A __________ good is one that once produced and provided to one person, provides
benefits to other persons.
a. consumption
b. investment
c. private
d. public
In all cases, positive economics deals with
a. what is.
b. what should be.
c. relatively small units in the economy.
d. aggregates or the entire economy.
When an economy is not using all of its resources, it is producing at a point below its
production possibilities frontier.
a. True
b. False
Which of the following is inconsistent with the burglary crime model presented in the
textbook?
a. The burglary rate rises during recessions.
b. The burglary rate declines during recessions.
c. The burglary rate remains does not change because of a recession.
d. The anguish cost of committing a burglary is directly related to the expected cost of
committing a burglary.
e. a and d
If the demand for cocaine is inelastic and people commit crimes to buy drugs, then a
drug bust can increase the amount of drug-related crime.
a. True
b. False
In monopolistic competition, firms can compete in terms of
a. price.
b. quality of product.
c. service.
d. location.
e. all of the above
A firm can use a given plant more intensively and it can change the size of a plant.
When it uses a given plant more intensively, it is holding one factor __________ and
therefore the time period of production is most likely the __________.
a. fixed; short run
b. fixed; long run
c. more important than another; long run
d. more important than another; short run
A monopsony, as compared to a perfectly competitive firm, pays __________ wage and
hires __________ labor.
a. a higher; less
b. a higher; more
c. a lower; less
d. a lower; more
e. the same; the same amount of
Which of the following statements is false?
a. If there are only two goods, guns and butter, it is possible to produce more of both
goods through economic growth.
b. If there are only two goods, guns and butter, it is possible to produce more of both
goods if the economy is currently operating at a productive inefficient point.
c. If there are only two goods, guns and butter, it is possible to produce more of both
goods if the economy is currently operating at a productive efficient point.
d. If there are only two goods, guns and butter, producing more of one means producing
less of the other if the economy is currently operating at a productive efficient point.
In the real-world, which of these industries is most clearly an oligopoly?
a. wheat
b. electricity generation
c. cereal breakfast foods
d. restaurants