Eco 201 Macroeconomics Extra-Credits

ECO201: MACROECONOMICSEXTRA-CREDITS(15 points)Multiple-Choice Questions (25/15 points each).Please put your answers on scantron form 882-E.1.Economics is primarily the study of: A)why resources are scarce. B)how advertising and sales promotion shape consumer wants. C)how to make profitable financial investments. D)how to use scarce resources efficiently. 2.A positive statement is one which is: A)derived by induction. B)derived by deduction. C)subjective and is based on a value judgment. D)objective and is based on facts. 3.The production possibilities curve tells us: A)the specific combination of two products that is most desired by society. B)that costs do not change as society varies its output. C)costs are irrelevant in a society that has fixed resources. D)the combinations of two goods that can be produced with society's available resources. 4.In drawing the production possibilities curve we assume that: A)technology is fixed. B)unemployment exists. C)economic resources are unlimited.D)wants are limited.Use the following to answer question 5: 5.Refer to the above diagram. This economy will experience unemployment if it produces at point: A)A. B)B. C)C. D)D. 6.Opportunity cost is best defined as: A)the monetary price of any productive resource. B)the amount of labor that