Microeconomics Study Guide Exam I

Microeconomics Study Guide Exam I - Microeconomics Exam I 1...

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Microeconomics Exam I 1. Which arrow shows the flow of land, labor, and capital? : C 2. Which arrow shows the flow of income payments? : D 3. In the simple circular-flow diagram: households own the factors of production, households buy all the goods and services that firms produce; land, labor, and capital flow from households to firms 4. In the markets for goods and services: households are buyers and firms are sellers 5. For and economist, the idea of making assumptions is regarded generally as a: good idea, since doing so helps to simplify the complex world and make it easier to understand 6. In the simple circular-flow diagram, the participants in the economy are: households and firms 7. Which of the following concepts cannot be illustrated by the production possibilities frontier? : equity 8. If the economy moves from point A to point D, the opportunity cost is: 20 toasters 9. The opportunity cost of obtaining 15 additional toasters by moving from point D to point C is: none of the above, the economy cannot move from point D to point C
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10. Which of the following events would explain the shift of production possibilities frontier from A to B? : the economy experienced a technological advance in the production of batteries 11. Microeconomics is the study of: how individual households and firms make decisions 12. When economists are trying to explain the world, they are: scientists 13. For economists, statements about the world are of two types: positive statements and
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This note was uploaded on 12/14/2011 for the course ECON 10012 taught by Professor My during the Spring '11 term at Kent State.

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Microeconomics Study Guide Exam I - Microeconomics Exam I 1...

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