Macroeconomics Test 1 Multiple Choice Review Exam Questions And Answers Accurately Solved

Which of the following is not a criterion for judging the result of an economic policy? a. Stability b. Employment c. Efficiency d. Equity - correct answer b. employment. Economics is the study of how a. Scarce resources are used to satisfy unlimited wants b. Human choose to use unlimited resources c. Limitless resources are used to satisfy scarce wants d. Society has no choices - correct answer a. Scarce resources are used to satisfy unlimited wants The opportunity cost of choice X can be defined as.. a. The cheapest alternative to choice X b. The most highly valued alternative to choice X c. The price paid to obtain X d. The most highly price alternative to choice X - correct answer b. The most highly valued alternative to choice x Carlo discovers when he studies for his macroeconomics tests at the bar, he earns better grades. He advises all students to study at the bar for similar results. Carlo his guilty of committing a. The fallacy of composition b. Fallacy of post hoc, ergo propter hoc c. Fallacy of correlation and causation d. Ceteris paribus - correct answer a. The fallacy of composition Households are a. Suppliers in the input market b. Demanders in the labor market c. Suppliers in the product markets d. Demanders in the input market - correct answer a. suppliers in the input market The price of Good C increases and as a result, the demand for good D increases. The two goods are a. Complement b. Substitutes c. Normal d. inferior - correct answer a. complement Because the nation N is operating at a point inside its PPF, it a. Has full employment b. Has unemployed or inefficiently employed resources c. Must cut output of one good to increase the production of another d. Will be unable to experience economic growth - correct answer b. Has unemployed or inefficiently employed resources A production possibility frontier diagram illustrates all of the following concepts except a. Scarcity b. Unlimited wants c. Constrained choice d. the marginal rate of transformation - correct answer b. unlimited wants Which of the following is not one of the basic economic equation a. what will be produced b. how will it be produced c. where would it be produced d. for whom will it be produced - correct answer c. where would it be produced Jean &co has an increasing cost production possibility frontier. Its slope must be a. Positive and increasing b. Positive and decreasing c. Negative and increasing d. Negative and decreasing - correct answer c. negative and increasing Each of the following is a basic concern of any economic system except a. The allocation of scarce resources among producers b. The mix of different types of output c. The distribution of output among customers d. The quality of resources allocated among customers - correct answer D.The quality of resources allocated among customers For Jill to have a comparative advantage inn the production of pins means that, relative to Jack, with the same resources a. Jill is relatively better at producing pin than at producing needles b. Jill is relatively better at producing both pins and needles c. Jill can produce fewer needles than Jack can produce d. Jill can produce more pins than jack can produce - correct answer a. Jill is relatively better at producing pin than at producing needles Along a given supply curve for eggs a. Supply increases as price increases b. Supplies increases as technology improves c. Quantity supplied i . increases as price increases d. Quantity supplied increases as technology improves - correct answer C. Quantity supplied increases as price increases Consumers expect their income to rise. For a normal good, this would result in an increase in a. Quantity demanded and a fall in price b. Demand in fall in price c. Quantity demanded in rise in price d. Demand and a rise in price - correct answer d. Demand and a rise in price A rightward shift in the supply of U.S. cars might be due to a. An increase in the price of steel b. A reduction in foreign competition c. The introduction of cost-saving robots d. Increased popularity of foreign cars - correct answer c. The introduction of cost saving robots If the market is in equilibrium, a technological improvement will cause price to------------and quantity demanded to -------------- a. Fall; fall b. Rise; rise c. Fall; rise d. Rise; fall - correct answer c. fall; rise Generic aspirin is an inferior good. As Julie's income decreases we would expect a. a decrease in Julie's demand for generic aspirin b. an increase in Julie's quantity demanded of generic aspirin c. an increase in the Julie's demand for generic aspirin d. a decrease in Julie's quantity demanded of generic aspirin - correct answer c. an increase in the Julie's demand for generic aspirin among a given demand curve for corn, which of the following is not held constant a. the price of corn b. the income of corn farmers c. the income of corn demanders d. the price of wheat - correct answer a. the price of corn the demand curve is best illustrated by a. the price of pepsi rises leading customers to buy more coke b. increase purchases of coke as the price of coke decreases c. an increase in income, which results in reduced purchases of soft drinks d. an increase in income, which results in n increased purchases of coke - correct answer b. increase purchases of coke as the price of coke decreases Union introduced new costly regulations in the tuna market to protect workers. We would expect the equilibrium cost of tuna to---------- and the equilibrium quantity of tuna to-------- a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease; decrease - correct answer b. increase; decrease An undergraduate student pays $ 475 for a three- credit course at Pace University. After the official withdrawal date has elapsed, he drops the course (and cannot get back the $475). At this time, the $ 475 represents a. The benefit of gaining some knowledge from the course partially attended b. An expenditure made on the margin c. A sunk cost