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Question 1 One of the following statements is

Question 1 One of the following statements is an example of a positive statement. Which one is? it?? A. Americans ought to tighten their belts. B. Cell phones are better than land lines. C. Workers must not be lazy. D. China has cut the cost of textiles. E. Just do it One of the following statements is an example of a normative statement. Which one is? it?? A. Education brings a higher income. B. We should spend more. .C. The minimum wage has stagnated for a decade. D. Exercise controls weight. E. All cows eat grass. Question 2 One of the following statements is an example of a positive statement. Which one is? it? A. Some people are too fat. B. Just do it. C. We should spend more. D. Generic drugs cost less than brand names. One of the following statements is an example of a normative statement. Which one is? it? A. The United States topped the medal list at the Turin winter Olympics B. Swimmers are getting faster C. Gasoline engines create air pollution D. Vote Republican Question 3 Which statement is an example of economics as a policy? tool? A. The apple harvest lasts for 8 weeks in Pennsylvania. B.Competition is growing in the search engine business. .C. All cows eat grass. D. Every child should have a dog. Question 4 The opportunity cost of a cell phone is best defined as the? _______. A. the time spent getting a cell phone B. money spent on a cell phone C. value of the? highest-valued alternative given up to get a cell phone .D. value of all the alternatives given up to get a cell phone Question 5 The table shows data on the quantities of compact discs and music videos sold.? Year Quantity of CDs sold Quantity of music videos sold ?(millions per? year) 2004 775 33 2006 625 23 2008 375 13 Draw three points that represent the data in the table. Draw a curve through the points. The relationship in the graph? _______.??? A. shows two variables that are unrelated B. is negative C. is positive Question 6 The graph shows a relationship between two? variables, x and y. What is the slope of the? relationship? The slope of the relationship is ?>>> If your answer is? negative, include a minus sign. If your answer is? positive, do not include a plus sign. Question 7 The table gives information about the relationship between two? variables, x and y. What is the slope of the? relationship? The slope of this relationship is ?>>> If the slope is? negative, use a minus sign. If the slope is? positive, do not use a plus sign. Question 8 The table gives information about the relationship between two? variables, x and y. x 1010 2020 3030 4040 5050 y 250250 300300 350350 400400 450 The relationship between x and y is? ______ and the slope of the relationship? ______ as x increases. A. ?negative; rises B. ?positive; falls C. ?positive; remains constant D. ?negative; remains constant Question 9 The figure shows an? economy’s production possibilities frontier and identifies some production points. We can produce all combinations? ______. A. on the PPF and outside the PPF B. inside the PPF?, on the PPF?, and outside the PPF C. inside the PPF but not on the PPF or outside the PPF D. inside the PPF and on the PPF .E. on the PPF but not inside or outside the PPF? Which points are? attainable? A. Points F and G only B. Points A?, B?, C?, D?, and E .C. Points A?, B?, and C only D. Points D and E E. Points A?, B?, C?, F?, and G Question 10 The table shows the quantities of corn and beef that a farm can produce. Corn ?(bushels per? year) Beef ?(pounds per? year) 250 and 0 200 and 300 100 and 500 0 and 550 Draw the? farm’s PPF for corn and beef. Draw a point that shows an inefficient combination of corn and beef. Label it A.? Draw a point that shows an unattainable combination of corn and beef. Label it B. ?? Draw a point that shows an efficient combination of corn and beef. Label it C. Question 11 The table sets out the education services and consumption goods that a nation can produce. A? nation’s economy grows when it does all of the following except? ______. A. develop better technologies for producing goods and services B. get more machines to help in production C. use all its resources to produce consumption goods .D. improve the quality of labor by? education, on-the-job? training, and work experience? If the number of graduates this year increases from 0 to nbsp 375 375?, the economy experiences? ______. A. a movement along the PPF next year B. economic growth next year because the increase in human capital shifts the PPF outward next year .C. an inward shift of the PPF today because the opportunity cost of an increase in human capital is a decrease in physical capital D. no change in the PPF next year and scarcity still exists Possibility Education services ?(graduates) Consumption goods ?(units) A nbsp 500 500 0 B nbsp 375 375 1 comma 0001,000 C nbsp 250 250 2 comma 0002,000 D 0 3 comma 0003,000 Question 12 An economy that uses new technology? _______. A. experiences an outward shift of its PPF and eliminates all opportunity cost B. does not need to accumulate capital comma so economic growth is free C. experiences economic growth but incurs an opportunity cost D. does not incur an opportunity cost Question 13 Two? countries, Alpha and? Beta, have identical production possibilities frontiers. If Alpha produces at point A and Beta produces at point B?, then? _______. A. ?Beta’s future consumption will be greater than? Alpha’s B. Beta’s economic growth rate will exceed Alpha’s C. ?Alpha’s and? Beta’s economic growth rates will be the same D. Alpha consumes less than Beta? today, but it will grow faster than Beta Question 14 Both Mia and Mario specialize in producing the item in which they have a comparative advantage. Then they trade one pasta dish for one pizza.. Before specialization and trade? started, Mia and Mario were each producing 44 dishes of pasta and 44 pizzas an hour. The total gains from trade are? ______ dishes of pasta and? ______ pizzas an hour. A. 2?, 4 B. 4?, 4 C. 4?, 12 D.12?, 12 Question 15 Elizabeth owns an ice cream parlor. In an hour she can produce 4040 milkshakes or 4040 ice cream sundaes. Ben also owns an ice cream parlor. In an hour he can produce 2020 milkshakes or 1010 ice cream sundaes. ?Elizabeth’s opportunity cost of 1 milkshake is? _____. Ben’s opportunity cost of 1 milkshake is? _____. A. 1 ice cream sundae?; 0.5 ice cream sundae B. 2 ice cream sundaes?; 1 ice cream sundae C. 1 ice cream sundae?; 2 ice cream sundaes D. 0.5 ice cream sundae?; 1 ice cream sundae Ben has a comparative advantage in milkshakes. Question 16 Ethel and Fred both own bakeries. The figure shows? Ethel’s PPFE and? Fred’s PPFF. How many muffins does Fred bake if he specializes in the good in which he has comparative advantage and bakes the maximum quantity? possible? If Fred specializes in the good in which he has comparative advantage and bakes the maximum quantity? possible, he bakes _________ dozen muffins per hour. Question 17 In the United States? today, three wants that are especially pressing and are not satisfied are? ______. A. cleaner air in our cities?, fewer billboards?, and health insurance for the poor B. more theme parks?, fewer billboards?, and higher taxes C. more theme parks?, cleaner automobiles?, and higher taxes D. cleaner air in our cities?, cleaner a automobiles?, and health insurance for the poor E. cleaner automobiles?, health insurance for the poor?, and fewer billboards Question 18 Every? day, we make many choices. We? can’t avoid having to make choices because? _______. A. there is too much variety B. our wants exceed the resources available to satisfy them C. there are too many TV channels D. there is too much available E. we keep changing our minds Question 19 All of the following are examples of scarcity except? _______. A. deciding whether to take a part dash time job or to take an extra course this term B. deciding whether to play the piano or to study for the next hour C. deciding whether to go skiing during spring break or to catch up on your course work D. deciding whether or not Pluto should be considered a planet Question 20 Identify which of the following questions is NOT a microeconomic question. A. Why is wealth unequally distributed throughout the population? B. Why is the price of computers falling? C. Why does the government spend more than it collects in taxes? D. What can we do to increase the number of people attending college? Question 21 When a firm decides to produce a good by using a labor intensive? method, it is answering the? ______ question. When a firm decides to produce computers rather than DVD players?, it is answering the? ______ question. Who gets the goods and services that are produced answers the? ______ question. A. ?how; what; for whom B. ?when; production; inequality C. factor of? production; why; income D. ?intensity; goods; wealth Question 22 Choose the correct statement. A. What we do in pursuit of our self dash interest is independent of the social interest. B. You make choices based on what you think is best for society as a whole. C. Choices that are the best for more than one person are said to be in the social interest. D. Social interest and self dash interest can come into conflict. Question 23 The Social Network had? world-wide box office receipts of? $225 million. The movie had a production budget of about? $70 million and additional marketing costs of about? $50 million. Creating a successful movie brings pleasure to? millions, generates work for? thousands, and makes a few rich. ?______ is a marginal cost that a producer of a movie faces. A. The salary paid to one actor for starring in a movie B. The cost of filming a scene on location for one day C. The cost of advertising the movie in one newspaper D. The cost of hiring a crew for an extra day of filming E. All of the above ?______ is a marginal benefit that a producer of a movie receives.?? A. The awards that he receives from producing the movie B. The salary from producing the movie C. Royalties received from producing the movie D. The prestige from being associated with a blockbuster movie E. All of the above Question 24 Your school has decided to increase the intake of new students next year. What economic concepts would your school consider in reaching its? decision???? A. marginal benefit and marginal cost B. the amount spent on renovations over the last decade C. macroeconomic conditions D. scarcity E. incentives Would the school use the? economic way of? thinking and make its decision at the? margin???? A.?No: It would consider how much classroom space it could make available. B.?No: It would consider how many teachers it could hire. C.?Yes: It would consider the marginal benefit and marginal cost of a student. D. No. The decision is made totally based on the increase in tuition the each new student will provide. E.?No: It would consider how many teachers it could hire and how much classroom space was available. Question 25 You can spend the evening studying or you can go to see a movie. Your rational choice will be to spend the evening studying if? ______. A. the net benefit from spending the evening studying is greater than the net benefit from going to see a movie B. the marginal benefit from spending the evening studying is greater than the marginal cost of spending the evening studying C. the marginal benefit from going to see a movie is less than the marginal benefit from spending the evening studying D. there is no tradeoff when you spend the evening studying Question 26 The opportunity cost of a vacation is best defined as the? _______. A. money spent on a vacation B. the time spent getting a vacation C. value of the? highest-valued alternative given up to get a vacation D. value of all the alternatives given up to get a vacation Question 27 The benefit that arises from a? one-unit increase in an activity is called? _______. A. marginal benefit B. marginal incentive C. an efficient benefit D. marginal increase Suppose when you pick apples for 3 hours, you pick 8 baskets of apples. And if you pick apples for an extra hour you pick a total of 10 baskets. The marginal benefit from picking apples one more hour is? _______. A. 8 baskets8 baskets B. 2 baskets2 baskets C. 10 baskets10 baskets D. 18 baskets Question 28 The tendency for the values of two variables to move in a predictable and related way is called? _______. A. rationality B. correlation C. consistency D. causation Question 29 Which of the following illustrates a tradeoff?? A. Tom prefers iPhone while Randy prefers Android. B. Randy enjoys ski vacations. C. I will study for my exam instead of going to the movie tonight. D. New York is an expensive city. Question 30 The benefit of something is the? _____. A. gain or pleasure it brings B. cost of the activity C. highest valued alternative that must be given up to get it D. sum of the gain and loss that arises from the activity Question 31 The table sets out? Crusoe’s production possibilities frontier in winter. Possibility Fish ?(pounds) Berries ?(pounds) A 0 10.010.0 B 9.09.0 9.09.0 C 16.516.5 7.57.5 D 22.522.5 5.55.5 E 27.027.0 3.03.0 F 30.030.0 0.0 Crusoe currently catches 16.5 pounds of fish and picks 5.5 pounds of berries a day. His opportunity cost of a pound of berries is? ______ and his opportunity cost of a pound of fish is? ______ because he? ______. A. 16.5 pounds of? fish; 5.5 pounds of? berries; is efficient B. 2.0 pounds of? berries; 6.0 pounds of? fish; is inefficient C. ?zero; ?zero; is producing inside his PPF. D. 22.5 pounds of? fish; 7.5 pounds of? berries; is receiving a free lunch E.6.0 pounds of? fish;2.0 pounds of? berries; faces a tradeoff Question 32 When new and better ways of producing all goods and services are discovered or when the quantity of capital? increases, _______. A. the production possibilities frontier shifts outward B. the opportunity cost of most goods falls to zero C. the PPF rotates outward so that the economy can produce more of the good measured on the x-axis but the same amount of the good measured on the y-axis. D. the opportunity cost of all goods falls to zero Question 33 Economic growth is defined as the ? _____ . A. recovery from recession B. sustained expansion of production possibilities C. increase in wage rates D. overtaking of the United States by China Question 34 Which of the following is an example of absolute advantage?? A. Charlie enjoys skiing while Ryan enjoys hiking. B. Nick has an advantage over others in the industry because he knows many software programs. C. Tom does his math homework in 2 hours while Harry takes only 30 minutes to do the same task. D. Amy is smart and performs well in exams. Question 35 A positive relationship or direct relationship is a relationship between two variables that move in? _____ , and a negative relationship or inverse relationship is a relationship between two variables that move in ?_____. A. random? directions; a constant direction B. a constant? direction; random directions C. opposite? directions; the same direction D. the same? direction; opposite directions