# Econ 2000 Peralta Practice Exam 1

Term
1 / 70
A production possibilities frontier can shift outward if
Select one:
a. government increases the amount of money in the economy.
b. there is a technological improvement.
c. resources are shifted from the production of one good to the production of the other good.
d. the economy abandons inefficient production methods in favor of efficient production methods.
Click the card to flip 👆
Terms in this set (70)
A production possibilities frontier can shift outward if
Select one:
a. government increases the amount of money in the economy.
b. there is a technological improvement.
c. resources are shifted from the production of one good to the production of the other good.
d. the economy abandons inefficient production methods in favor of efficient production methods.
According to the circular-flow diagram, if Denny is the owner of a landscaping business and he just received $50 for mowing Mrs. Pendleton's lawn, Select one: a. the$50 represents a cost of production for Denny's firm.
b. the \$50 represents wages, rent, and profit to Denny's firm.
c. Denny acts as a firm who interacted in the markets for factors of production with Mrs. Pendleton.
d. Denny acts as a firm who interacted in the markets for goods and services with Mrs. Pendleton.
Economists make use of assumptions, some of which are unrealistic, for the purpose of
Select one:
a. teaching economics to people who have never before studied economics.
c. developing models when the scientific method cannot be used.
d. focusing their thinking.
Economists, like mathematicians, physicists, and biologists,
Select one:
a. make use of the scientific method.
b. try to address their subject with a scientist's objectivity.
c. devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
d. All of the above are correct.
The art in scientific thinking -- whether in chemistry, economics, or biology -- is
Select one:
a. the design and implementation of laboratory experiments.
b. knowing when to stop collecting data and when to start analyzing the data.
c. deciding which assumptions to make.
d. being able to mathematically model natural phenomena.
Which of the following areas of study typifies microeconomics as opposed to macroeconomics?
Select one:
a. the impact of minimum-wage laws on employment in the fast food industry
b. the effect of changes in household saving rates on the growth rate of national income
c. the impact of faster money growth on the rate of inflation
d. a comparison of alternative tax policies and their respective impacts on the rate of the nation's economic growth