Economics Quiz

Use the “Strawberries and Submarines II” Figure 3-9. Point F:

• it is unattainable, all other things unchanged.

• is attainable if the quantity and/or quality of factors decreases.

• is attainable if the economy is able to reach full employment.

• is feasible, but not efficient.

Use the “Strawberries and Submarines II” Figure 3-9. Assume that the economy is now operating at point A. It will find the opportunity cost of moving to point C is equal to ________ million tons of strawberries:

• 2

• 200

• 50

• 800

If productivity increases, the cost per unit of production will

• decrease

• increase

• stay the same

• triple

Technological improvements will:

• leave the production possibility curve unchanged.

• shift the production possibility curve inward.

• shift the production possibility curve outward.

• necessarily lead to increased unemployment.

Assembly line production is a great example of

• home craft business

• division of labor

• classroom education

• entrepreneurship

When a society invests in education, it improves its standard of living by improving its

• human capital

• natural resources

• factories

• capital

When a chef creates a dinner plate of food for a customer, which of the following represents the physical capital resource?

• the chef himself/herself

• the oven

• the food ingredients

• the chef's training and experience

If the opportunity costs of production are constant, then the production possibility curve is:

• bowed out from the origin.

• bowed in toward the origin.

• a straight line.

• circular.

You can either spend $100 on a new economics textbook or a new CD player. If you choose to buy the new economics textbook, the opportunity cost is:

• the new CD player.

• the new economics textbook.

• $100.

• impossible to determine.

Which of the following represents an investment in human capital?

• A company invests in new computers for on-the-job use.

• A company hires 100 new employees in all branches of its corporation.

• A company offers free job-related education to employees.

• A company raises wages for all factory workers and office workers.