Econ 102 - Principles of Macroeconomics » Fall 2022 » Circular Flow and PPF Quiz

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
In a market economy, the decision regarding allocation of resources is made by
A.   Committees from a variety of economic interest groups
B.   Automatic forces of supply and demand
C.   Authorities in Washington, D.C.
D.   Central planners
Question #2
Economists define efficiency as
A.   Input minimization
B.   The absence of waste
C.   Output maximization
D.   The presence of surplus
Question #3
The problem of scarcity
A.   Is caused by artificially high prices
B.   Exists because resources are limited relative to wants
C.   Has been "cooked up" by disenchanted anti-capitalists
D.   Is solved by promoting economic growth
Question #4
An economy that wants to experience growth should
A.   Decrease current consumption and reduce production of capital goods
B.   Increase production of capital goods and reduce consumption
C.   Increase production of capital goods and increase consumption
D.   Increase current consumption and reduce producing capital goods
Question #5
The concept of the "invisible hand" led Adam Smith to believe that
A.   Pursuit of self-interest promotes economic well-being for society as a whole
B.   Traditional religion is an appropriate guide for human behavior
C.   Governmental rule actually results in greater good than is apparent at the time
D.   If each person looks out for himself or herself, then chaos will inevitably ensue
Question #6
The central question in economics is how to
A.   Increase human knowledge
B.   Make the best use of scarce resources
C.   Use government agencies
D.   Induce people to want less
Question #7
Because of scarcity, every economic decision involves
A.   A free good
B.   A money payment
C.   A tradeoff or choice
D.   An increasing cost
Question #8
Because resources tend to be specialized, increased production of military goods tends to
A.   Change the slope of the production possibilities frontier (PPF)
B.   Decrease the opportunity cost of more military goods.
C.   Increase the opportunity cost of more non-military goods.
D.   Increase the opportunity cost of more military goods.
Question #9
Specialization in the labor market or Division of Labor, usually refers to splitting
A.   Political leaders into radical and conservative camps each year.
B.   The three coordination decisions among different sets of planners
C.   The production of consumption goods and capital goods among different workers
D.   The parts of a complex task among different workers

Need help with your exam preparation?

Existing Quiz Clients Login here