Chapter 2 and 4 Quiz - Answered

Chapter 2 and 4 Quiz - Answered - Mai 1 Henry Mai ECO 2010...

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Mai 1 Henry Mai ECO 2010 (901) 32765 Chapter 2 & 4 Quiz Multiple Choice (5 pts. Each) Identify the choice that best completes the statement or answers the question. __b__ 1. In the simple circular-flow diagram, the participants in the economy are a. firms and government. b. households and firms. c. households and government. d. households, firms, and government. __c__ 2. In the circular-flow diagram, in the markets for a. goods and services, households and firms are both sellers. b. goods and services, households are buyers and firms are sellers. c. the factors of production, households are buyers and firms are sellers. d. the factors of production, households and firms are both buyers. __a__ 3. In the markets for factors of production in the circular-flow diagram, a. households provide firms with labor, land, and capital. b. households provide firms with savings for investment. c. firms provide households with goods and services. d. firms provide households with profit. __a__ 4. When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good a. increases as more of the good is produced. b. decreases as more of the good is produced. c. does not change as more of the good is produced. d. may increase, decrease, or not change as more of the good is produced. __d__ 5. Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 50 units of food and 30 machines. This year, it is producing 55 units of food and 33 machines. Which of the following events could not explain the increase in output? a. a reduction in unemployment b. an increase in available labor c. an improvement in technology d. Any of these events could explain the increase in output.
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Mai 2 Figure 2-4 brushes A B C D 10 20 30 40 50 60 70 80 tooth- 5 10 15 20 25 30 35 40 45 50 toasters __c__ 6. Refer to Figure 2-4 . If this economy devotes all of its resources to the production of toothbrushes, then it will produce a. 0 toothbrushes and 40 toasters. b. 35 toothbrushes and 20 toasters. c. 70 toothbrushes and 0 toasters. d. 70 toothbrushes and 40 toasters. __a__ 7. Refer to Figure 2-4 . It is possible for this economy to produce a. 40 toothbrushes and 20 toasters.
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Chapter 2 and 4 Quiz - Answered - Mai 1 Henry Mai ECO 2010...

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