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    Assignment 1 (PPC)

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    hhsdramalreed
    This document contains a 25 question true/false assignment on principles of microeconomics. The assignment tests students' understanding of concepts like production possibilities curves, opportunity costs, market forces, and the roles of consumers, firms and prices in allocating resources. It provides diagrams to help answer questions about shifts in production possibilities and gains from trade.

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    Assignment 1 (PPC)

    Uploaded by

    hhsdramalreed
    2K views2 pages
    This document contains a 25 question true/false assignment on principles of microeconomics. The assignment tests students' understanding of concepts like production possibilities curves, opportunity costs, market forces, and the roles of consumers, firms and prices in allocating resources. It provides diagrams to help answer questions about shifts in production possibilities and gains from trade.

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    Assignment___1_(PPC)[1]

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    This document contains a 25 question true/false assignment on principles of microeconomics. The assignment tests students' understanding of concepts like production possibilities curves, opportunity costs, market forces, and the roles of consumers, firms and prices in allocating resources. It provides diagrams to help answer questions about shifts in production possibilities and gains from trade.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    2K views2 pages

    Assignment 1 (PPC)

    Uploaded by

    hhsdramalreed
    This document contains a 25 question true/false assignment on principles of microeconomics. The assignment tests students' understanding of concepts like production possibilities curves, opportunity costs, market forces, and the roles of consumers, firms and prices in allocating resources. It provides diagrams to help answer questions about shifts in production possibilities and gains from trade.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Valencia Community College - East Campus

    ECO2023: Principles of Microeconomics


    HW – 3%
    Assignment # 1

    Last Name, First Name: _________________________________________ Date: __________________

    True and False Questions:

    1. Full production means that all available workers have jobs.

    2. The production possibilities curve shows various combinations of two products that an economy
    can produce when achieving full employment and productive efficiency.

    3. The entrepreneur's sole function is to combine other resources (land, labor, and capital) in the
    production of some good or service.

    4. Products and services are scarce because resources are scarce.

    5. An economy cannot produce at a point outside of its production possibilities curve because human
    economic wants are insatiable.

    6. The process by which capital goods are accumulated is known as investment.

    7. The present choice of position on the production possibilities curve will not influence the future
    location of the curve.

    8. Although sleeping in on a work day or school day has an opportunity cost, sleeping late on the
    weekend does not.

    Use the following to answer questions 9-12:

    9. Refer to the above diagram. Given production possibilities curve (a), the combination of civilian
    and war goods indicated by point X is unattainable to this economy.

    10. Refer to the above diagram. Given production possibilities curve (a), point Y indicates that society
    is failing to use available resources efficiently.
    11. Refer to the above diagram. The movement from curve (a) to curve (b) implies an increase in the
    quantity and/or quality of society's productive resources.

    12. Refer to the above diagram. The movement from curve (a) to curve (c) indicates an improvement
    in civilian goods technology but not in war goods technology.

    13. An economy will always operate at some point on its production possibilities curve.

    14. The increasing wealth of the United States has reduced the relevance of economics.

    15. Market economies use capital goods because they improve productive efficiency.

    16. Differences in opportunity costs are the basis for specialized production and trade.

    17. Money functions as a medium of exchange in permitting the ready comparison of the relative
    worth of heterogeneous products.

    18. Consumer sovereignty means that legislation now protects the rights of consumers to dispose of
    their incomes as they see fit.

    19. Programs by state governments to keep milk prices higher than market-determined prices to
    protect family dairy farms from bankruptcy promote the efficient allocation of resources.

    20. Specialization may expand total output even though the individuals involved may have identical
    abilities.

    21. The wants of consumers are expressed on the demand side of the product market.

    22. Costs can be defined as total payments made to workers, land owners, and capital suppliers less
    normal profits.

    23. If firms in any industry fail to earn normal profits, firms will immediately or eventually leave the
    industry.

    24. The guiding function of prices indicates that, at equilibrium prices, neither product surpluses nor
    shortages can occur.

    25. The invisible hand refers to the many indirect controls that the Federal government imposes in a
    the market system.

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