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

Need help with your exam preparation?

Existing Quiz Clients Login here