Question 1

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

Accepted Answer

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

Question 2

A small change in a relevant variable is:

Accepted Answer

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

Question 3

Explain three ways we can use microeconomics analysis.

Accepted Answer

One reason for studying microeconomics i

Question 4

In making stock buy or sell recommendations, most stock analysts use microeconomics:

Accepted Answer

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

Question 5

Deciding if a college uses more PhDs to teach introductory classes answers the economic question of:

Accepted Answer

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

Question 6

An economic model is

Accepted Answer

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

Question 7

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 8

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

Accepted Answer

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

Question 9

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

Question 10

Public policies such as the government subsidies for corn are topics of concern in microeconomics.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a microeconomic question?

Accepted Answer

A)  Should the government prevent the merger of two large firms? 
B)  Why do some countries grow faster than others? 
C)  Should we have a constitutional amendment to balance the federal budget? 
D)  All of the above are microeconomic questions. 
A)  Should the government prevent the merger of two large firms? 
B)  Why do some countries grow faster than others? 
C)  Should we have a constitutional amendment to balance the federal budget? 
D)  All of the above are microeconomic questions.

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

Imagine that an upward sloping line is depicted in a graph with income per week on the y- axis and hours worked per week on the x- axis. The slope of the line in the graph depicts the:

Accepted Answer

A)  the total monthly income of the worker. 
B)  hourly wage of the worker. 
C)  minimum wage of the worker. 
D)  increase in income earned by the worker per every year of service. 
A)  the total monthly income of the worker. 
B)  hourly wage of the worker. 
C)  minimum wage of the worker. 
D)  increase in income earned by the worker per every year of service.

Question 15

All economic models employ a graph.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Markets perform all of the following functions except:

Accepted Answer

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

Question 18

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 19

Economists will always reach the same conclusion in their positive analyses.

Accepted Answer

A) True 
 B)False

Question 20

The slope of a straight line is:

Accepted Answer

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

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

A small change in a relevant variable is:

Explain three ways we can use microeconomics analysis.

In making stock buy or sell recommendations, most stock analysts use microeconomics:

Deciding if a college uses more PhDs to teach introductory classes answers the economic question of:

An economic model is

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

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

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

Public policies such as the government subsidies for corn are topics of concern in microeconomics.

Which of the following is a microeconomic question?

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

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

Imagine that an upward sloping line is depicted in a graph with income per week on the y- axis and hours worked per week on the x- axis. The slope of the line in the graph depicts the:

All economic models employ a graph.

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

Markets perform all of the following functions except:

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

Economists will always reach the same conclusion in their positive analyses.

The slope of a straight line is:

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

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Exam 1: Introduction: What Is Economics

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

A small change in a relevant variable is:

Explain three ways we can use microeconomics analysis.

In making stock buy or sell recommendations, most stock analysts use microeconomics:

Deciding if a college uses more PhDs to teach introductory classes answers the economic question of:

An economic model is

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

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

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

Public policies such as the government subsidies for corn are topics of concern in microeconomics.

Which of the following is a microeconomic question?

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

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

Imagine that an upward sloping line is depicted in a graph with income per week on the y- axis and hours worked per week on the x- axis. The slope of the line in the graph depicts the:

All economic models employ a graph.

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

Markets perform all of the following functions except:

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

Economists will always reach the same conclusion in their positive analyses.

The slope of a straight line is:

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters