quiz 1

quiz 1 - 1. Which of the following is production at the...

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1. Which of the following is production at the lowest possible cost? Possible Answers A. Central planning B. Equity C. Productive efficiency D. Allocative efficiency 2. Marginal analysis involves: Possible Answers A. doing an activity only if marginal costs are greater than marginal benefits. B. doing an activity only when marginal benefits are positive. C. doing an activity until marginal benefits equal marginal costs. D. doing an activity until marginal costs start declining. 3. The factors of production: Possible Answers A. are required in huge amounts for an economy to thrive. B. are scarce. C. cannot have their quantity increased. D. include labor, natural resources, and money. 4. On a production possibilities frontier, a combination of output that is inside the frontier is: Possible Answers A. allocatively inefficient. B. allocatively efficient. C. productively efficient D. productively inefficient.
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5. Which of the following do economists assume rational people do? Possible Answers A. Respond to economic incentives. B. Use all available information as they act to achieve their goals. C. Weigh the benefits and costs of all possible alternative actions. D. All of the above. 6. If a nation's production possibilities frontier moves outward, this represents: Possible Answers A. an impossible situation. B. rising prices of the two goods on the production possibilities frontier model. C. a change in producing one good in favor of the other. D. economic growth. 7. Which of the following contributed to the downfall of the Soviet Union in 1991? Possible Answers A. An inability to produce low-cost consumer goods that households wanted. B. A lack of high-quality goods and services. C. Public dissatisfaction with low living standards and political repression. D. All of these reasons contributed to the downfall of the Soviet Union. 8.
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Possible Answers A. producing more of one good means less of another good can be produced. B. not everyone can have enough goods to survive. C. some people live better than others do. D. not everyone benefits from the economy. 9. Economic growth represented is on a production possibilities frontier model by the production possibility frontier: Possible Answers A. becoming flatter. B. shifting outward. C. becoming steeper. D. shifting inward. 10. The production possibilities frontier shows: Possible Answers A. the various products that can be produced now and in the future. B. what people want to have produced in a particular time period. C. what an equitable distribution of products among citizens would be. D. attainable combinations of two products that may be produced in a particular time period with available resources.
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This note was uploaded on 04/15/2008 for the course ECO 2023 taught by Professor Sabet during the Spring '08 term at FIU.

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quiz 1 - 1. Which of the following is production at the...

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