economics 251

1865 Words Sep 29th, 2013 8 Pages
Question 1
5 out of 5 points
The statement, "John buys more of good X as his income increases, Ceteris paribus," means:
Selected Answer:
Correct the price of this good is being allowed to change.
Answers:
John's income is being held constant.
John's purchases of good X are being held constant.
John's income and purchases of this good are being held constant.
Correct the price of this good is being allowed to change.
Question 2
5 out of 5 points
Economists use models to:
Selected Answer:
Correct do all of these.
Answers:
abstract from the complexities of the world. understand economic behavior. explain and help predict human behavior.
Correct do all of these.
Question 3
5 out of 5 points
A normative economic statement:
Selected
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Correct maximum production combinations. economic growth. a nonfeasible production combination.
Question 12
0 out of 5 points
Exhibit 2-19 Production possibilities curves

nar019-1.jpg

In Exhibit 2-19, the production possibilities curves for a country are shown for the years Year X and Year Y. Which of the following could have caused a shift for Year X to Year Y in production possibilities curves?
Selected Answer:
Incorrect An increase in unemployment.
Answers:
An increase in unemployment.
A decline in technology.
Correct An increase in the stock of capital goods.
A natural disaster.
More efficient production.
Question 13
5 out of 5 points
Which of the following cause(s) economic growth?
Selected Answer:
Correct d and e.
Answers:
c and d.
Correct d and e.
The production of more scarce goods
A technological improvement
The production of more capital goods
Question 14
5 out of 5 points
On a production possibilities curve, the opportunity cost of good X, in terms of good Y, is represented by the:
Selected Answer:
Correct movement along the curve.
Answers:
distance to the curve from the vertical axis. distance to the curve from the horizontal axis.
Correct movement along the curve. all of these.
Question 15
0 out of 5 points
Exhibit 2-18 Production possibilities curves

nar018-1.jpg

In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in

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