Chapter 2 Multiple Choice Quiz

1		Each of these is an economic resource except
			A)	land.
			B)	labor.
			C)	capital.
			D)	technology.
2		Which statement is false?
			A)	Human wants are insatiable.
			B)	Our resources are limited.
			C)	In the American economy, the entrepreneur is the central figure.
			D)	Entrepreneurs generally are also inventors.
3		Which is the most accurate statement?
			A)	Bill Gates is the ultimate entrepreneur.
			B)	Although entrepreneurial ability is extremely important to our economy, it is not an economic resource.
			C)	Scarcity has been largely eliminated from our economy in recent years.
			D)	The wealth of nations, according to Adam Smith, consists mainly of the value of corporate stocks.
4		Which statement is true?
			A)	We have never attained full employment.
			B)	Employment discrimination has been virtually eliminated from our economy.
			C)	Women probably did a lot better in the job market back in the 1950s than they do today.
			D)	The glass ceiling is the barrier that prevents women from rising to the top of the corporate hierarchy.
5		Which one of these groups suffers the most from underemployment?
			A)	high school graduates
			B)	college graduates
			C)	senior citizens
			D)	the unskilled
6		During World War II we were _____________ our production possibilities curve.
			A)	far inside
			B)	a little inside
			C)	on
			D)	outside
7		Our economy has occasionally attained
			A)	productive efficiency.
			B)	allocative efficiency.
			C)	both productive efficiency and allocative efficiency.
			D)	neither productive efficiency nor allocative efficiency.
8		Which statement is true?
			A)	Economic growth is unattainable without an increase in resources.
			B)	Our economic growth rate would be higher if we devoted more resources to capital goods and fewer resources to consumer goods.
			C)	Our economic growth rate would be higher if we devoted more resources to consumer goods and fewer resources to capital goods.
			D)	Our rate of economic growth slowed markedly in the late 1990s.
9		Which statement is the most accurate?
			A)	The United states has a abundance of the ingredients necessary to have a strong entrepreneurial climate.
			B)	The nation with the most entrepreneurs per capita is Japan.
			C)	Although most American household own computers, American Internet business is lagging behind that of Japan and Western Europe.
			D)	America has always had a shortage of entrepreneurs.
10		The opportunity cost of the federal government's building a new aircraft carrier could be
			A)	raising taxes.
			B)	decreasing the federal budget surplus.
			C)	cutting Medicare benefits.
			D)	creating an arms race with Russia, China, or some other country.
11		Which statement is true?
			A)	Scarcity today has little importance, at least in the American economy.
			B)	To have a higher rate of economic growth we need to devote a higher percentage of our output to both capital goods and consumer goods.
			C)	Most Americans are underemployed.
			D)	A somewhat higher percentage of women in Canada head large corporations than in the United States.
12		The production possibilities frontier of the United States is
			A)	steadily moving outward.
			B)	steadily moving inward.
			C)	basically static.
13		Which would be the most accurate description of the employment status of women and blacks today?
			A)	It is a lot worse than it was 40 years ago.
			B)	It is about the same as it was 40 years ago.
			C)	It has much improved over the last 40 years, but there is still some employment discrimination.
			D)	It is excellent; employment discrimination has been almost entirely eliminated.
14		When we talk about full employment of our resources, we are talking about
			A)	just the unemployment rate.
			B)	just the capacity utilization rate.
			C)	both the unemployment rate and the capacity utilization rate.
			D)	neither the unemployment rate nor the capacity utilization rate.