978-1259723223 Test Bank TBChap001 Part 10

subject Type Homework Help
subject Pages 14
subject Words 4107
subject Authors Campbell McConnell, Sean Flynn, Stanley Brue

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page-pf1
business ventures in a capitalist economy is called the
A. manager.
350.
Which of the following would not be considered a capital resource by economists?
D.
a camera used by a professional photographer
351.
Which of the following is considered an economic resource?
A.
the ice cream that kids buy at the ice cream parlor
page-pf2
1-182
352.
Which of the following is not a factor of production?
D.
entrepreneur
353.
Which of the following is considered a firm's "factor of production"?
354.
Money is not considered to be an economic resource because
page-pf3
C.
money is made by humans.
D.
idle money balances do not earn interest income.
355.
One basic difference between "land" and "capital" resources is that land is
A.
manufactured, while capital is created by humans.
356.
Which of the following is considered to be an entrepreneur?
D.
a customer of a firm
page-pf4
1-184
357.
The role of the entrepreneur in society is to
A. provide capital to the firm, which the management combines with labor.
358.
One basic difference between "labor" and "entrepreneur" is that
D.
education is important for an entrepreneur but not for labor.
359.
Which of the following is one of the simplifying assumptions made in constructing a
production possibilities curve?
A.
The state of technology is constantly changing.
page-pf5
360.
The production possibilities curve is a graph of
A.
the maximum amounts of labor and capital resources available for production.
361.
On a production possibilities curve, the single optimal or best combination of output
for any society
A.
is at a point near the top of the curve.
page-pf6
1-186
362.
All of the following would affect the position and shape of a nation's production
possibilities curve, except
D.
the rate of technological progress.
363.
If a nation produces more consumer goods and less capital goods, then the nation will
have
D.
less consumption later, with no effect on consumption now.
364.
A nation can produce two products: steel and wheat. The table below is the nation's
production possibilities schedule.
Production Possibilities
Produc
t
A
B
C
D
E
F
Steel
0
1
2
3
4
5
page-pf7
Wheat
100
90
75
55
30
0
If the nation uses all of its resources to produce only wheat, then its production combination
will be
D.
F.
365.
A nation can produce two products: steel and wheat. The table below is the nation's
production possibilities schedule.
Production Possibilities
Produc
t
A
B
C
D
E
F
Steel
0
1
2
3
4
5
Wheat
100
90
75
55
30
0
Which of the following output-combinations is unattainable?
A. 1 steel and 80 wheat
page-pf8
1-188
366.
A nation can produce two products: steel and wheat. The table below is the nation's
production possibilities schedule.
Production Possibilities
Produc
t
A
B
C
D
E
F
Steel
0
1
2
3
4
5
Wheat
100
90
75
55
30
0
A change from combination C to B means that
A.
1 unit of steel is given up to get 75 units of wheat.
367.
A nation can produce two products: steel and wheat. The table below is the nation's
production possibilities schedule.
Production Possibilities
Produc
t
A
B
C
D
E
F
Steel
0
1
2
3
4
5
Wheat
100
90
75
55
30
0
page-pf9
The marginal opportunity cost of the third unit of steel is
A.
18.3 units of wheat.
368.
A nation can produce two products: steel and wheat. The table below is the nation's
production possibilities schedule.
Production Possibilities
Produc
t
A
B
C
D
E
F
Steel
0
1
2
3
4
5
Wheat
100
90
75
55
30
0
In moving from combination E to F, the opportunity cost of an additional unit of steel is
A.
5 units of steel.
page-pfa
1-190
369.
A nation can produce two products: steel and wheat. The table below is the nation's
production possibilities schedule.
Production Possibilities
Produc
t
A
B
C
D
E
F
Steel
0
1
2
3
4
5
Wheat
100
90
75
55
30
0
In moving stepwise from possibility A to B to C to F, the marginal opportunity cost of a
unit of steel in terms of wheat
D.
increases at first, then decreases.
370.
A nation can produce two products: tanks and autos. The table below is the nation's
production possibilities schedule.
Produc
t
A
B
C
D
E
F
Tanks
0
1
2
3
4
5
Autos
1000
950
850
650
350
0
According to the production possibilities schedule, a combination of 4 tanks and 650 autos
page-pfb
is
A.
attainable and involves an efficient use of society's resources.
371.
A nation can produce two products: tanks and autos. The table below is the nation's
production possibilities schedule.
Produc
t
A
B
C
D
E
F
Tanks
0
1
2
3
4
5
Autos
1000
950
850
650
350
0
Given the production possibilities schedule above, a combination of 3 tanks and 350 autos
A. illustrates the trade-off between tanks and autos.
page-pfc
1-192
372.
A nation can produce two products: tanks and autos. The table below is the nation's
production possibilities schedule.
Produc
t
A
B
C
D
E
F
Tanks
0
1
2
3
4
5
Autos
1000
950
850
650
350
0
In moving from combination C to B, the opportunity cost of producing 100 more autos is
A. 2 units of tanks.
373.
A nation can produce two products: tanks and autos. The table below is the nation's
production possibilities schedule.
Produc
t
A
B
C
D
E
F
Tanks
0
1
2
3
4
5
Autos
1000
950
850
650
350
0
The total opportunity cost of three units of tanks is
page-pfd
1-193
A. 6 units of tanks.
374.
A nation can produce two products: tanks and autos. The table below is the nation's
production possibilities schedule.
Produc
t
A
B
C
D
E
F
Tanks
0
1
2
3
4
5
Autos
1000
950
850
650
350
0
The marginal opportunity cost of the fourth unit of tanks is
A. 4 units of tanks.
375.
A nation can produce two products: tanks and autos. The table below is the nation's
production possibilities schedule.
page-pfe
Produc
t
A
B
C
D
E
F
Tanks
0
1
2
3
4
5
Autos
1000
950
850
650
350
0
If the nation produces more and more tanks, the opportunity cost of each additional tank in
terms of autos
A.
remains constant.
B.
falls.
376.
In a graph of the production possibilities curve, the two axes of the graph indicate the
A.
prices of the two products that a nation can produce.
page-pff
377.
A point inside the production possibilities curve is , while a point outside the curve is .
D.
the maximum possible; below the maximum possible
378.
A point or combination that is on the production possibilities curve is
D.
attainable only if we get additional resources.
379.
A point outside (to the right of) the production possibilities curve of a nation
D.
implies that this nation is using its resources fully.
page-pf10
1-196
380.
The following graph is the production possibilities curve of a nation.
The combination "5 drill presses and 2 bread" indicates
A. an unattainable combination for the nation.
381.
The following graph is the production possibilities curve of a nation.
page-pf11
1-197
Which of the following combinations would be unattainable?
A.
8 drill presses and 1 bread
382.
The following graph is the production possibilities curve of a nation.
page-pf12
1-198
The total opportunity cost of nine drill presses is
A.
1 unit of bread.
383.
The following graph is the production possibilities curve of a nation.
page-pf13
1-199
The marginal opportunity cost of the fourth unit of bread is
A.
0 unit of drill presses.
384.
A movement from one point to another along the production possibilities curve would
imply that
A.
the labor force available to society has grown.
page-pf14
385.
If a nation is initially on its production possibilities curve, then it can increase its
production of one good only by
D.
decreasing the price of the other good.
386.
Because of increasing opportunity costs, the production possibilities curve
D.
is a straight downward-sloping line.

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