Ch. 1 Quiz

A point inside the production possibilities curve is:

attainable, but the economy is inefficient

Purposeful behavior suggests that:

Individuals may make different choices because of different desired outcomes

The comment that "the minimum wage should be raised to give working people in this country a fair wage" is an example of:

A normative economic statement

Which is considered a factor of productions?

An auto plant

Rational behavior implies that everyone will make identical choices

False

Which of the following is a Microeconomic statement?

The price of personal computers declined last year

The assertion that "There is no free lunch" means that:

The production involves the use of scarce resources and thus the sacrifice of alternative goods

A positive economic statement is one that:

is based upon facts

The production possibilities curve tells us:

the combinations of two goods that can be produced with society's available resources.

Macroeconomics approaches the study of economics from the viewpoint of:

the entire economy