Exam I Pink - QUESTIONS 1 - 4 REFER TO THE SHIFTS IN...

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Butter Guns C: A: Butter Guns D: B: Butter Guns Butter Guns ities frontier is not affected by changes in consumer preferences. D A C Guns Butter B France Spain Pounds of “Cheese” Loaves of "Bread" X "Cheese" (Pounds) deoff between inflation and unemployment. lation does not imply causation. Wine per Pound of Cheese and 2 Pounds of Cheese per Bottle of Wine. Wine per Pound of Cheese and 3 Pounds of Cheese per Bottle of Wine. e the other three statements shown here, we cannot test the truth of the statement against facts of experience. QUESTIONS 1 - 4 REFER TO THE SHIFTS IN PRODUCTION POSSIBILITIES SHOWN BELOW: 1. The impact of a decrease in the stock of capital on the production possibilities frontier is best represented by graph: a) A b) B c) C d) D 2. The impact of an economy entering a recession, with rising unemployment of labor, on the production possibilities frontier is best represented by graph: a) A b) B c) C d) D 3. The impact of an increase in the labor force on the production possibilities frontier is best represented by graph: a) A b) B c) C d) D 4. The impact of shift in consumer preferences away from guns to butter on the production possibilities frontier is best represented by graph: a) A b) B c) C d) D 5. Given the production possibilities frontier shown here we can conclude that the opportunity cost in production of Guns is greatest at basket: a) A b) B c) C d) D 6. This economy is experiencing unemployment, or is using its resources inefficiently at basket: a) A b) B c) C d) D 7. The opportunity cost in production of Guns for this society is smallest at basket: a) A b) B c) C d) D 8. The existence of scarcity confronting this society is best represented by basket: a) A b) B c) C d) D
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9. The word “economy” comes from the Greek work oikonomos , which means a) “environment” b) “production” c) “one who manages a household” d) “one who makes decisions” 10. Which of the following words or phrases best captures the notion of equity ? a)
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This test prep was uploaded on 04/07/2008 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue University-West Lafayette.

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Exam I Pink - QUESTIONS 1 - 4 REFER TO THE SHIFTS IN...

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