CHAPTER 2: MC Flashcards
Which one of the following is essential to scientific method?
a. that the scientist be objective
b. that only incorrect theories are tested
c. that the scientist use precision equipment
d. that the scientist use test tubes and have a clean lab
A
Which one of the following MOST likely to produce scientific evidence about a theory
a. a radio talk-show host collecting data on how financial markets respond to taxation
b. a lawyer employed by GM addressing the impact of air bags on passenger safety
c. a tenured economist employed at a leading university analyzing the impact of proposed bank mergers
d. economist employed by Canadian auto workers union doing research on the impact of international trade
C
which one of the following statements regarding the circular-flow diagram is true?
a. the factors of production are owned by firms
b. the factors of production are owned by households
c. if Molson sells a case of beer, the transaction takes place in the market for factors of production
d. if susan works for Bell and receives a paycheque, the transaction takes place in the market for goods and services
B
Which one of the following cases presents the MOST reasonable assumption?
a. to address the benefits of trade, an economist assumes that there are two people and two goods
b. to estimate the speed at which a beach ball falls, a physicist assumes that it falls in a vacuum
c. to address the impact of money growth on inflation, an economist assumes that money is strictly coins.
d. to address the impact of taxes on income distribution, an economist assumes that everyone earns the same income.
A
which one of the following statements is true of economic models?
a. built with assumptions
b. useless if they are simple
c. created to duplicate reality
d. usually made of wood and plastic
A
which one of the following is NOT a factor of production
a. land
b. labour
c. capital
d. money
D
which one of the following refers to points inside the PPF
a. efficient
b. inefficient
c. unattainable
d. normative
B
which one of the following will NOT shift a country’s production possibilities fronteri outward
a. an increase in capital stock
b. an advance in technology
c. a reduction in unemployment
d. an increase in the labour force
C
which one of the following is a depiction of economic growth?
a. movement from inside the curve toward the curve
b. a shift in the PPF outward
c. a shift in the PPF inward
d. a movement along a production possibilities frontier toward capital goods
B
see 10
B
see 11
D
See 12
C
see 13
C
which one of the following issues is related to macroeconomics?
a. the impact of growth in the quantity of money on inflation
b. the impact of rising gasoline prices on car sales
c. the impact of government regulation on the airline industry
d. the impact of foreign competition on the wine industry in canda
A
which one of the following statements about microeconomics and macroeconomist is NOT true
a. Micro is a building block for Macro
b. Macro is concerned with economy-wide phenomena
c. Micro and Macro each has its own set of models
d. the study of very large industries is a topic within Macro
D