Practice Assignment History Worksheets printable pdf download

Practice Assignment #1

Do not answer questions on this sheet. Staple all sheets.

I. Multiple Choice (10 points -1 point apiece) Answer the following multiple choice

questions.

1) Scarcity exists in the short run because:

a. at a given point in time technological growth increases at a constant rate.

b. at a given point in time the quantity and quality of resources and the state of technology are fixed.

c. resources are usually employed inefficiently.

d. the world's resources are in finite supply.

2) If a nation is currently operating at a point on its production possibilities curve, in order to increase

production of one good, the production of other goods must be:

a. held constant.

b. increased.

c. decreased.

d. none of the above.

3) If a nation is currently operating at a point inside its production possibilities curve, it:

a. has full employment.

b. has unemployment and/or inefficiently employed resources.

c. is operating at full potential.

d. must reduce the output of one good in order to produce more of another good.

4) Production efficiency is achieved:

a. if resources are reallocated among the production of goods and services and the output of one good can

be increased without decreasing the output of other goods.

b. if there is no waste in the production process.

c. if resources are reallocated among the production of goods and services and the output of one good can

be increased only by reducing the output of other goods.

d. at a point within the production possibilities curve.

5) If nation A commits a larger share of its resources to capital and technological improvements than

nation B, then over time ______ will realize ______ outward shifts in its production possibilities curve.

a. nation B/larger.

b. nation A/smaller

c. nations A and B/ the same.

d. nation B/smaller.

6) The sacrifice or opportunity cost associated with an individual's consumption of an additional good:

a. is the reduction in other goods consumed when the individual does not spend all of her income.

b. is the increase in other goods consumed when unused income is spent.

c. is the reduction in other goods consumed when an individual has no additional income.

d. None of the above.

Practice Assignment History Worksheets