Week 1 Quiz (W1Q)- Chapter 1.

A budget line is a graph that shows the various combinations of two products that a

Consumer can buy with a given amount of money income

Which of the following statements is true?

Microeconomics focuses on specific decision-making units of the economy; macroeconomics examines the economy as a whole.

Which of the following is an example of a macroeconomic question?

What policies would be recommended for stimulating national economic growth?

If we say that two variables are directly related, this means that

an increase in one variable is associated with an increase in the other variable.

Refer to the diagram. Points A, B, C, D, and E show

combinations of bicycles and computers that society can produce by using its resources efficiently.

A normative statement is one that:

is based on value judgments.

The following graph is the production possibilities curve of a nation. The combination "5 full presses and 2 bread" indicates

that some resources in the nation are unemployed.

If a positive relationship exists between x and y,

the relationship will graph as an upsloping line.

Refer to the diagram below. Which of the following is a positive statement?

Given it's resources and technology, this society is incapable of simultaneously producing 3 units of tractors and 15 units of bread.

If model planes cost $5 each and model boats $10, what is the amount of income available to purchase model planes and boats?

$40

Refer to the budget line shown in the diagram. Which of the following combinations of goods is unattainable for this consumer?

4 units of Cand 6 units of D

The following graph is the production possibilities curve of a nation. Which of the following combinations would be unattainable?

9 dill presses and 2 bread

Refer to the diagram. This economy will experience unemployment if it produces at point

D.

A recurring theme in economics is that people

Have unlimited economic wants, but limited resources

If a nation produces more consumer goods and less capital goods, then the nation will have

More consumption now, but less consumption later

When studying human behavior, economists assume rational self-interest. This means that

People make decisions based on some desired outcome

In response to the terrorist attacks of September 11, 2001, the government decided to allocate more resources toward defense goods. The government's decision reflects their assessment that:

The marginal benefits of additional defense goods outweighed the marginal cost.

Which of the following is a positive statement?

The temperature is 92 degrees today.

The opportunity cost of doing or getting something is defined as

The value of the best alternative that is given up in order to do or get something

Which of the following exemplifies a microeconomic question?

Will a new type of electronic reader or tablet increase the number of buyers?

If an economy is operating inside its production possibilities curve for consumer goods and capital goods, it

can produce more of both consumer goods and capital goods by using resources that are currently idle.

Which of the following is another way of saying "marginal benefits of an action"?

extra benefits resulting from the action

The issues of inflation, unemployment, and business cycles are

major topics of macroeconomics.

A nation's production possibilities curve is bowed out from the origin because

resources are not generally equally efficient in producing every good.

In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of:

scarcity and opportunity costs

A production possibilities curve illustrates

scarcity.

Macroeconomics can best be described as the

study of the large aggregates of the economy or the economy as a whole.

Any point inside the production possibilities curve indicates

that more output could be produced with available resources.

oppurtunity costs exist because

the decision to engage in one activity means forgoing some other activity.

Economics may best be defined as the:

the social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity

Slopes of lines are especially important in economics because

they measure marginal changes

The negative slope of the production possibilities curve is a graphical way of indicating that

to produce more of one product we must do with less of another.

Which of the following most closely related to the idea of opportunity costs?

trade-offs

Refer to the diagram. The combination of computers and bicycles shown by point G is:

unattainable given currently available resources and technology.