Question 1

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Accepted Answer

A) True 
 B)False  True

Question 2

"How many iPhones will Apple,Inc.sell this year?" is:

Accepted Answer

A) a microeconomic question. 
B) both a microeconomic and macroeconomic question. 
C) a macroeconomic question. 
D) neither a microeconomic nor a macroeconomic question. 
A) a microeconomic question. 
B) both a microeconomic and macroeconomic question. 
C) a macroeconomic question. 
D) neither a microeconomic nor a macroeconomic question. A

Question 3

One efficient solution to congestion is to:

Accepted Answer

A) impose a congestion tax on drivers who use the road during the rush hour. 
B) prevent cars from using the roads during the rush hour. 
C) give subsidies to drivers who use the road during the rush hour. 
D) lower gasoline taxes. 
A) impose a congestion tax on drivers who use the road during the rush hour. 
B) prevent cars from using the roads during the rush hour. 
C) give subsidies to drivers who use the road during the rush hour. 
D) lower gasoline taxes. A

Question 4

Which of the following is an example of scarcity?

Accepted Answer

A) If you choose to play video games you will not have as much time for exercise. 
B) If a city uses an acre of land to build a park there will be less land for houses. 
C) If I decide to buy a new car I may not have enough money to go away on vacation this year. 
D) All of the above are examples of scarcity. 
A) If you choose to play video games you will not have as much time for exercise. 
B) If a city uses an acre of land to build a park there will be less land for houses. 
C) If I decide to buy a new car I may not have enough money to go away on vacation this year. 
D) All of the above are examples of scarcity.

Question 5

The recent experience of sub-Saharan Africa has taught economists that institutions such as the legal system and the regulatory environment play a key role in economic growth.

Accepted Answer

A) True 
 B)False

Question 6

The effort used to coordinate the factors of production and produce goods and services is called:

Accepted Answer

A) entrepreneurship. 
B) capital accumulation. 
C) land ownership. 
D) land. 
A) entrepreneurship. 
B) capital accumulation. 
C) land ownership. 
D) land.

Question 7

If one variable declines as the other variable declines,the two variables are negatively related.

Accepted Answer

A) True 
 B)False

Question 8

An arrangement that allows buyers and sellers to exchange things is called:

Accepted Answer

A) a contract. 
B) a market. 
C) money. 
D) efficient. 
A) a contract. 
B) a market. 
C) money. 
D) efficient.

Question 9

Printing presses,forklifts and assembly plants are examples of which factor of production?

Accepted Answer

A) physical capital 
B) human capital 
C) entrepreneurship 
D) labor 
A) physical capital 
B) human capital 
C) entrepreneurship 
D) labor

Question 10

We can use microeconomic analysis to:

Accepted Answer

A) learn how to balance a checkbook. 
B) evaluate the merits of public policies. 
C) understand marginal changes in the macroeconomy. 
D) All of the above are correct. 
A) learn how to balance a checkbook. 
B) evaluate the merits of public policies. 
C) understand marginal changes in the macroeconomy. 
D) All of the above are correct.

Question 11

Which of the following is NOT an example of a marginal question?

Accepted Answer

A) How many more years of education must I take if I want to get a Ph.D.in economics? 
B) How many more dollars will I earn in my lifetime if I get my Master's degree? 
C) How many students borrow money in order to attend college? 
D) How many more points will I expect to have if I study an hour longer? 
A) How many more years of education must I take if I want to get a Ph.D.in economics? 
B) How many more dollars will I earn in my lifetime if I get my Master's degree? 
C) How many students borrow money in order to attend college? 
D) How many more points will I expect to have if I study an hour longer?

Question 12

Most modern economic analysis is positive in nature,but many issues also involve questions with normative economics.

Accepted Answer

A) True 
 B)False

Question 13

It takes longer to set up a business in Canada than in Mozambique.

Accepted Answer

A) True 
 B)False

Question 14

An economic model is:

Accepted Answer

A) a small but completely working economy. 
B) a simplified representation of an economic environment. 
C) any graph. 
D) all of the above. 
A) a small but completely working economy. 
B) a simplified representation of an economic environment. 
C) any graph. 
D) all of the above.

Question 15

Ceteris paribus means "Let the buyer beware."

Accepted Answer

A) True 
 B)False

Question 16

If one variable falls the other variable falls,the two variables are positively related.

Accepted Answer

A) True 
 B)False

Question 17

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

Accepted Answer

A) True 
 B)False

Question 18

A small change in a relevant variable is:

Accepted Answer

A) an average change. 
B) a ceteris paribus change. 
C) an efficient change. 
D) a marginal change. 
A) an average change. 
B) a ceteris paribus change. 
C) an efficient change. 
D) a marginal change.

Question 19

Normative economic analysis:

Accepted Answer

A) is the focus of most modern economic reasoning. 
B) answers the question "What ought to be?" 
C) predicts the consequences of alternative actions. 
D) All of the above are correct. 
A) is the focus of most modern economic reasoning. 
B) answers the question "What ought to be?" 
C) predicts the consequences of alternative actions. 
D) All of the above are correct.

Question 20

When after seeing the current mortgage interest rates and immediately deciding to start the search for a new house,you are using:

Accepted Answer

A) microeconomics to evaluate the merits of public policies. 
B) microeconomics to understand markets and predict changes. 
C) microeconomics to understand marginal changes in the macroeconomy. 
D) microeconomics to make managerial and personal decisions. 
A) microeconomics to evaluate the merits of public policies. 
B) microeconomics to understand markets and predict changes. 
C) microeconomics to understand marginal changes in the macroeconomy. 
D) microeconomics to make managerial and personal decisions.

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

"How many iPhones will Apple,Inc.sell this year?" is:

One efficient solution to congestion is to:

Which of the following is an example of scarcity?

The recent experience of sub-Saharan Africa has taught economists that institutions such as the legal system and the regulatory environment play a key role in economic growth.

The effort used to coordinate the factors of production and produce goods and services is called:

If one variable declines as the other variable declines,the two variables are negatively related.

An arrangement that allows buyers and sellers to exchange things is called:

Printing presses,forklifts and assembly plants are examples of which factor of production?

We can use microeconomic analysis to:

Which of the following is NOT an example of a marginal question?

Most modern economic analysis is positive in nature,but many issues also involve questions with normative economics.

It takes longer to set up a business in Canada than in Mozambique.

An economic model is:

Ceteris paribus means "Let the buyer beware."

If one variable falls the other variable falls,the two variables are positively related.

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

A small change in a relevant variable is:

Normative economic analysis:

When after seeing the current mortgage interest rates and immediately deciding to start the search for a new house,you are using:

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 1: Introduction: What Is Economics

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

"How many iPhones will Apple,Inc.sell this year?" is:

One efficient solution to congestion is to:

Which of the following is an example of scarcity?

The recent experience of sub-Saharan Africa has taught economists that institutions such as the legal system and the regulatory environment play a key role in economic growth.

The effort used to coordinate the factors of production and produce goods and services is called:

If one variable declines as the other variable declines,the two variables are negatively related.

An arrangement that allows buyers and sellers to exchange things is called:

Printing presses,forklifts and assembly plants are examples of which factor of production?

We can use microeconomic analysis to:

Which of the following is NOT an example of a marginal question?

Most modern economic analysis is positive in nature,but many issues also involve questions with normative economics.

It takes longer to set up a business in Canada than in Mozambique.

An economic model is:

Ceteris paribus means "Let the buyer beware."

If one variable falls the other variable falls,the two variables are positively related.

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

A small change in a relevant variable is:

Normative economic analysis:

When after seeing the current mortgage interest rates and immediately deciding to start the search for a new house,you are using:

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters