Macroeconomics Study Guide Essay

2239 Words Dec 21st, 2013 9 Pages
Q1) Which of the following is a correct pair of a resource and its opportunity cost?
a) land and interest
b) capital and rent
c) labor and wages
d) services and rent

Q2) Joe could be at three different jobs that pay $15, $10, and $8 respectively. If he is not working, the opportunity cost is...
a) $15.
b) $10.
c) $8.
d) $33.

Q3) Apples, oranges, and peaches are the same price. In descending order, Joe’s favorite fruits are apples, oranges, and peaches. If Joe buys an apple, the opportunity cost for him is a(n)...
a) apple.

b) orange.

c) peach. d) oranges and peaches.

Q4) Joe is spending $500 to take an economics class. If he wasn’t in class, he could be earning $900 at a part-time job. What is the opportunity
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d) none of them.

Q16) In Figure 2, the shaded area inside the curve represents...
a) unemployment.

b) an unattainable combination of goods.
c) the maximum use of resources.

d) none of the above.

Q17) In Figure 2, point ‘B’ is known as...
a) attainable.

b) unattainable.

c) an efficient use of resources.
d) economic growth.

Q18) In Figure 2, it is _______ for an economy to be at point A.
a) impossible and inefficient.
b) impossible but efficient.
c) possible and efficient.

d) possible but inefficient.

Q19) In Figure 2, it is _______ for an economy to be at point B.
a) impossible.

b) possible and efficient.
c) possible but inefficient.
d) none of the above.

Q20) Figure 3 demonstrates the opportunity cost concept. Which of the following is true?
a) If President Johnson wanted more guns, he would have needed to increase production of butter.
b) If President Johnson wanted more guns, he would have needed to decrease production of butter.
c) If President Johnson wanted more butter, he would have needed to increase production of guns.
d) Both a and c

Q21) In Figure 4 below, if the U.S. is at X and wants to be at Y, then there needs to be a shift of the PPC...
a) to the left.
b) to the right.
c) down.

d) both a and c

Q22) Which of the following would shift the PPC curve to the right?
a) technology

b) an increase in resources

c) an increase in population (for countries such as Canada)
d) all of the above…

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