Test Bank For Principles of Macroeconomics 13th Edition By
Karl E. Case; Ray C. Fair; Sharon E.
An economist notices that sunspot activity is high just prior to recessions and
concludes that sunspots cause recessions. The economist has - ANSWER: confused
association with and causation.
Which of the following is a statement of normative economics? - ANSWER: The
minimum wage is good because it raises wages for the working poor.
Scarcity exists - ANSWER: in all countries in the world.
Which of the following would eliminate scarcity as an economic problem? - ANSWER:
None of these because scarcity cannot be eliminated.
Microeconomics approaches the study of economics from the viewpoint of -
ANSWER: individuals or specific markets.
Computer programs, or software, are an example of - ANSWER: capital.
A review of the performance of the U.S. economy during the 1990's is primarily the
concern of - ANSWER: macroeconomics.
Which of the following is not a resource? - ANSWER: money
Which of the following is a statement of positive economics? - ANSWER: The income
tax system collects a lower percentage of the incomes of the poor.
Economics is the study of - ANSWER: people making choices because of the problem
of scarcity.
On a production possibilities curve, the opportunity cost of good X, in terms of good
Y, is represented by the: - ANSWER: movement along the curve.
This economy cannot currently produce 70 washers and 70 dryers because -
ANSWER: it does not have the resources and technology to produce that level of
output.
In the following exhibit, the production possibilities curve demonstrates: - ANSWER:
the law of increasing opportunity costs.
In the following exhibit, movement between which of the following points
represents an increase in economic efficiency? - ANSWER: C to D
, The opportunity cost of an action is: - ANSWER: the value of the best opportunity
that must be sacrificed in order to take the action.
In the following exhibit, inefficient resource use is shown by which of the following
points? - ANSWER: P
Production is efficient if the economy is producing at a point - ANSWER: on the
production possibilities curve.
In the following exhibit, if the economy moves from point L to point M, the
opportunity cost of producing 10 more capital goods is: - ANSWER: 15 less consumer
goods.
When a production possibilities frontier is bowed outward, the opportunity cost of
producing an additional unit of a good - ANSWER: increases as more of the good is
produced.
In the following exhibit, which of the following could have caused the production
possibilities curve of an economy to shift from the one labeled A to the one labeled
B? - ANSWER: An advance in technology
Which of the following will cause a movement along the supply curve? - ANSWER: A
change in the market price of a good, other things held constant.
An increase in the wages paid to fishermen will have what effect on the fish market
equilibrium? - ANSWER: Price will increase, and quantity will decrease.
The price of a good will fall when: - ANSWER: there is a surplus of the good.
Which of the following would shift the demand curve for autos to the right? -
ANSWER: A fall in the price of auto insurance.
Which of the following could cause the supply of carrots to decrease? - ANSWER:
Fertilizer costs increase.
If the demand for a good decreased, what would be the effect on the equilibrium
price and quantity? - ANSWER: Price would decrease, and quantity would decrease.
If a government-imposed price floor legally sets the price of milk above market
equilibrium, which of the following will most likely happen? - ANSWER: There will be
a surplus of milk.
An increase in demand and a decrease in supply cause which of the following? -
ANSWER: Equilibrium price rises.
If a price ceiling is imposed, then: - ANSWER: a shortage of product will result.
Karl E. Case; Ray C. Fair; Sharon E.
An economist notices that sunspot activity is high just prior to recessions and
concludes that sunspots cause recessions. The economist has - ANSWER: confused
association with and causation.
Which of the following is a statement of normative economics? - ANSWER: The
minimum wage is good because it raises wages for the working poor.
Scarcity exists - ANSWER: in all countries in the world.
Which of the following would eliminate scarcity as an economic problem? - ANSWER:
None of these because scarcity cannot be eliminated.
Microeconomics approaches the study of economics from the viewpoint of -
ANSWER: individuals or specific markets.
Computer programs, or software, are an example of - ANSWER: capital.
A review of the performance of the U.S. economy during the 1990's is primarily the
concern of - ANSWER: macroeconomics.
Which of the following is not a resource? - ANSWER: money
Which of the following is a statement of positive economics? - ANSWER: The income
tax system collects a lower percentage of the incomes of the poor.
Economics is the study of - ANSWER: people making choices because of the problem
of scarcity.
On a production possibilities curve, the opportunity cost of good X, in terms of good
Y, is represented by the: - ANSWER: movement along the curve.
This economy cannot currently produce 70 washers and 70 dryers because -
ANSWER: it does not have the resources and technology to produce that level of
output.
In the following exhibit, the production possibilities curve demonstrates: - ANSWER:
the law of increasing opportunity costs.
In the following exhibit, movement between which of the following points
represents an increase in economic efficiency? - ANSWER: C to D
, The opportunity cost of an action is: - ANSWER: the value of the best opportunity
that must be sacrificed in order to take the action.
In the following exhibit, inefficient resource use is shown by which of the following
points? - ANSWER: P
Production is efficient if the economy is producing at a point - ANSWER: on the
production possibilities curve.
In the following exhibit, if the economy moves from point L to point M, the
opportunity cost of producing 10 more capital goods is: - ANSWER: 15 less consumer
goods.
When a production possibilities frontier is bowed outward, the opportunity cost of
producing an additional unit of a good - ANSWER: increases as more of the good is
produced.
In the following exhibit, which of the following could have caused the production
possibilities curve of an economy to shift from the one labeled A to the one labeled
B? - ANSWER: An advance in technology
Which of the following will cause a movement along the supply curve? - ANSWER: A
change in the market price of a good, other things held constant.
An increase in the wages paid to fishermen will have what effect on the fish market
equilibrium? - ANSWER: Price will increase, and quantity will decrease.
The price of a good will fall when: - ANSWER: there is a surplus of the good.
Which of the following would shift the demand curve for autos to the right? -
ANSWER: A fall in the price of auto insurance.
Which of the following could cause the supply of carrots to decrease? - ANSWER:
Fertilizer costs increase.
If the demand for a good decreased, what would be the effect on the equilibrium
price and quantity? - ANSWER: Price would decrease, and quantity would decrease.
If a government-imposed price floor legally sets the price of milk above market
equilibrium, which of the following will most likely happen? - ANSWER: There will be
a surplus of milk.
An increase in demand and a decrease in supply cause which of the following? -
ANSWER: Equilibrium price rises.
If a price ceiling is imposed, then: - ANSWER: a shortage of product will result.
