ECON chapter 2
the following parts of government regularly rely on the advice of economists
Department of treasury Office of management and budget Department of Justice
Microeconomics refers to the economy as a whole, whereas macroeconomics refers to the economic choice of individuals
False
a point inside the production possibilities frontier is
Feasible but not efficient
the circular flow diagram illustrates that in markets for the factors of production
Households are sellers, and firms are buyers
which of the following is a positive, rather than a normative, statement
Law X will reduce national income
which of the following is an accurate statement about positive and normative economics
Positive economics can be proven with facts and quantitative data
which of the following would be a topic you could expect to study in microeconomics
Supply and Demand
Positive economics in the status of the economy whereas normative economics is an idea of what the status of the economy should be
True
in making which of the following statement is an economist acting more like a scientist
a reduction in unemployment benefits will reduce the unemployment rate
Economic growth is depicted by
a shift in the production possibilities frontier outward
An economic model is
a simplified representation of some aspect of the economy
which of the following is most likely to produce scientific evidence about a theory
a tenured economist employed at a leading university analyzing the impact of bank regulation on rural lending
economic models are
built with assumptions
which of the following is not a factor of production
money
which of the following will not shift a country's production possibilities frontier outward
reduction in unemployment
Suppose two economists are arguing about policies that deal with unemployment. One economist says " the government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars." the other economist responds, "that ridiculous. If the government spent an additional 50 billion dollars it would reduce unemployment by only one-tenth of 1 percent and that effect would only be temporary."
disagree because they have different scientific judgement
Suppose two economists are arguing about policies that deal with unemployment. One economist says, "The government should fight unemployment because it is the greatest social evil." The other economist responds, "That's ridiculous. Inflation is the greatest social evil." These economists
disagree because they have different values
Points on the production possibilities frontier are
efficient
the scientific method requires that
scientists be objective.
Positive statements are
statements of description that can be tested
which of the following statement regarding the circular flow diagram is true
the factors of production are owned by households
which of the following issues is related to microeconomics
the impact of oil prices on auto production
All of the following topics fall within the study of microeconomics except
the influence of the government budget deficit on economic growth
which of the following statement about microeconomics and macroeconomics is not true
the study of very large industries is a topic within macroeconomics
which of the following statement is normative
the unemployment rate should be lower
which of the following cases in the assumption most reasonable
to address the benefits of trade, an economist assumes that there are two people and two goods