Three of the four following questions are indicative of the three fundamental economic questions. Leaving out the irrelevant question, rearrange the three relevant questions in the order an economy must answer them.
- How should hybrid cars be produced?
- Should corn be produced in the North or in the South?
- Who drives hybrid cars?
- Should more hybrid cars and fewer SUVs be produced?
A. 1. Should more hybrid cars and fewer SUVs be produced? 2. Should corn be produced in the North or in the South? 3. How should hybrid cars be produced?
B. 1. Who drives hybrid cars? 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South?
C. 1. Should more hybrid cars and fewer SUVs be produced? 2. How should hybrid cars be produced/ 3. Who drives hybrid cars
D. 1. How should hybrid cars be produced 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South?
Answer: C
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On a straight-line production possibilities frontier, which of the following is true?
a. The problem of scarcity does not exist. b. Resources are imperfect substitutes. c. Opportunity costs are constant. d. Technology is rapidly expanding. e. Some resources are not being used efficiently.
The idea of the invisible hand was introduced by
a. Wassily Leontief. b. Adam Smith. c. Thomas Jefferson. d. Mountifort Longfield.
The unemployment rate equals the
A) number of employed persons divided by the number of unemployed persons. B) number of unemployed persons divided by the civilian non-institutional population. C) number of unemployed persons divided by the civilian labor force. D) sum of unemployed persons and discouraged workers divided by the civilian labor force.
Which of the following will cause a shift in the demand curve of labor?
A) an increase or decrease in the productivity of labor B) an increase or decrease in the demand for the product labor produces C) a decline in the price of a complementary input D) all of the above