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Question;1)To correct for inflation, GDP numbers must be converted using the price level in a given year known as theAnswerBase yearReal yearCurrent yearConstant yearInflation year2) A production possibilities curve represents all of an economy's combinations for production that areAnswerUnattainablePossible and EfficientAttainableInefficientDesirableQuestion 3Which of the following is a technique used to determine the optimal level of an economic activity?AnswerCost/benefit analysisProduction possibilities curve analysisGDP analysisOpportunity cost analysisQuestion 4The bow shape of the production possibilities curve reflectsAnswerThe opportunity cost conceptThe concept of increasing opportunity costsThe concept of diminishing marginal returnsThe marginal social cost/marginal social benefit principleQuestion 5Real per capita GDP is defined asAnswerPopulation/real GDPGDP/populationReal GDP/price indexReal GDP/populationPrice index/GDPQuestion 6Marginal social cost refers to theAnswerCost incurred due to an action undertaken by societyTotal expenditures by society on a good like a public parkCost borne by society when 1 more unit of a good is producedCost to society of sub-standard productionCost to society when an additional unit of a social good is producedQuestion 7If population in a country falls while GDP stays the same, the country'sAnswerReal GDP fallsReal GDP risesPer capita GDP risesPer capita GDP fallsWelfare fallsQuestion 8With private property rights, the decision about how to use resources are made byAnswerThe governmentPrivate firmsIndividual resource ownersResource committeesQuestion 9The know-how and the means and methods of production available in an economy are known asAnswerTechnologyCapitalHuman capitalLaborManagementQuestion 10The purpose of a base year when constructing a price index is:AnswerShowing how the output values rise from year to yearEncourage inflationProviding a means to compare the economy's output across different time periodsTo show why expenditures on government goods and services need to increaseIndicate the progress in keeping prices lowQuestion 11Economic reasoning would not be necessary ifAnswerOur wants were limitedResources were expansiveScarcity were decreasedWe could have everything we wantedPoliticians were better at running the economyQuestion 12The fundamental economic problem involvesAnswerOverpopulationInflation and unemploymentScarce resources and unlimited wantsCheap foreign laborSupply and demandQuestion 13Labor resources includeAnswerThe equipment workers use to complete their workOnly non-management personnelAny efforts of a person to produce goodsOnly the physical efforts of an economy's peopleQuestion 14A country can shift out its production possibilities curve byAnswerImproving its technologyShifting its production from one good to anotherExperiencing a population dropUsing its farmland more productivelyQuestion 15The means for satisfying wants areAnswerInsatiableUnlimitedInfiniteScarceUnavailable


Paper#55953 | Written in 18-Jul-2015

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