Question 1

"By how much should the Fed increase the money supply to get the economy out of a recession?" 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.

Question 2

Would an economist consider clean air a scarce resource? Explain.

Accepted Answer

Yes,because the air has alternative uses

Question 3

If a variable is 100 and then decreases to 60,then using the initial value approach its percentage decline is:

Accepted Answer

A) -40 percent. 
B) 160 percent. 
C) 40 percent. 
D) 50 percent. 
A) -40 percent. 
B) 160 percent. 
C) 40 percent. 
D) 50 percent.

Question 4

Economists assume that individuals make informed decisions and act in their own self-interest.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT a macroeconomic question?

Accepted Answer

A) Should we have a constitutional amendment to balance the federal budget? 
B) Do employers discriminate against women by paying them lower wages? 
C) How does a political candidate's economic reform package affect the inflation rate? 
D) All of the above are macroeconomic questions. 
A) Should we have a constitutional amendment to balance the federal budget? 
B) Do employers discriminate against women by paying them lower wages? 
C) How does a political candidate's economic reform package affect the inflation rate? 
D) All of the above are macroeconomic questions.

Question 6

A variable is:

Accepted Answer

A) something that always has the same value. 
B) something that can take on different values. 
C) something that cannot be measured. 
D) something that varies over time. 
A) something that always has the same value. 
B) something that can take on different values. 
C) something that cannot be measured. 
D) something that varies over time.

Question 7

Which of the following is a country whose economy shrank between the 1960s and 2001?

Accepted Answer

A) Sierra Leone 
B) the United States 
C) Mexico 
D) Canada 
A) Sierra Leone 
B) the United States 
C) Mexico 
D) Canada

Question 8

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

Accepted Answer

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

Question 9

Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s).
-Using the midpoint formula,the percent change of the number of TVs from 1 to 2 should be the same if you instead go from 2 to 1.

Accepted Answer

A) True 
 B)False

Question 10

Economists use assumptions to:

Accepted Answer

A) make things simpler. 
B) focus on what really matters. 
C) simplify decision-making. 
D) all of the above 
A) make things simpler. 
B) focus on what really matters. 
C) simplify decision-making. 
D) all of the above

Question 11

The slope of a straight line is:

Accepted Answer

A) constant. 
B) increasing. 
C) increasing if the line is upward sloping. 
D) increasing if the line is downward sloping. 
A) constant. 
B) increasing. 
C) increasing if the line is upward sloping. 
D) increasing if the line is downward sloping.

Question 12

Microeconomics is the study of the choices made by ________ and how these choices affect the markets.

Accepted Answer

A) households only 
B) the government only 
C) firms only 
D) households,firms and governments 
A) households only 
B) the government only 
C) firms only 
D) households,firms and governments

Question 13

If a variable is 100 and then increases to 150,then using the average value approach its percentage growth is:

Accepted Answer

A) -50 percent. 
B) 15 percent. 
C) 40 percent. 
D) 50 percent. 
A) -50 percent. 
B) 15 percent. 
C) 40 percent. 
D) 50 percent.

Question 14

Topics regarding why an economy is in a recession is in the realm of macroeconomics,while topics concerning long term economic growth is not.

Accepted Answer

A) True 
 B)False

Question 15

Government policies concerning the money supply and the control of inflation are topic of concern in microeconomics.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a macroeconomic question?

Accepted Answer

A) Should a country adopt policies to encourage personal savings? 
B) Why do some countries grow faster than others? 
C) Why do prices tend to increase over time? 
D) All of the above are macroeconomic questions. 
A) Should a country adopt policies to encourage personal savings? 
B) Why do some countries grow faster than others? 
C) Why do prices tend to increase over time? 
D) All of the above are macroeconomic questions.

Question 17

Deciding how products of a society are distributed among the citizens in an economy 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 18

Which of the following is NOT an example of a question answered by positive analysis?

Accepted Answer

A) How will an increase in the price of gasoline affect taxi drivers? 
B) What fraction of an income-tax cut will be spent on consumer goods? 
C) How will an increase in interest rates affect investment in factories? 
D) Should the government increase the minimum wage? 
A) How will an increase in the price of gasoline affect taxi drivers? 
B) What fraction of an income-tax cut will be spent on consumer goods? 
C) How will an increase in interest rates affect investment in factories? 
D) Should the government increase the minimum wage?

Question 19

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:

Accepted Answer

A) both are treated as unpredictable. 
B) neither of those two variables is allowed to change. 
C) all other variables are held fixed. 
D) we recognize that some factors are unknown. 
A) both are treated as unpredictable. 
B) neither of those two variables is allowed to change. 
C) all other variables are held fixed. 
D) we recognize that some factors are unknown.

Question 20

The example about London's congestion problem illustrates which of the following economic ways of thinking?

Accepted Answer

A) isolate variables-ceteris paribus 
B) use of assumptions to simplify 
C) thinking at the margin 
D) all of the above 
A) isolate variables-ceteris paribus 
B) use of assumptions to simplify 
C) thinking at the margin 
D) all of the above

"By how much should the Fed increase the money supply to get the economy out of a recession?" is:

Would an economist consider clean air a scarce resource? Explain.

If a variable is 100 and then decreases to 60,then using the initial value approach its percentage decline is:

Economists assume that individuals make informed decisions and act in their own self-interest.

Which of the following is NOT a macroeconomic question?

A variable is:

Which of the following is a country whose economy shrank between the 1960s and 2001?

Economists use assumptions to:

The slope of a straight line is:

Microeconomics is the study of the choices made by ________ and how these choices affect the markets.

If a variable is 100 and then increases to 150,then using the average value approach its percentage growth is:

Topics regarding why an economy is in a recession is in the realm of macroeconomics,while topics concerning long term economic growth is not.

Government policies concerning the money supply and the control of inflation are topic of concern in microeconomics.

Which of the following is a macroeconomic question?

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of:

Which of the following is NOT an example of a question answered by positive analysis?

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:

The example about London's congestion problem illustrates which of the following economic ways of thinking?

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

"By how much should the Fed increase the money supply to get the economy out of a recession?" is:

Would an economist consider clean air a scarce resource? Explain.

If a variable is 100 and then decreases to 60,then using the initial value approach its percentage decline is:

Economists assume that individuals make informed decisions and act in their own self-interest.

Which of the following is NOT a macroeconomic question?

A variable is:

Which of the following is a country whose economy shrank between the 1960s and 2001?

Economists use assumptions to:

The slope of a straight line is:

Microeconomics is the study of the choices made by ________ and how these choices affect the markets.

If a variable is 100 and then increases to 150,then using the average value approach its percentage growth is:

Topics regarding why an economy is in a recession is in the realm of macroeconomics,while topics concerning long term economic growth is not.

Government policies concerning the money supply and the control of inflation are topic of concern in microeconomics.

Which of the following is a macroeconomic question?

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of:

Which of the following is NOT an example of a question answered by positive analysis?

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:

The example about London's congestion problem illustrates which of the following economic ways of thinking?

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