Quiz Thinking Like A Economist Part 2

Chapter 2 quiz thinking like a economist part2 If the economy were operating at point E, a. the opportunity cost of 20 additional units of eggs is 30 units of bacon. b. the opportunity cost of 20 additional units of eggs is 10 units of bacon. c. 20 additional units of eggs can be produced with no impact on bacon production. d. the opportunity cost of 20 additional units of eggs is 20 units of bacon. Point F represents a. a combination of production that can be reached if we reduce the production of eggs by 20 units. b. a combination of production that is inefûcient because there are unemployed resources. c. a combination of production that can be reached if there is a sufûcient advance in technology. d. none of the above. As we move from point A to point D, a. the opportunity cost of eggs in terms of bacon falls. b. the economy becomes more efûcient. c. the economy becomes less efûcient. d. the opportunity cost of eggs in terms of bacon is constant. e. the opportunity cost of eggs in terms of bacon rises. Which of the following issues is related to microeconomics? a. the impact of oil prices on auto production b. the impact of money on inüation c. the impact of technology on economic growth d. the impact of the deûcit on saving Which of the following statements about microeconomics and macroeconomics is not true? a. Microeconomics is a building block for macroeconomics. b. Microeconomics and macroeconomics cannot be entirely separated. c. Macroeconomics is concerned with economy-wide phenomena. d. The study of very large industries is a topic within macroeconomics. Which of the following statements is normative? a. The unemployment rate should be lower. b. People work harder if the wage is higher. c. Large government deûcits cause an economy to grow more slowly. d. Printing too much money causes inüation. In making which of the following statements is an economist acting more like a scientist? a. The rate of inüation should be reduced because it robs the elderly of their savings. b. The state should increase subsidies to universities because the future of our country depends on education. c. A reduction in unemployment beneûts will reduce the unemployment rate. d. The unemployment rate should be reduced because unemployment robs individuals of their dignity. Positive statements are a. statements of description that can be tested. b. microeconomic. c. statements of prescription that involve value judgments. d. Macroeconomic. Suppose two economists are arguing about policies that deal with unemployment. One economist says, "The government should ûght unemployment because it is the greatest social evil." The other economist responds, "That's ridiculous. Inüation is the greatest social evil." These economists a. disagree because they have different scientiûc judgments. b. disagree because they have different values. c. really don't disagree at all. It just looks that way. d. do none of the above. Suppose two economists are arguing about policies that deal with unemployment. One economist says, "The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars." The other economist responds, "That's ridiculous. If the government spent an additional 50 billion dollars, it would reduce unemployment by only one-tenth of 1 percent, and that effect would only be temporary!" These economists a. disagree because they have different scientiûc judgments. b. disagree because they have different values. c. really don't disagree at all. It just looks that way. d. do none of the above.