ECON MIDTERM UPDATED ACTUAL Questions and CORRECT Answers
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Course
ECON
Institution
ECON
ECON MIDTERM UPDATED ACTUAL
Questions and CORRECT Answers
Opportunity Costs is defined as - CORRECT ANSWER- the value of the next best
alternative that is forgone when an activity is pursued
The fundamental difference between a market economy and a command economy -
CORRECT ANSWER- property ...
ECON MIDTERM UPDATED ACTUAL
Questions and CORRECT Answers
Opportunity Costs is defined as - CORRECT ANSWER✔✔- the value of the next best
alternative that is forgone when an activity is pursued
The fundamental difference between a market economy and a command economy -
CORRECT ANSWER✔✔- property rights and protection of private property
The graph above shows an economies production possibilities frontier for the production of
two goods, X and Y. Assume that the economy is currently at point B. The opportunity cost of
moving from point B to point C is - CORRECT ANSWER✔✔- HG units of good Y
Economic growth can be depicted using a production possibilities curve by - CORRECT
ANSWER✔✔- a rightward shift of the curve
Which of the following would cause the production possibilites curve shown above to shift
outward - CORRECT ANSWER✔✔- developing a more efficient steelmaking process
Suppose two countries are each capable of individually producing two given commodities.
Instead, each specializes by producing the commodity for which it has a comparative
advantage and trades with the other country. WHich of the following is most likely to result?
- CORRECT ANSWER✔✔- Both countries will become better off
WHich of the following relationships is illustrated by a short run phillips curve - CORRECT
ANSWER✔✔- a decrease in the rate of inflation is accompanied by an increase in the rate of
unemployment
An increase in which of the following is most likely to cause an improvement in the standard
of living over time? - CORRECT ANSWER✔✔- productivity of labor
The circular flow of economic activity between consumer and producers includes... -
CORRECT ANSWER✔✔- households sell factor services to firms
, households buy outputs from firms
productivity is most closely related to - CORRECT ANSWER✔✔- efficiency
the following headline appears in the business section of the newspaper: "software firm aims
marketing campaign at teenagers." which of the following basic economic questions does this
article address? - CORRECT ANSWER✔✔- for whom to produce?
what is the difference between a durable and nondurable good - CORRECT ANSWER✔✔- a
durable good lasts longer than three years while a nondurable good lasts less than three years
which of the following is exclusive to capitalistic ideology? - CORRECT ANSWER✔✔- the
private ownership of the factors of production
Which of the following best describes human capital? - CORRECT ANSWER✔✔- the
training and education of workers
which of the following is a microeconomic statement? - CORRECT ANSWER✔✔- the price
of wheat declined 20% in 2005
if the PPC is a straight line, it implies that - CORRECT ANSWER✔✔- economic resources
are perfectly shiftable between two products' production
even though newspapers are relatively inexpensive, people rarely buy more than one of them
each day. This fact - CORRECT ANSWER✔✔- implies that, for most people, the marginal
benefit of reading another newspaper is less than the marginal cost
which statement best describes allocative efficiency? - CORRECT ANSWER✔✔- making
the right stuff
Laissez-faire is a concept that specifically favors - CORRECT ANSWER✔✔- a very limited
role of government in business
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