Chapter 1 Test

* Question 1

0 out of 1 points

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| An economy cannot produce at a point outside of its production possibilities curve because human economic wants are insatiable.Answer | | | |

| Selected Answer: |  True |

Correct Answer: |  False |

Response Feedback: | incorrect

AACSB: Analytic

Blooms: Level 2 Understand

Difficulty: 2 Medium

Learning Objective: 01-05 Apply production possibilities analysis; increasing opportunity costs; and economic growth.

McConnell - Chapter 01 #226

Topic: Production possibilities model |

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* Question 2

1 out of 1 points

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| The process of producing and accumulating capital goods is called:Answer | | | |

| Selected Answer: |   investment. |

Correct Answer: |   investment. |

Response Feedback: | correct

AACSB: Analytic

Blooms: Level 1 Remember

Difficulty: 1 Easy

Learning Objective: 01-04 List the categories of scarce resources and delineate the nature of the economizing problem.

McConnell - Chapter 01 #90

Topic: Societys economizing problem |

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* Question 3

1 out of 1 points

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Refer to the above diagram. Starting at point E, the production of successive units of bread will cost:Answer | | | |

| Selected Answer: |   1/8, 1/6, 1/4, and 1/2 units of tractors. |

Correct Answer: |   1/8, 1/6, 1/4, and 1/2 units of tractors. |

Response Feedback: | correct

AACSB: Reflective Thinking

Blooms: Level 3 Apply

Difficulty: 2 Medium

Learning Objective: 01-05 Apply production possibilities analysis; increasing opportunity costs; and economic growth.

McConnell - Chapter 01 #126

Topic: Production possibilities model

Type: Graph |

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* Question 4

1 out of 1 points

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| Kara was out jogging and despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara:Answer | | | |

| Selected Answer: |   decided that the marginal benefit of running one more mile would...