ECON 2010 - QUIZ 1

Which of the following represents a positive economic statement?

011 The unemployment rate is 4.8 percent

Suppose that the cost of cheese falls, so that the marginal cost of producing pizza decreases. a. Will the MC curve shift up or down?

MC will shift down

"Indicate whether each of the following statements applies to microeconomics or macroeconomics: f. The consumer price index rose by 3.8 percent from August 2011 to August 2012:

Macroeconomics

Indicate whether each of the following statements applies to d. U.S. output, adjusted for inflation, decreased by 2.4 percent in 2009:

Macroeconomics

Indicate whether each of the following statements applies to microeconomics or macroeconomics: a. The unemployment rate in the United States was 8.1 percent in August 2012:

Macroeconomics

b. Will the optimal amount of pizza increase or decrease?

The optimal amount of pizza will increase

How (if at all) do each of the following events affect the location of a country's production possibilities curve? d. A devastating earthquake destroys numerous production facilities:

Curve shifts inward

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:

Curve shifts outward

How (if at all) do each of the following events affect the location of a country's production possibilities curve? c. A new technique improves the efficiency of extracting copper from ore:

Curve shifts outward

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

Designing data

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

Fewer

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

MB = MC

"Indicate whether each of the following statements applies to microeconomics or macroeconomics: e. Last week Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point:

Microeconomics

Indicate whether each of the following statements applies to microeconomics or macroeconomics: b. A U.S. software firm discharged 15 workers last month and transferred the work to India:

Microeconomics

Indicate whether each of the following statements applies to microeconomics or macroeconomics: c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise:

Microeconomics

How (if at all) do each of the following events affect the location of a country's production possibilities curve? b. The number of unemployed workers increases:

No Change

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.

a. Specify the typical shapes of marginal-benefit and marginal-cost curves.The marginal benefit curve is __ correct sloping.

downward

b. The scientific method is the technique used by economists to determine

economic principles.

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

factors of production or products

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

b. Economists classify resources as

labor, land, real capital, and entrepreneurs.

a. Economic resources are the

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

A student will decide to attend class when

the marginal benefit of attending exceeds the marginal cost of attending

a. Specify the typical shapes of marginal-benefit and marginal-cost curves.The marginal cost curve is __ correct sloping.

upward

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.