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.
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 new effective training schemes for young people are introduced
			D)	An improved fuel-cell is invented
3			Which of the following is most valid with respect to macroeconomic goals?
			A)	They tend to complement each other.
			B)	They are always in conflict with each other.
			C)	Some are complementary, and some are in conflict.
			D)	The educational background of economists varies enormously.
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			If Mendork’s production is currently 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			The figure above shows Mendork’s production possibility curve for the only two goods that it produces—guns and butter. Refer to this figure to answer the following question. What is the opportunity cost of one 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			The figure above shows Mendork’s production possibility curve for the only two goods that it produces—guns and butter. Refer to this figure to answer the following question. The figure above shows Mendork’s production possibility curve for the only two goods that it produces—guns and butter. Refer to this figure to answer the following 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.