Question 1The law of demand states that there is a direct relationship between supply and demand.

True

False

Question 2 Equilibrium is a state of balance between supply and demand.

True

False

Question 3 Goods are scarce for both rich and poor.

True

False

Question 4 "The big corporations in this country, like ExxonMobil and GM, have deep pockets and need to be hiring more people." This is a positive statement about economic policy.

True

False

Question 5 The law of supply states that there is a direct relationship between price and quantity demanded.

True

False

Question 6 In the circular flow model, firms own economic resources, and householdsbuy the manufactured products and services.

True

False

Question 7 Households play a dual role of providing the factors of production whilepurchasing the goods and services of firms.

True

False

Question 8 Opportunity cost is the lowest valued benefit that must be sacrificed asthe result of choosing an alternative.

True

False

Question 9 Scarcity denotes that our desire for a good exceeds the amount that isfreely available from nature.

True

False

Question 10 Economics is a social science concerned with satisfying man's unlimitedwants with limited resources.

True

False

Question 11 Joint output of individuals or nations will be maximized when goods areexchanged between parties in accordance with the law of"comparative advantage".

True

False

Question 12 The production possibilities frontier assumes that the level of technologyvaries when applying the model.

True

False

Question 13 Excess demand in the market will cause the price of a product to decline.

True

False

Question 14 Demand is measured on the vertical axis and supply on the horizontalaxis.

True

False

Question 15 A change in quantity demanded is a movement along the same demandcurve.

True

False

Question 16 As globalization and world trade proliferates, individual markets withincountries' economies become more competitive.

True

False

Question 17 Which growth theory compares a subsistence real wage rate to the actual real wage rate?

Question 18 Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________.

Question 19 Suppose there is a rise in the real wage rate. As a result, the quantity of labor demanded:

Question 20 GDP can be computed as the sum of:

Question 21 The real wage rate equals:

Question 22 If the CPI was 121.5 at the end of 2007 and 138.3 at the end of 2008, the inflation rate over these two years was:

Question 23 A movement along the production function is the result of a change in:

Question 24 All of the following are part of fiscal policy EXCEPT:

Question 25 Along a production possibilities frontier for real GDP and the quantity of leisure time, as leisure time increases, real GDP: