Pre-Test Chapter 1 ed17

# Pre-Test Chapter 1 ed17 - Pre-Test Chapter 1 ed17 1. Assume...

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Prof Keep Econ Pre-Test Chap 1 ed 17 Page 1 of 8 Pre-Test Chapter 1 ed17 1. Assume the price of product Y (the quantity of which is on the vertical axis) is \$15 and the price of product X (the quantity of which is on the horizontal axis) is \$3. Also assume that money income is \$60. The absolute value of the slope of the resulting budget line: A. is 5. B. is 1/5. C. is 4. D. is 20. 2. Refer to the above diagram. An improvement in technology will: A. shift the production possibilities curve from PP 1 to PP 2 . B. shift the production possibilities curve from PP 2 to PP 1 . C. move the economy from A to C along PP 1 . D. move the economy from A , B , or C on PP 1 to D . 3. If the equation y = 5 + 6x was graphed, the: A. slope would be -5. B. slope would be +.6. C. slope would be +5. D. vertical intercept would be +.6.

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Prof Keep Econ Pre-Test Chap 1 ed 17 Page 2 of 8 4. Refer to the above diagram. Other things equal, this economy will achieve the most rapid rate of growth if: A. the ratio of capital to consumer goods is minimized. B. it chooses point C . C. it chooses point B . D. it chooses point A . 5. In the above diagram the vertical intercept and slope are: A. 4 and -1 1 / 3 respectively. B. 3 and + 3 / 4 respectively. C. 3 and -1 1 / 3 respectively. D. 4 and + 3 / 4 respectively.
Prof Keep Econ Pre-Test Chap 1 ed 17 Page 3 of 8 6. (Last Word) The fallacy of composition is essentially the error of: A. omitting relevant variables in constructing a model. B. reasoning from the general to the particular. C. confusing cause and effect in economic relationships. D. generalizing from the particular to the general. 7. The process by which capital goods are accumulated is known as investment. True False 8. The slope of a budget line reflects the: A. desirability of the two products. B. price ratio of the two products. C. amount of the consumer's income. D. utility ratio of the two products. 9. (Last Word) The "after this, therefore because of this" fallacy states that: A. because event A precedes event B, A is necessarily the cause of B. B. the very attempt to accomplish a certain objective may create conditions that prohibit the achievement of that goal. C. events may drastically alter plans; one's intentions and actual accomplishments may differ considerably.

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## Pre-Test Chapter 1 ed17 - Pre-Test Chapter 1 ed17 1. Assume...

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