(1.) Which of the following best defines Budget Constraint?

Select one:

a.A scarcity of natural resources

b.Government taxation of one's income.

c.The outer boundary of the opportunity set

d.A shortage in one's personal spending power

(2.)This is a small category that refers to the goods that have been produced by one business but have not yet been sold to consumers.

Select one:

a.Inventories

b.Durable Goods

c.Nondurable Goods

d.Structures

(3.)What are the three ways societies have found to organize and economy?

(i) Traditional economy

(ii) Command economy

(iii) Market economy

(iv) Private enterprise

Select one:

a.(i) only

b.(ii) and (iii)

c.(iv) only

d.(i), (ii), and (iii)

(4.)The Bureau of Economic Analysis measuresthis, which is a price index that includes all the components of GDP.

Select one:

a.Consumer Price Index

b.Core Inflation Index

c.GDP Deflator

d.Employment Cost Index

(5.)Identify which type of unemployment is described in the following scenario:

Shelly's husband received a new job in a new state. Shelly has yet to find a new job in her new home town but is currently applying for positions for which she qualifies.

Select one:

a.Frictional Unemployment

b.Structural Unemployment

c.Natural Unemployment

d.Cyclical Unemployment

(6.)This is calculated by government statisticians at the U.S. Bureau of Labor Statistics based on the prices in a fixed basket of goods and services that represents the purchases of the average family of four.

Select one:

a.Consumer Price Index (CPI)

b.Gross Domestic Product (GDP)

c.Gross National Product (GNP)

d.Production Possibilities Frontier (PPF)

(7.)If a country's exports are larger than its imports, then a country is said to have a:

Select one:

a.Trade Balance

b.Trade Surplus

c.Trade Deficit

d.Trade Embargo

(8.)This statement describes the world as it is.

Select one:

a.False

b.Positive

c.Normative

d.Opportunity Set