|
1) The retail price index is used to__________________? a. construct price lists b. compare shop prices c. measure changes in the cost of living d. None of the above
|
||||
|
2) Data are important in economics because _________ and ____________? a. they suggest relationships for explanation, allow testing of hypotheses b. they can be used for tables, they can be graphed c. they can be used in computers governments use them d. they provide interesting information can be summarized
|
||||
|
3) If marginal benefit is greater than marginal cost, a rational choice involves ? a. no more of the activity. b. less of the activity c. more of the activity d. more or less, depending on the benefits of other activities
|
||||
|
4) Normative economics Forms ________ based on ________? a. positive statements, facts b. opinions personal facts c. positive statements values d. opinions facts
|
||||
|
5) In a free market? a. government intervenes b. government plan production c. government interferes d. Prices adjust to reconcile scarcity and desires
|
||||
|
6) The opportunity cost of a good is______________? a. the time lost in finding it b. the quantity of other goods sacrificed to get another unit of that good c. the expenditure on the good d. the loss of interest in using savings
|
||||
|
7) Productivity can be increased by ? a. improving the education of workers b. raising union wages. c. raising minimum wages. d. restricting trade with foreign countries.
|
||||
|
8) You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ? a. Rs 300 b. Rs 1000 c. Rs 500 d. Rs 800
|
||||
|
9) The Phillips curve shows that ? a. the business cycle has been eliminated b. an increase in inflation temporarily increases unemployment. c. inflation and unemployment are unrelated in the short run. d. a decrease in inflation temporarily increases unemployment. e. none of these
|
||||
|
10) Workers in Western Europe enjoy a high standard of living because ? a. the countries of Western Europe have set high minimum wage rates. b. Unions in Western Europe keep the wage high c. none of these answers. d. The countries of Western Europe have protected their industries from foreign corporation e. Workers in the united states are highly productive
|
||||
