Question 1

Figure 1.1
-Refer to Figure 1.1.If hours worked are zero in Figure 1.1,then income is:

Accepted Answer

A) zero. 
B) $200. 
C) $100. 
D) $50. 
A) zero. 
B) $200. 
C) $100. 
D) $50.

Question 2

The reason why economists do not need details regarding the topography of a region when determining driving directions is because the topography is irrelevant to complete your objective of getting to a certain place.

Accepted Answer

A) True 
 B)False

Question 3

Economic analysis includes commuting time as part of the cost of traffic congestion.

Accepted Answer

A) True 
 B)False

Question 4

Microeconomics is best described as the study of:

Accepted Answer

A) the choices made by individual households,firms,and governments. 
B) inflation,unemployment,gross national product,and the nation's economy as a whole. 
C) how markets interact in the aggregate economy. 
D) marginal changes in the economy. 
A) the choices made by individual households,firms,and governments. 
B) inflation,unemployment,gross national product,and the nation's economy as a whole. 
C) how markets interact in the aggregate economy. 
D) marginal changes in the economy.

Question 5

When Bob,a recent college grad,took an internship at an accounting firm,he is accumulating which factor of production?

Accepted Answer

A) physical capital 
B) human capital 
C) entrepreneurship 
D) natural resources 
A) physical capital 
B) human capital 
C) entrepreneurship 
D) natural resources

Question 6

Figure 1.1
-Refer to Figure 1.1.If income at zero hours worked increases in Figure 1.1,then the relationship:

Accepted Answer

A) becomes flatter. 
B) becomes steeper. 
C) shifts upward and to the left. 
D) shifts down and to the right. 
A) becomes flatter. 
B) becomes steeper. 
C) shifts upward and to the left. 
D) shifts down and to the right.

Question 7

When you need to know how to get from San Francisco to New York,which of the following details regarding reality are deemed not important and are usually assumed to not be included in your map?

Accepted Answer

A) the temperature while you travel 
B) the number of lanes on the freeway 
C) the number of cars on the freeway 
D) All of the above are deemed unimportant and are assumed as not included in your map. 
A) the temperature while you travel 
B) the number of lanes on the freeway 
C) the number of cars on the freeway 
D) All of the above are deemed unimportant and are assumed as not included in your map.

Question 8

Positive economics questions "What ought to be?" while normative economics predicts the consequences of alternative actions,answering the questions,"What is?" or "What will be?"

Accepted Answer

A) True 
 B)False

Question 9

When economists assume that people are rational and respond to incentives,they mean:

Accepted Answer

A) people act with kindness. 
B) people are altruistic. 
C) people act in their own self-interest. 
D) none of the above. 
A) people act with kindness. 
B) people are altruistic. 
C) people act in their own self-interest. 
D) none of the above.

Question 10

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

Accepted Answer

A) A business owner can use macroeconomics to determine whether college graduates are better employees than non-college graduates. 
B) A business owner can use macroeconomics to predict whether the Fed will increase or decrease the interest rates in the future in order to determine whether to borrow money now or later. 
C) A business owner can use macroeconomics to predict whether television prices will be higher today or in the future. 
D) A business owner can use macroeconomics to predict it should sell more red t-shirts as opposed to white t-shirts. 
A) A business owner can use macroeconomics to determine whether college graduates are better employees than non-college graduates. 
B) A business owner can use macroeconomics to predict whether the Fed will increase or decrease the interest rates in the future in order to determine whether to borrow money now or later. 
C) A business owner can use macroeconomics to predict whether television prices will be higher today or in the future. 
D) A business owner can use macroeconomics to predict it should sell more red t-shirts as opposed to white t-shirts.

Question 11

According to the book,the general consensus is that our policy-makers do not know what they are doing and are managing our economy ineffectively.

Accepted Answer

A) True 
 B)False

Question 12

Macroeconomics helps explain economic fluctuations,why the economy shrinks and expands and why some of the economy's resources are idle.

Accepted Answer

A) True 
 B)False

Question 13

According to the text,the solution economists propose to the problem of traffic congestion is to:

Accepted Answer

A) impose a tax for the use of a road during peak times. 
B) make cars smaller. 
C) make gasoline cheaper. 
D) make the roads wider. 
A) impose a tax for the use of a road during peak times. 
B) make cars smaller. 
C) make gasoline cheaper. 
D) make the roads wider.

Question 14

A pie chart show the relationship between two variables.

Accepted Answer

A) True 
 B)False

Question 15

A straight line graph shows:

Accepted Answer

A) one variable. 
B) the constant relationship between two variable. 
C) the relationships among any number of variables. 
D) none of the above. 
A) one variable. 
B) the constant relationship between two variable. 
C) the relationships among any number of variables. 
D) none of the above.

Question 16

There is a positive relationship between two variables if the two variables:

Accepted Answer

A) have positive values. 
B) move in opposite directions. 
C) move in the same direction. 
D) have negative values. 
A) have positive values. 
B) move in opposite directions. 
C) move in the same direction. 
D) have negative values.

Question 17

Which of the following is a topic under microeconomics?

Accepted Answer

A) money supply 
B) exchange rates 
C) why the price of gold is rising 
D) All of the above are topics in microeconomics 
A) money supply 
B) exchange rates 
C) why the price of gold is rising 
D) All of the above are topics in microeconomics

Question 18

The worldwide recession in 2007 started from:

Accepted Answer

A) easy access to credit in the U.S. 
B) booming housing prices that ultimately dropped. 
C) a large number of home purchasers who were unable to afford the homes. 
D) All of the above are correct. 
A) easy access to credit in the U.S. 
B) booming housing prices that ultimately dropped. 
C) a large number of home purchasers who were unable to afford the homes. 
D) All of the above are correct.

Question 19

Which of the following is a variable?

Accepted Answer

A) your GPA 
B) your hourly wage 
C) the price of gasoline 
D) All of the above are correct. 
A) your GPA 
B) your hourly wage 
C) the price of gasoline 
D) All of the above are correct.

Question 20

In the final two decades of the 20th century,sub-Saharan African economies grew rapidly.

Accepted Answer

A) True 
 B)False

Figure 1.1 -Refer to Figure 1.1.If hours worked are zero in Figure 1.1,then income is:

The reason why economists do not need details regarding the topography of a region when determining driving directions is because the topography is irrelevant to complete your objective of getting to a certain place.

Economic analysis includes commuting time as part of the cost of traffic congestion.

Microeconomics is best described as the study of:

When Bob,a recent college grad,took an internship at an accounting firm,he is accumulating which factor of production?

Figure 1.1 -Refer to Figure 1.1.If income at zero hours worked increases in Figure 1.1,then the relationship:

When you need to know how to get from San Francisco to New York,which of the following details regarding reality are deemed not important and are usually assumed to not be included in your map?

Positive economics questions "What ought to be?" while normative economics predicts the consequences of alternative actions,answering the questions,"What is?" or "What will be?"

When economists assume that people are rational and respond to incentives,they mean:

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

According to the book,the general consensus is that our policy-makers do not know what they are doing and are managing our economy ineffectively.

Macroeconomics helps explain economic fluctuations,why the economy shrinks and expands and why some of the economy's resources are idle.

According to the text,the solution economists propose to the problem of traffic congestion is to:

A pie chart show the relationship between two variables.

A straight line graph shows:

There is a positive relationship between two variables if the two variables:

Which of the following is a topic under microeconomics?

The worldwide recession in 2007 started from:

Which of the following is a variable?

In the final two decades of the 20th century,sub-Saharan African economies grew rapidly.

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

Figure 1.1 -Refer to Figure 1.1.If hours worked are zero in Figure 1.1,then income is:

The reason why economists do not need details regarding the topography of a region when determining driving directions is because the topography is irrelevant to complete your objective of getting to a certain place.

Economic analysis includes commuting time as part of the cost of traffic congestion.

Microeconomics is best described as the study of:

When Bob,a recent college grad,took an internship at an accounting firm,he is accumulating which factor of production?

Figure 1.1 -Refer to Figure 1.1.If income at zero hours worked increases in Figure 1.1,then the relationship:

When you need to know how to get from San Francisco to New York,which of the following details regarding reality are deemed not important and are usually assumed to not be included in your map?

Positive economics questions "What ought to be?" while normative economics predicts the consequences of alternative actions,answering the questions,"What is?" or "What will be?"

When economists assume that people are rational and respond to incentives,they mean:

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

According to the book,the general consensus is that our policy-makers do not know what they are doing and are managing our economy ineffectively.

Macroeconomics helps explain economic fluctuations,why the economy shrinks and expands and why some of the economy's resources are idle.

According to the text,the solution economists propose to the problem of traffic congestion is to:

A pie chart show the relationship between two variables.

A straight line graph shows:

There is a positive relationship between two variables if the two variables:

Which of the following is a topic under microeconomics?

The worldwide recession in 2007 started from:

Which of the following is a variable?

In the final two decades of the 20th century,sub-Saharan African economies grew rapidly.

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