econ chapt 2 and 3

T/F the production possibilities frontier is bowed outward because the trade-offs between the production of any two goods are constant

false

Which of the following statements is true? a. A self-sufficient country can, at best, consume on its production possibilities frontier. b. Only countries with an absolute advantage in the production of every good should strive to be self-sufficient. c. A self-sufficient country consumes outside its production possibilities frontier. d. Self-sufficiency is the road to prosperity for most countries.

a. a self sufficient country can, at best, consume on its production possibilities frontier`

looks at the economy as a whole, economy wide phenomena, including inflation, unemployment and economic growth

macroeconomics

. If a nation has a comparative advantage in the production of a good, a. it can produce that good at a lower opportunity cost than its trading partner. b. it can benefit by restricting imports of that good. c. it can produce that good using fewer resources than its trading partner. d. it must be the only country with the ability to produce that good. e. none of these answers.

a. it can produce that good at a lower opportunity cost than its trading partner

Which of the following issues is related to microeconomics? a. the impact of oil prices on car production b. the impact of money on inflation c. the impact of technology on economic growth d. the impact of the deficit on saving

a. the impact of oil prices on car production

Which of the following is most likely to produce scientific evidence about a theory? a. A lawyer employed by Renault addressing the impact of air bags on passenger safety. b. An economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses. c. An economist employed by the Trades Union Congress doing research on the impact of trade policy on workers' wages. d. A radio talk show host collecting data from listeners on how capital markets respond to taxation.

b an economist permanently employed analyzing the impact of bank regulations of lending to small businesses

focuses on individual parts of the economy, how household firms make decisions how they interact in market

microeconomics

If a nation has an absolute advantage in the production of a good, 3 a. it can benefit by restricting imports of that good. b. it will specialize in the production of that good and export it. c. it can produce that good using fewer resources than its trading partner. d. none of these answers. e. it can produce that good at a lower opportunity cost than its trading partner

c. it can produce that good using fewer resources than its trading partner

. Which of the following is not a factor of production? a. labour b. land c. money d. capital e. All of these answers are factors of production.

c. money

If a nation has an absolute advantage in the production of a good, 3 a. it can benefit by restricting imports of that good. b. it will specialize in the production of that good and export it. c. it can produce that good using fewer resources than its trading partner. d. none of these answers. e. it can produce that good at a lower opportunity cost than its trading partner.

d. none of these answers

Which of the following statements regarding the circular-flow diagram is true? a. If Susan works for BAe Systems and receives a salary payment, the transaction takes place in the market for goods and services. b. If BAe Systems sells a military aircraft, the transaction takes place in the market for factors of production. c. None of these answers. d. The factors of production are owned by households. e. The factors of production are owned by firms

d. the factors of production are owned by households

T/F Most economists believe that tariffs and import quotas usually reduce general economic welfare.

true

T/F When a country removes a specific import restriction, it always benefits every worker in that country.

true