Macroeconomics

1 . When building a model , economists ______a . simplify populace in to highlight what really mattersb . attempt to duplicate serviceman in all its complexityc . ignore the facts , and instead try to tucker what the facts should bed . do all of the above2 . With backing , a unlettered may ______a . consume outside its doing possibilities frontierb . consume wrong its mace estimate possibilities frontierc . find its yield possibilities frontier acknowledge for for sacking outwardd . do of the above3 . All points on the performance possibilities frontier patch up br _______a . efficient production pointsb . inefficient production pointsc . non-feasible production pointsd . frugal ingathering4 . The production possibilities frontier is bowed-out from the origin because ______a . resources are non equally suited fo r the production of both goodsb . resources are scarcec . economic growth leads to inefficiencyd . resources are inefficiently used5 . The probability cost of production ______a . is the footing of a goodb . is what you give up to produce the goodc . decreases as production enlargesd . both b and c6 . The production possibilities frontier leave unaccompanied reposition outward for all of the following reasons except ______a . an augment in the un consumption rateb . an increase in the grasp forcec . an avail in technologyd . an increase in worker productivity7 . Free grapple mingled with countries _______a . should be based on inviolate returnb . exit allow wealthy countries to exploit less developed nationsc . allow shift the domestic production possibilities frontier to the rightd . will allow for greater levels of consumption than without mete out8 . Which of the following statements is truea . some(prenominal) very intellectual big money experience a compar ative expediency in everything they dob . ! approximately very un dexterous people entertain a comparative advantage in nothing they doc . Some very talented people have a very low fortune cost in everything they dod . It is possible to have an sheer(a) disadvantage in doing something and still have a comparative advantage in the same thing9 . The simplest circular-flow model shows the fundamental interaction between households and firms . In this model ______a . only barter legal proceeding take placeb . households and firms interact in the market for goods and run nevertheless firms are the only participants in the factor marketsc .

firms supply goods and run to households which , in turn , supply factors of production to firmsd . attention is cogitate on real flows of goods , services , and factors of production , but bills flows between households and firms are ignored for simplicity10 . Which of the following is a prescriptive statementa . global trade leads to expanded consumption opportunitiesb . Higher expenditures on wellness care will reduce infant fatality rate ratesc . We would all be better off if we could reduce our habituation on oil tradesd . Increased defense spending will lead to higher budget deficitsExplanations2 /7 ) Free trade will allow nations to specialize in the production of goods where they have comparative advantage in , thereby expanding their consumption options through an increased production of the good they specialize in and the result of the good whose production they are comparatively disadvantaged at3 ) Points upcountry the PPF curve represent inefficiency from various reasons4 ) It could have been linear had the example of resources for the producti on of the two goods been equal6 ) A decrease in the ! advertise force will have a correspondent tinge on the PPF10 ) Definition of Normative Economics- It involves value judgments and ethical precepts reasonably economic decisionsMultiple Choice Questions ...If you want to get a overflowing essay, order it on our website: OrderEssay.net

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