FIB Economics Quiz

Which of the following statements is not related to economic questions?

• What to produce?

• For whom to produce?

• Where to produce?

• How to produce?

The problem of scarcity arises due to

• Human being greed

• Limited available resources

• Government restrictions to the production of too many goods and services

• Inefficient production methods to expand the production of goods and services

Macroeconomics is the study of

• Individual decision makers

• History of economic thoughts

• Economic-wide phenomena

• Cow firm maximize profit

A mixed economy is an economy that

• Changes from a pure free to a pure planned economy

• Has elements of dictatorship

• Is a mix of pure free and pure planned economies

• Has minimum government interventions

The production possibilities curve (PPC) is a graph that shows:

• All the combinations of goods and services that are consumed over time if all resources are used efficiently.

• The amount of goods and services consumed at various average price levels.

• The rate of which an economy output will grow over time if all resources are used efficiently.

• All the combinations of goods and services that can be produced if all resources are used efficiently.

A decrease in resources

• Moves the economy up a given PPC.

• Moves the economy down a given PPC.

• Shifts the PPC inward.

• Shifts the PPC outward.

Points inside (below) the production possibilities curve (PPC) are

• Unattainable.

• Attainable.

• Attainable in the short run but not in the long run.

• Attainable in the long run but not in the short run.

Under socialism the

• Market; government

• Government; market

• Buyers; sellers

• Sellers; buyers

Positive and normative statements differ in that:

• positive statement can be tested, whereas normative statements cannot

• normative statement can be tested, whereas positive statements cannot

• normative statement depict “what is” and positive statements depict “what ought to be

• normative statement never use the word “should”

Points inside (below) the production possibilities curve (PPC) are __________________.

• unattainable

• attainable

• attainable in the short run but not in the long run

• attainable in the short run but not in the short run