Economics

What is the production possibility of Good B when you are making 6 of good A?

• 0

• 2

• 6

• 4

What is the most likely reason Good A and Good B have a constant rate of opportunity cost?

• the products are unrelated

• the products are closely related

• the products must be capital and consumer goods

• uhhh.... yeah.

A point inside the curve would best be described as

• just sad

• impossible

• underutilization

• maximum potential loss

The opportunity cost of increasing from producing 0 of Good B to 6 of Good B is...

• 1 of Good A

• 2 of Good A

• 3 of Good A

• 0 of Good A

The graph shows how many new schools and new roads a city could build using all of its factor resources. What does the current production possibilities curve show?

• As the number of schools increases, so

  does the number of roads.

• As the number of schools increases, the

  number of roads decreases.

• As the number of schools decreases, so

  does the number of roads.

• The number of schools has no effect on

  the number of roads.

You bought two CDs with your last $30. What is the opportunity cost?

• the difference between the cost to make

  the CDs and the price you paid

• the $30 that you gave the clerk for the

  CDs

• the movie with your friends that you now

  cannot afford

• the joy of knowing you are the first to

  have these CDs

To improve its standard of living, a nation’s economy must

• remain stable.

• grow through innovation.

• reach economic equity.

• allow the central government to make

  economic decisions.

What is the primary focus of microeconomics?

• A) The study of national economies

• B) The study of individual and business decisions

• C) The study of global trade

• D) The study of government policies

Which of the following is considered a factor of production in economics?

• A) Money

• B) Labor

• C) Technology

• D) Inflation

What does GDP stand for in economics?

• A) Gross Domestic Product

• B) General Domestic Production

• C) Gross Development Plan

• D) General Development Product