Question 1

Write down a normative statement and a positive statement with reference to the minimum wage and then explain each.

Accepted Answer

'Higher minimum wages lead to limited em...

Question 2

The opportunity cost of traffic congestion includes:

Accepted Answer

A)  lower use of gasoline.
B)  longer commuting time to work.
C)  more fuel efficient cars.
D)  more freeways being built.E) B) and C)
F) A) and D)

Question 3

Rubber,a major cash crop in Country X,reported a significant decline in production during a certain year.The government set up two committees,one of which was assigned the task of investigating the cause of the drop in production while the other was asked to prescribe a recovery policy.Suggest a positive and a normative statement made by each of these two groups within this context.

Accepted Answer

The first committee that has been assign...

Question 4

In microeconomics,the term price generally refers to the:

Accepted Answer

A)  relative price of an item.
B)  dollar price of an item.
C)  absolute price of an item.
D)  choke price of an item.E) A) and B)
F) A) and C)

Question 5

If a production possibility frontier (PPF) is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

Accepted Answer

A)  an increasing opportunity cost of producing T-shirts.
B)  an increasing opportunity cost of producing shoes.
C)  constant opportunity cost of producing T-shirts.
D)  constant opportunity cost of producing shoes.E) B) and C)
F) A) and B)

Question 6

The _____ is the absolute price of a good or service that has been adjusted for the changing value of money.

Accepted Answer

A)  market price
B)  choke price
C)  nominal price
D)  real priceE) B) and C)
F) None of the above

Question 7

In the production possibility frontier in Figure 1-1,which point(s) is (are) efficient?

Accepted Answer

A)  A,B,and C
B)  A and E
C)  B and C
D)  EE) B) and C)
F) A) and B)

Question 8

The production possibility frontier in Figure 1-1 exhibits _____ opportunity cost of apples.

Accepted Answer

A)  increasing
B)  decreasing
C)  constant
D)  zeroE) A) and D)
F) A) and C)

Question 9

Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:

Accepted Answer

A)  increased by 20 percent during this period.
B)  increased by 100 percent during this period.
C)  increased by 200 percent during this period.
D)  increased by 300 percent during this period.E) A) and B)
F) None of the above

Question 10

Economic theory:

Accepted Answer

A)  can determine which public policy is the most desirable.
B)  tries to account for all possible influences.
C)  is a tool for understanding economic relationships.
D)  uses no assumptions in deriving results.E) A) and D)
F) C) and D)

Question 11

What is the opportunity cost of going to college? What is the opportunity cost of attending class?

Accepted Answer

The answer should include the direct,exp...

Question 12

Which of the following is an example of a positive economic statement?

Accepted Answer

A)  The distribution of income in the United States should be more equal.
B)  The after-tax distribution of income is more equal than the pre-tax distribution of income.
C)  The tax system should be more progressive so that the after-tax distribution of income can be more equal.
D)  The government should not be involved in the income redistribution schemes.E) A) and B)
F) None of the above

Exam 1: An Introduction to Microeconomics

If a production possibility frontier (PPF) is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

Correct Answer
verified

Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:

Correct Answer
verified

In the production possibility frontier in Figure 1-1,which point(s) is (are) efficient?

Correct Answer
verified

Which of the following is an example of a positive economic statement?

Correct Answer
verified

The opportunity cost of traffic congestion includes:

Correct Answer
verified

Correct Answer
verified
The first committee that has been assign...
View Answer

Write down a normative statement and a positive statement with reference to the minimum wage and then explain each.

Correct Answer
verified
'Higher minimum wages lead to limited em...
View Answer

In microeconomics,the term price generally refers to the:

Correct Answer
verified

Economic theory:

Correct Answer
verified

What is the opportunity cost of going to college? What is the opportunity cost of attending class?

Correct Answer
verified
The answer should include the direct,exp...
View Answer

The _____ is the absolute price of a good or service that has been adjusted for the changing value of money.

Correct Answer
verified

The production possibility frontier in Figure 1-1 exhibits _____ opportunity cost of apples.

Correct Answer
verified

Exam 1: An Introduction to Microeconomics

If a production possibility frontier (PPF) is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

Correct AnswerverifiedShow Answer

Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:

Correct AnswerverifiedShow Answer

In the production possibility frontier in Figure 1-1,which point(s) is (are) efficient?

Correct AnswerverifiedShow Answer

Which of the following is an example of a positive economic statement?

Correct AnswerverifiedShow Answer

The opportunity cost of traffic congestion includes:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe first committee that has been assign...View AnswerShow Answer

Write down a normative statement and a positive statement with reference to the minimum wage and then explain each.

Correct Answerverified'Higher minimum wages lead to limited em...View AnswerShow Answer

In microeconomics,the term price generally refers to the:

Correct AnswerverifiedShow Answer

Economic theory:

Correct AnswerverifiedShow Answer

What is the opportunity cost of going to college? What is the opportunity cost of attending class?

Correct AnswerverifiedThe answer should include the direct,exp...View AnswerShow Answer

The _____ is the absolute price of a good or service that has been adjusted for the changing value of money.

Correct AnswerverifiedShow Answer

The production possibility frontier in Figure 1-1 exhibits _____ opportunity cost of apples.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The first committee that has been assign...
View Answer

Correct Answer
verified
'Higher minimum wages lead to limited em...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The answer should include the direct,exp...
View Answer

Correct Answer
verified

Correct Answer
verified