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FSU Hammock Macro Final Questions
and Correct Answers/ Latest Update /
Already Graded
"An 10% increase in the minimum wage will increase unemployment
by 1%. This statement is...
A. consistent with the economics of price ceilings.
B. a positive economic statement.
C. a normative economic statement.
D. a negative externality.
Ans: B
This is a multiple answer question, which means that there may be
more than one correct answer. Select all the answers that are
correct.
Which of the following are examples positive economic statements?
A. The unemployment rate is too high.
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B. The unemployment rate is 4%.
C. If the price of gasoline rises above $3.00, that is too high.
D. A decrease in the price of gasoline will cause the quantity
supplied to fall, ceteris paribus.
Ans: B D
The opportunity cost of an action is
A. the monetary payment the action required.
B. the total time spent by all parties in carrying out the action.
C. the value of the best opportunity that must be sacrificed in order
to take the action.
D. the cost of all alternative actions that could have been taken,
added together.
Ans: C
The opportunity cost of going to college is
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A. the total spent on food, clothing, books, transportation, tuition,
lodging, and other expenses.
B. the value of the best opportunity a student gives up to attend
college.
C. zero for students who are fortunate enough to have all of their
college expenses paid by someone else.
D. zero, since a college education will allow a student to earn a
larger income after graduation.
Ans: b
point A is
A. unattainable.
B. inefficient.
C. efficient.
D. preferable to point B.
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Ans: B
Mateo values his camper at $4,000, and Nicole values it at $9,000. If
Nicole buys it from Mateo for $7,000, which of the following is true?
A. Mateo gains $3,000 of value, and Nicole gains $2,000 of value.
B. Mateo gains $7,000 of value, and Nicole loses $7,000 of value.
C. Mateo gains $7,000 of value, and Nicole gains $6,000 of value.
D. Mateo and Nicole both gain $7,000 of value.
Ans: A
The production possibilities curve illustrates the basic principle that
A. an economy's capacity to produce is unrelated to its population.
B. if all the resources of an economy are being used efficiently, more
of one good can be produced only if more of another good is
produced.
FSU Hammock Macro Final Questions
and Correct Answers/ Latest Update /
Already Graded
"An 10% increase in the minimum wage will increase unemployment
by 1%. This statement is...
A. consistent with the economics of price ceilings.
B. a positive economic statement.
C. a normative economic statement.
D. a negative externality.
Ans: B
This is a multiple answer question, which means that there may be
more than one correct answer. Select all the answers that are
correct.
Which of the following are examples positive economic statements?
A. The unemployment rate is too high.
,2 | Page
B. The unemployment rate is 4%.
C. If the price of gasoline rises above $3.00, that is too high.
D. A decrease in the price of gasoline will cause the quantity
supplied to fall, ceteris paribus.
Ans: B D
The opportunity cost of an action is
A. the monetary payment the action required.
B. the total time spent by all parties in carrying out the action.
C. the value of the best opportunity that must be sacrificed in order
to take the action.
D. the cost of all alternative actions that could have been taken,
added together.
Ans: C
The opportunity cost of going to college is
,3 | Page
A. the total spent on food, clothing, books, transportation, tuition,
lodging, and other expenses.
B. the value of the best opportunity a student gives up to attend
college.
C. zero for students who are fortunate enough to have all of their
college expenses paid by someone else.
D. zero, since a college education will allow a student to earn a
larger income after graduation.
Ans: b
point A is
A. unattainable.
B. inefficient.
C. efficient.
D. preferable to point B.
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Ans: B
Mateo values his camper at $4,000, and Nicole values it at $9,000. If
Nicole buys it from Mateo for $7,000, which of the following is true?
A. Mateo gains $3,000 of value, and Nicole gains $2,000 of value.
B. Mateo gains $7,000 of value, and Nicole loses $7,000 of value.
C. Mateo gains $7,000 of value, and Nicole gains $6,000 of value.
D. Mateo and Nicole both gain $7,000 of value.
Ans: A
The production possibilities curve illustrates the basic principle that
A. an economy's capacity to produce is unrelated to its population.
B. if all the resources of an economy are being used efficiently, more
of one good can be produced only if more of another good is
produced.
