Question 1

Externalities affect only the buyer and seller involved in an exchange.

Accepted Answer

A) True 
 B)False  False

Question 2

Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.

Accepted Answer

A) True 
 B)False  True

Question 3

The slope of a curved line differs from that of a straight line in that

Accepted Answer

A)  the numerical value of the slope of a straight line is different at every point,but is the same at every point for a curved line. 
B)  the numerical value of the slope of a straight line is always higher than the numerical value of the slope of a curved line. 
C)  the numerical value of the slope of a curved line is different at every point,but is the same at every point for a straight line. 
D)  the numerical value of the slope of a curved line is an irrational number,but the numerical value of the slope of a straight line is always a rational number. 
E)  straight lines are more realistic,but curved lines are not descriptively accurate for the real world. 
A)  the numerical value of the slope of a straight line is different at every point,but is the same at every point for a curved line. 
B)  the numerical value of the slope of a straight line is always higher than the numerical value of the slope of a curved line. 
C)  the numerical value of the slope of a curved line is different at every point,but is the same at every point for a straight line. 
D)  the numerical value of the slope of a curved line is an irrational number,but the numerical value of the slope of a straight line is always a rational number. 
E)  straight lines are more realistic,but curved lines are not descriptively accurate for the real world. C

Question 4

The process of focusing on only the most important factors to explain a phenomenon is called

Accepted Answer

A)  abstraction. 
B)  marginal analysis. 
C)  rational choice. 
D)  controlled experimentation. 
E)  the trade-off between efficiency and equality. 
A)  abstraction. 
B)  marginal analysis. 
C)  rational choice. 
D)  controlled experimentation. 
E)  the trade-off between efficiency and equality.

Question 5

"The hotter it gets,the more water people drink." This statement implies that the relationship between temperature and water consumption must have a

Accepted Answer

A)  negative slope. 
B)  positive slope. 
C)  slope always equal to one. 
D)  slope always equal to 45 degrees. 
A)  negative slope. 
B)  positive slope. 
C)  slope always equal to one. 
D)  slope always equal to 45 degrees.

Question 6

The tangent at point A on a curve has a positive slope.Therefore,the curve has a

Accepted Answer

A)  positive slope at all points. 
B)  positive slope at point A. 
C)  negative slope at all points. 
D)  negative slope at point A. 
A)  positive slope at all points. 
B)  positive slope at point A. 
C)  negative slope at all points. 
D)  negative slope at point A.

Question 7

Economists and others use economic theory

Accepted Answer

A)  only to analyze situations in which money changes hands. 
B)  as a partial basis for public policy recommendations. 
C)  to confuse their enemies. 
D)  to replace value judgments about important policy issues. 
A)  only to analyze situations in which money changes hands. 
B)  as a partial basis for public policy recommendations. 
C)  to confuse their enemies. 
D)  to replace value judgments about important policy issues.

Question 8

Suppose that one can read a graph that shows information about price and quantity of some product.Relying solely on the graph,is it possible to explain the relationship between the two variables?

Accepted Answer

No.The graph does not,by itsel

Question 9

A theory is an untested assertion of alleged fact.

Accepted Answer

A) True 
 B)False

Question 10

People generally purchase less of a commodity as its price increases.This implies that the relationship between quantity purchased and the price of the commodity must have a

Accepted Answer

A)  slope always equal to one. 
B)  positive slope. 
C)  zero slope. 
D)  negative slope. 
A)  slope always equal to one. 
B)  positive slope. 
C)  zero slope. 
D)  negative slope.

Question 11

Regarding economic models,which of the following statements is NOT true?​

Accepted Answer

A)  ​An economic model is a simplified representation of a theory or part of a theory 
B)  ​An economic model can provide answers for policy makers. 
C)  An economic model can illuminate an important economic problem​ 
D)  ​An economic model can depict 3-variable diagrams. 
A)  ​An economic model is a simplified representation of a theory or part of a theory 
B)  ​An economic model can provide answers for policy makers. 
C)  An economic model can illuminate an important economic problem​ 
D)  ​An economic model can depict 3-variable diagrams.

Question 12

A horizontal line has a slope of 0.

Accepted Answer

A) True 
 B)False

Question 13

The market mechanism provides a financial incentive for firms to minimize the pollution they create.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of an undesirable side effect of the operation of the market mechanism?

Accepted Answer

A)  negative externalities 
B)  comparative advantages 
C)  abstractions 
D)  productivity growth 
A)  negative externalities 
B)  comparative advantages 
C)  abstractions 
D)  productivity growth

Question 15

What is the "right" degree of abstraction necessary to analyze an economic problem?

Accepted Answer

A)  simple abstraction of only minor details 
B)  simple abstraction of only irrelevant details 
C)  total abstraction of all variables 
D)  total abstraction of all irrelevant details 
E)  There is no "right" degree of abstraction to analyze an economic problem. 
A)  simple abstraction of only minor details 
B)  simple abstraction of only irrelevant details 
C)  total abstraction of all variables 
D)  total abstraction of all irrelevant details 
E)  There is no "right" degree of abstraction to analyze an economic problem.

Question 16

"Correlation" is a measure of how one variable causes another to change.

Accepted Answer

A) True 
 B)False

Question 17

What is the role of value judgments in economic analysis?

Accepted Answer

Economists employ value judgments in mak

Question 18

Economists are often perceived as disagreeing with each other.Is this the way things really are?

Accepted Answer

A)  No,economists agree on much more than is commonly supposed. 
B)  No,the problem is that some economists are smarter than others. 
C)  No,economists "stage" disagreements for public amusement. 
D)  Yes,economists rarely agree on much of anything. 
E)  Yes,economists are unable to analyze problems dispassionately. 
A)  No,economists agree on much more than is commonly supposed. 
B)  No,the problem is that some economists are smarter than others. 
C)  No,economists "stage" disagreements for public amusement. 
D)  Yes,economists rarely agree on much of anything. 
E)  Yes,economists are unable to analyze problems dispassionately.

Question 19

If a government enacts a price floor on agricultural products to protect wheat farmers,the result is likely going to be

Accepted Answer

A)  an increase in price with a surplus of wheat. 
B)  an increase in price with a shortage of wheat. 
C)  a decrease in price with a surplus of wheat. 
D)  a decrease in price with a shortage of wheat. 
A)  an increase in price with a surplus of wheat. 
B)  an increase in price with a shortage of wheat. 
C)  a decrease in price with a surplus of wheat. 
D)  a decrease in price with a shortage of wheat.

Question 20

In economic theorizing,common sense will always lead to the correct answer.

Accepted Answer

A) True 
 B)False

Externalities affect only the buyer and seller involved in an exchange.

Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.

The slope of a curved line differs from that of a straight line in that

The process of focusing on only the most important factors to explain a phenomenon is called

"The hotter it gets,the more water people drink." This statement implies that the relationship between temperature and water consumption must have a

The tangent at point A on a curve has a positive slope.Therefore,the curve has a

Economists and others use economic theory

Suppose that one can read a graph that shows information about price and quantity of some product.Relying solely on the graph,is it possible to explain the relationship between the two variables?

A theory is an untested assertion of alleged fact.

People generally purchase less of a commodity as its price increases.This implies that the relationship between quantity purchased and the price of the commodity must have a

Regarding economic models,which of the following statements is NOT true?

A horizontal line has a slope of 0.

The market mechanism provides a financial incentive for firms to minimize the pollution they create.

Which of the following is an example of an undesirable side effect of the operation of the market mechanism?

What is the "right" degree of abstraction necessary to analyze an economic problem?

"Correlation" is a measure of how one variable causes another to change.

What is the role of value judgments in economic analysis?

Economists are often perceived as disagreeing with each other.Is this the way things really are?

If a government enacts a price floor on agricultural products to protect wheat farmers,the result is likely going to be

In economic theorizing,common sense will always lead to the correct answer.

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 1: What Is Economics

Externalities affect only the buyer and seller involved in an exchange.

Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.

The slope of a curved line differs from that of a straight line in that

The process of focusing on only the most important factors to explain a phenomenon is called

"The hotter it gets,the more water people drink." This statement implies that the relationship between temperature and water consumption must have a

The tangent at point A on a curve has a positive slope.Therefore,the curve has a

Economists and others use economic theory

Suppose that one can read a graph that shows information about price and quantity of some product.Relying solely on the graph,is it possible to explain the relationship between the two variables?

A theory is an untested assertion of alleged fact.

People generally purchase less of a commodity as its price increases.This implies that the relationship between quantity purchased and the price of the commodity must have a

Regarding economic models,which of the following statements is NOT true?​

A horizontal line has a slope of 0.

The market mechanism provides a financial incentive for firms to minimize the pollution they create.

Which of the following is an example of an undesirable side effect of the operation of the market mechanism?

What is the "right" degree of abstraction necessary to analyze an economic problem?

"Correlation" is a measure of how one variable causes another to change.

What is the role of value judgments in economic analysis?

Economists are often perceived as disagreeing with each other.Is this the way things really are?

If a government enacts a price floor on agricultural products to protect wheat farmers,the result is likely going to be

In economic theorizing,common sense will always lead to the correct answer.

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Regarding economic models,which of the following statements is NOT true?