Econ Review Quiz1

Econ Review Quiz1 - 1. The micro economist would most...

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1. The micro economist would most likely study A). the effects of changing apple prices on the market for oranges. B). the effects of an increase in unemployment on the economy C). the effects of a reduction in income tax rates on the nation’s output. D). the effect of increased in inflation on wages 2. The macroeconomist would most likely study A). the effects of changing apple prices on the market for oranges. B). the effects of an increase in wage rates on a woman’s decision to enter the labor force. C). the effects of a reduction in income tax rates on the nation’s output. D). the effect of increased union wages on the cost of producing automobiles. 3. Which of the following quotations is an example of a normative statement? A) “Neither a borrower nor a lender be.” B) “Money doesn’t grow on trees.” C) “If you build a better mousetrap, the world will build a path to your door.” D) “If you build it, they will come.” 1. Opportunity cost is A) the combined value of all the alternatives not selected. B) the same thing as the money price of a good. C) the value of the next best alternative which was given up. D) based on the intrinsic value of the good itself. 2. Which of the following would result in a movement along the production possibilities curve?
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A). a fall in the unemployment rate. B). a change in the composition of two goods that a society chooses to produce. C). population growth. D). growth in the capital stock. 3. Comparative advantage implies choosing that activity which A). has a high opportunity cost. B).
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Econ Review Quiz1 - 1. The micro economist would most...

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