Chapter 2_2: The Economic Problem

Thời gian làm bài: 40 phút

Question 1: In the figure above, moving from point d to point a requires

Used for questions from 1 to 3

a. technological change.
b. a decrease in unemployment.
c. both capital accumulation and a decrease in unemployment.
d. decreasing the output of consumer goods in order to boost the output of capital goods.

Question 2: Refer to the production possibilities frontier in the figure above. Suppose a country is at point a. A movement to point ________ means that the country ________.
a. d; must give up 20 million capital goods
b. d; gives up 10 million consumer goods
c. b; is producing at an inefficient point
d. e; is not operating efficiently

Question 3: Refer to the production possibilities frontier in the figure above. If the country moves from point a to point c, the opportunity cost of the move is
a. 10 million capital goods
b. 30 million capital goods.
c. 10 million consumption goods
d. 20 million capital goods.

Question 4: Some time ago the government of China required many highly skilled technicians and scientists to engage in unskilled agricultural labor in order to develop "proper social attitudes." This policy probably caused China to produce
a. at an inappropriate point along its production possibilities frontier.
b. inside its production possibilities frontier.
c. outside its production possibilities frontier with respect to food, but inside with respect to high-technology goods.
d. inside its production possibilities frontier with respect to food, but outside with respect to high-technology goods.

Question 5: Production efficiency is achieved
a. when all goods and services desired by consumers can be produced in the economy.
b. when the ability is gained to produce goods and services that are desired beyond the PPF boundary.
c. when producing inside the production possibilities frontier.
d. when it producing one more unit of one good cannot occur without producing less of some other good.

Question 6: A society that is producing on its production possibilities frontier is
a. fully utilizing all of its productive resources.
b. not being technologically efficient.
c. not utilizing all of its resources.
d. producing too much output.

Question 7: If a country must decrease current consumption to increase the amount of capital goods it produces today, then it
a. must not have private ownership of property and will have to follow planning authorities decisions today and in the future.
b. must be producing along the production possibilities frontier today and will see a shift outward of the frontier in the future if produces more capital goods.
c. must be using resources inefficiently today, but will be more efficient in the future.
d. must be producing outside the production possibilities frontier and will continue to do so in the future.

Question 8: If production of two goods is currently at levels such that we are inside the production possibilities frontier
a. in order to produce more of one good, we must produce less of the other.
b. it is not possible to produce more of both goods.
c. we are in the "unattainable" region.
d. production is inefficient.

Question 9: Using the production possibilities frontier model, unemployment is described as producing at a point
a. on the exact middle of the PPF curve
b. inside the PPF curve.
c. outside the PPF curve
d. on either end of the PPF curve.

Question 10: If a society is operating at a point inside its production possibilities frontier, then this society's
a. resources are being inefficiently utilized.
b. resources are being used in the most efficient manner.
c. production possibilities frontier will shift rightward.
d. economy will grow too fast.

Question 11: Point C on the production possibilities frontier in the above diagram illustrates

Used for questions from 11 to 13 

a. a point with maximum and efficient production of Goods A and Goods B.
b. an underutilization of resources.
c. all goods and services that are desired but cannot be produced due to scarce resources.
d. a combination of goods and services that cannot be produced efficiently.

Question 12: In the above figure, which point represents an unattainable production combination of the two goods?
a. point N
b. point L
c. point C
d. point D

Question 13: In the above figure, which point represents an attainable but inefficient production point?
a. point N
b. point C
c. point D
d. point L

Question 14: A tradeoff is
a. a constraint that requires giving up one thing to get another.
b. represented by a point outside a PPF.
c. a transaction at a price either above or below the equilibrium price.
d. represented by a point inside a PPF.

Question 15: A tradeoff is illustrated by
a. a change in the slope of the PPF
b. a point inside the PPF.
c. the negative slope of the PPF
d. a point outside the PPF.

Question 16: When we choose a particular option, we must give up alternative options. The highest-valued alternative forgone is the
a. opportunity cost of the option chosen.
b. comparative advantage of the option chosen.
c. absolute advantage.
d. nonmonetary cost of the option chosen.

Question 17: Ted can study for his economics exam or go to a concert. He decides to study for his economics exam instead of going to the concert. The concert he will miss is Ted's ________ of studying for the exam.
a. discretionary cost
b. implicit cost
c. opportunity cost
d. explicit cost

Question 18: Most students attending college pay tuition and are unable to hold a full-time job. For these students, tuition is
a. part of the opportunity cost of going to college. So are their forgone earnings from not holding a full-time job.
b. part of the opportunity cost of going to college. Their forgone earnings from not holding a full-time job are not.
c. not part of the opportunity cost of going to college. Neither are their forgone earnings from not holding a full-time job.
d. not part of the opportunity cost of going to college, but their forgone earnings from not holding a full-time job are.

Question 19: Opportunity cost is
a. the monetary cost
b. the highest-valued alternative forgone.
c. the indirect cost
d. the best choice that can be made.

Question 20: On a diagram of a production possibilities frontier, opportunity cost is represented by
a. a point on the horizontal axis.
b. a ray through the origin.
c. a point on the vertical axis.
d. the slope of the production possibilities frontier, which indicates that to get more of one good requires less of another.

Question 21: If additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be
a. bowed outward
b. positively sloped.
c. bowed inward
d. a straight line.

Question 22: If Sam is producing at a point on his production possibilities frontier, then he
a. cannot produce any more of either good.
b. will be unable to gain from trade.
c. is not subject to scarcity.
d. can produce more of one good only by producing less of the other.

Question 23: The table above lists six points on the production possibilities frontier for grain and cars. Given this information, which of the following combinations is unattainable?

Used for questions from 23 to 25

a. 4 tons of grain and 26 cars
b. 2 tons of grain and 27 cars.
c. 6 tons of grain and 18 cars
d. 7 tons of grain and 10 cars.

Question 24: The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces
a. 4 tons of grain and 26 cars
b. 2 tons of grain and 27 cars.
c. 8 tons of grain and 10 cars
d. 6 tons of grain and 18 cars.

Question 25: The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 5th ton of grain?
a. 2 cars
b. 3 cars
c. 16 cars
d. 6 cars

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