Microeconomics Quiz 2
Which of the following statements applies to economics, as well as to other sciences such as physics?
Real-world observations often lead to theories.
Which of the following statements is an example of a positive, as opposed to normative, statement?
Reducing emissions reduces days missed from school due to asthma.
Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?
225 burgers
Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?
450 hotdogs
Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce
80 dryers and 0 washers.
Refer to Figure 2-18. The slope of the line containing points A and B is
a. -2
Refer to Figure 2-9, Panel (a). The opportunity cost of moving from point M to point L is
b. 2 donuts
Economist make assumptions to
make a complex world easier to understand.
A macroeconomist — as opposed to a microeconomist — might study the effect of
changes in the money supply on the inflation rate.
In the simple circular-flow diagram, a. households own the factors of production. b. households buy all the goods and services that firms produce. c. land, labor, and capital flow from households to firms. d. All of the above are correct.
d. All of the above are correct.
Refer to Figure 2-4. This economy cannot produce at which point(s)?
d. Q, S
Refer to Figure 2-4. Inefficient production is represented by which point(s)?
d. T
Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?
d. U
C A . B D Refer to Figure 2-2. If the owners of the land, labor, and capital are represented by B of this circular-flow diagram, then
firms are represented by Box A.
The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and
the available production technology.