ECO202 A1

Which of the following is not a key element of the scientific method?

Designing data

If current output is such that marginal cost exceeds marginal benefit, should more or fewer resources be allocated to this product?

Fewer

With these curves, the optimal allocation of resources to a particular product will occur when

MB = MC

Which of the following best describes the concept of utility and economic behavior?

Satisfaction from consuming goods or services.

Suppose that, on the basis of a nation's production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires, but that it can get the robot from another country in exchange for 9,000 pizzas. Now consider the following statement: "Through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus 'move outside its production possibilities curve.'" Which of the following explains the relationship between the situation described and the statement?

Specialization and trade have the same effect as having more and better resources or discovering improved production techniques.

Which of the following represent a normative economic statement?

The government ought to lower taxes so people have more money.

Which of the following represents a positive economic statement?

The unemployment rate is 4.8 percent.

How (if at all) do each of the following events affect the location of a country's production possibilities curve? a. The quality of education increases. b. The number of unemployed workers increases. c. A new technique improves the efficiency of extracting copper from ore. d. A devastating earthquake destroys numerous production facilities

a. Curve shifts outward b. No change c. Curve shifts outward d. Curve shifts inward

Specify the typical shapes of marginal-benefit and marginal-cost curves. The marginal benefit curve is ___a.___sloping. The marginal cost curve is__b.____sloping

a. downward b. upward

Indicate whether the following statement(s) applies to microeconomics or macroeconomics: a. The unemployment rate in the United States was 9.7 percent in March 2010. b. A U.S. software firm discharged 15 workers last month and transferred the work to India. c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise. d. U.S. output, adjusted for inflation, decreased by 2.4 percent in 2009. e. Last week, Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point. f. The consumer price index rose by 2.7 percent from December 2008 to December 2009.

a.Macroeconomics b.Microeconomics c.Microeconomics d.Macroeconomics e.Microeconomics f.Macroeconomics

The scientific method is the technique used by economists to determine

economic principles

Because economic resources are used to produce goods and services, they are called

factors of production or inputs

Suppose a city block was going to be used for a parking lot. The opportunity cost would be

greater in New York City because the alternative uses of the block are more valuable.

Economists classify resources as

labor, land, real capital, and entrepreneurs.

Economic resources are the

natural, human, and manufactured inputs used to produce goods and services

Studies indicate that married men on average earn more income than unmarried men of the same age and education level. From this statement, we can conclude that

there is a correlation, but marriage is not necessarily the cause of higher income for married men

In a market system scarce goods are allocated through the operation of

what must be sacrificed in using a resource for its next best use.