The Ideal Quiz On The Economizing Problem

25 Questions | By Ecofanics | Updated: Mar 18, 2022 | Attempts: 576

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There are unlimited demands and not enough resources to meet these demands, is what leads to the economizing problem. Take this true and false review questions for McConnell and Brue 15th ed and see how much of the chapter you understood. All the best and keep an eye out for more quizzes.

Questions and Answers

1.

The conflict between the scarce economic wants of society and its limited resources gives rise to the economizing problem.
- A.
  
  True
- B.
  
  False
2.

The wants with which economics is concerned include only those wants that can be satisfied by goods and services.
- A.
  
  True
- B.
  
  False
3.

Money is a resource called capital.
- A.
  
  True
- B.
  
  False
4.

From the economist's perspective, investment refers to the production and purchase of capitals goods.
- A.
  
  True
- B.
  
  False
5.

The payment to entrepreneurial ability is interest income.
- A.
  
  True
- B.
  
  False
6.

Resources are scarce because society's material wants are unlimited and productive resources are limited.
- A.
  
  True
- B.
  
  False
7.

Economic efficiency requires that there be both full employment of resources and full production.
- A.
  
  True
- B.
  
  False
8.

Allocative efficiency means that goods and services are being produced by society in the least costly way.
- A.
  
  True
- B.
  
  False
9.

Only allocative efficiency is necessary for there to be full production.
- A.
  
  True
- B.
  
  False
10.

The opportunity cost of producing antipollution devices is the other goods and services the economy is unable to produce because it has decided to produce these devices.
- A.
  
  True
- B.
  
  False
11.

The opportunity cost of producing a good tends to be increase as more of it is produced because resources less suitable to its production must be employed.
- A.
  
  True
- B.
  
  False
12.

Drawing a production possibilities curve concave to the origin is the geometric way of stating the law of increasing opportunity costs.
- A.
  
  True
- B.
  
  False
13.

Economic rationale for the law of increasing opportunity costs is that economic resources are fully adaptable to alternative uses.
- A.
  
  True
- B.
  
  False
14.

Allocative efficiency is determined by assessing the marginal costs and benefits of the output from the allocation of resources to production.
- A.
  
  True
- B.
  
  False
15.

The marginal-cost curve for a product rises because of increasing satisfaction from the consumption of the product.
- A.
  
  True
- B.
  
  False
16.

Given full employment and full production, it is not possible for an economy capable of producing just two goods to increase its production of both at any one point in time.
- A.
  
  True
- B.
  
  False
17.

Economic growth means an increase in the production of goods and services, and is shown by a movement of the PPC outward and to the right.
- A.
  
  True
- B.
  
  False
18.

The more capital goods an economy produces today, the greater will be the total output of all goods it can produce in the future, all things being equal.
- A.
  
  True
- B.
  
  False
19.

International specialization and trade permit an economy to overcome the limits imposed by domestic production possibilities and have the same effect on the economy as having more or better resources.
- A.
  
  True
- B.
  
  False
20.

The elimination of widespread discrimination based on race, ethnicity, or religion in an economy would move it from a point inside the PPC toward a point on its curve.
- A.
  
  True
- B.
  
  False
21.

Pure capitalism is called laissez-faire capitalism.
- A.
  
  True
- B.
  
  False
22.

A command economy is characterized by the private ownership of resources and the use of markets and prices to coordinate and direct economic activity.
- A.
  
  True
- B.
  
  False
23.

Russia and most nations in Eastern Europe have been transforming their economies from a command to market system since the demise of the former Soviet Union.
- A.
  
  True
- B.
  
  False
24.

In the circular flow model, households function on the buying side of the resource and product markets.
- A.
  
  True
- B.
  
  False
25.

In the circular flow model, there is a real flow f economic resources and finished goods and services and a money flow of income and consumption expenditures.
- A.
  
  True
- B.
  
  False