Macro Section 1

Which of the following is an example of a resource?

I. Petroleum

II. a factory

III. A cheeseburger dinner

• I only

• II only

• III only

• I and II

• I, II, & III

Which of the following is not an example of resource scarcity?

• There is a finite amount of petroleum in the world.

• Farming communities are experiencing droughts.

• There are not enough physicians to satisfy all desires for health care in the United States.

• Cassette tapes are no longer being produced.

• Teachers would like to have more instructional technology in the classrooms.

Suppose that you prefer reading a book you already own to watching TV and that you prefer watching TV to listening to music. If these are your only three choices, what is the opportunity cost of reading?

• Watching TV and listening to music

• Watching TV

• Listening to music

• Sleeping

• The price of the book

Which of the following statements is/are normative?

I. The price of gasoline is rising.

II. The price of gasoline is too high.

III. Gas prices are expected to fall in the near future.

• I only

• II only

• III only

• I and II only

• I, II, and III

Which of the following questions is studied in microeconomics?

• Should I go to college or get a job after I graduate?

• What government policies should be adopted to promote employment in the economy?

• How many people are employed in the economy this year?

• Has the overall level of prices in the economy increased or decreased this year?

• What determines the overall salary levels paid to workers in a given year?

During the recession phase of the business cycle, which of the following is likely to increase?

• the unemployment rate

• the price level

• economic growth rates

• the labor force

• wages

The other things equal assumption allows other economists to

• avoid making assumptions about reality

• focus on the effects of only one change at a time

• oversimplify

• allow nothing to change in the model

• reflect all aspects of the real world in their model

Which point(s) on the graph represent productive efficiency?

• B and C

• A and D

• A, B, C, and D

• A, B, C, D, and E

• A, B, C, D, E, and F

For this economy, an increase in the quantity of capital goods produced without a corresponding decrease in the quantity of consumer goods produced

• cannot happen because there is always an opportunity cost

• is represented by a movement from point E to point A

• is represented by a movement from point C to point B

• is represented by a movement from point E to point B

• is only possible with an increase in resources or technology

An increase in unemployment could be represented by a movement from point

• D to point C

• B to point A

• C to point F

• B to point E

• E to point B