Microeconomics Ch. 1 and 2

True

Macroeconomics is the study of economy-wide phenomena. T/F

True

positive statements are descriptive, while normative statements are prescriptive. T/F

False

A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output. T/F

False

If wages for accountants rose, then accountants' leisure time would have a lower opportunity cost. T/F

True

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production. T/F

True

Point C represents an inefficient outcome for this economy. T/F

True

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable. T/F

False

Tuition is the single-largest cost of attending college for most students. T/F

True

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced. T/F

False

When a production possibilities frontier is bowed outward, the opportunity cost of the first good in terms of the second good increases as more of the first good is produced. T/F