Macroeconomics Test 1 Flashcards

1
Q

Ramona’s Pizza should produce the amount of pizzas such that

A

the price of a pizza is equal to the marginal cost

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2
Q

Freidrich Hayek said

A

the dispute is about whether planning is done by the one or by the many

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3
Q

For a company that makes both large and small cars, CAFE standards cause the social gain from production of

A

large cars and small cars to fall

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4
Q

We desire the economy to advance so that we can

A

have as much output as possible with as little effort as possible

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5
Q

Because cows are better at producing milk that producing missiles, the production possibilities frontier of the goods “milk” and “missiles”

A

is a bowed outward downward sloping line

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6
Q

The way that an economy chooses a point on the production possibilities frontier is

A
b.
by consumers and producers weighing costs and values in a market economy
c.
by command in an authoritarian economy
d.
b and c
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7
Q

Bastiat’s example shows that for those who want trade surpluses, the best thing that can happen is if

A

ships carrying exports sink

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8
Q

When we place an import quota on a good

A

b.
domestic consumers lose
c.
there is an overall loss to society

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9
Q

If one owns a unit of something, we measure its value by the

A

least one is willing to accept in order to give up the unit

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