Question 1

Roads and bridges are examples of social infrastructurE.

Accepted Answer

Roads and bridges are examples of social infrastructure, which refers to the physical and organizational structures and facilities needed for the functioning of a society, such as transportation, communication, healthcare, education, and public services.

Question 2

Income inequality is a problem faced by the developed countries,as well as the developing countries,of the worlD.

Accepted Answer

Income inequality is a global issue affecting countries worldwide, regardless of their level of development. It is a major concern for policymakers, economists and social scientists.

Question 3

Technological development goes hand in hand with advancing educational levels and capital accumulation.

Accepted Answer

Technological development often requires a skilled workforce and significant investment, both of which are facilitated by higher education levels and capital accumulation. Therefore, these factors are usually linked and support each other.

Question 4

In developing countries,reductions in the death rate usually lag behind reductions in the birth ratE.

Accepted Answer

In developing countries, reductions in the death rate typically precede reductions in the birth rate, as improvements in healthcare and living conditions first lead to lower mortality rates.

Question 5

The fact that resources are rarely perfectly substitutable gives the production possibilities curve its bow shapE.

Accepted Answer

The production possibilities curve is shaped like a bow because resources are usually not perfectly substitutable, meaning that the opportunity cost of producing one good instead of another increases as more of that good is produced. This leads to diminishing marginal returns, which causes the curve to bow outward.

Question 6

Technology refers to the known means and methods available for combining resources to produce goods and services.

Accepted Answer

The answer of Technology refers to the known means and...

Question 7

The available data on various countries of the world show that there is an inverse relationship between population densities and per capita GDP.

Accepted Answer

The statement is not necessarily true. While some countries with high population densities may have lower per capita GDP, there are also countries with high population densities and high per capita GDP (such as Singapore and Hong Kong). Similarly, there are countries with low population densities and low per capita GDP (such as many African countries). The relationship between population density and per capita GDP is complex and multifaceted.

Question 8

A broad-based education is generally ineffective in improving the quality of a country's labor forcE.

Accepted Answer

A broad-based education can provide individuals with a wide range of skills and knowledge, which can make them more adaptable and able to learn new skills in the workforce. This can ultimately lead to a more skilled and versatile labor force, which can improve the quality of work produced in a country.

Question 9

Population growth appears to be the major problem of less developed countries.

Accepted Answer

The answer of Population growth appears to be the major...

Question 10

If a movement along the production possibilities curve yields greater benefits to society than costs,the movement will increase social well-being.

Accepted Answer

This statement is true. When a movement along the production possibilities curve (PPC) results in producing more of one good or service, there is an opportunity cost—the production of the other good or service that must be foregone. However, if the benefits of producing the additional quantity of the good or service that was chosen outweigh the costs of the foregone good or service, then society's overall well-being will increase. This is because society is getting more value (utility) from the additional output than it is giving up from the foregone output.

Question 11

An improvement in education leads to an outward shift in the production possibilities curvE.

Accepted Answer

Improvements in education can lead to an increase in human capital, which can lead to more skilled and productive workers. This increase in productivity can lead to an outward shift in the production possibilities curve, allowing for the production of more goods and services.

Question 12

The major function of the Federal Reserve Bank is to provide low interest loans to LDCs.

Accepted Answer

The major function of the Federal Reserve Bank is to regulate the supply of money and credit in the economy, oversee and regulate financial institutions, and maintain the stability of the financial system. While the Federal Reserve may provide loans to banks and other financial institutions in times of liquidity crises, it does not provide loans to LDCs (least developed countries) or any other entities outside the US financial system.

Question 13

The term capital as used by an economist

Accepted Answer

The answer of The term capital as used by an...

Question 14

When a private firm builds a new plant in an LDC,the country's social infrastructure is increaseD.

Accepted Answer

Building a new plant primarily increases physical infrastructure and economic capacity, not directly social infrastructure, which involves schools, hospitals, and social services.

Question 15

For economic development to occur in less-developed countries,it is important that their governments establish an economic climate in which education is stressed and capital accumulation is encourageD.

Accepted Answer

Education is crucial for developing human capital, which can lead to increased productivity and innovation in the economy. Additionally, encouraging capital accumulation can provide the resources needed for investment in infrastructure, technology, and other areas that can stimulate economic growth. Together, these factors can help create a favorable economic climate for development in less-developed countries.

Question 16

Without increasing opportunity costs,a production possibilities curve will be a straight linE.

Accepted Answer

When opportunity costs remain constant, the production possibilities curve will be a straight line. This means that the ratio of producing one good to another remains the same, and there is no trade-off between the two goods.

Question 17

The marginal social cost of a movement along a production possibilities curve is the same as the opportunity cost of the movE.

Accepted Answer

The marginal social cost of producing one more unit of a good is the cost to society of producing that unit, including any external costs. The opportunity cost of producing one more unit of a good is the amount of the other good that must be given up. When moving along a production possibilities curve, producing more of one good requires giving up some amount of the other good. Therefore, the marginal social cost of the movement is the same as the opportunity cost of the movement.

Question 18

Labor resources consist of all efforts of mind and muscle that are available for use in production processes.

Accepted Answer

This statement is true. Labor resources are the human input or effort involved in producing goods and services, and can include both physical and mental work.

Question 19

Mineral deposits found in the ground are not considered true resources.

Accepted Answer

Mineral deposits found in the ground can be extracted and used for various purposes, such as fuel and construction materials, and are therefore considered true resources.

Question 20

A significant problem faced by developing countries is the tendency for their relatively well-educated citizens to leave their homes to work and live in the developed world where compensation for their skills is high.

Accepted Answer

Brain drain, or human capital flight, is a common issue faced by many developing countries. Well-educated individuals may seek better economic opportunities and living conditions in the developed world, leading to a loss of valuable talent and skills in their home country.

Quiz 1: Alleviating Human Misery: The Role of Economic Reasoning