MindTap Chapter 2 Quiz

Use Exhibit to answer question. If the economy were operating at point E,

20 additional units of eggs can be produced with no impact on bacon production

Use Exhibit to answer question. If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is

20 units of eggs

Use Exhibit to answer question. Point F represents

A combination of production that can be reached if there is a sufficient advance in technology

Which of the following will not shift a country's production possibilities frontier onward?

A reduction in unemployment

In making which of the following statements is an economist acting more like a scientist?

A reduction in unemployment benefits will reduce the unemployment rate.

Which of the following is most likely to product scientific evidence about a theory?

A tenured economist employed at a lending university analyzing the impact of bank regulations on rural lending

Suppose two economists are arguing about policies that deal with unemployment. One economist says, "The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars." The other economists responds, "That's ridiculous. If the government spent an additional 50 billion dollars, it would reduce unemployment by only one-tenth of 1 percent, and that effect would only be temporary!" These economists

Disagree because they have different scientific judgements

Points on the production possibilities frontier are

Efficient

Which of the following statements regarding the circular-flow diagram is true?

The factors of production are owned by households

Use Exhibit to answer question. As we move from point A to point D,

The opportunity cost of eggs in terms of bacon rises

Which of the following statements about microeconomics and macroeconomics is not true?

The study of very large industries is a topic within macroeconomics

Which of the following statements is normative?

The unemployment rate should be lower

In which of the following cases is the assumption most reasonable?

To address the benefits of trade, an economist assumes that there are two people and two goods

Economic growth is depicted by

a shift in the production possibilities frontier outward

Economic models are

built with assumptions

Suppose two economists are arguing about policies that deal with unemployment. One economist says, "The government should fight unemployment because it is the greatest social evil." The other economist responds, "That's ridiculous. Inflation is the greatest social evil." These economists

disagree because they have different values

Which of the following is not a factor of production?

money

The scientific method requires that

scientist be objective

Positive statements are

statements of description that can be tested

Which of the following issues is related to microeconomics?

the impact of oil prices on auto production