©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Kristyn Brown ACC Final Exam Study
Guide Questions and Answers 100%
Solved
Economic theory predicts that people make choices in a manner that -
✔✔makes them better off
The rationality assumption states that - ✔✔people do not intentionally make
decisions that would leave them worse off.
Economists assume that people are motivated by - ✔✔self-interest.
Which of the following is a positive statement? - ✔✔When tax revenues are
less than government spending there is a budget deficit.
Which of the following statements concerning the distinction between
positive and normative economics is true? - ✔✔Positive statements are
concerned with what is, while normative statements are concerned with
what someone thinks should be.
,©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Which of the following is an example of a normative economic statement? -
✔✔Income tax rates should be lower because that will increase
government revenue.
The value of a model is determined by - ✔✔the usefulness of its predictions
in the real world.
Assumptions are necessary to - ✔✔define a set of circumstances where a
model is most likely to apply.
The use of data in economic models is important because - ✔✔the model's
predictive value rests on supportive evidence from real-world data.
Oil found in Alaska is an example of - ✔✔land or natural resource.
Scarcity - ✔✔exists in all human societies.
A tractor used to prepare land for planting is called - ✔✔physical capital
Refer to the above figure. Which of the following statements is true? - ✔✔In
Panel A, equal amounts of Y must be given up to obtain equal increments
of X while in Panel B increasingly greater amounts of Y must be given up to
obtain equal increments of X.
Economic growth is shown by - ✔✔an outward shift of the production
possibilities curve.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
When a society takes increasing amounts of resources and applies them to
the production of a specific good, resulting in increasing opportunity costs
for each additional unit produced, which of the following applies? - ✔✔the
law of increasing additional costs
Efficiency is achieved - ✔✔when producers are getting the maximum
possible output from the available resources.
The concept of opportunity cost exists because - ✔✔of scarcity.
Comparative advantage is always a(n) ________ concept. - ✔✔relative
In the above figure, the combination of personal computers and televisions
shown by point w (a point inside the production possibilities curve) - ✔✔is
attainable but involves the inefficient use of some of society's resources
An important factor in determining a country's rate of economic growth is -
✔✔its rate of saving.
The making and selling of a pencil for ten cents would likely NOT be
possible, but for - ✔✔the division of labor.
If a CEO can type faster than the secretary - ✔✔the CEO should still
continue performing CEO duties since he has a comparative advantage in
management, and the secretary should continue typing.
Kristyn Brown ACC Final Exam Study
Guide Questions and Answers 100%
Solved
Economic theory predicts that people make choices in a manner that -
✔✔makes them better off
The rationality assumption states that - ✔✔people do not intentionally make
decisions that would leave them worse off.
Economists assume that people are motivated by - ✔✔self-interest.
Which of the following is a positive statement? - ✔✔When tax revenues are
less than government spending there is a budget deficit.
Which of the following statements concerning the distinction between
positive and normative economics is true? - ✔✔Positive statements are
concerned with what is, while normative statements are concerned with
what someone thinks should be.
,©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Which of the following is an example of a normative economic statement? -
✔✔Income tax rates should be lower because that will increase
government revenue.
The value of a model is determined by - ✔✔the usefulness of its predictions
in the real world.
Assumptions are necessary to - ✔✔define a set of circumstances where a
model is most likely to apply.
The use of data in economic models is important because - ✔✔the model's
predictive value rests on supportive evidence from real-world data.
Oil found in Alaska is an example of - ✔✔land or natural resource.
Scarcity - ✔✔exists in all human societies.
A tractor used to prepare land for planting is called - ✔✔physical capital
Refer to the above figure. Which of the following statements is true? - ✔✔In
Panel A, equal amounts of Y must be given up to obtain equal increments
of X while in Panel B increasingly greater amounts of Y must be given up to
obtain equal increments of X.
Economic growth is shown by - ✔✔an outward shift of the production
possibilities curve.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
When a society takes increasing amounts of resources and applies them to
the production of a specific good, resulting in increasing opportunity costs
for each additional unit produced, which of the following applies? - ✔✔the
law of increasing additional costs
Efficiency is achieved - ✔✔when producers are getting the maximum
possible output from the available resources.
The concept of opportunity cost exists because - ✔✔of scarcity.
Comparative advantage is always a(n) ________ concept. - ✔✔relative
In the above figure, the combination of personal computers and televisions
shown by point w (a point inside the production possibilities curve) - ✔✔is
attainable but involves the inefficient use of some of society's resources
An important factor in determining a country's rate of economic growth is -
✔✔its rate of saving.
The making and selling of a pencil for ten cents would likely NOT be
possible, but for - ✔✔the division of labor.
If a CEO can type faster than the secretary - ✔✔the CEO should still
continue performing CEO duties since he has a comparative advantage in
management, and the secretary should continue typing.
