micro quizz5 - In microeconomics the term capital is used a...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
In microeconomics, the term capital is used: a. to refer to the amount of money a firm has to work with b. to describe research that is really impressive c. to describe the top of a column on the US Treasury building d. to refer, most typically, to real, physical, tangible assets that are used in the production process, including machinery, equipment, and buildings e. to describe where the US congress meets In microeconomics, what is the usual meaning of the word investment? a. saving your money and using it to buy stocks and bonds b. purchasing new physical capital to aid in the production process c. learning new skills in order to add to your stock of human capital d. when your new chapter of a club is recognized by the national association Attendance at quiz sections for this course is: a. not required b. optional c. encouraged d. as mandatory as we can make it In microeconomics, energy inputs would typically be classed among which of the following resources for production? a. land b. labor c. capital d. none of the above What is the difference between goods and services? a. the service is usually not very good b. goods are larger than services c. goods are commodities, while services are not d. goods are tangible commodities, while services are intangible commodities The opportunity cost of something is: a. what you have to give up by not putting the resources necessary to acquire it to their next best alternative use b. the sum of all of the other things you could have bought with the money c. the price you paid for it d. the price your parents paid for it When the resources available to devote to two competing uses are homogenous (identical across all units), then the opportunity frontier (consumption or production opportunities, as appropriate) is: a. a straight line b. bowed outward
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
c. bowed inward d. a right angle Combinations of goods and services that lie outside the boundary of the production possibility frontier are unattainable because: a. the majority of the citizens of our fictional two-dimensional country are too poor to afford all these things. b. given the technology of the country, and its current endowment of all factors of production, no combination of these factors will allow the country to produce a combination of goods and services in those quantities c. a nice war might allow the country to push its boundaries out far enough so that the populace could take possession of foreign goods and services d. the citizens of the country do not wish to use their scarce resources to produce these combinations of goods and services On an outwardly bowed production possibility frontier, the opportunity cost of an additional unit of the good on the horizontal axis changes systematically as a country tries to produce more and more of that good. The opportunity cost: a. increases as you move out to the right (and down along the PPF) b. decreases as you move out to the right (and down along the PPF) c. first increases and then decreases as you move out to the right
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/23/2011 for the course SUMICRO Micro2011 taught by Professor Huyduong during the Summer '11 term at American InterContinental University Illinois.

Page1 / 18

micro quizz5 - In microeconomics the term capital is used a...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online