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- 1. Multiple Choice
objective statements that can be tested, amended or rejected by referring to the available evidence
Normative Statements
Polar Statements
Positive Statements
Negative Statements
- 2. Multiple Choice
Which of the following best describes the law of diminishing marginal utility?
As consumption of a good increases, total utility decreases
As consumption of a good increases, marginal utility decreases
As consumption of a good increases, total utility increases at an increasing rate
As consumption of a good increases, total utility decreases at a decreasing rate
- 3. Multiple Choice
Which of the following is not included in the natural rate of unemployment?
Structural Unemployment
Frictional Unemployment
Cyclical Unemployment
- 4. Multiple Choice
At which point would an economy be producing at during a recession?
A
B
C
D
- 5. Multiple Choice
Which of the following is an affect of the Federal Reserve's decision to lower its target federal funds rate to 0 - 0.25%
Increased private investment in capital goods
Decreased government expenditure
Increased saving
A leftward shift of the PPC
- 6. Multiple Choice
The following table shows the production of pies and cakes for both people in 1 hour. Who has a comparitive advantage in cake production?
David
William
- 7. Multiple Choice
The following table shows the production of pies and cakes for both people in 1 hour. Which of the following is an mutually beneficial terms of trade?
3 pies for 1 cake
7 pies for 4 cakes
1 pie for 2 cakes
No mutually beneficial terms of trade
- 8. Multiple Choice
Who is credited with developing the theory of comparative advantage ?
Adam Smith
Paul Krugman
David Ricardo
F. A. Hayek
- 9. Multiple Choice
Which of the following does NOT seem to contradict the law of demand?
a downward sloping demand curve
a veblen good
a giffen good
- 10. Multiple Choice
If the cross price elasticity of demand is 0 between two goods, what can be concluded about the goods?
They are substitutes
They are complements
They are unrelated
They are strongly related
- 11. Multiple Choice
Which of the following is not a factor of production?
Land
Profit
Capital
Entrepreneurship
- 12. Multiple Choice
Which of the following is NOT one of 3 economic questions each society must decide upon because resources are scarce?
What goods and services should be produced?
How should these goods and services be produced?
Who consumes these goods and services?
At what price should these goods and services be sold?
- Answer choicesTagsAnswer choicesTags