Question : 141) Suppose there some unemployment in the economy and society : 1244962

Economics

141) Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

A) It is not possible to achieve this unless technology advances.

B) It can increase output without giving up another good by employing more resources.

C) It will have to increase resource supplies.

D) It will have to give up production and consumption of some other good.

142) If society decides it wants more of one good and ________, then it has to give up some of another good and incur some opportunity costs.

A) technology advances

B) resources are underutilized

C) all resources are fully utilized

D) new resources are discovered

143) According to the production possibility model, if more resources are allocated to the production of physical and human capital, then all of the following are likely to happen except

A) fewer goods will be produced for consumption today.

B) the production possibilities frontier will be shift outward in the future

C) future economic growth is enhanced.

D) the country’s total production will fall.

Figure 2-10

144) Refer to Figure 2-10. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?

A) 16 thousand spoons

B) 12 thousand forks

C) 60 thousand spoons

D) 46 thousand forks

145) Refer to Figure 2-10. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?

A) 20 thousand spoons

B) 26 thousand forks

C) 40 thousand spoons

D) 46 thousand forks

146) Refer to Figure 2-10. If the economy is currently producing at point D, what is the opportunity cost of moving to point B?

A) 16 thousand spoons

B) 46 thousand forks

C) 60 thousand spoons

D) 0 forks

147) Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?

A) 26 thousand forks

B) 20 thousand forks

C) 60 thousand spoons

D) 0 spoons

148) Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?

A) 26 thousand forks

B) 20 thousand forks

C) 16 thousand spoons

D) 0 spoons

149) A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days. This statement suggests that

A) students are more concerned about good grades than good health.

B) society should value sleep more highly than good grades.

C) there is a trade-off between studying and sleep.

D) society should value good grades more highly than sleep because students can catch up on their sleep once final exams are over.

150) Suppose your expenses for this term are as follows: tuition: $5,000, room and board: $3,000, books and other educational supplies: $500. Further, during the term, you can only work part-time and earn $4,000 instead of your full-time salary of $10,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

A) $5,500

B) $8,500

C) $11,500

D) $14,500

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July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.