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Scarcity, Choice & Production Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Economics is best described as the study of:

Question 2 2. Which is TRUE of points located outside of the production possibility curve?

Question 3 3. Which of the following best describes opportunity cost?

Question 4 4. With the same amount of resources, Country A can produce 25 tons of chicken or 50 tons of wheat. What is Country A's opportunity cost of producing 1 ton of wheat?

Question 5 5. Josie decided to go to college full-time instead of working. Which of the following is the opportunity cost of going to college for Josie?

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Question 6 6. What does the production possibilities model show?

Question 7 7. It takes Joan 1 hour to make a pizza and 2 hours to make a cake. Joan's opportunity cost of making a pizza is which of the following?

Question 8 8. Assume that land can be used either for producing corn or producing beef. The opportunity cost of converting an acre from producing corn to raising cattle for beef is equal to which of the following?

Question 9 9. Because resources are scarce, but wants are not:

Question 10 10. Assume that you have two hours to spend at the mall. You can either visit the bookstore or enjoy a movie at the theater. The opportunity cost of watching a movie is equivalent to which of the following?

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Question 11 11. When a point is on the production possibilities curve and there are no other points specifically on the curve, how can we interpret this point?

Question 12 12. A point that is located inside the production possibility curve is:

Question 13 13. In one hour, Sally can complete 4 reports or she can write 8 computer programs. Calculate the opportunity cost for this scenario.

Question 14 14. Why doesn't the output continue to increase on the production possibilities curve?

Question 15 15. During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

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Question 16 16. Which of the following people has the highest opportunity cost of earning a college degree, if they must give up their present job?

Question 17 17. Investments in which of these do more to increase economic growth?

Question 18 18. Provided that other factors remain the same, which of the following would shift an economy's production possibilities curve to the left?

Question 19 19. Assuming there are only two countries, Country A can produce 10 tons of wheat or 20 tons of rice, while Country B can produce 5 tons of wheat or 15 tons of rice. Which country has the highest opportunity cost for producing 1 ton of rice?

Question 20 20. All of the following factors impact an economy's production possibility curve except

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Question 21 21. The perpetual problem in economics is:

Question 22 22. The production possibilities curve for two goods is bowed outward because _____.

Question 23 23. Scarcity means:

Question 24 24. Economics looks at

Question 25 25. Outward shifts (to the right) in the production possibilities curve will result in which of the following?

Scarcity, Choice & Production Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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