Macroeconomics 16th Edition by Campbell R. McConnell Test bank

 

326)       Macroeconomics explains the behaviour of individual households and business firms; microeconomics is concerned with the behaviour of aggregates or the economy as a whole.

       ⊚   true
       ⊚   false

 

 

327)       Positive statements are expressions of value judgments.

       ⊚   true
       ⊚   false

 

 

328)       Normative statements are expressions of facts.

       ⊚   true
       ⊚   false

 

 

329)       Individuals face an economic problem but society does not.

       ⊚   true
       ⊚   false

 

 

330)       The entrepreneur's sole function is to combine other resources (land, labour, and capital) in the production of some good or service.

       ⊚   true
       ⊚   false

 

 

331)       Products and services are scarce because resources are scarce.

       ⊚   true
       ⊚   false

 

 

332)       The process by which capital goods are accumulated is known as investment.

       ⊚   true
       ⊚   false

 

 

333)       The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

       ⊚   true
       ⊚   false

 

 

334)       An economy will always operate at some point on its production possibilities curve.

       ⊚   true
       ⊚   false

 

 

335)      
 
 Refer to the above production possibilities curves. Given production possibilities curve (a), point Y indicates that society is failing to use available resources efficiently.

 

       ⊚   true
       ⊚   false

 

 

336)      
 
 Refer to the above production possibilities curves. The movement from curve (a) to curve (b) implies an increase in the quantity and/or quality of society's productive resources.

 

       ⊚   true
       ⊚   false

 

 

337)       {MISSING IMAGE}

 Refer to the above production possibilities curves. Given production possibilities curve (a), the combination of civilian and war goods indicated by point X is unattainable to this economy.