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| 1 | |
Which of the following refers to the concept of specialization? |
| | A) | Different individuals value goods differently |
| | B) | Some individuals are richer than others |
| | C) | Different nations have different opportunity costs of producing goods |
| | D) | Some nations are richer than others |
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| 2 | |
All of the following, except one, are causes of economic growth. Which is the exception? |
| | A) | The discovery of new oilfields |
| | B) | Unemployed workers find jobs |
| | C) | A number of effective new training schemes for young people are introduced |
| | D) | An improved fuel-cell is invented |
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| 3 | |
What are the four basic ways in which society can organize its economic affairs? |
| | A) | With consumer goods, capital goods, models, and positive statements |
| | B) | Using cooperation, command, custom, or competition |
| | C) | Using plentiful resources, opportunity costs, technology, and specialization |
| | D) | Using capitalism, communism, innovation, and technology |
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| 4 | |
What is the distinction between a positive statement and a normative statement? |
| | A) | Positive statements are assertions that can be tested with data, whereas normative statements are based on a value system of beliefs. |
| | B) | Normative statements are assertions that can be tested with data, whereas positive statements are based on a value system of beliefs. |
| | C) | The distinction depends on the context in which each statement is used. |
| | D) | Positive statements are correct statements of fact, whereas normative statements are incorrect. |
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| 5 | |
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/1259030687/1059313/Figure1_6.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (50.0K)</a>]]>Refer to the figure above to answer this question. If Mendork’s production is currently that indicated by point a, what is the cost of producing four more guns? |
| | A) | 1 tonne of butter |
| | B) | 2 tonnes of butter |
| | C) | 6 tonnes of butter |
| | D) | 10 tonnes of butter |
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| 6 | |
<![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/1259030687/1059313/Figure1_6.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (50.0K)</a>]]>Refer to the figure above to answer this question. What is the opportunity cost of 1 more tonne of butter as output changes from point b to a? |
| | A) | 2 guns |
| | B) | 4 guns |
| | C) | 10 guns |
| | D) | 6 guns |
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| 7 | |
<![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/1259030687/1059313/Figure1_6.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (50.0K)</a>]]>Refer to the figure above to answer this question. Which of the following statements is correct if Mendork is currently producing 5 tonnes of butter and 8 guns? |
| | A) | This society is using competition to coordinate its economic activities. |
| | B) | This society is experiencing either unemployment or inefficiency. |
| | C) | This economy is experiencing full employment. |
| | D) | This society is not adequately answering the “for whom” question. |
| | E) | This economy is growing quickly. |
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