10 MCQ:

1.Points on the production possibilities frontier are:

a.Efficient

b.inefficient.

c.normative

d.Unattainable

Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs), but country 1 produces twice the output that country 2 produces. It follows that:

a.country 1's PPF lies further to the right than country 2's PPF.

b.country 1 has a smaller population than country 2

c.None of the above

d.country 1 has a bigger population than country 2

e.country 1 is efficient and country 2 is inefficient

3.Microeconomics deals only with positive economics and macroeconomics deals only with normative economics:

a.True

b.False

c.Cannot be determined

4.Economic growth is depicted by:

a. a shift in the production possibilities frontier outward

b.a shift in the production possibilities frontier inward

c.a movement from inside the curve toward the curve.

d.a movement along a production possibilities frontier toward capital goods.

5.