E1S08Solution - 1. Economics is the study of: a. how to...

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1. Economics is the study of: a. how to start a business b. how to make money in stocks, bonds, and real estate c. choice under conditions of abundance *d. choice under conditions of scarcity e. multinational business 2. The three main categories of resources are: a. labor, money, and capital b. capital, land, and raw materials c. raw materials, money, and labor *d. land, capital, and labor e. human capital, physical capital, and labor 3. The term physical capital , as used by economists, refers to: a. money b. the physical space in which production occurs c. the time allocated to producing goods and services d. financial securities such as stocks and bonds *e. factories and equipment used to produce goods and services 4. Microeconomics is the branch of economics that concerns: a. the overall view of the economy *b. the behavior of individual households, firms, and governments c. the overall level of trade between nations d. local governments only e. the general level of output 5. "Senior citizens deserve an income that will allow them to live in comfort for their remaining years." This is: a. neither a normative nor a positive statement b. both a positive and a normative statement c. strictly a macroeconomic issue d. a positive statement *e. a normative statement 6. What an economic decision maker must give up when choosing one economic activity over others is known as the _____ cost: a. alternative b. decision c. foregone *d. opportunity e. economic cost 7. If the economy is producing a combination of goods inside its production possibilities curve, then a. workers are working overtime b. a significant number of workers have little education *c. some resources are being unused d. technology must improve before output can increase e. the opportunity cost of producing more output is greater than the value of the additional output that could be produced
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8. In economics, knowledge is represented by: a. capital b. labor c. inputs d. resources *e. technology Use the following production possibilities curve for beef and wheat for questions 9 through 11. 9. Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. Production at point H is: *a. unattainable given currently available technology and resources b. attainable by more fully employing already available resources c. attainable by using better technology which is already available d. attainable if beef production drops to zero e. attainable if all available resources are used to produce wheat
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This note was uploaded on 04/17/2008 for the course ECO 201 taught by Professor Mikeadkins during the Spring '08 term at KCTCS.

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E1S08Solution - 1. Economics is the study of: a. how to...

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