Question: As we move from point A to point D, ________.

Answer:

the opportunity cost of eggs in terms of bacon rises

Question: Economic models are ________.

Answer:

built with assumptions

Question: Which of the following is most likely to produce scientific evidence about a theory?

Answer:

A tenured economist employed at a leading university analyzing the impact of bank regulations on rural lending

Question: Which of the following issues is related to microeconomics?

Answer:

The impact of oil prices on auto production

Question: Which of the following statements is normative?

Answer:

The unemployment rate should be lower.

Question: Suppose two economists are arguing about policies that deal with unemployment. One economist says, “The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars.” The other economist responds, “That’s ridiculous. If the government spent an additional 50 billion dollars, it would reduce unemployment by only one-tenth of 1 percent, and that effect would only be temporary!” These economists ________.

Answer:

disagree because they have different scientific judgments

Question: Which of the following statements regarding the circular-flow diagram is true?

Answer:

The factors of production are owned by households.

Question: In which of the following cases is the assumption most reasonable?

Answer:

To address the benefits of international trade, an economist assumes that there are two countries, each producing two goods.

Question: Which of the following will not shift a country’s production possibilities frontier outward?

Answer:

A reduction in unemployment

Question: If the economy were operating at point E, ________.

Answer:

The opportunity cost of 20 additional units of eggs is 15 units of bacon (Note: Correct answer adjusted based on graph analysis. Original multiple-choice options did not include this.)

Question: Point F represents ________.

Answer:

a combination of production that can be reached if there is a sufficient advance in technology

Question: In making which of the following statements is an economist acting more like a scientist?

Answer:

A reduction in unemployment benefits will reduce the unemployment rate.

Question: Which of the following is not a factor of production?

Answer:

Money

Question: The scientific method requires that ________.

Answer:

scientists be objective

Question: Points on the production possibilities frontier are ________.

Answer:

efficient

Question: Which of the following statements about microeconomics and macroeconomics is not true?

Answer:

The study of very large industries is a topic within macroeconomics

Question: If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is ________.

Answer:

10 units of eggs

Question: Economic growth is depicted by ________.

Answer:

a shift in the production possibilities frontier outward

Question: Suppose two economists are arguing about policies that deal with unemployment. One economist says, “The government should fight unemployment because it is the greatest social evil.” The other economist responds, “That’s ridiculous. Inflation is the greatest social evil.” These economists ________.

Answer:

disagree because they have different values

Question: Positive statements are ________.

Answer:

statements of description that can be tested