Economics Quiz Answers

1. |Each of the following is an example of an economic resource except | |
|A) |land. |
|B) |money. |
|C) |capital. |
|D) |labor. |

|2. |Human wants are
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|6. |An outward shift in the entire production possibilities frontier |
|A) | represents economic decline. |
|B) | means that previous levels of production are now unobtainable. |
|C) | means that the only way the economy can increase the production of one good is by producing less of an alternative good. |
|D) | represents economic growth. |

|7. |Which of the following will shift an economy's production possibilities curve inward? |
|A) | an improvement in technology |
|B) | an increase in the unemployment rate
|The forces of demand and supply ensure that at equilibrium |
|A) |there are no shortages or surpluses. |
|B) |there are no shortages, but there may be surpluses. |
|C) |there are no surpluses, but there may be shortages. |
|D) |there may be shortages or surpluses. |

|12. |As price rises, quantity demanded |
|A) |rises. |
|B) |falls. |
|C) |remains the same.