Macroeconomics - Old Exam 1 Ch 1,2,3,4

Macroeconomics - Old Exam 1 Ch 1,2,3,4 - Macroeconomics Old...

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Macroeconomics – Old Exam 1- Ch 1, 2, 3, 4 Instructor: Reed Gooch 1. When economists say that people act rationally in their self interest, they mean that individuals: A. look for and pursue opportunities to increase their utility. B. generally disregard the interests of others. C. are mainly creatures of habit. D. are unpredictable. 2. The economic perspective refers to: A. macroeconomic phenomena, but not microeconomic phenomena. B. microeconomic phenomena, but not macroeconomic phenomena. C. the making of purposeful decisions in a context of marginal costs and marginal benefits. D. unlimited resources in a context of limited economic wants. 3. Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of: A. resource scarcity and the necessity of choice. B. purposeful behavior. C. marginal costs that exceed marginal benefits. D. the tradeoff problem that exists between competing goals. 4. Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact: A. is an example of irrational behavior. B. implies that reading should be taught through phonics rather than the whole language method. C. contradicts the economic perspective. D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost. 5. Which of the following is a normative statement? A. The temperature is high today. B. The humidity is high today. C. It is too hot to play tennis today. D. It will cool off later this evening.
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6. Most of the disagreement among economists involves: A. facts. B. principles. C. positive statements. D. normative statements. 7. The scarcity problem: A. persists only because countries have failed to achieve continuous full employment. B. persists because economic wants exceed available productive resources. C. has been solved in all industrialized nations. D. has been eliminated in affluent societies such as the United States and Canada. 8. Which of the following is a capital resource? A. a computer programmer B. a corporate bond issued by a computer manufacturer C. silicone (sand) used to make computer chips D. a piece of software used by a firm 9. Which of the following is a land resource? A. a farmer B. an oil drilling rig C. a machine for detecting earthquakes. D. natural gas 10. The main function of the entrepreneur is to: A. make routine pricing decisions. B. innovate. C. purchase capital. D. create market demand.
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11. Refer to the above tables. Suppose that the amount and quality of resources are the same in both countries. We can conclude that: A. Duckistan is technologically better than Herbania at producing military goods. B. Herbania is technologically better than Herbania at producing both military goods and civilian goods.
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This note was uploaded on 04/14/2011 for the course ECON 2020 taught by Professor Reedgooch during the Spring '11 term at Utah Valley University.

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Macroeconomics - Old Exam 1 Ch 1,2,3,4 - Macroeconomics Old...

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