Intro to Microeconomics

Question 1

Points outside a production possibilites curve are

Accepted Answer

impossible

Question 2

An economy in which people do the trade learned from their parents or as an apprentice is

Accepted Answer

a traditional economy

Question 3

"We should tax cigarettes because smoking harms bystanders." is a ____ statement

Accepted Answer

normative

Question 4

Production possibilities curves are bowed because of

Accepted Answer

increasing opportunity cost

Question 5

Which of these topics would be of most interest to a macroeconomist?

Accepted Answer

the current level of unemployment

Question 6

True or false: Market economies need governments in order to function effectively.

Accepted Answer

True

Question 7

Comparative advantage comes from

Accepted Answer

having the lowest OC

Question 8

Coal from a coal mine would count as which type of resource?

Accepted Answer

land

Question 9

"People are rational" means that they

Accepted Answer

value the future equal to the present, know what they want, always make the best choice for themselves

Question 10

Which economist is famous for writing "The Wealth of Nations"?

Accepted Answer

Adam Smith

Question 11

If New Zealand can produce 15,000,000 sweaters and Vanuatu can produce 5, New Zealand has

Accepted Answer

the absolute advantage in sweater production

Question 12

"Raising taxes on cigarettes will increase government revenue" is a _______ statement.

Accepted Answer

positive

Question 13

Economic theory says that if you charge a fine for a behavior,

Accepted Answer

people will do the behavior less often

Question 14

Ceteris paribus means

Accepted Answer

"all else equal"

Question 15

Switzerland can produce 500 chocolates or 50 lbs of cheese in a week. The OC of a chocolate is

Accepted Answer

1/10 of a lb of cheese

Question 16

The additional cost of going from consuming one unit of a good to consuming two units is the

Accepted Answer

marginal cost

Question 17

The opportunity cost of going to the movies is

Accepted Answer

$10 and whatever else you would have done with your time

Question 18

Protectionists would be in favor of

Accepted Answer

higher tariffs, higher quotas

Question 19

A factory building counts as which type of resource?

Accepted Answer

capital

Question 20

A point is allocatively efficient if

Accepted Answer

it is the socially optimal combination of goods, the marginal cost of the last unit = its marginal benefit

Questions 20