Quiz on Chapter 14 of Contemporary Economics

What is the role of the production possibilities frontier in economics?

• To analyze economic growth

• To predict stock market trends

• To set interest rates

• To evaluate consumer preferences

What is the main theme of the learning objectives in this chapter?

• Economic policies and regulations

• The PPF, economic growth, and productivity

• International trade and tariffs

• Consumer behavior and preferences

Which term describes the efficiency with which goods and services are produced?

• Labor productivity

• Capital deepening

• Productivity

• Rules of the game

What is the term for the output per worker or per hour worked?

• Human capital

• Labor productivity

• Physical capital

• Standard of living

What is the term for the economic concept that involves improving the quality of labor through education and training?

• Capital deepening

• Human capital

• Productivity

• Rules of the game

What term is used to describe the increase in capital per worker?

• Capital deepening

• Human capital

• Productivity

• Rules of the game

What does a point on the PPF curve represent?

• Unattainable production

• Inefficient production

• Efficient production

• Economic decline

What does a shift from point A to B on the PPF indicate?

• Economic decline

• Economic growth

• Economic stagnation

• Economic recession

What does productivity compare?

• Total output to a specific measure of input

• Total input to a specific measure of output

• Labor hours to total output

• Total cost to total revenue

What does physical capital include?

• Skills and experience

• Machines and buildings

• Financial investments

• Natural landscapes