Question 36
a production possibilities graph can show the effects of industrialization on the environment.

true

false

question 37
land, labor, and capital are three factors of production.

true

false

question 38
any intersection of points inside the line (to the left of the line) on a production possibilities graph shows that the economy is growing.

true

false

question 39
if a business chooses to make one product over another there is always a trade-off involved because resources are limited.

true

false

question 40
competition ensures that consumers will be able to purchase products at the lowest possible price.

true

false

question 41
in centrally planned economies, the people own most of the factors of production.

true

false

question 42
in a circular flow of money of a mixed economy, the government puts money into the economy by purchasing goods and services that are needed to run the government and society.

true

false

question 43
in a free market economy, producers take the money they earn from selling products and use it to buy the things they want and need.

true

false

question 44
when there is a shortage, producers raise the price of the good so that demand will be lowered.

true

false

question 45
medicare is one redistribution program.

true

false

question 46
the u. s. treasury conducts check clearing services for all banks in the country.

true

false

question 47
expansionary polices involve increasing spending and cutting taxes.

true

false

question 48
when a market is in equilibrium, the quantity demanded and the quantity supplied is equal.

true

false

question 49
when the quantity demanded for a good is elastic, it means the demand for the product is not influenced by price changes.

true

false

question 50
some corporations sell shares of stock to the public.

true

false

question 51
the structural approach is used to calculate gross domestic product.

true

false

question 52
unemployment has no effect on the economy.

true

false

question 53
unemployment rates nearest zero are not desirable in the economy.

true

false

question 54
nominal gdp is calculated using unchanging prices.

true

false

question 55
unemployment can force the economy into an expansion.

true

false