ECON 2002.01 Study Guide - Quiz Guide: Ceteris Paribus, Microeconomics, Comparative Advantage
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Quiz 1 KEY
Please write your answer in the space next to the question. There are 10 questions worth 1 pt
B 1) Macroeconomics deals with ________ while microeconomics deals with ________.
A) choices important to people; choices not important to people
B) economy wide choices; choices of individuals
C) choices that involve money; choices that does not involve money
D) choices of rich people; choices of poor people
B 2) Normative economic statements
A) violate the law of ceteris paribus.
B) contain value judgments.
C) are usually irrational.
D) are easily testable.
C 3) Economics can be described as the study of how people use ________ resources to
satisfy ________ wants.
A) unlimited; unlimited
B) unlimited; limited
C) limited; unlimited
D) limited; limited
B 4) A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production.
B) that the trade-off between the 2 goods is not constant.
C) changing technology.
D) only 1 good is always being produced.
C 5) The law of demand states that
A) consumers have unlimited demands for a good.
B) a higher price will lead to increased sales.
C) quantity demanded will vary inversely with the price of the good.
D)There is a direct positive relationship between relative price and quantity demanded.