Question

11. Which of the following statements is (are) correct?

a.	Relative to some other scientists, economists find it more difficult to conduct experiments.
b.	Theory and observation are important in economics as well as in other sciences.
c.	To obtain data, economists often rely upon the natural experiments offered by history.
d.	All of the above are correct.

12. For an economist, the idea of making assumptions is regarded generally as a

a.	bad idea, since doing so leads to the omission of important ideas and variables from economic models.
b.	bad idea, since doing so invariably leads to data-collection problems.
c.	good idea, since doing so helps to simplify the complex world and make it easier to understand.
d.	good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.

13. The circular-flow diagram is an example of

a.	a laboratory experiment.
b.	an economic model.
c.	a mathematical model.
d.	All of the above are correct.

14. In economics, capital refers to

a.	the finances necessary for firms to produce their products.
b.	buildings and machines used in the production process.
c.	the money households use to purchase firms' output.
d.	stocks and bonds.

15. A model that shows how dollars flow through markets among households and firms is called the

a.	production possibilities frontier.
b.	circular-flow diagram.
c.	demand and supply diagram.
d.	comparative advantage model.

16. In the circular-flow diagram, in the markets for

a.	goods and services, households and firms are both sellers.
b.	goods and services, households are sellers and firms are buyers.
c.	the factors of production, households are sellers and firms are buyers.
d.	the factors of production, households and firms are both buyers.

17. Production is efficient if the economy is producing at a point

a.	on the production possibilities frontier.
b.	outside the production possibilities frontier.
c.	on or inside the production possibilities frontier.
d.	inside the production possibilities frontier.

18. The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

a.	amount of the other good that must be given up.
b.	market price of the additional amount produced.
c.	amount of resources that must be devoted to its production.
d.	number of dollars that must be spent to produce it.

19. The field of economics is traditionally divided into two broad subfields,

a.	national economics and international economics.
b.	consumer economics and producer economics.
c.	private sector economics and public sector economics.
d.	microeconomics and macroeconomics.

20. Macroeconomics is the study of

a.	individual decision makers.
b.	international trade.
c.	economy-wide phenomena.
d.	markets for large products.

Answer 1

11)Answer is Option(D) i.e all are correct.

12)Answer:- Option(C) i.e good idea, since doing so helps to simplify the complex world and make it easier to understand

13)Answer is Option(B) i.e an economic model

14)Answer is Option(B) i.e buildings and machines used in the production process.

15)Answer :- Option(B) circular-flow diagram.

16)Answer :- Option(C) the factors of production, households are sellers and firms are buyers.

17)Answer :- Option(A)on the production possibilities frontier.

18)amount of the other good that must be given up.

19)microeconomics and macroeconomics.

20)economy-wide phenomena.