Biology Forums - Study Force

The concavity (bowed-out shape) of the production possibilities curve is the result of:
 a. the law of demand.
 b. the law of supply.
 c. the law of increasing opportunity cost.
  d. complementarily in consumption.

Question 2

Which of the following statements is true with regard to the Fed's response to the economic crisis of 2008?
 a. Although the Fed lowered its interest rates to nearly zero, there are other actions it can take to improve the economy.
  b. Because the Fed lowered its interest rates to nearly zero, there are no other actions it can take to improve the economy.
  c. Since the Fed did not lower its interest rates to near zero, there are still other actions it can take to improve the economy.
  d. none of the above

Question 3

In 2005 and 2006, because of fears of inflation, the Fed:
 a. increased interest rates which lead to higher monthly payments on fixed rate mortgages.
 b. increased interest rates which lead to higher monthly payments on adjustable rate mortgages.
  c. decreased interest rates which lead to higher monthly payments on fixed rate mortgages.
  d. decreased interest rates which lead to higher monthly payments on adjustable rate mortgages.

Question 4

Inferior goods are low quality goods that people prefer to buy less of.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 5

If the production possibilities curve is a straight line:
 a. opportunity costs increase as output of either commodity is expanded.
 b. resources are not equally substitutable between the production of the goods.
 c. opportunity costs are negative.
 d. as an increasing quantity of resources are shifted from one manufacturing process (good Y) to another (good X), there is no increase in opportunity cost.

Question 6

It is absolutely necessary for at least one trader to have money for barter exchange to take place.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

Which of the following is true?
 a. In 2007, the default rate on fixed rate mortgages was lower than that on ARMs.
 b. From 2006-2008, housing construction decreased in the U.S.
 c. Zero-down mortgages decreased the incentive for homeowners to prevent defaulting on their homes.
  d. all of the above

Question 8

According to the law of demand, if the price of a netbook decreases, ceteris paribus, the demand for netbooks would increase.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 9

Which of the following is a reason for the law of increasing opportunity cost?
 a. Some goods have limited alternative uses.
 b. Not all resources are equally adaptable to other uses.
 c. Prices of specific final goods increase as more of those goods are produced.
  d. Prices of specific final goods decrease as more of those goods are produced.

Question 10

Excessive unemployment of resources is illustrated using a production possibilities curve by:
 a. an inward shift of the curve.
 b. an outward shift of the curve.
 c. a movement along the curve in a northwest direction.
  d. a point inside the curve.

Question 11

In 2005, the percentages of mortgages that were considered sub-prime:
 a. increased dramatically.
  b. increased minimally.
 c. decreased minimally.
 d. decreased dramatically.

Question 12

An example of barter is voluntary work at an old-age home.
 a. True
  b. False
  Indicate whether the statement is true or false

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