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ECO 2024 Midterm PBSC Questions with Solutions
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ECO 2024 Midterm PBSC
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ECO 2024 Midterm PBSCWhen the federal government crafts environmental policies that make it less expensive
for firms to follow green initiatives, - answer the policies are consistent with economic
incentives.
The pie chart to the right illustrates hypothetical data for the market share for the United
States automobile market. The percentage of the U.S. market that U.S. auto firms
control is - answer65%
Trade-offs force society to make choices, particularly when answering the following
three fundamental questions: - answerOne, what goods and services will be produced?
Two, how will the goods and services be produced? Three, who will receive the goods
and services produced?
Best Goods, one of the leading department store chains, offers goods at low prices. It
recently opened many new stores across the country. After successfully setting up
stores in most major cities, Best Goods faced substantial opposition in the city of
Joberg, where lobbyists for smaller general stores (local businesses) opposed its entry.
These lobbyists argued that Best Goods would put many local stores out of business
and would also increase income inequality and unemployment in the city.
Which of the following, if true, would weaken the stand of the lobbyists? - answerIt is
common for traditional retailers to modernize and successfully compete with organized
retailing.
Terbia is a closed economy, which has been growing at a very slow pace over the last
decade. In order to boost economic growth, the government removed trade barriers
earlier this year and increased its spending on the economy. These moves were
expected to generate employment and increase economic growth. However,
unemployment did not decline as much as expected.
Which of the following, if true, can explain this outcome? - answerImported varieties of
many goods were cheaper than the domestically produced varieties.
Microeconomics is the study of - answerhow households and firms make choices, how
they interact in markets, and how the government attempts to influence their choices.
Microsoft charges a price of $599 for a copy of Windows 7. Is this pricing decision
rational? - answerWhen we assume the managers at Microsoft have used all available
, information and have weighed all known benefits and costs, we are assuming
rationality.
Economics is a social science because - answerall of the above.
When we graph the relationship between two variables, we often want to draw
conclusions about whether changes in one variable are causing changes in the other
variable. Doing so, however, can lead to incorrect conclusions. Reasons for drawing
incorrect conclusions about cause and effect include - answeran omitted variable and
reverse causality
Equity is - answerthe fair distribution of economic benefits.
Two key groups participate in markets. A _____ consists of all the individuals in a home.
_____ are suppliers of goods and services.
We can use a simple economic model called the _____ to see how participants in
markets are linked - answerHousehold
Firms
circular-flow diagram
In the diagram to the right, point
Upper C
indicates an - answerEfficient result
Using the same amount of resources, the United States and Canada can both produce
lumberjack shirts and lumberjack boots, as shown in the production possibilities
frontiers in the figure to the right.
_____ has a comparative advantage in producing lumberjack boots.
_____ has a comparative advantage in producing lumberjack shirts
Does either country have an absolute advantage in producing both goods?
Suppose initially that the United States is consuming
2 boots and 12 shirts and Canada is consuming 8 boots and 4
shirts, as indicated in the figure. Then, suppose the United States and Canada
specialize by each only producing the good for which they have a comparative
advantage and then trade. In particular, suppose the United States trades Canada half
of its production for half of what Canada produces.
The United States will have _____ additional shirt(s) after the trade (enter a numeric
response using an i - answerCanada
The United States
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