ECN 211_QUIZ 21

ECN 211_QUIZ 21 - ECN 211 Macroeconomic Principles Select...

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ECN 211 QUIZ 2 Dr. Happel Macroeconomic Principles Version A Fall, 2006 Select only one answer per question. 1. Which of the following ideas is not part of neoclassical economics? a. Economics is a science. b. Neoclassical economics is less mathematical than classical economics. c. Voluntary exchange benefits both parties. d. Capitalism is the most efficient of all economic systems. e. Value is a two-dimensional rather than a one-dimensional problem. 2. If I believe that everyone saving at once necessarily benefits the economy, I suffer from a logical fallacy. Which of the following fallacies best describes this case? a. Fallacy of composition. b. After this fallacy. c. Ceteris paribus fallacy. d. “But the cat doesn’t speak French” fallacy. 3. Which of the following statements about Marshall’s arguments in his Principles of Economics (1890) is true ? a. Marshall believed in marginal thinking: you have to see both the overall forest and the individual trees to be a marginalist. b. Marshall believed in the Law of Equimarginalism, which indicates that in order for a firm to maximize profits, it produces where marginal revenue (MR) is equal to marginal cost (MC). c. Marshall believed in the Law of Diminishing returns, which means that as you keep adding a variable input to a fixed input output growth will diminish at some point.
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This note was uploaded on 03/24/2009 for the course ECN ecn 211 taught by Professor Stevehappel during the Fall '06 term at ASU.

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ECN 211_QUIZ 21 - ECN 211 Macroeconomic Principles Select...

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