Econ 2 Test 1 Questions and Answers 100% Correct

Econ 2 Test 1 Questions and Answers 100% CorrectEcon 2 Test 1 Questions and Answers 100% CorrectEcon 2 Test 1 Questions and Answers 100% CorrectEcon 2 Test 1 Questions and Answers 100% Correct Because resources are scarce society must make decisions about all of the following except: A) What to produce B) Whether scarcity exists or not C) How to produce the selected goods and services D) For whom the goods and services are produced - ANSWER-B With respect to factors of production, which of the following statements is not true? A) Factors of production are also known as resources B) In order to produce anything, it is necessary to have factors of production C) Factors of production include land, labor, capital, and entrepreneurship D) Only those resources that are privately owned are counted as factors of production - ANSWER-D Opportunity cost is: A) Only measure 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 - ANSWER-D Which of the following is an assumption under which the production-possiblities curve is drawn? A) There is significant unemployment B) The supply of resource is fixed C) The price level is changing D) Technology is changing - ANSWER-B Consumption Goods Capital Goods 10 A 0 9 B 1 7 C 2 4 D 3 0 E 4 In Exhibit 1-1, if the nation decides to move from B to C, then: a. the opportunity cost of 2 capital goods is 7 consumption goods b. the opportunity cost 7 consumption goods is 2 capital goods c. the opportunity cost of 1 capital good is 2 consumption goods d. the opportunity cost of 2 consumption goods is 1 capital good - ANSWER-C