Which of the following is an example of a proposition from positive economics? a. If John Kerry had been elected president, tax-payers would have been treated more fairly than under George W. Bush. b. The average rate of inflation was higher during George W. Bush’s presidency than during Bill Clinton’s presidency. c. In economic terms, […]

Economics is the study of a. how to make money.b. how to operate a business.c. people making choices because of the problem of scarcity.d. the government decision-making process.

Microeconomics approaches the study of economics from the viewpoint of a. individual or specific markets.b. the operation of the Federal Reserve.c. economywide effects.d. the national economy.

Straight line CD in Exhibit A-7 shows that a. increasing the value of X will increase the value of Y.b. decreasing the value of X will decrease the value of Y.c. there is a direct relationship between X and Y.d. all of the above are true. In Exhibit A-7, the slope of straight line CD

1. Straight line AB in Exhibit A-8 shows that a. increasing the value of X reduces the value of Y.b. decreasing the value of X increases the value of Y.c. there is an inverse relationship between X and Y.d. all of the above are true. As shown in Exhibit A-8, the slope of straight line

Explain verbally the statement “There is no such thing as a free lunch” in relation to scarce resources. Which of the following decisions has the greater opportunity cost? Why? a. A decision to use an undeveloped lot in Tokyo’s financial district for an apartment building.b. A decision to use a square mile in the desert

A nation can accelerate its economic growth by a. reducing the number of immigrants allowed into the country.b. adding to its stock of capital.c. printing more money.d. imposing tariffs and quotas on imported goods.

1. From the information in Exhibit 6, which of the following points on the production possibilities curve are attainable with the resources and technology currently available? a. A, B, C, E, Ub. A, B, C, D, Wc. E, U, Wd. B, C, D, Ue. A, B, C, E 2. In Exhibit 6, which of the

Why are public goods not produced in sufficient quantities by private markets? Which of the following are public goods? a.  Air bagsb.  Pencilsc.  Cycle helmetsd.  City street lightse.  Contact lensesP

Calculate the official poverty threshold annual income for a family of four. Assume the minimally acceptable diet is estimated to be $5 per person per day and the minimum wage is $5 per hour. Will a head of a family of four earn the poverty threshold you have calculated? What are in-kind transfers? Give examples.