Reference no: EM132631725
1.Which of the following concepts cannot be illustrated by the Production Possibilities Frontier.
(a) the set of efficient allocations.
(b) the ideal combination of output an economy should produce.
(c) economic growth.
(d) opportunity cost.
(e) the set of feasible allocations.
2.Which of the following is not one of the ten principles of economics according to Mankiw
(a) society faces a short-run trade-off between inflation and unemployment.
(b) people respond to incentives.
(c) the quantity demanded falls when the price rises.
(d) markets are usually a good way to organize economic activity.
(e) rational people think at the margin.
3. A survey of professional economists, as discussed in Mankiw Chapter 2, revealed or found that:
(a) there is quite a bit of uniformity of positions and propositions among economists.
(b) what Shaw said - "If you laid economists end to end they'd never reach a conclusion"- seems correct.
(c) economists agree overwhelmingly on normative issues but disagree on positive ones.
(d) economists are more likely to disagree among themselves than would be true among sociologists or anthropologists.
(e) economists tend to support rent control, raising minimum wage rates, implementing universal health care, and restricting foreign trade with quotas (but not tariffs).
4. The supply curve is a measure of
(a) the cost of production inputs
(b) the alternative cost of owners
(c) the total economic cost of production
(d) wages and rental price of capital
(e) none of the above
5. Why does the demand have a negative slope?
(a) decreasing utility of consumption.
(b) marginal utility of consumption is decreasing.
(c) because the marginal cost is increasing.
(d) consumer surplus is decreasing.
(e) prices are increasing as quantity grows.