Test Questions without Answers
Chapter 2. The Subject of Economics I.
Scientific Status. Subjects of Investigation. Subdivisions. Models
Chapter 2– Question 1
The statement typographischeThe number of obese people has declined over the last two yearstypographische is
- a normative statement
- a positive statement
- a negative statement
- an obviously wrong and hence irrelevant statement
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Chapter 2– Question 2
The statement "Man is a selfish maximiser of utility" is
- testable
- normative
- wrong
- tautological
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Chapter 2– Question 3
Explain
- why the PPF illustrates the notion of opportunity costs
- why an outward-bowed PPF illustrates diminishing returns
- why a linear PPF illustrates constant opportunity costs
- how the PPF illustrates growth.
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Chapter 2– Question 4
Which of the following developments is most likely to cause an inward shift of the PPF:
- a natural disaster
- a decline in capital
- competition from abroad
- an improved technology
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Chapter 2 –Question 5
If it is possible to increase the output of both butter and guns, which of the following statements about the economy is true
- the economy is inefficient and inside the PPF
- the economy is efficient and outside the PPF
- the economy is efficient and on the PPF
- the economy is inefficient and on the PPF
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Chapter 2 –Question 6
A PPF can illustrate the trade-off between leisure and grades. If you put leisure on the x-axis and grades on the y-axis, in how far does the PPF resemble the butter-gun PPF? Where is it different?
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Chapter 2– Question 7
Draw the circular-flow diagram with one flow for money and another one for commodities.
Chapter 2 – Question 8
The circular-flow diagram ignores three important economic facts. Can you identify them?
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