Review Part 1 - Positive economics is an approach to...

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Unformatted text preview: Positive economics is an approach to economics that A) seeks to understand behaviour and the operation of systems without making judgments. B) analyzes outcomes of economic behaviour, evaluates them as good or bad, and may prescribe preferred courses of action. C) applies statistical techniques and data to economic problems. D) examines the role of government in the economy. Positive economics is an approach to economics that A) seeks to understand behaviour and the operation of systems without making judgments. B) analyzes outcomes of economic behaviour, evaluates them as good or bad, and may prescribe preferred courses of action. C) applies statistical techniques and data to economic problems. D) examines the role of government in the economy. Which acquisition of more of the following will shift the production possibilities frontier to the right? A) land B) labour C) capital D) all of the above Which acquisition of more of the following will shift the production possibilities frontier to the right? A) land B) labour C) capital D) all of the above If the unemployment rate increases from 10% to 12%, the A) economy will move closer to the production possibility frontier. B) economy will move farther away from the production possibility frontier. C) economy will move up its production possibility frontier. D) economy's production possibility frontier will shift back and to the left. If the unemployment rate increases from 10% to 12%, the A) economy will move closer to the production possibility frontier. B) economy will move farther away from the production possibility frontier. C) economy will move up its production possibility frontier. D) economy's production possibility frontier will shift back and to the left. An economy that is producing at the wrong point on its production possibility frontier is A) efficient, since it is on the production possibility frontier. B) inefficient, since the combination of goods and services produced is not what people want. C) efficient, since the economy is producing goods at the lowest possible cost. D) inefficient, since that combination of goods could be produced at a lower cost if more efficient technology were employed. An economy that is producing at the wrong point on its production possibility frontier is A) efficient, since it is on the production possibility frontier. B) inefficient, since the combination of goods and services produced is not what people want. C) efficient, since the economy is producing goods at the lowest possible cost. D) inefficient, since that combination of goods could be produced at a lower cost if more efficient technology were employed. A society can produce two goods: bread and cookies. The society's production possibility frontier is negatively sloped and "bowed outward" from the origin. As this society moves down its production possibility frontier producing more and more units of cookies, the opportunity cost of producing cookies A) decreases....
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This note was uploaded on 01/27/2011 for the course ECON 1B03 taught by Professor Hannahholmes during the Winter '08 term at McMaster University.

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Review Part 1 - Positive economics is an approach to...

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