Macroeconomics Exam 1-5 Review

You should decide to go to a movie

• • if the marginal cost of the movie exceeds its marginal benefit.

• if the marginal benefit of the movie exceeds its marginal cost.

• • if your income will allow you to buy a ticket.

• • because movies are enjoyable.

Economic analysis assumes "purposeful behavior," which means that people will pursue decisions or actions

• that will increase their well-being.

• • always based on full or complete information.

• • with minimal consideration for their emotions.

• • without making any logical mistakes.

Suppose Taran can only watch one of his favorite teams play. Assuming the cost to watch each team is the same, which team will Taran choose to watch?

• • Manchester United

• • Seattle Mariners

• • Seattle Storm

• Seattle Sounders

A positive statement is concerned primarily with

• • some goal that is desirable to society.

• • what should be.

• what is.

• • the formulation of economic policy.

Refer to the budget line shown in the diagram. Which of the following combinations of goods is attainable for this consumer?

• 4 units of C and 2 units of D

• • 1 unit of C and 10 units of D

• • 2 units of C and 8 units of D

• • 4 units of C and 6 units of D

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. What is the slope of the budget line if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis?

• • −0.5

• • −0.8

• • −1.6

• −2

Which of the following would not be considered a capital resource by economists?

• • the secret recipe used in a restaurant's signature dish

• 100 shares of stock in a major corporation

• • an electric drill used by a construction worker

• • the songs written and produced by a professional musician

Refer to the tables. Suppose that technology and the quality of resources are the same in both countries. We can conclude that

• • Duckistan has more resources than Herbania.

• Herbania has more resources than Duckistan.

• • Duckistan has greater opportunity costs than Herbania.

• • prices are twice as high in Herbania as in Duckistan.

Refer to the diagram. If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 5, the cost

• • of doing so cannot be determined from the information given.

• • will be zero because unemployed resources are available.

• will be 2 units of bicycles.

• • will be 1 unit of bicycles.

Refer to the diagram. Suppose this economy is currently producing at point D. For this economy to produce at point G, it would have to

• expand its resources or improve its technology.

• • use existing resources and technology more efficiently.

• • change its preferences.

• • 
    

    implement policies that increase government spending.