Question

9)

Normative economic statements

Select one:

a. always contain value judgments.

b. violate the law of ceteris paribus.

c. are easily testable.

d. are usually wrong.

Ceteris paribus means

Select one:

a. making all the necessary changes.

b. let the buyer beware.

c. other things constant.

d. for certain parameters.

A widely accepted socio-economic goal is

Select one:

a. unemployment.

b. inefficiency.

c. economic growth.

d. inflation.

A society currently operating on its production possibilities curve is

Select one:

a. technologically inefficient.

b. consuming too much output.

c. fully utilizing its productive resources.

d. under-utilizing its resources.

15)

Productive efficiency is correctly defined as

Select one:

a. producing outside the production possibilities boundary.

b. providing for the immediate needs of the greatest proportion of the population.

c. minimizing opportunity cost.

d. producing the maximum output possible with given technology and resources.

Increasing relative costs are the result of

Select one:

a. high taxes.

b. increasing scarcity.

c. the fact that resources are not perfectly adaptable for alternative uses.

d. the fact that the more society produces, the more difficult it is to use resources efficiently.

If a country increases the production of its capital goods, then

Select one:

a. the more consumption of goods it can have today.

b. the less consumption it can have today, but the more it can have in future.

c. the more unemployed resources there will be in the future.

d. the more unemployed resources there are today.

Division of labour raises the output of society by

Select one:

a. reducing the choices people have to make to a more manageable number.

b. eliminating scarcity.

c. allowing resources to specialize in the tasks for which they have a comparative advantage.

d. ensuring that people are happier in performing their work.

A pure capitalist economy would be

Select one:

a. a system characterized by private ownership of all resources.

b. an economy in which decisions are made in a centralized manner.

c. a system with extensive government ownership of resources.

d. an economy in which firms control what is produced.

The Canadian economy is an example of

Select one:

a. a pure market capitalist system.

b. command socialism.

c. a mixed economy.

d. market socialism.

Answer 1

9. Normative economic statements make a value judgement always. These statements are subjective or opinion based, which can't be tested true or false.

Answer: option A

10. Ceteris paribus means all other things being equal or unchanged or constant.

Answer: option C

11. Economic growth, full employment, price level stability, economic efficiency etc. are widely accepted socio economic goals.

Answer: option C

12. A society currently producing on it's PPF means it is efficiently utilizing all of it's available resources. Production inside the PPF means the society is under utilizing it's resources.

Answer: option C