TEST BANK FOR ECON/IS 13. A COMPLETE GUIDE FOR EXAM PREPARATION-GRADED A.

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Econ / IS 13 Multiple Choice (1 point each) Identify the choice that best completes the statement or answers the question. _c___ 1. Economic models a. cannot be useful if they are based on false a... ssumptions. b. were once thought to be useful, but that is no longer true. c. must incorporate all aspects of the economy if they are to be useful. d. can be useful, even if they are not particularly realistic. Figure 2-6 A B C D G F 2 4 6 8 10 12 14 16 clocks 5 10 15 20 25 30 35 40 45 candles _D___ 2. Refer to Figure 2-6. What is the opportunity cost of moving from point A to point B? a. zero b. 6 clocks c. 6 clocks and 15 candles d. 15 candles ___D_ 3. Which of the following is not an example of a positive, as opposed to normative, statement? a. Higher gasoline prices will reduce gasoline consumption. b. Equality is more important than efficiency. c. Trade restrictions lower our standard of living. d. If a nation wants to avoid inflation, it will restrict the growth rate of the quantity of money. Figure 3-6 Maxine’s Production Possibilities Frontier Daisy’s Production Possibilities Frontier3 6 9 12 15 18 21 24 27 30 pies 8 6 4 2 10 12 14 16 18 20 tarts 3 6 9 12 15 18 21 24 27 30 pies 8 6 4 2 10 12 14 16 18 20 tarts __A__ 4. Refer to Figure 3-6. If the production possibilities frontier shown for Maxine is for 3 hours of work, then how long does it take Maxine to make one pie? a. 1/4 hour b. 1/3 hour c. 3 hours d. 4 hours Figure 3-11 The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month. [Show More]

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