Unit I Macro Quiz

Question 1

Which of the following will not produce an outward shift of the production possibilities curve?

Accepted Answer

reduction of unemployment

Question 2

The term "other things equal" means that

Accepted Answer

a number of relevant variables are held constant

Question 3

If a consumer is highly responsive to a price change of a product then that product is

Accepted Answer

elastic

Question 4

Economics may best be defined as the

Accepted Answer

study of how to efficiently use scarce resources

Question 5

Which of the following will cause an outward shift of the PPC

Accepted Answer

increase in capital equipment

Question 6

If X is a normal good, an increase in the money income with shift the

Accepted Answer

demand curve for x to the right

Question 7

The value of the next highest valued alternative or foregone cost

Accepted Answer

opportunity cost

Question 8

changes in resources prices will cause the following curve to shift

Accepted Answer

supply

Question 9

The inward shift of the PPC curve could be caused by:

Accepted Answer

a decrease in the number of workers

Question 10

DVD players and DVDs are considered

Accepted Answer

complementary goods

Question 11

Central Planned economy where the government controls everything

Accepted Answer

command

Question 12

A bowed out or concave PPC represents what type of opportunity cost?

Accepted Answer

increasing

Question 13

When Quantity demanded is not very responsive to a price change it is most likely

Accepted Answer

inelastic

Question 14

Which of the following is a macroeconomic statement?

Accepted Answer

gross profits of all U.S business decline nationally

Question 15

List in order the correct payment associated with Land, Labor, Capital, & Entrepreneurship

Accepted Answer

rent, wages, interest, profit

Question 16

if there are many substitutes then consumers most likely consider the product to be

Accepted Answer

elastic

Question 17

Changes in consumer tastes and preferences will shift?

Accepted Answer

Demand

Question 18

An economic statement that is a fact... basically describing the way it is

Accepted Answer

Positive

Question 19

changes in the number of consumers will shift

Accepted Answer

demand

Question 20

Any point inside the PPC indicates

Accepted Answer

the more resources could be utilized

Question 21

change in the price of substitute and complimentary goods will shift the following curve

Accepted Answer

demand

Question 22

As the price of a product rises, consumers shift their purchases to other similar products

Accepted Answer

substitution effect

Question 23

a nation's GDP is determined by

Accepted Answer

summing up the C +I +G+ Xn

Question 24

An economic statement that is concerned with the way things ought to be.

Accepted Answer

Normative

Question 25

An equal increase in demand and supply will:

Accepted Answer

leave price unchanged & increase quantity

Question 26

Emphasizes the presence of private property and the law of S & D to determine prices

Accepted Answer

market

Question 27

Choose the option that is not a reason why the demand curve is downward sloping

Accepted Answer

Allocative effect

Question 28

For economists, the word "utility" means

Accepted Answer

enjoyment & satisfaction

Question 29

Which of the following is considered an inferior good?

Accepted Answer

used clothing

Question 30

If X in an inferior good, an increase in money income will shift

Accepted Answer

demand curve for X to the left

Question 31

If the price of a product goes up and the total revenue goes up then we know the product is

Accepted Answer

inelastic

Question 32

A change in price on the supply curve will change?

Accepted Answer

quantity supplied

Question 33

Which of the following are considered transfer payments

Accepted Answer

social security and welfare payments

Question 34

An increase in the Supply curve while the Demand curve stays constant will cause

Accepted Answer

the price to decrease and the quantity to increase

Question 35

List the four factors of production

Accepted Answer

land, labor, capital, ehtrepreneurship

Question 36

Firms buy resources from Households in this Market

Accepted Answer

Factor

Question 37

The demand curve shows the relationship between

Accepted Answer

price and quantity demanded

Question 38

type of efficiency that uses least costly producing techniques

Accepted Answer

productively

Question 39

Microeconomics is concerned with

Accepted Answer

individual firms and industries

Question 40

Goods that are necessities are typically considered what type of elasticity?

Accepted Answer

inelastic

Question 41

type of efficiency where the resources used to produce G& S are desired by society

Accepted Answer

allocative

Question 42

the destruction of the midwestern power grid will do what to the PPC

Accepted Answer

decrease

Question 43

Houses holds buy goods and services from firms in the market

Accepted Answer

Product

Question 44

changes in taxes and subsidies will shift

Accepted Answer

supply

Question 45

The supply curve shows the relationship between

Accepted Answer

price and quantity supplied

Question 46

Faster computers and better technology will do what to the PPC

Accepted Answer

increase

Question 47

you should decide to go bowling if:

Accepted Answer

if the marginal benefit is greater than the marginal cost

Question 48

A linear or straight lined PPC represents this type of opportunity cost

Accepted Answer

constant

Question 49

A change of price on the demand curve will cause?

Accepted Answer

quantity demanded to change

Question 50

Equipment, machinery, factory

Accepted Answer

capital

Unit I Macro Quiz

Questions 50

Unit I Macro Quiz

Questions 50