Practice Test Chapter 2
If this economy devotes one-half of its viable resources to the production of baseballs and the other half to the production of bananas it could produce
awe would have to know the details of this economy technology ignorer to determine this
Boxes C and D of this circular-flow diagram represent
the markers for goods and services and the markets for factors of production
which of these terms are used interchangeably
"inputs" and "factors of production"
if this economy devotes all of its resources to the production of bananas, then it will produce
300 bananas and 0 baseballs
Which arrow represents the flow of spending by households?
A
which arrow represents the flow of goods and services
B
Which arrow represents the flow of land, labor, and capital?
C
if box A of this circular flow diagram represents firms, then which box represent households
box B
the production possibilities frontier is a graph that shows the various combinations of output that an economy
can produce
The shift of the production possibilities frontier from A to B illustrates
economic growth
if the owners of land, labor, and spiral are repseneted by box B of this circular flow diagram then
firms are represented by box A
which of the following is an example of normative as apposed to positive statement
income taxes should be reduced
which of the following statements best captures the relationship between microeconomics and macroeconomics
microeconomics and macroeconomics are distinct from one another, yet they are closely related
in the circular-flow diagram, which of the following is not a factor of production
money
it is possible for an economy to increase its production of both goods if the economy
moves from a situation of inefficient production to a situation of efficient production
if this economy moves from point A to point B, then which of the following statements is correct?
none of the above is correct (it is just reallocating resources to prioritize baseballs over bananas)
"prices rise when he quantities of money rises rapidly" is an example of a
positive economic statement
A macroeconomist might study
the effect of rising oil prices on employment in the airline industry
if box C of this circular-flow diagram represents the goods market then box D represents
the factor market
if the flow of goods and services is part of what is resented by the inter loop of this circular flow diagram then
the flow of factors of production is also part if what is represent by the inner loop
A movement from point C to point D could be caused by
unemployment
factors of production are
used to produce goods and services