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Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
60. The economizing problem is one of deciding how to make the best use of:
61. The scarcity problem:
62. The alternative combinations of two goods which a consumer can purchase with a given
money income is shown by:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
63. The budget line shows:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
64. Refer to the budget line shown in the diagram above. If the consumer's money income is
$20, the:
65. Refer to the budget line shown in the diagram above. If the consumer's money income is
$20, which of the following combinations of goods is unattainable?
66. Refer to the budget line shown in the diagram above. The absolute value of the slope of
the budget line is:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
67. In moving along a given budget line:
68. An increase in money income:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
69.
The shift of the budget line from cd to ab in the above figure is consistent with:
70. Any combination of goods lying outside of the budget line:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
71.
Suppose you have a money income of $10, all of which you spend on Coke and popcorn. In
the above diagram, the prices of Coke and popcorn respectively are:
72. Other things equal, an increase in a consumer's money income:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
73. The slope of a budget line reflects the:
74.
Suppose Elroy's budget line is as shown on the above diagram. If his tastes change in favor of
Coke and against popcorn, the budget line will:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
75. Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and
the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that
money income is $60. The absolute value of the slope of the resulting budget line:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
76. Refer to the above graphs. Assume that pizza is measured in slices and beer in pints. In
which of the graphs is the opportunity cost of a pint of beer equal to one slice of pizza?
77. Refer to the above graphs. Assume that pizza is measured in slices and beer in pints. In
which of the graphs is the opportunity cost of a pint of beer the lowest?
78. Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys
lattes and muffins. If the price of a latte is $4 and the price of a muffin is $2, then we can
conclude that Julia:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
79. Camille is at the candy store with her grandmother, who offers to buy her $6 worth of
candy. If lollipops are $1 each, and candy bars are $2 each, what combination of candy can
Camille's grandmother buy for her?
80. Which of the following is a labor resource?
81. Which of the following is a capital resource?
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
82. The four factors of production are:
83. Which of the following is a land resource?
84. Which of the following lists includes only capital resources (and therefore no labor or land
resources)?
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
85. Money is not an economic resource because:
86. Economic resources are also called:
87. Which of the following do economists consider to be capital?
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
88. The main function of the entrepreneur is to:
89. Which of the following is not a main function of the entrepreneur?
90. The process of producing and accumulating capital goods is called:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
91. Which of the following is not considered by economists to be an economic resource?
92. Which of the following would not be classified as an economic resource by economists?
93. The production possibilities curve illustrates the basic principle that:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
94. Which of the following will not produce an outward shift of the production possibilities
curve?
95. Unemployment:
96. If the production possibilities curve is a straight line:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
97. A production possibilities curve illustrates:
98. A production possibilities curve shows:
99. A nation's production possibilities curve is bowed out from the origin because:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
Answer the question on the basis of the data given in the following production possibilities
table:
100. Refer to the above table. If the economy is producing at production alternative C, the
opportunity cost of the tenth unit of consumer goods will be:
101. Refer to the above table. As compared to production alternative D, the choice of
alternative C would:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
102. Refer to the above table. A total output of 3 units of capital goods and 4 units of
consumer goods:
103. Refer to the above table. For this economy to produce a total output of 3 units of capital
goods and 13 units of consumer goods it must:
104. Refer to the above table. For these data the law of increasing opportunity costs is
reflected in the fact that:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
105. When an economy is operating under conditions of full employment, the production of
more of commodity A will mean the production of less of commodity B because:
106. Assume that a change in government policy results in greater production of both
consumer goods and investment goods. We can conclude that:
107. The production possibilities curve:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
108. Any point inside the production possibilities curve indicates:
109. Refer to the above diagram. Other things equal, this economy will achieve the most rapid
rate of growth if:
