quiz helpful for midterms and final (4)

quiz helpful for midterms and final (4) - Principles of...

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Page 1 Principles of Economics EC 1 UCLA Dr. Bresnock Quiz 1 Choose the best answer to each question and mark it on your answer form. . A ) B ) C ) D ) 2. Which of the following is real capital? A) a pair of stockings B) a construction crane C) a savings account D) a share of IBM stock A ) B ) C ) D ) 1. Suppose that Zualia, which has full employment and full production, can obtain 1 unit of capital goods by sacrificing 2 units of consumer goods domestically, but can obtain 1 unit of capital goods from another country by trading 1 unit of consumer goods for it. This reality illustrates: A) a rightward (outward) shift of the production possibilities curve. B) increasing opportunity costs. C) achieving points beyond the production possibilities curve through international specialization and trade. D) productive efficiency.
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Page 2 Use the following to answer Question 3: Consumer Goods E C A G 0 H B D F C a p i t l g o d s 3. Technological advance that is useful in producing capital goods but not in producing consumer goods is shown by the shift of the production possibilities curve from AB to: A) CD. B) BE. C) AF. D) GH. A ) B ) C ) D ) Use the following to answer Question 4: M r n b e f m c ( ) Marginal Cost Marginal Benefit 0 Quantity of shoes Q 1 Q 2 Q 3
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Page 3 4. Refer to the above diagram for athletic shoes. If the current output of shoes is Q 3 , then: A) resources are being allocated efficiently to the production of shoes. B) society would consider additional units of shoes to be more valuable than alternative products.
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quiz helpful for midterms and final (4) - Principles of...

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