Question

Question 1 tests your understanding of macroeconomics and microeconomics.

1. Which statement below is FALSE?

Group of answer choices

B          An analysis of the impact of the minimum wage law on the market for unskilled labor in the Bay Area is principally a topic in macroeconomics.

A         An analysis of how rent control affects the availability of apartments to rent in San Francisco is principally a topic in microeconomics.

C          Macroeconomics looks at topics like economic growth, money, and the business cycle.

Question 2 tests your understanding of positive and normative statements in economics.

2. Which statement below is unambiguously normative?

Group of answer choices

B          People would choose to work more hours if the government cut taxes.

C          The federal government should cut taxes so people are left with more money to spend.

A         People wouldn’t have to work so many hours if the government cut taxes.

Question 4 tests your understanding of marginal analysis. Cast your mind back to the last time you took an in-person class.

4. What is the likely outcome if an instructor no longer held graded quizzes at the beginning of class?

Group of answer choices

B          More students in the class would arrive promptly.

A         Fewer students would arrive promptly.

C          No student would arrive promptly.

D         There would be no change in student arrival times.

Question 5 tests your understanding of what it means to say that there is an economic problem.

5. According to Professor Robbins, an economic problem would arise only if

Group of answer choices

A         there were limited means that could be applied to more than one end

B          there were multiple ends that could be ranked in order of importance

C          both A and B were true

Question 6 tests your understanding of two different sorts of order.

6. In An Essay on the History of Civil Society (1767), Adam Ferguson famously wrote that

“[e]very step and every movement of the multitude, even in what are termed enlightened ages, are made with equal blindness to the future; and nations stumble upon establishments, which are indeed the result of human action, but not the execution of any human design.”

Here are three examples of what Ferguson would have called “establishments.”

I           a natural language like Spanish

II           the bus schedules on the VTA

III         the free market

Which are “the result of human action, but not the execution of any human design”?

                                                               

                 

Group of answer choices

B           Only II.

A           Only I.

C           Only III.

E          All three.

D         I and III.

Answer 1

1.

A

Topic related to rent control or price control is related to macroeconomics.

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2.

C

Statement of Fed should reduce taxes, is the normative statement that says that what should ideally happen.

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4.

A

In the given scenario, only few students come to the class on time.

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5.

A

Economic problem takes place when there is a limited resources and unlimited ends to be met. It makes people to trade off and take right decision.