MCQs of Economics – Application of Economics

The scientific method requires that:

Which of the following is most likely to produce scientific evidence about a theory?

Which of the following statements regarding the circular-flow diagram is true?

In which of the following cases is the assumption most reasonable?

Economic models are

Which of the following is not a factor of production?

Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars The other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists

Points on the production possibilities frontier are:

Which of the following will not shift a country’s production possibilities frontier outward?

Economic growth is depicted by:

Which of the following statements is normative?

In making which of the following statements is an economist acting more like a scientist?

Positive statements are:

Suppose two economists are arguing about policies that deal with unemployment One economist says The government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists

Which of the following issues is related to microeconomics?

Which of the following statements about microeconomics and macroeconomics is not true?