Question

ECON 250 16. A production possibilities frontier can shift outward if there is a technological improvement. In addition, a production possibilities frontier shifts outward when a. at least one of the basic principles of economics is violated. b. opportunity costs are lessened. c. the economy experiences economic growth. d. the desires of the economy's citizens change. 17. Which of the following areas of study does NOT address microeconomic issues? a. the effect on the economy of changes in the nation's income. b. the economic impact of tornadoes on cities and towns in Oklahoma c. the effects of rent control on the availability of housing in New York City. d. how households and firms make decisions and how they interact in specific markets. 18. Normative conclusions involve value judgments. Which of the following is an example of a normative statement? a. If the price of a product decreases, people's willingness to buy that product will increase. b. If the national saving rate were to increase, so would the rate of economic growth. c. Reducing tax rates on the wealthy would benefit the nation. d. All of the above are correct. 19. Shannon bakes cookies and Justin grows vegetables. In which of the following cases is it impossible for both Shannon and Just to benefit from trade? a. Shannon does not like vegetables and Justin does not like cookies. b. Justin is better than Shannon at baking cookies and at growing vegetables. c. Shannon is better than Justin at baking cookies and at growing vegetables. d. Shannon is better than Justin at baking cookies and Justin is better than Shannon at growing vegetables.

questions 16 - 18

Answer 1

16) c) economy experiences economic growth

With economic growth an economy grows and ha improved on its production capacity and now can produce more.

17) a) the effect on economy on changes of nation's income

This is a macroeconomic issue. It relates to the economy as a whole. Rest of the option relate to smaller and more local cases.

18) C) Reducing the etx on the wealthy would benefit the nation

Normative statements tell us about how things should be rather than how they really are.

The other statements are economic phenomenas which have been proven, this statement is regarding what should be done.