Chapter 1 Macro

Refer to the diagram. Which one of the following would shift the production possibilities curve from PP1 to PP2?

immigration of skilled workers into the economy

Refer to the data sets. The variables are directly related in:

in data sets 1,2, and 5 only

Purposeful behavior suggests that:

individuals may make different choices because of different desired outcomes.

Refer to the tables. The opportunity cost of the fifth unit of capital goods:

is higher in north cantina than in south cantina

Any combination of goods lying outside of the budget line:

is unattainable, given the consumers income

If all discrimination in the United States were eliminated, the economy would:

produce at some point closer to its production possibilities curve

(Consider This) The assertion by economists that "there is no free lunch":

remains true even for goods given away free by firms

economics may best be defined as the

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

Refer to the table. As compared to production alternative D, the choice of alternative C would:

tend to generate a more rapid growth rate

Refer to the diagram. Other things equal, which of the following positions relative to PP1 would be the most likely to result in a future production possibilities curve of PP3 rather than PP2?

A

Which of the following will shift the production possibilities curve to the right?

A technological advance that allows farmers to produce more output from given inputs.

Refer to the diagram. Which line(s) show(s) a negative relationship between x and y?

Both C and E

(Consider This) A direct cost of going to college is:

tuition, while an indirect cost (opportunity cost) is forgone income while in college.

(Last Word) The fallacy of composition states that:

what is true for the individual must necessarily be true for the group.

Which of the following do economists consider to be capital?

a construction crane

Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. This economy:

can improve its allocation by producing more of one good and less of the other

The marginal benefit curve is:

downsloping because successive units of a specific product yield less and less extra benefit.

economic resources are also called

factors of production

If price (P) and quantity (Q) are directly related, this means that:

if P increases, Q will also increase