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Econ 201 Macroenomies Quiz, Quizzes of Economics

University of Idaho (U of I)Economics

University of Idaho, Econ 201 quiz

Typology: Quizzes

2024/2025

Uploaded on 05/06/2025

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Econ 201 CHAPTER 2 The Economizing Problem Quiz
Multiple Choice Questions Economizing problem
1. The economizing problem is one of deciding how to make the best use of:
A) virtually unlimited resources to satisfy virtually unlimited wants.
B) limited resources to satisfy virtually unlimited wants.
C) unlimited resources to satisfy limited wants.
D) limited resources to satisfy limited wants.
2. The concept of economic efficiency is primarily concerned with:
A) the limited wants-unlimited resources dilemma.
B) considerations of equity in the distribution of wealth.
C) obtaining the maximum output from available resources.
D) the conservation of irreplaceable natural resources.
3. When the economist says that economic wants are insatiable, this means that:
A) economic resources are valuable only because they can be used to produce consumer goods.
B) economic resources--land, labor, capital, and entrepreneurial ability--are scarce.
C) these wants are virtually unlimited and therefore incapable of complete satisfaction.
D) the structure of consumer demand varies from time to time and from country to country.
4. The fundamental problem of economics is:
A) to establish a democratic political framework for the provision of social goods and services.
B) the establishment of prices that accurately reflect the relative scarcities of products and
resources.
C) the scarcity of productive resources relative to economic wants.
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Econ 201 CHAPTER 2 The Economizing Problem Quiz Multiple Choice Questions Economizing problem

  1. The economizing problem is one of deciding how to make the best use of: A) virtually unlimited resources to satisfy virtually unlimited wants. B) limited resources to satisfy virtually unlimited wants. C) unlimited resources to satisfy limited wants. D) limited resources to satisfy limited wants.
  2. The concept of economic efficiency is primarily concerned with: A) the limited wants-unlimited resources dilemma. B) considerations of equity in the distribution of wealth. C) obtaining the maximum output from available resources. D) the conservation of irreplaceable natural resources.
  3. When the economist says that economic wants are insatiable, this means that: A) economic resources are valuable only because they can be used to produce consumer goods. B) economic resources--land, labor, capital, and entrepreneurial ability--are scarce. C) these wants are virtually unlimited and therefore incapable of complete satisfaction. D) the structure of consumer demand varies from time to time and from country to country.
  4. The fundamental problem of economics is: A) to establish a democratic political framework for the provision of social goods and services. B) the establishment of prices that accurately reflect the relative scarcities of products and resources. C) the scarcity of productive resources relative to economic wants.

D) to achieve a more equitable distribution of money income in order to mitigate poverty.

  1. The science of economics stems from the fact that: A) the production possibilities curve is bowed inward to the origin. B) resources are scarce relative to people's demand for goods and services. C) individuals and institutions behave only in their self-interest. D) historically the production possibilities curve has been shifting toward the origin.
  2. The study of economics exists because: A) government interferes with the efficient allocation of scarce resources. B) resources are scarce in relation to economic wants. C) the market system is an obstacle to the efficient use of plentiful resources to satisfy constrained wants. D) resources are overly abundant as compared to wants; thus, an allocation problem exists.
  3. The scarcity problem: A) persists only because countries have failed to achieve continuous full employment. B) persists because economic wants exceed available productive resources. C) has been solved in all industrialized nations. D) has been eliminated in affluent societies such as the United States and Canada. 8. Because of their scarcity, the efficient use of resources is: A. an important issue in all economies. B. an important issue only in centrally planned economies. C. an important issue only in market economies. D. not an important issue.

B) a negative slope that increases as we move along it from lef to right. C) a negative slope that decreases as we move along it from lef to right. D) a negative slope that is constant as we move along it from lef to right.

  1. Which one of the following statements is correct? A) Relative scarcity is no longer a central idea in economics because we are in an age of abundance. B) Most production possibilities curves are convex to the origin. C) The production possibilities curve shows society's preferences for consumer goods relative to capital goods. D) The central concept underlying the production possibilities curve is that of limited resources.
  2. The production possibilities curve shows: A) the various combinations of two goods that can be produced when society uses its scarce resources efficiently. B) the minimum outputs of two goods that will sustain a society. C) the various combinations of two goods that can be produced when some resources are unemployed. D) the ideal, but unattainable, combinations of two goods that would maximize consumer satisfactions.
  3. The negative slope of the production possibilities curve is a graphical way of indicating that: A) any economy "can have its cake and eat it too." B) to produce more of one product we must do with less of another. C) the principle of increasing opportunity costs applies to only parts of the economy. D) consumers buy more when prices are low than when prices are high.
  4. If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that:

A) it is impossible to produce more consumer goods. B) resources cannot be reallocated between the two goods. C) it is impossible to produce more capital goods. D) more consumer goods can only be produced at the cost of fewer capital goods.

  1. In drawing a production possibilities curve we hold constant: A) the money supply. C) both technology and resource supplies. B) the consumer price index. D) resource supplies only.
  2. The construction of a production possibilities curve assumes: A) the quantities of all resources are unlimited. B) technology is fixed. C) full employment, but not full production, is being realized. D) there is no inflation in the economy.
  3. In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of: A) scarcity and opportunity costs. C) complementary economic goals. B) money and real capital. D) full production.
  4. Which one of the following expressions best states the idea of opportunity cost? A) "A penny saved is a penny earned." C) "There is no such thing as a free lunch."

C. specifies how much of each product society should produce. D. indicates that to produce more of one product society must forgo larger and larger amounts of the other product.

  1. Which of the following is real capital? A) a pair of stockings B) a construction crane C) a savings account D) a share of IBM stock
  2. The main function of the entrepreneur is to: A) make routine pricing decisions. B) innovate. C) purchase capital. D) create market demand. Assuming an economy has fixed quantities of resources, that economy: Multiple Choice ◻ is able to satisfy all consumer wants. ◻ will produce the same output whether or not resources are used efficiently. ◻ is more efficient, the larger the amount of goods and services it produces. ▫ is able to produce the same amount of output regardless of the production technologies it chooses.
  3. In drawing the production possibilities curve we assume that: A) technology is fixed. C) economic resources are unlimited.

B) unemployment exists. D) wants are limited. A

  1. Which of the following is assumed in constructing a typical production possibilities curve? A) the economy is using its resources inefficiently. B) resources are perfectly shiftable among alternative uses. C) production technology is fixed. D) the economy is engaging in international trade. If the production possibilities curve were a straight downsloping line, this would suggest that: A. Resources are perfectly substitutable between the production of these two goods. B. The two products have identical prices. C. Both products are equally capable of satisfying consumer wants. D. It is possible to produce more of both products.
  2. Allocative efficiency is concerned with: A) producing the combination of goods most desired by society. B) achieving the full employment of all available resources. C) producing every good with the least-cost combination of inputs. D) reducing the concavity of the production possibilities curve.
  3. Allocative efficiency involves determining: A) which output-mix will result in the most rapid rate of economic growth. B) which production possibilities curve reflects the lowest opportunity costs. C) the point on the production possibilities curve that will maximize society's satisfaction. D) the optimal rate of technological progress.