Refer to the above figure. Assume that only two goods can be produced in the economy. Which of the following statements is TRUE?
A) Points a, b, and c are all obtainable points of production.
B) Points a and b are obtainable points of production.
C) Points b and c are obtainable points of production.
D) Only point b is an obtainable and efficient point of production.
Ques. 2Suppose a ten firm industry has total sales of 35 million per year. The largest firm have sales of 10 million, the third largest firm has sales of 4 million, and the fourth largest firm has sales of 2 million.
If fifth through tenth largest firms combined have annual sales of 12 million, the four-firm concentration ratio for this industry is A) 45.7 percent.
B) 80 percent.
C) 65.7 percent.
D) none of the above.
Ques. 3The combination of psychology and economics to determine individual decision making is known as
A) behavioral economics.
B) psychonomics.
C) the rule of thumb.
D) positive analysis.
Ques. 4Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be
A) counted as still being employed.
B) included in the economy's hidden employment.
C) counted as frictionally unemployed.
D) counted as cyclically unemployed.
Ques. 5Which of the following statements is TRUE about the relationship between high birthrates and real GDP growth?
A) High birthrates in countries with little economic freedom will lead to higher labor force participation rates that in turn lead to higher growth of real GDP.
B) High birthrates reduce per capita incomes, and a lack of economic freedom inhibits real GDP growth.
C) There is no relationship between birthrates and real GDP growth.
D) The influence that birthrates have on real GDP growth is the same in countries whether or not economic freedom exits.
Ques. 6What is meant by saying that economics is an empirical science?
A) Economic theories will be tested by seeing how well they correspond to people's declared preferences.
B) Economic theories cannot be tested because there is no means of measuring economic variables with adequate precision.
C) Economic theories cannot be tested because economic variables change too quickly.
D) Economic theories will be tested by seeing how well they correspond to real-world phenomena.
Ques. 7Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A) the number of resources used should be decreased since society must protect its scarce resources.
B) the concept of opportunity costs does not exist.
C) more goods will be available than customers want to buy.
D) the economy is producing efficiently.
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