Question1

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The owner of a factory producing shoes is considering whether to make sports shoes or everyday wear shoes for the upcoming fall season. Which of the following is a consideration when making the decision?

a.

Produce the good which has lower cost of production

b.

Produce both goods in equal amounts in order to provide variety

c.

Produce the good which is expected to have fewer substitutes in the market

d.

Produce the good with the lower opportunity cost for the use of the resources

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Question2

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Which of the following scenarios is better suited for a macroeconomics analysis than a microeconomics analysis?

a.

Consumers purchase more green cars due to new green technology tax credits

b.

GDP growth rate in the second quarter of 2020 was recorded at a record -33% low

c.

An increase in the tuition rate at a university is observed along with an increased enrollment rate

d.

Rising pollution costs in an industry lead to the implementation of a cap and and trade program in California

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Question3

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Which of the following statements concerning the way economic analysis is carried out is true?

a.

Scientists cannot prove a hypothesis to be true, they can only "fail to prove it false"

b.

Positive statements are value judgements and subjective opinions which cannot be tested

c.

Normative statements are statements of fact which can be tested and proven right or wrong

d.

The "ceteris paribus" statement in economics stands for: "there is no such thing as a free lunch"

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The location or level of an existing production possibility curve assumes population, technology, and worker productivity are which of the following?

a.

Constant

b.

Dynamic

c.

All decreasing

d.

All increasing

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Which of the following is one of the three features of market capitalist economic systems?

a.

They are less likely to favor entrepreneurial activity

b.

They generate higher levels of production and income

c.

Only the government can own resources such as land and raw materials

d.

They are characterized by heavy government regulation on resource use