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Microeconomics Midterm Exam

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A bill was introduced into Congress last year suggesting changes to the income tax code. Congress now passed this new tax reform act in the last session and over the next few years the new laws will ... begin to impact the nation. This is an example of what type of policy? Select one: a. Macroeconomic fiscal policy b. State policies c. Macroeconomic monetary policy d. Microeconomic monetary policy Question 2 Incorrect 0.00 points out of 1.00 Flag question Question text Based on the graph of Maren’s budget constraint for dresses and shoes, what accurately describes the slope of her budget constraint? Select one: a. It is negative because of scarcity and the limited amount of money available to Maren. b. It is negative because dresses are more expensive than shoes. c. It is positive because Maren still has plenty of money and is able to afford both dresses and shoes. d. It is positive because it reflects the benefits we receive from buying products. Question 3 Correct 1.00 points out of 1.00 Flag question Question text A positive statement is Select one: a. can be shown to be correct or incorrect. b. a value judgment. c. based upon an optimistic judgment. d. reflects one’s opinions. Question 4 Correct 1.00 points out of 1.00 Flag question Question text If all else remains constant and the values of two variables move in the same direction it indicates a Select one: a. negative slope relationship. b. inverse slope relationship. c. positive slope relationship. d. the values of the two variables will move in the same direction then move in opposite directions. Question 5 Correct 1.00 points out of 1.00 Flag question Question text Consider the Production Possibility Frontier for country X producing 2 groups of goods, MP3 players and watches. The opportunity cost of moving from the combination of MP3 players and watches B to C is Select one: a. 4 watches. b. 2 watches. c. 5 MP3 players d. 15 MP3 players Question 6 Correct 1.00 points out of 1.00 Flag question Question text The slope of a budget constraint line is influenced by Select one: a. how much one product costs compared to the other. b. the cost of production of the products considered c. how effectively one more of each of the two competing goods satisfies wants. d. the tastes and preferences of the decision-maker [Show More]

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