that producers;Select one;a. are willing and able to purchase;b. are willing to supply;c. are willing and technologically/economically able to supply;d. are able to purchase;Question 17;In its most fundamental sense, economics is the study of;Select one;a. externality and public goods;b. production and cost;c. supply and demand;d. specialization and trade;e. scarcity and choice;Question 18;In competitive market equilibrium, social welfare is measured by the;Select one;a. difference of net benefits derived by consumers and producers;b. benefits derived by producers;c. benefits derived by consumers;d. sum of net benefits derived by consumers and producers;Question 19;Archie can paint 5 backyard fences or repair 2 cars in 8 hours, while Austin can paint 4;backyard fences or repair 2 cars in 8 hours. Identify the correct statement.;Select one;a. Archie and Austin are equally good in painting fences.;b. Archie is relatively better in repairing cars.;c. Neither Archie nor Austin are good in repairing cars.;d. Austin is relatively better in painting fences.;e. Archie is relatively better in painting fences.;Question 20;Which of the following determines the quantity demanded of a commodity?;Select one;a. The number of buyers;b. Consumers' expectations;c. The income levels of consumers;d. The price of the commodity;e. The prices of related commodities


Paper#18337 | Written in 18-Jul-2015

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