Chapter 2

Question 1

Our economy would be operating at full employment with labor employment rate of blank percent in a capacity utilization rate of blank percent.

Answer 1

Five and 85

Question 2

We would not need economize if what happened?

Answer 2

There was no scarcity.

Question 3

Human wants are what?

Answer 3

Relatively unlimited

Question 4

What is our main effect of employment discrimination?

Answer 4

Under employment

Question 5

The following person is not under employed.

Answer 5

The factory worker who has been laid off and is collecting unemployment insurance benefits.

Question 6

If the economy is operating at a 7% unemployment rate we are operating where?

Answer 6

Inside the production possibility curve

Question 7

In order to have full production there must be full employment is this true or false?

Answer 7

True

Question 8

Economic growth can be shown by ………….production possibility curve.

Answer 8

And outward shift of the

Question 9

Whenever economy is generally operating inside the production curve true or false

Answer 9

True

Question 10

It’s just entertainment budget is divided between a dollar movie tickets and $40 hockey tickets. The opportunity cost of Jeff going to an extra hockey game is what?

Answer 10

Five movie ticketing

Question 11

What is the definition of entrepreneurial ship?

Answer 11

The talent to develop new products and processes into organize production to make goods and services available.

Question 12

And existence of unemployment can be illustrated on a production possibilities curve by a what?

Answer 12

A point below or inside the surface of the curve.

Question 13

The production possibilities curve tells us that a full employment exists and a nation wishes to increase its production of military goods it must do what?

Answer 13

Reduce its output of non-military goods

Question 14

If a political candidate promised of voters more funding for AIDS research and childcare and assures them it will not have to sacrifice any other goods or services to obtain the additional programs how would this be possible?

Answer 14

It would only be possible if the economy has unemployed resources.

Question 15

In the 1950s more women were under employed then unemployed true or false.

Answer 15

True

Question 16

Hey nation’s economic Pacitti expands when the size of the labor force expands. T or F

Answer 16

True

Question 17

In the 1300s one third of Europe’s population was killed by the blue Blahnik plague how did this affect the production possibilities curve?

Answer 17

A shift in the entire curve to the left or inward

Question 18

If the unemployment rate is at 5% our economy is operating A. inside the production curb B. on the production curb or C. outside the production curb

Answer 18

B on the production curve

Question 19

Which of the following is not an institutional constraints that limits our nations production possibilities?

Answer 19

Workers that are in between jobs.

Question 20

Which of the statements are true?

Entrepreneurial ability is abundant in the US.

The entrepreneurial sets up the business and risk his or her own money.

Land labor and capital may be considered passive resources.

All are true

Answer 20

All are true

Question 21

Define capital.

Answer 21

Man made goods used to produce other goods or services

Question 22

The opportunity cost of owning a car is what?

Answer 22

The vacation to Hawaii you have given up in order to make your car payment.

Question 23

Is the following statement true or false the Bush aministration was more guilty of employment discrimination in its cabinet than previous administrations.

Answer 23

False