ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
When the opportunity cost of producing carrots increases as more carrots are produced then:
A) no more carrots will be produced
B) resources are equally suited to the production of carrots and to other goods
C) the production possibilities curve is a straight line
D) the production possibilities curve becomes positively sloped
E) the law of increasing costs is present
E) the law of increasing costs is present
An efficient economy:
A) uses available resources fully
B) uses the best division of labor
C) produces an output combination at some point along the production possibility curve
D) all of these
D) all of these
Which of the following correctly lists the three fundamental economic questions?
A) If to produce? Why to produce? When to produce?
B) If to produce? What to produce? How to produce?
C) Why to produce? What to produce? How to produce?
D) What to produce? How to produce? For whom to produce?
D) What to produce? How to produce? For whom to produce?
When deciding whether to buy a second car, marginal analysis indicated that the purchaser should
compare the:
A) benefits expected from two cars with the costs of both
B) additional benefits expected from a second car with the cost of the two cars
C) dollar cost of the two cars with the potential income that the cars will generate
D) additional benefits of the second car with the additional cost of the second car
D) additional benefits of the second car with the additional cost of the second car
On a production possibilities curve, the opportunity cost of good X, in terms of good Y, is represented
by the:
A) distance to the curve from the vertical axis
B) distance to the curve from the horizontal axis
C) movement along the curve
D) all of these
C) movement along the curve
, A point outside the production possibilities curve represents a combination of goods that is:
A) inefficient
B) efficient
C) unattainable
D) attainable
C) unattainable
A local restaurant offers and "all you can eat" Sunday brunch for $12. Susan eats four servings, but
leaves half of the fifth uneaten. Why?
A) Her marginal value of a serving of brunch has fallen below $12.
B) her marginal value of a serving has fallen below $2.36 ($12 divided by 5 servings).
C) Her marginal value of food has fallen below zero.
D) The total value she places on brunch today exactly equals $12.
C) Her marginal value of food has fallen below zero.
Which fundamental economic question requires society to choose the technological and resource mix
used to produce goods?
A) The what to produce question
B) The why to produce question
C) The how to produce question
D) The for whom to produce question
C) The how to produce question
A point inside a production possibilities curve reflects:
A) The law of increasing costs.
B) Technological innovation.
C) Less than full use of resources and technology.
D) Economic efficiency.
E) A way to increase future economic growth.
C) Less than full use of resources and technology.
The opportunity cost to a city for using local tax revenues to construct a new park is the:
A) Best alternative to foregone by building the park
B) Dollar cost of constructing the new park
C) Dollar cost of the old park
D) Increased taxes necessary to pay for maintenance of the new park
A) best alternative to foregone by building the park
A demand curve shows the relationship between:
A) price and quantity demanded
B) the demand and supply schedules
C) demand and supply equilibrium
D) leakages and injections
E) price and technology
VERSION, GRADED A+.
When the opportunity cost of producing carrots increases as more carrots are produced then:
A) no more carrots will be produced
B) resources are equally suited to the production of carrots and to other goods
C) the production possibilities curve is a straight line
D) the production possibilities curve becomes positively sloped
E) the law of increasing costs is present
E) the law of increasing costs is present
An efficient economy:
A) uses available resources fully
B) uses the best division of labor
C) produces an output combination at some point along the production possibility curve
D) all of these
D) all of these
Which of the following correctly lists the three fundamental economic questions?
A) If to produce? Why to produce? When to produce?
B) If to produce? What to produce? How to produce?
C) Why to produce? What to produce? How to produce?
D) What to produce? How to produce? For whom to produce?
D) What to produce? How to produce? For whom to produce?
When deciding whether to buy a second car, marginal analysis indicated that the purchaser should
compare the:
A) benefits expected from two cars with the costs of both
B) additional benefits expected from a second car with the cost of the two cars
C) dollar cost of the two cars with the potential income that the cars will generate
D) additional benefits of the second car with the additional cost of the second car
D) additional benefits of the second car with the additional cost of the second car
On a production possibilities curve, the opportunity cost of good X, in terms of good Y, is represented
by the:
A) distance to the curve from the vertical axis
B) distance to the curve from the horizontal axis
C) movement along the curve
D) all of these
C) movement along the curve
, A point outside the production possibilities curve represents a combination of goods that is:
A) inefficient
B) efficient
C) unattainable
D) attainable
C) unattainable
A local restaurant offers and "all you can eat" Sunday brunch for $12. Susan eats four servings, but
leaves half of the fifth uneaten. Why?
A) Her marginal value of a serving of brunch has fallen below $12.
B) her marginal value of a serving has fallen below $2.36 ($12 divided by 5 servings).
C) Her marginal value of food has fallen below zero.
D) The total value she places on brunch today exactly equals $12.
C) Her marginal value of food has fallen below zero.
Which fundamental economic question requires society to choose the technological and resource mix
used to produce goods?
A) The what to produce question
B) The why to produce question
C) The how to produce question
D) The for whom to produce question
C) The how to produce question
A point inside a production possibilities curve reflects:
A) The law of increasing costs.
B) Technological innovation.
C) Less than full use of resources and technology.
D) Economic efficiency.
E) A way to increase future economic growth.
C) Less than full use of resources and technology.
The opportunity cost to a city for using local tax revenues to construct a new park is the:
A) Best alternative to foregone by building the park
B) Dollar cost of constructing the new park
C) Dollar cost of the old park
D) Increased taxes necessary to pay for maintenance of the new park
A) best alternative to foregone by building the park
A demand curve shows the relationship between:
A) price and quantity demanded
B) the demand and supply schedules
C) demand and supply equilibrium
D) leakages and injections
E) price and technology
