Macro Econ
To reach point L, the economy would have to
acquire more resources or experience a technological advance.
Normative statements are
prescriptive, whereas positive statements are descriptive.
Inefficient production is represented by which point(s)?
T
Unemployment could cause this economy to produce at which point(s)?
T
Which of the following is a positive, as opposed to a normative, statement?
The US Department of Justice sued AT&T to block its merger with T-Mobile.
Which of the following is an example of a normative - as opposed to a positive - statement?
The government should increase the tax on gasoline.
The opportunity cost of this economy moving from point I to point H is
120 blankets
If this economy devotes all of its resources to the production of blankets, then it will produce
360 blankets and 0 pillows.
The opportunity cost of this economy moving from point I to point F is
40 blankets
If the production possibilities frontier is bowed outward, then "?" could be Tennis Rackets 100, 200, 300 Tennis Balls 8000, 6500, ?
4500
Which arrow represents the flow of spending by households? Look at arrow from G and S to Firms
A
Raymond buys a refrigerator for his new home. To which of the arrows does this transaction directly contribute?
A and B
On a bowed production possibilities frontier, as you move down along the curve
All of the above are correct
A movement from point H to point K could be caused by
All of the above are correct.
Which arrow represents the flow of goods and services? Look at arrow from firms to G and S
B
Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of each car is
Both a and b are correct.
Which arrow represents the flow of land, labor, and capital? Look at arrow from F of P to Firms
C
Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?
C and D
Which arrow represents the flow of income payments? Look at arrows from Firms to F of P
D
The production possibilities frontier illustrates
None of the above is correct.
This economy cannot produce at which point(s)?
Q, S
This economy has the ability to produce at which point(s)?
R, T, U
Efficient production is represented by which point(s)?
R, U
If this economy moves from point F to point G, then which of the following statements is correct?
This economy has experienced economic growth.
At which point is this economy producing its maximum possible quantity of doors?
U
Positive statements are
claims about how the world is.
In the circular-flow diagram, which of the following items flows from firms to households through the markets for goods and services?
goods and services
According to the circular flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates
in the markets for factors of production exchanging labor for income.
For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails,
increases
In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?
land, labor, and capital
Consider the production possibilities frontier for an economy that produces only sofas and cars. When society moves from point A to point B,
the opportunity cost is the same as when society moves from point B to point C.
Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of each car is
the slope of the production possibilities frontier.
In the circular-flow diagram, which of the following items flows from firms to households through the markets for the factors of production?
wages, rent, and profit
