Econ 252 Exam Questions With Correct Answers | 100% VERIFIED

Econ 252 Exam Questions With Correct Answers | 100% VERIFIED Statements that claim to describe the way things are: - ANSWER- are positive statements can be tested for accuracy Both B and C above In determining how to use their resources, resource owners are motivated by: - ANSWER- self-interest Produced goods that are used in the production of other goods are: - ANSWER- capital The basic goal in dealing with the problem of scarcity is: - ANSWER- to produce as much consumer satisfaction as possible with the limited resources available At the optimal level of an activity: - ANSWER- its marginal benefit must be equal to its marginal cost If per capita output quadruples in the next fifty years: - ANSWER- human wants will still exceed the production possible with the limited resources available "American automakers benefit from a tariff on imported automobiles. Therefore, tariffs on imported automobiles must be good for the American economy." This statement is an example of the: - ANSWER- fallacy of composition Developed ability that increases a person's productivity is: - ANSWER- human capital The value of the best alternative surrendered when a choice is made is: - ANSWERopportunity cost Using dollar price as the rationing device means: - ANSWER- that resources will be rationed to the use that is most highly valued by consumers In a market economy, the question of "what to produce" is determined primarily by: - ANSWER- consumer demand When an economy is operating efficiently: - ANSWER- it is producing the maximum output with the available resources and technology Self-sufficiency: - ANSWER- yields a very low standard of living The capitalist vision favors: - ANSWER- private ownership of resources market determination of prices limited government All of the above According to the capitalist vision: - ANSWER- private property leads to the efficient use of resources In a market economy, the question of "how to produce" is determined primarily by: - ANSWER- the least cost method of production Producing according to comparative advantage: - ANSWER- means producing where one has a lower opportunity cost than other producers leads to a higher standard of living Both of the above A trade is beneficial to a person: - ANSWER- when that person values what is received in the trade more than what is given up In a market economy, the question of "for whom to produce" is determined primarily by: - ANSWER- the distribution of income