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ECON 202 FINAL EXAM Questions with Correct Answer1
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ECON 202 FINAL EXAM Questions with Correct Answer1
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ECON 202 FINAL EXAM Questions with CorrectAnswers
Because people's wants are unlimited but resources are scarce, Correct
Answer-choices must be made
In economics, capital is define as Correct Answer-the natural, unskilled
abilities of people
The labor market is an example of a Correct Answer-resource market
In macroeconomics, we analyze Correct Answer-the overall
performance of the economy as a whole
An economic model Correct Answer-is a simplification of the real world
The basic purpose of economic models is to Correct Answer-provide
explanations for, and predictions of, economic events
Economics employs a scientific methodology. In part, this means that
Correct Answer-economic hypotheses are tested to determine their
validity
Which of the following is a positive statement?
A. An unemployment rate of 7% of higher is a national disgrace
B. Unemployment is a less important problem than inflation
,C. When the national unemployment rate is 7%, the unemployment rate
for inner-city
D. Unemployment and inflation are equally important
E. An inflation rate of 7% is too high Correct Answer-When the national
unemployment rate is 7%, the unemployment rate for inner-city
Your friend notices that U.S. auto production and U.S. population
growth have moved together over several decades. He reasons that one
way to slow population growth is for the government to order the auto
makers to cut back on production. You gently point out to him that he
Correct Answer-has mistakenly inferred causation from observed
correlation
Someone who commits the fallacy of composition is likely to assume
that Correct Answer-what is true for the individual is also true for the
group
Expenses for room and board Correct Answer-are not usually part of the
opportunity cost of attending college, because you would have to live
somewhere and eat something even if you didn't attend college
The opportunity cost of a particular activity Correct Answer-Varies from
person to person
The law of comparative advantage says that Correct Answer-the
individual with the lowest opportunity cost of producing a particular
good should produce it
, If Monica has a comparative advantage in baking and George has a
comparative advantage in sewing, then Correct Answer-we can conclude
nothing about absolute advantage
On a given production possibilities frontier, which of the following is
NOT assumed to be fixed?
A. The amount of labor available
B. The amount of capital available
C. The level of technology
D. The amount of land and natural resources available
E. The production of each item Correct Answer-production of each item
If all resources are used efficiently to produce goods and services, a
nation will find itself producing Correct Answer-somewhere on its
production possibilities frontier
Points outside the production possibilities frontier represent Correct
Answer-currently unattainable only if all resources are used fully and
effectively
A production possibilities frontier will bowed out if Correct Answer-
resources are not perfectly adaptable to making each good
If the production possibilities curve is a downward-sloping straight line,
that would indicate Correct Answer-constant opportunity cost
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