Kristyn Brown ACC Final UPDATED ACTUAL Questions and CORRECT Answers
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Kristyn Brown ACC
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Kristyn Brown ACC
Kristyn Brown ACC Final UPDATED
ACTUAL Questions and CORRECT
Answers
Economic theory predicts that people make choices in a manner that - CORRECT ANSWER-
makes them better off
The rationality assumption states that - CORRECT ANSWER- people do not
intentionally make decisions that would lea...
Kristyn Brown ACC Final UPDATED
ACTUAL Questions and CORRECT
Answers
Economic theory predicts that people make choices in a manner that - CORRECT ANSWER-
✔✔makes them better off
The rationality assumption states that - CORRECT ANSWER- ✔✔people do not
intentionally make decisions that would leave them worse off.
Economists assume that people are motivated by - CORRECT ANSWER- ✔✔self-interest.
Which of the following is a positive statement? - CORRECT ANSWER- ✔✔When tax
revenues are less than government spending there is a budget deficit.
Which of the following statements concerning the distinction between positive and normative
economics is true? - CORRECT ANSWER- ✔✔Positive statements are concerned with what
is, while normative statements are concerned with what someone thinks should be.
Which of the following is an example of a normative economic statement? - CORRECT
ANSWER- ✔✔Income tax rates should be lower because that will increase government
revenue.
The value of a model is determined by - CORRECT ANSWER- ✔✔the usefulness of its
predictions in the real world.
Assumptions are necessary to - CORRECT ANSWER- ✔✔define a set of circumstances
where a model is most likely to apply.
The use of data in economic models is important because - CORRECT ANSWER- ✔✔the
model's predictive value rests on supportive evidence from real-world data.
Oil found in Alaska is an example of - CORRECT ANSWER- ✔✔land or natural resource.
,Scarcity - CORRECT ANSWER- ✔✔exists in all human societies.
A tractor used to prepare land for planting is called - CORRECT ANSWER- ✔✔physical
capital
Refer to the above figure. Which of the following statements is true? - CORRECT
ANSWER- ✔✔In Panel A, equal amounts of Y must be given up to obtain equal increments
of X while in Panel B increasingly greater amounts of Y must be given up to obtain equal
increments of X.
Economic growth is shown by - CORRECT ANSWER- ✔✔an outward shift of the
production possibilities curve.
When a society takes increasing amounts of resources and applies them to the production of a
specific good, resulting in increasing opportunity costs for each additional unit produced,
which of the following applies? - CORRECT ANSWER- ✔✔the law of increasing additional
costs
Efficiency is achieved - CORRECT ANSWER- ✔✔when producers are getting the maximum
possible output from the available resources.
The concept of opportunity cost exists because - CORRECT ANSWER- ✔✔of scarcity.
In the above figure, the combination of personal computers and televisions shown by point w
(a point inside the production possibilities curve) - CORRECT ANSWER- ✔✔is attainable
but involves the inefficient use of some of society's resources
An important factor in determining a country's rate of economic growth is - CORRECT
ANSWER- ✔✔its rate of saving.
, The making and selling of a pencil for ten cents would likely NOT be possible, but for -
CORRECT ANSWER- ✔✔the division of labor.
If a CEO can type faster than the secretary - CORRECT ANSWER- ✔✔the CEO should still
continue performing CEO duties since he has a comparative advantage in management, and
the secretary should continue typing.
Which of the following does NOT cause a shift in demand? - CORRECT ANSWER-
✔✔Change in the price of the good
According to the law of demand, an increase in the price of an item - CORRECT ANSWER-
✔✔generates an upward movement along the demand curve for the item.
An increase in the price of corn will lead to - CORRECT ANSWER- ✔✔an upward (and
leftward) movement along the demand curve for corn
Refer to the above table. The market quantity supplied when the price is $7 is - CORRECT
ANSWER- ✔✔29
Which of the following represents the law of supply? - CORRECT ANSWER- ✔✔An
increase in the price of a good causes an increase in the quantity supplied of that good.
Total market supply can be derived by - CORRECT ANSWER- ✔✔horizontally summing
individual supply curves at each and every price level
Suppose a change takes place and the new equilibrium is at point A in the above figure. This
change could have been caused by - CORRECT ANSWER- ✔✔an increase in the per-unit
tax on CDs.
Using the above table, the market clearing price is ________ and equilibrium quantity is
________. - CORRECT ANSWER- ✔✔$60; 150
At a price of P0 in the above figure, which of the following statements is FALSE?
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