The process through which an economys production

168. The process through which an economy's production possibilities curve shifts outward is:
a. full-employment management. c. resource renewal.
b. investment. d. out-resourcing.
ANS: B PTS: 1 DIF: Easy NAT: BUSPROG: Analytic
STA: DISC: Productivity and growth TOP: Present Investment and the Future Production
KEY: Bloom's: Comprehension
169. The process of accumulating capital is called:
170. In economics, investment refers to the process of accumulating:

171. A nation can accelerate its economic growth by:
TRUE/FALSE
1. What to produce, how to produce, and for who to produce are the three fundamental economic
questions.
ANS: T PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking STA: DISC: Supply and demand
TOP: Three Fundamental Economic Questions KEY: Bloom's: Knowledge
2. Only socialist economies need to answer the What , How , and For Whom questions.
ANS: F PTS: 1 DIF: Easy NAT: BUSPROG: Analytic
STA: DISC: Productivity and growth TOP: Three Fundamental Economic Questions
KEY: Bloom's: Comprehension
3. Opportunity cost is the best alternative sacrificed for a chosen alternative.
ANS: T PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking STA: DISC: Scarcity, tradeoffs, and opportunity cost
TOP: Opportunity Cost KEY: Bloom's: Knowledge
4. When making a rational decision which requires the consideration of costs and benefits involved, the
opportunity cost of a decision is often not taken into consideration when indeed it should be.
ANS: T PTS: 1 DIF: Challenging NAT: BUSPROG: Analytic
STA: DISC: Scarcity, tradeoffs, and opportunity cost TOP: Opportunity Cost
KEY: Bloom's: Analysis
5. An opportunity cost is the highest valued alternative foregone whenever one chooses an alternative.
ANS: T PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: Scarcity, tradeoffs, and opportunity cost TOP: Opportunity Cost
KEY: Bloom's: Knowledge
6. The opportunity cost of producing a good or service is the good or service that is foregone by choosing
to produce another good with the same resources in a given period of time.

ANS: T PTS: 1 DIF: Easy NAT: BUSPROG: Analytic
STA: DISC: Scarcity, tradeoffs, and opportunity cost TOP: Opportunity Cost
KEY: Bloom's: Knowledge
7. The opportunity cost of attending a movie is the purchase price of a ticket.