Econ 102 - Principles of Macroeconomics » Spring 2022 » Ch 2 Reading Quiz

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Question #1
Which of the following statements is an example of a normative statement?
A.   Inflation is harmful
B.   The inflation rate is under 2%
C.   The inflation rate should be 2%
D.   The inflation rate is over 2%
Question #2
A point on the production possibility frontier is
A.   feasible but inefficient
B.   not feasible
C.   feasible and efficient
D.   not feasible but efficient
Question #3
Pat decides to leave her job as an engineer to start a her own business. She estimates that her costs in rent, inventory, supplies, total $150,000. She will also give up her $80,000 salary as an engineer to work in her business. How much is her implicit cost?
A.   $150,000
B.   $70,000
C.   $80,000
D.   $230,000
Question #4
In economics, happiness or satisfaction can be measured using
A.   regulations
B.   economies of scale
C.   opportunity cost
D.   utility
Question #5
Which of the following is an example of a positive statement?
A.   The inflation rate is about 5%
B.   The inflation rate should be 2%
C.   The government ought to do more about lowering the inflation rate
D.   The inflation rate should be under 5%
Question #6
A point outside the budget constraint is
A.   affordable, but not all of the budget is spent
B.   within the budget
C.   affordable and all of the budget is spent
D.   not within the budget

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