ECON 1580 Exam Questions with Detailed
Verified and 100% Accurate Solutions
The study of a single firm and how it determines prices would fall under:
Select one:
a.macroeconomics.
b.microeconomics.
c.the study of inflation.
d.normative economics.
b.microeconomics
Each of the following statements about the use of models in the study of economics is true
EXCEPT:
Select one:
a.models fit the observed facts exactly.
b.models are sometimes revised in light of new research findings.
c.models are easier to manipulate than the reality they represent.
d.models contain the essential features of the economic behavior being studied.
a.models fit the observed facts exactly
Suppose you observe that the sun sets every evening after the six o'clock business report. If
you conclude that the six o'clock business report makes the sun set, you are guilty of the
fallacy of:
Select one:
a.division.
,b.composition.
c.false cause.
d.science.
c.false cause
An example of a normative statement is:
Select one:
a.The rate of unemployment is 4 percent.
b.A high rate of economic growth creates more jobs for the country.
c.The federal government spends half of its budget on national defense.
d.Everyone in the country needs to be covered by national health insurance.
d.Everyone in the country needs to be covered by national health insurance
Resources from nature that can be used to to produce other goods and services are called:
Select one:
a.money.
b.natural resources.
c.labor.
d.capital.
b.natural resources
Increasing the level of education in the United States will:
Select one:
a.shift the production possibilities curve to the left.
b.improve the level of technology.
,c.lead to increased natural resource use.
d.lead to workers possessing greater human capital.
d.lead to workers possessing greater human capital
Technology is:
Select one:
a.knowledge that can be applied to the production of goods and services.
b.generally unlimited in modern economies.
c.a graphical illustration of the alternative combinations of goods and services an economy
can produce.
d.the resources the economy has available to produce goods and services.
a.knowledge that can be applied to the production of goods and services
A person who seeks to earn profits by finding ways to organize factors of production is
called a/an:
Select one:
a.foreman
b.finance capitalist.
c.entrepreneur.
d.manager.
c.entrepreneur
In this exhibit (Guns and Butter), the combination of guns and butter at point H:
Select one:
a.can be obtained, but would cost too much.
, b.cannot be attained given the level of technology and the factors of production available.
c.has no meaning since it does not relate to the preferences of consumers.
d.Is attainable but would increase unemployment.
b.cannot be attained given the level of technology and the factors of production available
If the production possibilities curve were a straight line sloping down from left to right, this
would suggest that:
Select one:
a.more of both goods could be produced moving along the curve.
b.the two products must have the same price.
c.no factor of production has any particular comparative advantage over other resources.
d.the utility of the two goods must be equal to consumers.
c.no factor of production has any particular comparative advantage over other resources
When moving along a production possibilities curve, the opportunity cost to society of
getting more of the good on the horizontal axis:
Select one:
a.is constant.
b.is measured in dollar terms.
c.is measured by the amount of the other good that must be given up.
d.usually decreases.
c.is measured by the amount of the other good that must be given up.
Efficient production implies that it is:
Select one:
Verified and 100% Accurate Solutions
The study of a single firm and how it determines prices would fall under:
Select one:
a.macroeconomics.
b.microeconomics.
c.the study of inflation.
d.normative economics.
b.microeconomics
Each of the following statements about the use of models in the study of economics is true
EXCEPT:
Select one:
a.models fit the observed facts exactly.
b.models are sometimes revised in light of new research findings.
c.models are easier to manipulate than the reality they represent.
d.models contain the essential features of the economic behavior being studied.
a.models fit the observed facts exactly
Suppose you observe that the sun sets every evening after the six o'clock business report. If
you conclude that the six o'clock business report makes the sun set, you are guilty of the
fallacy of:
Select one:
a.division.
,b.composition.
c.false cause.
d.science.
c.false cause
An example of a normative statement is:
Select one:
a.The rate of unemployment is 4 percent.
b.A high rate of economic growth creates more jobs for the country.
c.The federal government spends half of its budget on national defense.
d.Everyone in the country needs to be covered by national health insurance.
d.Everyone in the country needs to be covered by national health insurance
Resources from nature that can be used to to produce other goods and services are called:
Select one:
a.money.
b.natural resources.
c.labor.
d.capital.
b.natural resources
Increasing the level of education in the United States will:
Select one:
a.shift the production possibilities curve to the left.
b.improve the level of technology.
,c.lead to increased natural resource use.
d.lead to workers possessing greater human capital.
d.lead to workers possessing greater human capital
Technology is:
Select one:
a.knowledge that can be applied to the production of goods and services.
b.generally unlimited in modern economies.
c.a graphical illustration of the alternative combinations of goods and services an economy
can produce.
d.the resources the economy has available to produce goods and services.
a.knowledge that can be applied to the production of goods and services
A person who seeks to earn profits by finding ways to organize factors of production is
called a/an:
Select one:
a.foreman
b.finance capitalist.
c.entrepreneur.
d.manager.
c.entrepreneur
In this exhibit (Guns and Butter), the combination of guns and butter at point H:
Select one:
a.can be obtained, but would cost too much.
, b.cannot be attained given the level of technology and the factors of production available.
c.has no meaning since it does not relate to the preferences of consumers.
d.Is attainable but would increase unemployment.
b.cannot be attained given the level of technology and the factors of production available
If the production possibilities curve were a straight line sloping down from left to right, this
would suggest that:
Select one:
a.more of both goods could be produced moving along the curve.
b.the two products must have the same price.
c.no factor of production has any particular comparative advantage over other resources.
d.the utility of the two goods must be equal to consumers.
c.no factor of production has any particular comparative advantage over other resources
When moving along a production possibilities curve, the opportunity cost to society of
getting more of the good on the horizontal axis:
Select one:
a.is constant.
b.is measured in dollar terms.
c.is measured by the amount of the other good that must be given up.
d.usually decreases.
c.is measured by the amount of the other good that must be given up.
Efficient production implies that it is:
Select one:
