4. Which statement best describes the economic problem. • The problem that thigh exchange rated over exports • The fact that economies often go into recession 'having high levels of unemployment Matching endless wants with • An American political philosopher limited resource
4. Which statement best describes the economic problem. • The problem that thigh exchange rated over exports • The fact that economies often go into recession 'having high levels of unemployment Matching endless wants with • An American political philosopher limited resource
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Multiple choice. Please just pick the answer. I don't need an explanation.
![4. Which statement best describes the economic problem.
The problem that thigh exchange
rated over exports
The fact that economies often go
into recession 'having high levels
of unemployment
Matching endless wants with • An American political philosopher
limited resource](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82b87c42-3ac9-4463-a7a1-dd9d7f588ba7%2Fc0b2b43f-18ea-4a7f-89fe-9552fca6cdab%2Fwfixzbv_processed.png&w=3840&q=75)
Transcribed Image Text:4. Which statement best describes the economic problem.
The problem that thigh exchange
rated over exports
The fact that economies often go
into recession 'having high levels
of unemployment
Matching endless wants with • An American political philosopher
limited resource
![5. Adam Smith, the founding father of economics, likened the price mechanism to an
invisible hand
• A machine
A computer
6. Opportunity cost is best defined as:
• How an economy suffers when in a
• A herd of animals
• An American political philosopher
• The cost of decision expressed in
recession
terms of the next best
alternatives
• The financial costs association in
the production of goods and
services
• The cost of a decision expressed
in monetary terms.
7. A mixed economy is an economy in which
• Resources are allocated through
price
The government commands how
all resources are used
the
mechanism
and
government
All resources are allocated through
the price mechanism
8. A positive statement is one which:
• Is based on opinion
Is based on a value judgement
9. Which of the following is not a positive statement?
• Falling prices are good for
There are periods of growth and
recession
Cannot be tested or verified
Can be tested and verified
• Rising prices can encourage
production
• Falling prices can encourage
consumer spending
consumers
An increase in the price of houses
will affect real incomes
10. The following statements s normative
• Poverty is something society
should reduce
• Some of the earth's scarce
resources are nonrenewable
• Not all resources experience price
• An increase in house prices is
likely to lead toa reduction in
demand
rises
11. The rationing function of the price mechanism can be explained in which of the
following ways?
• Prices reflects the wants and needs
• Governments limiting the supply
of scarce resources during a time
of consumers
of war
• When prices are falling suppliers
are likely to supply more goods
• As resources are increasingly
used, price are driven up which
slows down the rate of usage](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82b87c42-3ac9-4463-a7a1-dd9d7f588ba7%2Fc0b2b43f-18ea-4a7f-89fe-9552fca6cdab%2F8kljyes_processed.png&w=3840&q=75)
Transcribed Image Text:5. Adam Smith, the founding father of economics, likened the price mechanism to an
invisible hand
• A machine
A computer
6. Opportunity cost is best defined as:
• How an economy suffers when in a
• A herd of animals
• An American political philosopher
• The cost of decision expressed in
recession
terms of the next best
alternatives
• The financial costs association in
the production of goods and
services
• The cost of a decision expressed
in monetary terms.
7. A mixed economy is an economy in which
• Resources are allocated through
price
The government commands how
all resources are used
the
mechanism
and
government
All resources are allocated through
the price mechanism
8. A positive statement is one which:
• Is based on opinion
Is based on a value judgement
9. Which of the following is not a positive statement?
• Falling prices are good for
There are periods of growth and
recession
Cannot be tested or verified
Can be tested and verified
• Rising prices can encourage
production
• Falling prices can encourage
consumer spending
consumers
An increase in the price of houses
will affect real incomes
10. The following statements s normative
• Poverty is something society
should reduce
• Some of the earth's scarce
resources are nonrenewable
• Not all resources experience price
• An increase in house prices is
likely to lead toa reduction in
demand
rises
11. The rationing function of the price mechanism can be explained in which of the
following ways?
• Prices reflects the wants and needs
• Governments limiting the supply
of scarce resources during a time
of consumers
of war
• When prices are falling suppliers
are likely to supply more goods
• As resources are increasingly
used, price are driven up which
slows down the rate of usage
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