C719 Macroeconomics Pre-Assessment Questions1.According to the production possibilities curve model, as you increase the production of one good, what willhappen to the sacrifices of the alternate good?a.They will steadily increase.b.They will steadily decrease.c.They will remain the same.d.They will gradually disappear.2.A farmer fully utilizes his resources to produce cauliflower and kale. As the farmer produces more cauliflower, he has fewer resources available to produce kale. Which curve is illustrated in this scenario?3.What are the main foci of economics?4.Study the two-sector circular-flow diagram. Classify each statement as either a flow of resources or a flow of dollars. Answer options may be usedmore than once or not at all. Select your answers from the pull-down list.resources5.Florence could earn an annual salary of $70,000 as a financial advisor or $60,000 as a bank manager. Currently, Florence is a teacher and earns an annual salary of $35,000. What is Florence's opportunity cost for choosing to be a teacher instead of a financial advisor?a.$70,000b.$60,000c.$35,000d.$25,0006.Florence is a teacher and earns $35,000 a year. Her spouse is a part-time IT specialist who earns $45,000 ayear. Florence and her spouse decide that one of them should quit work and become a stay-at-home parent.Based on the principle of comparative advantage, who should be the full-time, stay-at-home parent?
7.Referring to the three economic questions (what, how, and for whom), in a market system, by whom are these questions determined?
- Fall '19
- Brian Goegan