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hw exam1 eeco 201

hw exam1 eeco 201 - Question 1 Economics is the study of...

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Question 1 Economics is the study of choice under conditions of: Answer a. demand b. supply c. scarcity d. opportunity e. abundance 2 points Question 2 Microeconomics deals with which of the following? Answer a. the total output of an economy b. the measurement of a nation's inflation rate c. how producers and consumers interact in individual markets d. how tax policies influence economic growth e. whether wage growth will outpace inflation in the coming year 2 points Question 3 Positive economics deals with: Answer a. value judgments b. how the economy does work c. how the economy should work d. how the federal government should operate e. what the price level should be 2 points Question 4 "The Consumer Price Index increased by 4.2% in the first quarter of this year." What type of statement is this? Answer a. normative b. negative c. positive d. subjective e. biased 2 points Question 5 The opportunity cost of an economic action is: Answer a. the value of the next best alternative, which must be sacrificed b. an issue in normative economic theory c. the expense for the resources used plus the firm's profit d. the out-of-pocket cost e. the option to pay a reduced fee for the action 2 points Question 6 In economics, if we have a technology improvement, it means that: Answer a. we have purchased more computers and software b. we have a higher degree of automation in the production process c. we have become smarter in terms of applying production techniques d. the percentage of college graduates in the population has increases 2 points Question 7 Combinations of goods laying outside the production possibilities curve: Answer a. are unattainable given society's technology and resources b. are combinations that have already been consumed c. go beyond basic necessities d. result from involuntary unemployment e. are the result of economic recessions 2 points Question 8 The production possibilities curve illustrates: Answer a. the combinations of goods that could be produced with resources and technology held constant b. how technology influences opportunity costs c. how price changes affect decision making of individuals d. the law of demand 2 points Question 9 The ratio at which countries trade goods is known as the: Answer a. opportunity cost b. marginal social cost c. price to earnings ratio d. comparative advantage ratio e. terms of trade 2 points Question 10 Comparative advantage is determined by the: Answer a. elasticities of demand for a good in two countries b. opportunity costs of producing a good in two different countries c. presence of absolute advantages in production d. degrees of allocative efficiency within each economy e.
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