ECON 224 Chapter 1 and 2 Quick Quiz

Which of the following is an example of a normative statement? A) Increasing tariffs on lumber from Canada will increase the price of housing. B) The federal minimum wage should be increased. C) Student loan debt forgiveness will result in more students accumulating debt. D) An increase in the demand for solar energy will increase the price of solar panels.

B) The federal minimum wage should be increased.

There are currently 531 billion barrels of oil left in the ground and we consume oil at a rate of 16.5 billion barrels a year, when will the world run out of oil?

32.18 years But actually never! eventually we will stop using oil because of how expensive

During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300. Given this, the opportunity cost of attending summer school is A) $10,300 B) $6,000 C) $4,300 D) $3,000 E) None of the above

A) $10,300

In broad terms the difference between microeconomics and macroeconomics is that... A) they use different sets of tools and ideas. B) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. C) macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. D) microeconomics studies the effects of government taxes on the national unemployment rate.

B) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.