Question 1

Which of the following is NOT a market?

Accepted Answer

A) a group of children trading Pokemon cards 
B) a cattle auction 
C) your college bookstore 
D) All of the above are markets. 
A) a group of children trading Pokemon cards 
B) a cattle auction 
C) your college bookstore 
D) All of the above are markets.

Question 2

When we study the effect of how a beer tax may decrease the number of highway deaths,we use microeconomics to:

Accepted Answer

A) better understand how markets work. 
B) make personal or managerial decisions. 
C) evaluate the merits of public officials. 
D) A and C are correct. 
A) better understand how markets work. 
B) make personal or managerial decisions. 
C) evaluate the merits of public officials. 
D) A and C are correct.

Question 3

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by:

Accepted Answer

A) governments. 
B) individuals. 
C) firms. 
D) both B and C. 
A) governments. 
B) individuals. 
C) firms. 
D) both B and C.

Question 4

Explain three ways we can use macroeconomic analysis.

Accepted Answer

Macroeconomics explains why some resourc

Question 5

In which of the following markets is a person's time and effort exchanged for money?

Accepted Answer

A) consumer market 
B) capital market 
C) labor market 
D) goods market 
A) consumer market 
B) capital market 
C) labor market 
D) goods market

Question 6

If the government converted the highway from 4 lanes into 6 lanes,then using the midpoint method,the percentage increase would have been ________ percent.If the government converted the highway from 6 lanes into 4 lanes,then using the midpoint method,the percentage increase would have been ________ percent.

Accepted Answer

A) 40;40 
B) 33;50 
C) 100;50 
D) 33;33 
A) 40;40 
B) 33;50 
C) 100;50 
D) 33;33

Question 7

Which of the following is a macroeconomic question?

Accepted Answer

A) Will a constitutional amendment to balance the federal budget lead to good economic policy? 
B) Should a firm decide to enter a particular market? 
C) Should the government prevent the merger of two large firms? 
D) All of the above are macroeconomic questions. 
A) Will a constitutional amendment to balance the federal budget lead to good economic policy? 
B) Should a firm decide to enter a particular market? 
C) Should the government prevent the merger of two large firms? 
D) All of the above are macroeconomic questions.

Question 8

Richard runs a pizza delivery restaurant.List the three basic types of decisions economics studies and give an example from Richard's restaurant.

Accepted Answer

How much to produce? How many pizzas wil

Question 9

What assumption was used by the authors of the book when analyzing the traffic congestion problem in London?

Accepted Answer

A) They assumed that all cars are of the same make and model. 
B) They assumed that traffic congestion is the same during daytime and during nighttime. 
C) They assumed that every car has the same effect on the travel time of other cars. 
D) They assumed that travel via public transportation is less costly that travel by car. 
A) They assumed that all cars are of the same make and model. 
B) They assumed that traffic congestion is the same during daytime and during nighttime. 
C) They assumed that every car has the same effect on the travel time of other cars. 
D) They assumed that travel via public transportation is less costly that travel by car.

Question 10

A single variable can be illustrated as:

Accepted Answer

A) a bar graph. 
B) a pie chart. 
C) a time-series graph. 
D) all of the above. 
A) a bar graph. 
B) a pie chart. 
C) a time-series graph. 
D) all of the above.

Question 11

Which of the following is NOT a key economic question?

Accepted Answer

A) What products to produce? 
B) Who produces the products? 
C) How to produce the products? 
D) Who gets the produced products? 
A) What products to produce? 
B) Who produces the products? 
C) How to produce the products? 
D) Who gets the produced products?

Question 12

We do NOT use microeconomic analysis:

Accepted Answer

A) to make personal and managerial decisions. 
B) to evaluate the merits of public policies. 
C) to explain why the U.S.is in a recession. 
D) to understand markets and predict changes. 
A) to make personal and managerial decisions. 
B) to evaluate the merits of public policies. 
C) to explain why the U.S.is in a recession. 
D) to understand markets and predict changes.

Question 13

Positive economics:

Accepted Answer

A) is the focus of most modern economic reasoning. 
B) concerns the forces that affect economic activity. 
C) predicts the consequences of alternative actions. 
D) All of the above are correct. 
A) is the focus of most modern economic reasoning. 
B) concerns the forces that affect economic activity. 
C) predicts the consequences of alternative actions. 
D) All of the above are correct.

Question 14

Markets perform all of the following functions EXCEPT:

Accepted Answer

A) determining the prices of goods and services. 
B) helping firms decide what to produce. 
C) helping firms decide how to produce. 
D) determining why a firm chooses to produce a certain product. 
A) determining the prices of goods and services. 
B) helping firms decide what to produce. 
C) helping firms decide how to produce. 
D) determining why a firm chooses to produce a certain product.

Question 15

Figure 1.1
-Refer to Figure 1.1.Slope of the relationship or the wage rate shown in Figure 1.1 is:

Accepted Answer

A) $5.15 per hour. 
B) $10 per hour. 
C) $13.33 per hour. 
D) $15 per hour. 
A) $5.15 per hour. 
B) $10 per hour. 
C) $13.33 per hour. 
D) $15 per hour.

Question 16

What did Adam Smith mean when he wrote that individuals rationally act in their own self-interest?

Accepted Answer

Adam Smith meant that when individuals m

Question 17

If one variable A falls as the other variable B falls,then a line generated by putting variable A on the x-axis and variable B on the y-axis should be upward sloping.

Accepted Answer

A) True 
 B)False

Question 18

Deciding if a company will produce automobiles by manual labor or with the use of robots answers the economic question of:

Accepted Answer

A) Who consumes the products produced? 
B) What will be produced? 
C) Where will the products produced be consumed? 
D) How will we produce it? 
A) Who consumes the products produced? 
B) What will be produced? 
C) Where will the products produced be consumed? 
D) How will we produce it?

Question 19

London reduced its road congestion by:

Accepted Answer

A) banning cars in the inner city during the daytime. 
B) making city buses free. 
C) raising the fare for the London subway system,the Underground. 
D) imposing a daytime driving tax. 
A) banning cars in the inner city during the daytime. 
B) making city buses free. 
C) raising the fare for the London subway system,the Underground. 
D) imposing a daytime driving tax.

Question 20

Macroeconomics involves the study of the decision-making of individuals or individual firms.

Accepted Answer

A) True 
 B)False

Which of the following is NOT a market?

When we study the effect of how a beer tax may decrease the number of highway deaths,we use microeconomics to:

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by:

Explain three ways we can use macroeconomic analysis.

In which of the following markets is a person's time and effort exchanged for money?

If the government converted the highway from 4 lanes into 6 lanes,then using the midpoint method,the percentage increase would have been percent.If the government converted the highway from 6 lanes into 4 lanes,then using the midpoint method,the percentage increase would have been percent.

Which of the following is a macroeconomic question?

Richard runs a pizza delivery restaurant.List the three basic types of decisions economics studies and give an example from Richard's restaurant.

What assumption was used by the authors of the book when analyzing the traffic congestion problem in London?

A single variable can be illustrated as:

Which of the following is NOT a key economic question?

We do NOT use microeconomic analysis:

Positive economics:

Markets perform all of the following functions EXCEPT:

Figure 1.1 -Refer to Figure 1.1.Slope of the relationship or the wage rate shown in Figure 1.1 is:

What did Adam Smith mean when he wrote that individuals rationally act in their own self-interest?

If one variable A falls as the other variable B falls,then a line generated by putting variable A on the x-axis and variable B on the y-axis should be upward sloping.

Deciding if a company will produce automobiles by manual labor or with the use of robots answers the economic question of:

London reduced its road congestion by:

Macroeconomics involves the study of the decision-making of individuals or individual firms.

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

Which of the following is NOT a market?

When we study the effect of how a beer tax may decrease the number of highway deaths,we use microeconomics to:

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by:

Explain three ways we can use macroeconomic analysis.

In which of the following markets is a person's time and effort exchanged for money?

Which of the following is a macroeconomic question?

Richard runs a pizza delivery restaurant.List the three basic types of decisions economics studies and give an example from Richard's restaurant.

What assumption was used by the authors of the book when analyzing the traffic congestion problem in London?

A single variable can be illustrated as:

Which of the following is NOT a key economic question?

We do NOT use microeconomic analysis:

Positive economics:

Markets perform all of the following functions EXCEPT:

Figure 1.1 -Refer to Figure 1.1.Slope of the relationship or the wage rate shown in Figure 1.1 is:

What did Adam Smith mean when he wrote that individuals rationally act in their own self-interest?

If one variable A falls as the other variable B falls,then a line generated by putting variable A on the x-axis and variable B on the y-axis should be upward sloping.

Deciding if a company will produce automobiles by manual labor or with the use of robots answers the economic question of:

London reduced its road congestion by:

Macroeconomics involves the study of the decision-making of individuals or individual firms.

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