The point where the PPF intersects the horizontal axis is
a. unattainable.
b. attainable and productive efficient.
c. attainable but productive inefficient.
d. attainable and neither productive efficient nor productive inefficient.
Which of the following statements is true?
a. To an economist, demand is different from quantity demanded.
b. A demand schedule is the numerical tabulation of the law of demand.
c. A demand curve is the graphical representation of the direct relationship between
price and quantity demanded.
d. a and b
e. a, b, and c
Milton Friedman argued that as long as
a. the unemployment rate is higher than the inflation rate, the economy is not in
long-run equilibrium.
b. Real GDP grows, the inflation rate will fall.
c. the expected inflation rate is not equal to the actual inflation rate, the economy is not
in long-run equilibrium.
d. nominal wages rise, so do real wages.
e. none of the above
Which of the following is a positive economic statement?
a. We should raise the minimum wage in order to provide a decent wage for more
people.
b. Consumers bought fewer cars when the relative price of cars increased.
c. The budget deficit has been rising in recent years.
d. Federal government spending ought to be curtailed.
e. b and c
According to economist Arnold Kling€s perspective on the economy, economic activity
is best viewed by focusing on
a. aggregate demand.
b. the actions of the Federal Reserve.
c. changes in spending.
d. specialization and trade.
The AD curve shows that, as the price level falls the quantity of
a. GDP demanded increases.
b. GDP demand decreases.
c. Real GDP demanded increases.
d. Real GDP demanded decreases.
e. none of the above
If the demand curve for agricultural products is inelastic and farmers as a group become
more productive, then prices of agricultural goods will __________ and total revenue
earned by farmers will __________.
a. decrease; increase
b. decrease; decrease
c. increase; increase
d. increase; decrease
e. We cannot answer this question without knowing how inelastic the demand curve is.
Which of the following statements is false?
a. There are fewer farms in this country today than there were earlier in this century.
b. In 2000, there were 8 million farms in the United States.
c. Bad weather reduces the supply of foodstuffs and leads to greater farmer total
revenue, assuming demand for the foodstuffs is inelastic.
d. b and c
It often appears as if there are “too few” workers at the Department of Motor Vehicles
(DMV) to service all of its customers at a given point in time.Based on one of theories
discussed in the textbook, this is probably because
a. the equilibrium “price” to be served by the DMV is lower than the “price” charged
customers.
b. the equilibrium “price” to be served by the DMV is higher than the “price” charged
customers.
c. the equilibrium “price” to be served by the DMV minus the “price” charged to
customers is zero.
d. b and c
e. none of the above
It is possible for the government to remove individuals from a prisoner’s dilemma
setting and make them better off.
a. True
b. False