Answer The minimum wage has not kept pace with inflation.
218. Multiple Choice: Which of the following is a normative…
Question Which of the following is a normative statement?
Answer International trade leads to expanded consumption opportunities.
219. Multiple Choice: Which of the following is a positive …
Question Which of the following is a positive economic statement?
Answer Government has grown too large and should be reduced.
220. Multiple Choice: An example of a positive statement is:
Question An example of a positive statement is:
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221. Multiple Choice: An example of a positive statement is:
Question An example of a positive statement is:
Answer the rate of unemployment should be 4%.
222. Multiple Choice: Unemployment of 5% is too high. This …
Question Unemployment of 5% is too high. This is an example of:
223. Multiple Choice: Which of the following is a normative…
Question Which of the following is a normative economic statement?
224. Multiple Choice: Which of the following is an example ...
Question Which of the following is an example of a positive statement?
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225. Multiple Choice: Which of the following is an example ...
Question Which of the following is an example of a positive statement?
Answer The poverty rate should be 4%.
226. Multiple Choice: Statements that make value judgments …
Question Statements that make value judgments are:
Answer pecuniary.
227. Multiple Choice: Which of the following is an example ...
Question Which of the following is an example of a normative statement?
Answer The rate of unemployment is 9%.
228. Multiple Choice: Which of the following is an example ...
Question Which of the following is an example of a normative statement?
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Answer The rate of unemployment is 9%.
229. Multiple Choice: The current rate of unemployment of 9...
Question The current rate of unemployment of 9% is too high. This is a ________ statement.
230. Multiple Choice: The current rate of unemployment is 9…
Question The current rate of unemployment is 9%. This statement:
231. Multiple Choice: Unemployment decreased to its lowest …
Question Unemployment decreased to its lowest level in 10 years last month. This
statement is an example of:
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232. Multiple Choice: A statement that says that the minimu…
Question A statement that says that the minimum wage should be increased is a:
233. Multiple Choice: A normative statement deals with:
Question A normative statement deals with:
Answer the facts.
234. Multiple Choice: Which of the following offices of the…
Question Which of the following offices of the U.S. government is a major employer of
economists?
Answer International Monetary Fund
235. Multiple Choice: Economists who are asked to choose be…
Question Economists who are asked to choose between two different government policies
may disagree because:
Answer they make the same value judgments about the desirability of the policies.
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236. Multiple Choice: Economists may disagree about policie…
Question Economists may disagree about policies because:
Answer they may approach the issue using the same sets of values.
237. Multiple Choice: Economists use models to explain real...
Question Economists use models to explain real-life situations because:
Answer such models tend to be exactly what is occurring in each situation.
238. Multiple Choice: Economic models often:
Question Economic models often:
239. Multiple Choice: “All other relevant factors rem…
Question “All other relevant factors remain unchanged” is another way of saying:
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240. Multiple Choice: Alexander has a straight-line, or lin...
Question Alexander has a straight-line, or linear, production possibility frontier when he
produces soybeans and corn. If he uses all of his resources to grow soybeans, he
can produce 200 bushels of soybeans; if he uses all of his resources for corn
production, he can produce 400 bushels of corn. Which of the following
combinations of corn and soybeans are not possible for him to produce?
Answer 200 bushels of soybeans and zero bushels of corn
241. Multiple Choice: Frances has a linear production possi...
Question Frances has a linear production possibility frontier when she produces tomatoes
and green beans. If she uses all of her resources, she can produce 400 bushels of
tomatoes or 800 bushels of green beans. Which of the following combinations is
not efficient for Frances?
Answer 400 bushels of tomatoes and zero bushels of green beans
242. Multiple Choice: Alison has a linear production possib...
Question Alison has a linear production possibility frontier in the production of bracelets and
necklaces. In one hour, she can produce 5 bracelets or 10 necklaces. What is the
opportunity cost for her to make one necklace?
Answer 5 bracelets
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243. Multiple Choice: Scenario: Linear Production Possibili…
Question Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and
shirts with 80 hours of labor. The table shows the number of hours of labor
necessary to produce one sock or one shirt.
Reference: Ref 2-29
(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear
Production Possibility Frontier. What is the maximum number of socks Largetown
can produce?
244. Multiple Choice: Scenario: Linear Production Possibili…
Question
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Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and
shirts with 80 hours of labor. The table shows the number of hours of labor
necessary to produce one sock or one shirt.
Reference: Ref 2-29
(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear
Production Possibility Frontier. If Largetown decides to devote half of its labor time
to the production of socks and half of the time to the production of shirts, what is
the maximum number of socks and shirts it can produce?
245. Multiple Choice: Scenario: Linear Production Possibili…
Question Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and
shirts with 80 hours of labor. The table shows the number of hours of labor
necessary to produce one sock or one shirt.
Reference: Ref 2-29
(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear
Production Possibility Frontier. What happens to the opportunity cost of producing
shirts in Largetown if its labor resource decreases by 40 hours?
Answer The opportunity cost of producing shirts increases.
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246. Multiple Choice: Scenario: Linear Production Possibili…
Question Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and
shirts with 80 hours of labor. The table shows the number of hours of labor
necessary to produce one sock or one shirt.
Reference: Ref 2-29
(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear
Production Possibility Frontier. Which of the following combinations of shirts and
socks is not a feasible option for Largetown to produce?
Answer 20 shirts and zero socks
247. Multiple Choice: Smallville has a linear production po...
Question Smallville has a linear production possibility frontier in the production of good X and
good Y. It can produce 6 of X per hour or 8 of Y per hour. Suppose it has 240 hours
of labor and divides labor hours equally between good X production and good Y
production. What is the maximum amount of good Y it can produce?
248. Multiple Choice: Reference: Ref 2-30 (Table: Producti…
Question
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Reference: Ref 2-30
(Table: Production of Good Z and Good X in Urbanville) Look at the table Production
of Good Z and Good X in Urbanville. If this represents the production possibility
frontier and Urbanville is producing 5 of Z and 50 of X, then this combination is:
249. Multiple Choice: Reference: Ref 2-30 (Table: Producti…
Question
Reference: Ref 2-30
(Table: Production of Good Z and Good X in Urbanville) Look at the table Production
of Good Z and Good X in Urbanville. Suppose this represents the production
possibility frontier and Urbanville is currently producing 15 of Z and 45 of X. This
combination is:
Answer both allocatively and productively efficient.
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neither productively nor allocatively efficient.
250. Multiple Choice: Reference: Ref 2-30 (Table: Producti…
Question
Reference: Ref 2-30
(Table: Production of Good Z and Good X in Urbanville) Look at the table Production
of Good Z and Good X in Urbanville. If this represents the production possibility
frontier and Urbanville is producing at combination C and moves to combination D,
what is its opportunity cost of this move?
251. Multiple Choice: Reference: Ref 2-30 (Table: Producti…
Question
Reference: Ref 2-30
(Table: Production of Good Z and Good X in Urbanville) Look at the table Production
of Good Z and Good X in Urbanville. If this represents the production possibility
frontier and Urbanville is currently producing at combination F, what is the
opportunity cost of a move to combination E?
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252. Multiple Choice: If an economy produces the desired mi...
Question If an economy produces the desired mix of goods from its available resources, then
this mix of goods is:
253. Multiple Choice: Scenario: Countries A and BTwo countr…
Question Scenario: Countries A and B
Two countries, A and B, produce two goods, wheat (W) and steel (S). Each has a
linear production possibility frontier in both goods. If country A spends all of its
available resources to produce wheat, it can produce 500 tons of wheat and zero
tons of steel. If it uses all of its resources to produce steel, it can produce 250 tons
of steel and zero tons of wheat. If country B spends all of its available resources
producing wheat, it can produce 400 tons of wheat, and if it spends all of its
resources on the production of steel, it can produce 400 tons of steel.
Reference: Ref 2-31
(Scenario: Countries A and B) Look at the scenario Countries A and B. Given this
information, country ________ has a comparative advantage in the production of
wheat and country ________ has a comparative advantage in the production of
steel.
254. Multiple Choice: Scenario: Countries A and BTwo countr…
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Question Scenario: Countries A and B
Two countries, A and B, produce two goods, wheat (W) and steel (S). Each has a
linear production possibility frontier in both goods. If country A spends all of its
available resources to produce wheat, it can produce 500 tons of wheat and zero
tons of steel. If it uses all of its resources to produce steel, it can produce 250 tons
of steel and zero tons of wheat. If country B spends all of its available resources
producing wheat, it can produce 400 tons of wheat, and if it spends all of its
resources on the production of steel, it can produce 400 tons of steel.
Reference: Ref 2-31
(Scenario: Countries A and B) Look at the scenario Countries A and B. If each
country devotes half of its resources to the production of wheat and half to the
production of steel, then their total production of wheat would be ________and their
total production of steel would be ________.
255. Multiple Choice: Scenario: Countries A and BTwo countr…
Question Scenario: Countries A and B
Two countries, A and B, produce two goods, wheat (W) and steel (S). Each has a
linear production possibility frontier in both goods. If country A spends all of its
available resources to produce wheat, it can produce 500 tons of wheat and zero
tons of steel. If it uses all of its resources to produce steel, it can produce 250 tons
of steel and zero tons of wheat. If country B spends all of its available resources
producing wheat, it can produce 400 tons of wheat, and if it spends all of its
resources on the production of steel, it can produce 400 tons of steel.
Reference: Ref 2-31
(Scenario: Countries A and B) Look at the scenario Countries A and B. If country B
produces 300 tons of steel, how many tons of wheat can it produce?
256. Multiple Choice: Scenario: Countries A and BTwo countr…
Question
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Scenario: Countries A and B
Two countries, A and B, produce two goods, wheat (W) and steel (S). Each has a
linear production possibility frontier in both goods. If country A spends all of its
available resources to produce wheat, it can produce 500 tons of wheat and zero
tons of steel. If it uses all of its resources to produce steel, it can produce 250 tons
of steel and zero tons of wheat. If country B spends all of its available resources
producing wheat, it can produce 400 tons of wheat, and if it spends all of its
resources on the production of steel, it can produce 400 tons of steel.
Reference: Ref 2-31
(Scenario: Countries A and B) Look at the scenario Countries A and B. If countries
A and B both specialize and trade:
Answer only country A will gain.
257. Multiple Choice: Scenario: Countries A and BTwo countr…
Question Scenario: Countries A and B
Two countries, A and B, produce two goods, wheat (W) and steel (S). Each has a
linear production possibility frontier in both goods. If country A spends all of its
available resources to produce wheat, it can produce 500 tons of wheat and zero
tons of steel. If it uses all of its resources to produce steel, it can produce 250 tons
of steel and zero tons of wheat. If country B spends all of its available resources
producing wheat, it can produce 400 tons of wheat, and if it spends all of its
resources on the production of steel, it can produce 400 tons of steel.
Reference: Ref 2-31
(Scenario: Countries A and B) Look at the scenario Countries A and B. Given this
information, the country that has the absolute advantage in wheat is ________, and
the country that has the absolute advantage in steel is ________.
258. Multiple Choice: Positive economics:
Question Positive economics:
Answer describes opinions and perspectives on how the world should work.
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259. Multiple Choice: Of the following statements, which re...
Question Of the following statements, which reflect(s) a normative view?
I. The United States should increase the minimum wage to $10 per hour.
II. There is a federal minimum wage in the United States.
III. The federal minimum wage in the United States is less than $10 per hour.
Answer All are normative.
260. Essay: Consider a point within a production ...
Question Consider a point within a production possibility frontier for a simple economy that
produces only two goods, X and Y. Why is this point described as feasible but not
efficient?
261. Essay: Explain why economists believe that i...
Question Explain why economists believe that in reality production possibility frontiers have a
bowed-out curvature rather than a straight line.
262. Essay: Leaders of a small town are tired of …
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Question Leaders of a small town are tired of looking at a vacant and dilapidated warehouse
that sits on a prime piece of real estate. The town finds an investor who purchases
the warehouse and promises to renovate the old building and build condominiums.
Is this economic growth?
263. Essay: Explain how technological progress is...
Question Explain how technological progress is a source for economic growth.
264. Essay: Reference: Ref 2-27 (Table: Crab and…
Question
Reference: Ref 2-27
(Table: Crab and Cake Production in Chesapeake) Look at the table Crab and Cake
Production in Chesapeake. What is the opportunity cost of increasing the
production of crabs from zero to 100? What is the opportunity cost of increasing
the production of crabs from 400 to 500? Explain the difference in your answers.
265. Essay: Reference: Ref 2-27 (Table: Crab and…
Question
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Reference: Ref 2-27
(Table: Crab and Cake Production in Chesapeake) Look at the table Crab and Cake
Production in Chesapeake. The table shows the maximum annual output
combinations of crabs and cakes. Given the scarce resources and limited
technology, as Chesapeake uses more resources to the production of cakes, fewer
resources are available to produce crabs. Can this nation produce 200 crabs and
500 cakes? Is this efficient? Explain.
266. Essay: Reference: Ref 2-28 (Table: Wheat an...
Question
Reference: Ref 2-28
(Table: Wheat and Aluminum) Look at the table Wheat and Aluminum. that shows
the maximum possible production (in tons) of wheat and aluminum for both the
United States and Germany. Are gains from trade possible between these nations?
Explain.
Answer
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267. Essay: Consider a nation with a large econom...
Question Consider a nation with a large economy like the United States and a nation with a
small economy like the Dominican Republic. How can the United States, with
absolute advantage in production of almost all goods, benefit from trade with the
Dominican Republic?
268. Essay: You are reading an editorial in your ...
Question You are reading an editorial in your local newspaper. The editorial says: “The
United States had a trade deficit of $18.4 billion in February 2008. This is a clear
indication to our leaders that we must renegotiate our trade agreements with China
to make them fairer for the American worker.” What parts of this editorial are
positive and what parts are normative economics?
OK
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