Question 1

Which statement about economics is CORRECT?

Accepted Answer

A)  Economists do not believe that criminals behave rationally. 
B)  Economics has little to say about social issues. 
C)  Economists consider how rational people respond to incentives. 
D)  Economists assume that people don't respond to incentives. 
A)  Economists do not believe that criminals behave rationally. 
B)  Economics has little to say about social issues. 
C)  Economists consider how rational people respond to incentives. 
D)  Economists assume that people don't respond to incentives. C

Question 2

_____ is how well resources are used and allocated.

Accepted Answer

A)  Equity 
B)  Efficiency 
C)  Choice 
D)  Scarcity 
A)  Equity 
B)  Efficiency 
C)  Choice 
D)  Scarcity B

Question 3

Which headline would be LEAST likely to be studied in macroeconomics?

Accepted Answer

A)  Economic Growth Rises Slow and Steady 
B)  Unemployment Falls to a 7-Year Low 
C)  GM Expands Car Sales in China 
D)  The Fed Raises Interest Rates 
A)  Economic Growth Rises Slow and Steady 
B)  Unemployment Falls to a 7-Year Low 
C)  GM Expands Car Sales in China 
D)  The Fed Raises Interest Rates C

Question 4

The opportunity cost of buying a ticket to a major league baseball game and then going to the game is:

Accepted Answer

A)  the price of the ticket. 
B)  the next best alternative that could have been undertaken. 
C)  the time spent at the game. 
D)  all other alternative activities that could have been undertaken. 
A)  the price of the ticket. 
B)  the next best alternative that could have been undertaken. 
C)  the time spent at the game. 
D)  all other alternative activities that could have been undertaken.

Question 5

Economists create simplistic models in order to explain complex economic topics.

Accepted Answer

A) True 
 B)False

Question 6

Opportunity costs:

Accepted Answer

A)  are generally the same from individual to individual. 
B)  involve monetary rather than non-monetary costs. 
C)  decrease as individuals become wealthier. 
D)  influence all economic decisions. 
A)  are generally the same from individual to individual. 
B)  involve monetary rather than non-monetary costs. 
C)  decrease as individuals become wealthier. 
D)  influence all economic decisions.

Question 7

Heather has one employee in her sweater shop who can sew six sweaters a day. When she hires a second person, the two employees can make ten sweaters together. Thinking at the margin, the extra benefit received from hiring a second worker is _____ sweaters.

Accepted Answer

A)  16 
B)  10 
C)  4 
D)  6 
A)  16 
B)  10 
C)  4 
D)  6

Question 8

The concept of scarcity:

Accepted Answer

A)  exists in all societies. 
B)  affects only greedy people. 
C)  is the cause of poverty. 
D)  used to be a problem but is not an issue for industrialized nations. 
A)  exists in all societies. 
B)  affects only greedy people. 
C)  is the cause of poverty. 
D)  used to be a problem but is not an issue for industrialized nations.

Question 9

The ceteris paribus assumption holds some variables constant in order to aid in model building.

Accepted Answer

A) True 
 B)False

Question 10

Economists generally have _____ to say about equity than efficiency.

Accepted Answer

A)  less 
B)  a little bit more 
C)  about the same 
D)  much more 
A)  less 
B)  a little bit more 
C)  about the same 
D)  much more

Question 11

Positive questions involve the understanding of basic facts.

Accepted Answer

A) True 
 B)False

Question 12

When economists use the word "additional," they generally mean:

Accepted Answer

A)  rational. 
B)  economics. 
C)  marginal. 
D)  opportunity cost. 
A)  rational. 
B)  economics. 
C)  marginal. 
D)  opportunity cost.

Question 13

In the study of economics, the goals of efficiency and equity are often:

Accepted Answer

A)  compatible. 
B)  in conflict with one another. 
C)  objectively definable. 
D)  given equal emphasis. 
A)  compatible. 
B)  in conflict with one another. 
C)  objectively definable. 
D)  given equal emphasis.

Question 14

Time series graphs:

Accepted Answer

A)  show data that can be split into percentages that, when combined, make up the whole. 
B)  show the relative importance of some variable's components as a share of the whole. 
C)  include the value of a variable on the horizontal axis and minutes, hours, days, months, quarters, or years on the vertical axis. 
D)  include the value of a variable on the vertical axis and minutes, hours, days, months, quarters, or years on the horizontal axis. 
A)  show data that can be split into percentages that, when combined, make up the whole. 
B)  show the relative importance of some variable's components as a share of the whole. 
C)  include the value of a variable on the horizontal axis and minutes, hours, days, months, quarters, or years on the vertical axis. 
D)  include the value of a variable on the vertical axis and minutes, hours, days, months, quarters, or years on the horizontal axis.

Question 15

Economics is a social science that involves the study of how individuals, firms, and societies:

Accepted Answer

A)  maximize happiness. 
B)  maximize incomes. 
C)  choose among alternatives to satisfy their unlimited wants. 
D)  develop their tastes and preferences. 
A)  maximize happiness. 
B)  maximize incomes. 
C)  choose among alternatives to satisfy their unlimited wants. 
D)  develop their tastes and preferences.

Question 16

Which statement is NOT true of economic model building?

Accepted Answer

A)  There may be exceptions to economic models. 
B)  Adding more complexity to models does not always provide greater insights. 
C)  Economic models always reach verifiable results. 
D)  Economic models provide generalizations about economic behavior. 
A)  There may be exceptions to economic models. 
B)  Adding more complexity to models does not always provide greater insights. 
C)  Economic models always reach verifiable results. 
D)  Economic models provide generalizations about economic behavior.

Question 17

Economic analysis gives us a structure for making decisions in a rational manner.

Accepted Answer

A) True 
 B)False

Question 18

The opportunity cost of one good is the quantity of resources that could be used to purchase the next best choice.

Accepted Answer

A) True 
 B)False

Question 19

Another definition of opportunity cost is the value of the next best alternative.

Accepted Answer

A) True 
 B)False

Question 20

When the individuals who get a good or service are the ones who desire that product the most, the economy is experiencing:

Accepted Answer

A)  allocative efficiency. 
B)  production efficiency. 
C)  equity. 
D)  deflation. 
A)  allocative efficiency. 
B)  production efficiency. 
C)  equity. 
D)  deflation.

Which statement about economics is CORRECT?

_____ is how well resources are used and allocated.

Which headline would be LEAST likely to be studied in macroeconomics?

The opportunity cost of buying a ticket to a major league baseball game and then going to the game is:

Economists create simplistic models in order to explain complex economic topics.

Opportunity costs:

Heather has one employee in her sweater shop who can sew six sweaters a day. When she hires a second person, the two employees can make ten sweaters together. Thinking at the margin, the extra benefit received from hiring a second worker is _____ sweaters.

The concept of scarcity:

The ceteris paribus assumption holds some variables constant in order to aid in model building.

Economists generally have _____ to say about equity than efficiency.

Positive questions involve the understanding of basic facts.

When economists use the word "additional," they generally mean:

In the study of economics, the goals of efficiency and equity are often:

Time series graphs:

Economics is a social science that involves the study of how individuals, firms, and societies:

Which statement is NOT true of economic model building?

Economic analysis gives us a structure for making decisions in a rational manner.

The opportunity cost of one good is the quantity of resources that could be used to purchase the next best choice.

Another definition of opportunity cost is the value of the next best alternative.

When the individuals who get a good or service are the ones who desire that product the most, the economy is experiencing:

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

Exam 1: Exploring Economics

Which statement about economics is CORRECT?

_____ is how well resources are used and allocated.

Which headline would be LEAST likely to be studied in macroeconomics?

The opportunity cost of buying a ticket to a major league baseball game and then going to the game is:

Economists create simplistic models in order to explain complex economic topics.

Opportunity costs:

Heather has one employee in her sweater shop who can sew six sweaters a day. When she hires a second person, the two employees can make ten sweaters together. Thinking at the margin, the extra benefit received from hiring a second worker is _____ sweaters.

The concept of scarcity:

The ceteris paribus assumption holds some variables constant in order to aid in model building.

Economists generally have _____ to say about equity than efficiency.

Positive questions involve the understanding of basic facts.

When economists use the word "additional," they generally mean:

In the study of economics, the goals of efficiency and equity are often:

Time series graphs:

Economics is a social science that involves the study of how individuals, firms, and societies:

Which statement is NOT true of economic model building?

Economic analysis gives us a structure for making decisions in a rational manner.

The opportunity cost of one good is the quantity of resources that could be used to purchase the next best choice.

Another definition of opportunity cost is the value of the next best alternative.

When the individuals who get a good or service are the ones who desire that product the most, the economy is experiencing:

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters