Practice First Exam Spring 2010

Practice First Exam Spring 2010 - Practice First Exam...

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Practice First Exam Spring 2010 Student: ___________________________________________________________________________ 1. In economics, scarcity means that: A. A shortage of a particular good will cause the price to fall. B. A production-possibilities curve cannot accurately represent the tradeoff between two goods. C. Society's desires exceed the want-satisfying capability of the resources available to satisfy those desires. D. The market mechanism has failed. 2. Given that resources are scarce: 3. Opportunity cost is: A. Only measured in dollars and cents. B. The dollar cost to society of producing the goods. C. The difficulty associated with using one good in place of another. D. The alternative that must be given up in order to get something else. 4. Which of the following is an assumption under which the production-possibilities curve is drawn? 5. A point on a nation's production-possibilities curve represents:
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6. The production-possibilities curve illustrates: A. The limitations that exist because of scarce resources. B. That there is no limit to what an economy can produce. C. That there is no limit to the level of output. D. The existence of unlimited wants and resources. 7. When an economy is producing efficiently it is: 8. In terms of the production-possibilities curve, inefficiency is represented by:
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