To correct for inflation, GDP numbers must be converted using the price level in a given year known as the Answer
Culbert
-quiz_1_economics_405.doc1)To correct for inflation, GDP numbers must be converted using the price level in a given year known as the
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Base year |
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Real year |
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Current year |
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Constant year |
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Inflation year |
2) A production possibilities curve represents all of an economy's combinations for production that are
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Unattainable |
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Possible and Efficient |
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Attainable |
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Inefficient |
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Desirable |
Question 3
Which of the following is a technique used to determine the optimal level of an economic activity?
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Cost/benefit analysis |
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Production possibilities curve analysis |
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GDP analysis |
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Opportunity cost analysis |
Question 4
The bow shape of the production possibilities curve reflects
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The opportunity cost concept |
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The concept of increasing opportunity costs |
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The concept of diminishing marginal returns |
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The marginal social cost/marginal social benefit principle |
Question 5
Real per capita GDP is defined as
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Population/real GDP |
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GDP/population |
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Real GDP/price index |
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Real GDP/population |
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Price index/GDP |
Question 6
Marginal social cost refers to the
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Cost incurred due to an action undertaken by society |
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Total expenditures by society on a good like a public park |
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Cost borne by society when 1 more unit of a good is produced |
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Cost to society of sub-standard production |
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Cost to society when an additional unit of a social good is produced |
Question 7
If population in a country falls while GDP stays the same, the country's
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Real GDP falls |
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Real GDP rises |
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Per capita GDP rises |
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Per capita GDP falls |
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Welfare falls |
Question 8
With private property rights, the decision about how to use resources are made by
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The government |
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Private firms |
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Individual resource owners |
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Resource committees |
Question 9
The know-how and the means and methods of production available in an economy are known as
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Technology |
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Capital |
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Human capital |
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Labor |
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Management |
Question 10
The purpose of a base year when constructing a price index is:
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Showing how the output values rise from year to year |
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Encourage inflation |
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Providing a means to compare the economy's output across different time periods |
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To show why expenditures on government goods and services need to increase |
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Indicate the progress in keeping prices low |
Question 11
Economic reasoning would not be necessary if
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Our wants were limited |
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Resources were expansive |
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Scarcity were decreased |
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We could have everything we wanted |
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Politicians were better at running the economy |
Question 12
The fundamental economic problem involves
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Overpopulation |
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Inflation and unemployment |
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Scarce resources and unlimited wants |
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Cheap foreign labor |
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Supply and demand |
Question 13
Labor resources include
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The equipment workers use to complete their work |
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Only non-management personnel |
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Any efforts of a person to produce goods |
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Only the physical efforts of an economy's people |
Question 14
A country can shift out its production possibilities curve by
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Improving its technology |
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Shifting its production from one good to another |
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Experiencing a population drop |
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Using its farmland more productively |
Question 15
The means for satisfying wants are
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Insatiable |
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Unlimited |
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Infinite |
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Scarce |
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Unavailable |
