Scarcity, Opportunity Cost & Production Possibilities 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!

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Question 1 1. A point that is located inside the production possibility curve is:

Question 2 2. What is a key feature of a market economic system?

Question 3 3. 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?

Question 4 4. What does the production possibilities model show?

Question 5 5. 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?

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Question 6 6. Factors of production include _____.

Question 7 7. Capital involves:

Question 8 8. Which is NOT a Factor of Production?

Question 9 9. Which of the following is NOT part of the Entrepreneurial Spirit?

Question 10 10. Which of the following people has the highest opportunity cost of earning a college degree, if they must give up their present job?

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Question 11 11. 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?

Question 12 12. Outward shifts (to the right) in the production possibilities curve will result in which of the following?

Question 13 13. Which job is considered an intellectual input?

Question 14 14. Economics looks at

Question 15 15. The points graphed along the production possibilities curve demonstrate _____.

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Question 16 16. What is NOT a drawback of a command economic system?

Question 17 17. Which of the following best describes opportunity cost?

Question 18 18. All of the following factors impact an economy's production possibility curve except

Question 19 19. Sally wants to open her own nail salon. Which of the following does she need to start a business?

Question 20 20. Which is TRUE of points located outside of the production possibility curve?

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Question 21 21. The production possibilities curve for two goods is bowed outward because _____.

Question 22 22. 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 23 23. Investments in which of these do more to increase economic growth?

Question 24 24. Provided that other factors remain the same, which of the following would shift an economy's production possibilities curve to the left?

Question 25 25. _____ is our _____, also called the value of the next best production alternative that is not chosen.

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Question 26 26. 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 27 27. In one hour, Sally can complete 4 reports or she can write 8 computer programs. Calculate the opportunity cost for this scenario.

Question 28 28. 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 29 29. _____ means that we do not have enough of a good or service to meet all of the demand.

Question 30 30. 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?

Scarcity, Opportunity Cost & Production Possibilities 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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