8) 8) C D . G Food F H 0 Clothing Refer to the provided graph. Which of the following movements would indicate a reduction in unemployment and an increase in capacity utilization? A) from point C to point D B) from point D to point G. C) from point E to point D. D) from point F to point H. 9) Which of the following guides sensible decisions regarding the management of business 9) risk in a market system? A) taxes and subsidies B) the profit and loss system C) consumer sovereignty D) the "invisible hand" 10) An economic system in which money is not used as a medium of exchange is a 10) A) barter economy. B) mixed economy. C) planned economy. D) market economy. 1 1) In what type of business do the owners bear no personal financial responsibility for the 11) company's debts and obligations? A) sole proprietorships B) in all of the businesses listed in the other answers C) partnerships D) corporations w4) 4) Answer the question on the basis of the data given in the following production possibilities table. Production Possibilities (Alternatives) D E 0 A IN Capital Goods 12 14 15 Consumer Goods Refer to the table. For this economy to produce a total output of 3 units of capital goods and 13 units of consumer goods, it must A) allocate its available resources most efficiently among alternative uses. B) achieve the full employment of available resources. C) expand its resources or improve its technology. D) use its resources more efficiently than the data in the table now indicate. 5 ) 5) The concept of opportunity cost A) suggests that the use of resources in any particular line of production means that alternative outputs must be forgone. B) is irrelevant in socialistic economies because of central planning. C) suggests that insatiable wants can be fulfilled. D) is irrelevant if the production possibilities curve is shifting to the right. 6) A typical concave (bowed out from the origin) production possibilities curve implies 6) A) that economic resources are unlimited. B) that society is using a market system to allocate resources. C) that society must choose among various attainable combinations of goods. D) decreasing opportunity costs. 7) The opportunity cost of doing or getting something is defined as 7) A) the money spent in doing or getting something. B) the value of the best alternative that is given up in order to do or get something. C) the difference between the marginal cost and benefit of doing something. D) the materials used in doing or getting something