question
Which of the following is NOT listed in the book as a reason to study economics?
*to learn a way of thinking
*to understand society and global affairs
*to examine the debate about the role of government
*to learn how to make lots of money
*to learn a way of thinking
*to understand society and global affairs
*to examine the debate about the role of government
*to learn how to make lots of money
answer
*to learn how to make lots of money
question
The opportunity cost of investment in capital is forgone present consumption because...
*capital takes a long time to produce.
*capital increases the productivity of labor.
*resources are scarce.
*capital is an intangible good.
*capital takes a long time to produce.
*capital increases the productivity of labor.
*resources are scarce.
*capital is an intangible good.
answer
*resources are scarce.
question
At a political rally, you stand up to see better. Everyone else stands up, as well. This is an example of...
*ceteris paribus.
*the post hoc, ergo prompter hoc fallacy.
*the fallacy of composition.
*Ockham's razor.
*ceteris paribus.
*the post hoc, ergo prompter hoc fallacy.
*the fallacy of composition.
*Ockham's razor.
answer
*the fallacy of composition.
question
Refer to Figure 2.2. Microland is currently operating at Point B. You correctly deduce that...
*in Microland all resources are fully employed and there are no production inefficiencies.
*Microland has achieved a position of inefficiency.
*Microland has recently experienced some type of technological breakthrough.
*Microland has overcome the problem of scarcity.
*in Microland all resources are fully employed and there are no production inefficiencies.
*Microland has achieved a position of inefficiency.
*Microland has recently experienced some type of technological breakthrough.
*Microland has overcome the problem of scarcity.
answer
*in Microland all resources are fully employed and there are no production inefficiencies.
question
If the slope of a straight line is 4 and if X (the variable on the horizontal axis) increases by 12, then Y (the variable on the vertical axis) will...
*decrease by 3.
*decrease by 0.33.
*increase by 3.
*increase by 48.
*decrease by 3.
*decrease by 0.33.
*increase by 3.
*increase by 48.
answer
*increase by 48.
question
Better insurance benefits increase the incentive of some individuals to work. This statement is best described as a...
* positive statement.
*Marxist ideology.
*normative statement.
*descriptive economics statement.
* positive statement.
*Marxist ideology.
*normative statement.
*descriptive economics statement.
answer
* positive statement.
question
Refer to Figure 1.4. Which of the curves or lines has a slope that is first positive and then negative?
answer
B
question
Refer to Figure 1.5. In many industries, as firms produce additional units, average costs of production decline as the firm produces an additional unit, but average costs declines by a smaller and smaller amount as production continues to increase. If output is graphed on the horizontal axis and average costs are graphed on the vertical axis, the relationship between average costs and output would be like which of the following panels?
answer
NOT B
question
An entrepreneur is a person who does all of the following EXCEPT
*assumes the risk of a firm.
*organizes and manages a firm.
*turns a new idea or product into a business.
*always makes a profit.
*assumes the risk of a firm.
*organizes and manages a firm.
*turns a new idea or product into a business.
*always makes a profit.
answer
*always makes a profit.
question
The production possibility frontier is a graph that shows...
*all the combinations of goods and services that are consumed over time if all of society's resources are used efficiently.
*the amount of goods and services consumed at various average price levels.
*the rate at which an economy's output will grow over time if all resources are used efficiently.
*all the combinations of goods and services that can be produced if all of society's resources are used efficiently.
*all the combinations of goods and services that are consumed over time if all of society's resources are used efficiently.
*the amount of goods and services consumed at various average price levels.
*the rate at which an economy's output will grow over time if all resources are used efficiently.
*all the combinations of goods and services that can be produced if all of society's resources are used efficiently.
answer
all the combinations of goods and services that can be produced if all of society's resources are used efficiently.
question
A change in economic output is potentially efficient...
if the value of the resulting gains exceeds the value of the resulting losses.
if the value of the resulting gains exactly equals the value of the resulting losses.
only if no one is made worse off.
if the value of the resulting gains is less than the value of the resulting losses.
if the value of the resulting gains exceeds the value of the resulting losses.
if the value of the resulting gains exactly equals the value of the resulting losses.
only if no one is made worse off.
if the value of the resulting gains is less than the value of the resulting losses.
answer
if the value of the resulting gains exceeds the value of the resulting losses.
question
The process by which resources are transformed into useful forms is...
capitalization.
consumption.
production.
allocation.
capitalization.
consumption.
production.
allocation.
answer
Consumption
question
The marginal rate of transformation is the...
slope of the production possibility frontier.
dollar value of the best forgone alternative.
process of using resources to produce new capital.
transformation of resources into a form that is useful to people.
slope of the production possibility frontier.
dollar value of the best forgone alternative.
process of using resources to produce new capital.
transformation of resources into a form that is useful to people.
answer
slope of the production possibility frontier.
question
Refer to Scenario 1.1. The process of collecting data on minimum wage and teenage unemployment levels is an example of...
law and economics.
economic history.
econometrics.
descriptive economics.
law and economics.
economic history.
econometrics.
descriptive economics.
answer
descriptive economics.
question
The economic assumption of rational choice is based on the expectation that individuals:
Use economics to make choices.
Make choices and decisions in pursuit of self-interest.
All have the same preferences.
Do not understand that resources are scarce.
Use economics to make choices.
Make choices and decisions in pursuit of self-interest.
All have the same preferences.
Do not understand that resources are scarce.
answer
Make choices and decisions in pursuit of self-interest.
question
Refer to Scenario 1.1. The statement that a 1% increase in the minimum wage causes a 0.2% increase in teenage unemployment is an example of...
descriptive economics.
normative economics.
positive economics.
Marxist economics.
descriptive economics.
normative economics.
positive economics.
Marxist economics.
answer
positive economics.
question
Health insurance should be provided to every citizen in a wealthy nation such as the United States. This statement is best described as...
a positive statement.
a normative statement.
a descriptive economics statement.
an implication of an efficient market.
a positive statement.
a normative statement.
a descriptive economics statement.
an implication of an efficient market.
answer
a normative statement.
question
Whenever the Democrats gain control of the Congress, spending on social programs increases; whenever Republicans gain control of the Congress, spending on defense increases. Hence, we know what the next party in control will do. This statement is an example of...
fallacy of inductive reasoning.
post hoc, ergo prompter hoc fallacy.
fallacy of composition.
ceteris paribus fallacy.
fallacy of inductive reasoning.
post hoc, ergo prompter hoc fallacy.
fallacy of composition.
ceteris paribus fallacy.
answer
post hoc, ergo prompter hoc fallacy.
question
There is a possibility that a national sales tax will be implemented. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over...
economic growth.
economic stability.
efficiency.
equity.
economic growth.
economic stability.
efficiency.
equity.
answer
equity.
question
The slope of a horizontal line is...
negative.
zero.
continually changing.
infinite.
negative.
zero.
continually changing.
infinite.
answer
zero
question
You know that the computer lab at school gets very crowded at about 3:00 p.m. To avoid the crowds, you start going to the computer lab one hour earlier every day. However many students make the same decision, and now the computer lab becomes very crowded at 2:00 p.m. This is an example of the...
post hoc, ergo prompter hoc fallacy.
ceteris paribus fallacy.
fallacy of division.
fallacy of composition.
post hoc, ergo prompter hoc fallacy.
ceteris paribus fallacy.
fallacy of division.
fallacy of composition.
answer
fallacy of composition.
question
Refer to Figure 1.5. Which of the curves has a slope that is positive and decreasing?
answer
Panel B
(origin arching over to top right)
(origin arching over to top right)
question
According to Figure 2.4, a decrease in unemployment may be represented by the movement from...
B to A.
B to D.
C to D.
A to C.
B to A.
B to D.
C to D.
A to C.
answer
NOT A to C
NOT B to D
NOT B to D
question
The economic problem can best be stated as...
How can the economy improve technology so as to shift the production possibility frontier up and to the right?
Given scarce resources, how exactly do societies go about deciding what to produce, how to produce it, and for whom to produce?
Given the fact that the economy is inefficient, how much and what type of government intervention should be used to improve the efficiency of the economy?
What is the best rate of economic growth for a society?
How can the economy improve technology so as to shift the production possibility frontier up and to the right?
Given scarce resources, how exactly do societies go about deciding what to produce, how to produce it, and for whom to produce?
Given the fact that the economy is inefficient, how much and what type of government intervention should be used to improve the efficiency of the economy?
What is the best rate of economic growth for a society?
answer
Given scarce resources, how exactly do societies go about deciding what to produce, how to produce it, and for whom to produce?
question
If your tuition is $25,000 this semester, your books cost $1,500, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $7,500 this semester, then your opportunity cost of attending college this semester is...
$26,500.
$26,800.
$31,000.
$38,500.
$26,500.
$26,800.
$31,000.
$38,500.
answer
$31,000.
question
An efficient market is a market...
in which everyone always gets what they want.
in which profit opportunities are eliminated almost instantaneously.
in which profits are always very high and persistent.
in which opportunity costs are zero.
in which everyone always gets what they want.
in which profit opportunities are eliminated almost instantaneously.
in which profits are always very high and persistent.
in which opportunity costs are zero.
answer
in which profit opportunities are eliminated almost instantaneously.
question
Firms are organizations that...
take advantage of the public.
transform resources into products.
transform outputs into inputs.
consumer outputs.
take advantage of the public.
transform resources into products.
transform outputs into inputs.
consumer outputs.
answer
transform resources into products.
question
Refer to Figure 2.1. Macroland's production possibility frontier is bowed out from the origin due to...
decreasing opportunity costs.
trade.
unemployment.
specialized resources.
decreasing opportunity costs.
trade.
unemployment.
specialized resources.
answer
specialized resources.
question
An improvement in technology will cause the...
production possibility frontier to shift outward.
production possibility frontier to shift inward.
economy to move down the production possibility frontier.
economy to move closer to its production possibility frontier.
production possibility frontier to shift outward.
production possibility frontier to shift inward.
economy to move down the production possibility frontier.
economy to move closer to its production possibility frontier.
answer
production possibility frontier to shift outward
question
In competitive markets :
Consumers are price takers but firms are not.
Firms are price takers but consumers are not.
Consumers and firms are price takers.
Neither consumers nor firms are price takers.
Consumers are price takers but firms are not.
Firms are price takers but consumers are not.
Consumers and firms are price takers.
Neither consumers nor firms are price takers.
answer
Consumers and firms are price takers.
question
Refer to Figure 1.1. There is ________ relationship between the daily temperature and the number of gallons of ice cream purchased.
a negative
a positive
either a negative or a positive
an inverse
a negative
a positive
either a negative or a positive
an inverse
answer
a positive
question
Refer to Figure 1.4. Which of the following curves or lines has a zero slope throughout?
A
B
C
D
A
B
C
D
answer
Panel C
(horizontal line)
(horizontal line)
question
The fallacy of composition is...
the belief that if Event A happens before Event B happens, then Event A causes Event B to occur.
the belief that what is true for the whole is necessarily true of the parts.
the belief that what is true for a part is necessarily true for the whole.
the belief that it is impossible to draw generalizations about cause and effect.
the belief that if Event A happens before Event B happens, then Event A causes Event B to occur.
the belief that what is true for the whole is necessarily true of the parts.
the belief that what is true for a part is necessarily true for the whole.
the belief that it is impossible to draw generalizations about cause and effect.
answer
the belief that what is true for a part is necessarily true for the whole
question
Which of the following is the best definition of economics?
the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
the study of how consumers spend their income
the study of how business firms decide what inputs to hire and what outputs to produce
the study of how the federal government allocates tax dollars
the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
the study of how consumers spend their income
the study of how business firms decide what inputs to hire and what outputs to produce
the study of how the federal government allocates tax dollars
answer
the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
question
Which of the following is an example of a positive statement?
There should be no unemployment in an advanced industrial society.
Higher prices cause consumers to purchase less.
Consumption should be distributed fairly in society.
People should pollute as little as possible.
There should be no unemployment in an advanced industrial society.
Higher prices cause consumers to purchase less.
Consumption should be distributed fairly in society.
People should pollute as little as possible.
answer
Higher prices cause consumers to purchase less.
question
When two people trade...
both of them expect to be made worse off by the exchange.
they are trying to help out each other.
they know one of them will get the better of the other.
they both expect to be made better off by the exchange
both of them expect to be made worse off by the exchange.
they are trying to help out each other.
they know one of them will get the better of the other.
they both expect to be made better off by the exchange
answer
they both expect to be made better off by the exchange
question
Refer to Figure 2.6. If the economy is at ppf1, a change in consumer preferences would be shown by a...
shift from ppf2 to ppf1.
movement along ppf1.
movement along ppf2.
shift from ppf1 to ppf2.
shift from ppf2 to ppf1.
movement along ppf1.
movement along ppf2.
shift from ppf1 to ppf2.
answer
movement along ppf1.
question
To isolate the impact of one single factor, economists invoke the assumption of...
inductive reasoning.
Ockham's razor.
ceteris paribus.
post hoc, ergo prompter hoc.
inductive reasoning.
Ockham's razor.
ceteris paribus.
post hoc, ergo prompter hoc.
answer
ceteris paribus.
question
The reason that opportunity costs arise is that...
an economy relies on money to facilitate exchange of goods and services.
resources are scarce.
there are no alternative decisions that could be made.
people have limited wants.
an economy relies on money to facilitate exchange of goods and services.
resources are scarce.
there are no alternative decisions that could be made.
people have limited wants.
answer
resources are scarce.
question
In economics, investment always refers to...
the act of buying stocks or bonds.
the creation of capital.
increasing the quantity of labor.
an increase in per capita output.
the act of buying stocks or bonds.
the creation of capital.
increasing the quantity of labor.
an increase in per capita output.
answer
the creation of capital.
question
If you can buy 9 DVDs for $126 or you could buy 10 DVDs for $130, then the marginal cost of the tenth DVD is:
$4.
$13.
$14.
$130.
$4.
$13.
$14.
$130.
answer
$4
question
According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars,
decreases.
increases.
remains constant.
initially increases, then decreases.
decreases.
increases.
remains constant.
initially increases, then decreases.
answer
remains constant
NOT decreases
NOT decreases
question
The gap between rich and poor countries...
has decreased over time because poor countries can more easily devote resources to capital production.
has increased over time because poor countries find it difficult to devote resources to capital production.
has remained constant over time because technological advances can be easily shared among nations.
has remained constant over time because the rate of capital production has remained constant in rich and poor nations.
has decreased over time because poor countries can more easily devote resources to capital production.
has increased over time because poor countries find it difficult to devote resources to capital production.
has remained constant over time because technological advances can be easily shared among nations.
has remained constant over time because the rate of capital production has remained constant in rich and poor nations.
answer
has increased over time because poor countries find it difficult to devote resources to capital production.
question
The slope of a vertical line is
zero.
infinite.
continually changing.
negative.
zero.
infinite.
continually changing.
negative.
answer
infinite
question
An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is...
efficient, as it is on the production possibility frontier.
inefficient, as the combination of goods and services produced is not what people want.
efficient, as the economy is producing goods at the lowest possible cost.
inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed.
efficient, as it is on the production possibility frontier.
inefficient, as the combination of goods and services produced is not what people want.
efficient, as the economy is producing goods at the lowest possible cost.
inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed.
answer
inefficient, as the combination of goods and services produced is not what people want.
question
According to Figure 2.4, the optimal point for the economy is...
A.
B.
F.
indeterminate from the information given.
A.
B.
F.
indeterminate from the information given.
answer
indeterminate from the information given.
question
There is great concern over the fact that millions of Americans do not have health insurance. A study of the costs and benefits of implementing a national health-insurance program is an example of
laissez-faire economics.
positive economics.
labor economics.
normative economics.
laissez-faire economics.
positive economics.
labor economics.
normative economics.
answer
Positive economics
question
An individual's preferences can be thought of as a ranking (or ordering) of consumption bundles. Standard economic theory assumes such a ranking will be consistent with:
The policies of the government.
The behaviour of University professors.
The ethics of traditional Christian thought.
None of the above.
The policies of the government.
The behaviour of University professors.
The ethics of traditional Christian thought.
None of the above.
answer
None of the above.
question
During the Iraq War many of Iraq's oil refineries were destroyed. This would best be represented by a...
movement down Iraq's production possibility frontier.
movement off Iraq's production possibility frontier to some point inside the frontier.
shift of Iraq's production possibility frontier toward the origin.
movement up Iraq's production possibility frontier.
movement down Iraq's production possibility frontier.
movement off Iraq's production possibility frontier to some point inside the frontier.
shift of Iraq's production possibility frontier toward the origin.
movement up Iraq's production possibility frontier.
answer
shift of Iraq's production possibility frontier toward the origin.
question
Outputs in the production process are...
pollution.
money.
goods and services of value to households.
resources.
pollution.
money.
goods and services of value to households.
resources.
answer
goods and services of value to households.
question
If you own a building and you decide to use that building to open a book store,
there is no opportunity cost of using this building for a book store because you own it.
there is an opportunity cost of using this building for a book store because it could have been used in other ways.
there are no sunk costs involved in this decision.
the only cost relevant to this decision is the price you paid for the building.
there is no opportunity cost of using this building for a book store because you own it.
there is an opportunity cost of using this building for a book store because it could have been used in other ways.
there are no sunk costs involved in this decision.
the only cost relevant to this decision is the price you paid for the building.
answer
there is an opportunity cost of using this building for a book store because it could have been used in other ways
question
Positive economics is an approach to economics that...
seeks to understand behavior and the operation of systems while making judgments about their usefulness to society.
analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe preferred courses of action.
applies statistical techniques and data to economic problems.
examines the role of government in the economy.
seeks to understand behavior and the operation of systems while making judgments about their usefulness to society.
analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe preferred courses of action.
applies statistical techniques and data to economic problems.
examines the role of government in the economy.
answer
seeks to understand behavior and the operation of systems while making judgments about their usefulness to society.
question
Refer to Figure 1.3. The slope of the line between Points B and D is...
-3.
-0.33.
0.33.
3.
-3.
-0.33.
0.33.
3.
answer
3.
question
A government policy that tries to minimize inflation and unemployment can best be described as trying to achieve economic...
efficiency.
equity.
profitability.
stability.
efficiency.
equity.
profitability.
stability.
answer
stability.
question
Experimental research in small cities suggests that mandating work for welfare recipients increases their income. Therefore, we should mandate work requirements for all welfare recipients. This statement is an example of...
fallacy of inductive reasoning.
ceteris paribus fallacy.
fallacy of composition.
post hoc, ergo prompter hoc fallacy.
fallacy of inductive reasoning.
ceteris paribus fallacy.
fallacy of composition.
post hoc, ergo prompter hoc fallacy.
answer
fallacy of composition.
question
Capital, as economists use the term,
is the money the firm spends to hire resources.
is money the firm raises from selling stock.
refers to the process by which resources are transformed into useful forms.
refers to things that have already been produced that are in turn used to produce other goods and services.
is the money the firm spends to hire resources.
is money the firm raises from selling stock.
refers to the process by which resources are transformed into useful forms.
refers to things that have already been produced that are in turn used to produce other goods and services.
answer
refers to things that have already been produced that are in turn used to produce other goods and services.
question
An example of an investment is
the purchase of a share of Google stock.
the purchase of an Exxon Mobil bond.
the purchase of a Hewlett Packard laser printer for use by a business.
All of these.
the purchase of a share of Google stock.
the purchase of an Exxon Mobil bond.
the purchase of a Hewlett Packard laser printer for use by a business.
All of these.
answer
All of these.
question
If someone has a comparative advantage in growing pineapples,
they can grow pineapples at a lower opportunity cost than other pineapple growers.
they also have an absolute advantage in growing pineapples.
they can grow more pineapples using the same resources than other pineapple growers.
pineapples are the only product they can grow.
they can grow pineapples at a lower opportunity cost than other pineapple growers.
they also have an absolute advantage in growing pineapples.
they can grow more pineapples using the same resources than other pineapple growers.
pineapples are the only product they can grow.
answer
they can grow pineapples at a lower opportunity cost than other pineapple growers.
question
Which of the following is an example of a normative statement?
The unemployment rate is six percent.
There should be no unemployment in an advanced industrial society.
Higher prices cause consumers to buy less.
Equilibrium price implies that quantity demanded equals quantity supplied.
The unemployment rate is six percent.
There should be no unemployment in an advanced industrial society.
Higher prices cause consumers to buy less.
Equilibrium price implies that quantity demanded equals quantity supplied.
answer
There should be no unemployment in an advanced industrial society.
question
The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of...
ceteris paribus fallacy.
post hoc, ergo prompter hoc fallacy.
fallacy of composition.
fallacy of inductive reasoning.
ceteris paribus fallacy.
post hoc, ergo prompter hoc fallacy.
fallacy of composition.
fallacy of inductive reasoning.
answer
post hoc, ergo prompter hoc fallacy.
question
According to Figure 2.4, which point cannot be produced with the current state of technology?
A
B
C
F
A
B
C
F
answer
F
question
An efficient market is characterized by the fact that...
output is steady or growing and there is low inflation.
profit opportunities are eliminated almost instantaneously.
there are no opportunity costs.
wealth is distributed fairly.
output is steady or growing and there is low inflation.
profit opportunities are eliminated almost instantaneously.
there are no opportunity costs.
wealth is distributed fairly.
answer
profit opportunities are eliminated almost instantaneously.
question
Because resources are scarce, the opportunity cost of investment in capital is...
zero.
forgone future consumption.
forgone present consumption.
infinite.
zero.
forgone future consumption.
forgone present consumption.
infinite.
answer
forgone present consumption.
question
According to the theory of comparative advantage, ________ raise(s) productivity by
lowering opportunity costs.
trade and specialization
investment in capital goods
economic growth
exchange and consumption
lowering opportunity costs.
trade and specialization
investment in capital goods
economic growth
exchange and consumption
answer
trade and specialization
question
According to the theory of comparative advantage, specialization and free trade will benefit...
only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods.
all trading parties, even when some are absolutely more efficient producers than others.
only that trading party that has an absolute advantage in the production of all goods.
only that trading party that has a comparative advantage in the production of all goods.
only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods.
all trading parties, even when some are absolutely more efficient producers than others.
only that trading party that has an absolute advantage in the production of all goods.
only that trading party that has a comparative advantage in the production of all goods.
answer
all trading parties, even when some are absolutely more efficient producers than others.
question
Refer to Scenario 1.1. The statement that an increase in the minimum wage causes an increase in teenage unemployment is an example of
descriptive reasoning.
an economic theory.
normative economics.
deductive reasoning.
descriptive reasoning.
an economic theory.
normative economics.
deductive reasoning.
answer
deductive reasoning
question
Which of the following fits least well with the others when economists think about choices?
Time constraints.
Previous choices.
Trade-offs.
Budget constraints.
Time constraints.
Previous choices.
Trade-offs.
Budget constraints.
answer
possibly... Previous choices.
question
The saying that "there is no such thing as a free lunch" is based on the premise that :
Food banks should not exist.
Everything has an opportunity cost.
The government should subsidise food production.
People are selfish.
Food banks should not exist.
Everything has an opportunity cost.
The government should subsidise food production.
People are selfish.
answer
Everything has an opportunity cost.
question
If information is less costly and more easily available, then usually this...
makes markets more efficient.
makes markets less efficient.
increases profit opportunities.
increases the opportunity cost of acquiring more information.
makes markets more efficient.
makes markets less efficient.
increases profit opportunities.
increases the opportunity cost of acquiring more information.
answer
makes markets more efficient.
question
Refer to Figure 1.5. As income increases, consumption increases, but for each additional increase in income, consumption increases by a larger and larger amount. If consumption is graphed on the vertical axis and income is graphed on the horizontal axis, the relationship between consumption and income would look like which of the following panels?
A
B
C
D
A
B
C
D
answer
Maybe D
question
Which of the following does NOT constitute an act of "investment" as economists use the term?
The city council authorizes the construction of a new fire station.
A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share.
An accountant attends a seminar on changes in the federal tax code.
A department store increases its inventory of football jerseys before the Super Bowl.
The city council authorizes the construction of a new fire station.
A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share.
An accountant attends a seminar on changes in the federal tax code.
A department store increases its inventory of football jerseys before the Super Bowl.
answer
A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share.
question
According to Figure 2.4, the point where only hybrid cars are produced is...
A.
B.
C.
D.
A.
B.
C.
D.
answer
maybe A
question
Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 plasma televisions could be produced, production of LCD televisions would have to be reduced by...
exactly 30.
fewer than 30.
more than 30.
exactly 60.
exactly 30.
fewer than 30.
more than 30.
exactly 60.
answer
exactly 60
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