question

If the equation y = 15 - 4x was plotted, the: slope would be -4. vertical intercept would be -4. vertical intercept would be +9. vertical intercept would be +4.

answer

slope would be -4.

question

The scarcity problem: persists only because countries have failed to achieve continuous full employment. has been eliminated in affluent societies such as the United States and Canada. persists because economic wants exceed available productive resources. has been solved in all industrialized nations.

answer

persists because economic wants exceed available productive resources.

question

A typical concave (bowed out from the origin) production possibilities curve implies: decreasing opportunity costs. that society is using a market system to allocate resources. that society must choose among various attainable combinations of goods. that economic resources are unlimited.

answer

that society must choose among various attainable combinations of goods.

question

If the production possibilities curve is a straight line: the two products are equally important to consumers. equal quantities of the two products will be produced at each possible point on the curve. economic resources are perfectly substitutable between the production of the two products. the two products will sell at the same market prices.

answer

economic resources are perfectly substitutable between the production of the two products.

question

Slopes of lines are especially important in economics because: they always tell us something about profits. positive slopes are always preferred to negative slopes. they always relate to resource and output scarcity. they measure marginal changes.

answer

they measure marginal changes.

question

(Consider This) An exception to the advice "go to college, stay in college, and earn a degree" occurs when: the economy is growing rapidly and jobs are plentiful. the price of textbooks is high and rising. tuition expenses are high and rising. the opportunity cost of attending college is extraordinarily high.

answer

the opportunity cost of attending college is extraordinarily high.

question

When economists say that people act rationally in their self interest, they mean that individuals: look for and pursue opportunities to increase their utility. are mainly creatures of habit. are usually impulsive and unpredictable. generally disregard the interests of others.

answer

look for and pursue opportunities to increase their utility.

question

In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of: full production. complementary economic goals. money and real capital. scarcity and opportunity costs.

answer

scarcity and opportunity costs.

question

Which of the following would not be classified as an economic resource by economists? water in a town's reservoir money in a business checking account a professional soccer player the manager of the local hamburger restaurant

answer

money in a business checking account

question

The production possibilities curve has:

answer

a negative slope that increases as we move along it from left to right.

question

Through specialization and international trade a nation:

answer

can attain some combination of goods lying outside its production possibilities curve.

question

If an economy is operating inside its production possibilities curve for consumer goods and capital goods, it:

answer

can produce more of both consumer goods and capital goods by using resources that are currently idle.

question

If a positive relationship exists between x and y:

answer

the relationship will graph as an upsloping line.

question

In moving along a given budget line:

answer

the prices of both products and money income are assumed to be constant.

question

Unemployment:

answer

is illustrated by a point inside the production possibilities curve.

question

Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. Some neighbors accept Alex's offer and others refuse. Economists would describe Alex's behavior as:

answer

rational self-interest, because he attempting to increase his own income by identifying and satisfying someone else's wants.

question

Any combination of goods lying outside of the budget line:

answer

is unattainable, given the consumer's income.

question

The point on the production possibilities curve that is most desirable can be found by:

answer

comparing marginal benefits and marginal costs.

question

Macroeconomics can best be described as the:

answer

study of the large aggregates of the economy or the economy as a whole.

question

The optimal allocation of resources is found:

answer

where MB = MC.

question

"Macroeconomics is the part of economics concerned with individual units such as a person, a household, a firm, or an industry." This statement is:

answer

positive, but incorrect.

question

Purposeful behavior suggests that:

answer

individuals may make different choices because of different desired outcomes.

question

Economists contend that most economic decisions are:

answer

purposeful

question

Which of the following is assumed in constructing a typical production possibilities curve?

answer

production technology is fixed.

question

The Latin term "ceteris paribus" means:

answer

other things equal.

question

Other things equal, an increase in a consumer's money income:

answer

shifts her budget line rightward because she can now purchase more of both products.

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