Normative economic analysis (Multiple Choice)

Normative economic analysis
 a. involves the study of what comprises a normal firm.
  b. involves how resources are actually used in an economy.
  c. involves judgments on how resources should be used in an economy.
  d. is usually thought to be a waste of time.

QUESTION 2

An example of organizational architecture based on production of intermediate products is when divisions are defined as
 a. R&D, Engineering, Production, Marketing, Sales
  b. Component 1 Plant, Component 2 Plant, Component 3 Plant, Final Assembly
  c. Store 1, Store 2, Store 3, Region A, Region B, Sales Division
  d. Business Customers, Educational Customers, Household Customers

QUESTION 3

The highest incidence of those without health insurance occurs in which age category?
 a. Under 18 years of age.
  b. 18-34 years of age.
  c. 35-44 years of age.
  d. 45-64 years of age.
  e. Over 65 years of age.

QUESTION 4

Positive economic analysis
 a. involves the study of firms with positive profits.
  b. involves how resources are actually used in an economy.
  c. involves judgments on how resources should be used in an economy.
  d. is usually thought to be a waste of time.

QUESTION 5

An example of organizational architecture based on the different functions of a firm is when divisions are defined as
 a. R&D, Engineering, Production, Marketing, Sales
  b. Component 1 Plant, Component 2 Plant, Component 3 Plant, Final Assembly
  c. Store 1, Store 2, Store 3, Region A, Region B, Sales Division
  d. Business Customers, Educational Customers, Household Customers

QUESTION 6

Analysts cite figures on the number of uninsured in the U.S. as low as 10 million and as high as 60 million. Which of the following is a true statement?
 a. The uninsured are all free riders.
  b. Most of the uninsured have health problems and are not able to get private health insurance.
  c. Most of the uninsured have some labor-force connectioneither working or a dependent of someone who is working.
  d. The lack of health insurance means that the individual has virtually no access to medical care.
  e. Once you lose your health insurance it is extremely difficult to get reinsured.

QUESTION 7

If the prevailing price of shirts is 10 and at this price demanders demand 100 shirts while suppliers are willing to supply 110 shirts, there is a(n)
 a. shortage at the 10 price.
  b. surplus at the 10 price.
  c. equilibrium in this market.
  d. shortage if price were to rise above 10.