Question 1

Policies to determine the price of troll dolls are a concern of macroeconomics.

Accepted Answer

A) True 
 B)False

Question 2

Exhibit 1A-4 Straight line  
-In Exhibit 1A-4, the slope of straight line A-D is:

Accepted Answer

A)  positive. 
B)  zero. 
C)  negative. 
D)  variable. 
A)  positive. 
B)  zero. 
C)  negative. 
D)  variable.

Question 3

An inverse relationship exists when:

Accepted Answer

A)  there is no association between two variables. 
B)  one variable increases and there is no change in the other variable. 
C)  one variable increases and the other variable increases. 
D)  one variable increases and the other variable decreases. 
A)  there is no association between two variables. 
B)  one variable increases and there is no change in the other variable. 
C)  one variable increases and the other variable increases. 
D)  one variable increases and the other variable decreases.

Question 4

Economic theories, or models, enable us to predict and to give reasonable explanations regarding economic variables.

Accepted Answer

A) True 
 B)False

Question 5

Distinguish a direct and an inverse or negative relationship. Provide an example of each type of relationship.

Accepted Answer

A direct relationship between two variab

Question 6

Which of the following would be of particular interest to a microeconomist?

Accepted Answer

A)  The price of fruit the typical household consumes. 
B)  The nation's inflation rate. 
C)  The nation's rate of unemployment. 
D)  The budget of the national government. 
E)  The growth of the economy. 
A)  The price of fruit the typical household consumes. 
B)  The nation's inflation rate. 
C)  The nation's rate of unemployment. 
D)  The budget of the national government. 
E)  The growth of the economy.

Question 7

Which of the following is a statement of positive economics?

Accepted Answer

A)  Government control of rent is a fair way to help poor people afford housing. 
B)  Government control of rent keeps landlords from charging too much rent. 
C)  Government control of rent decreases the number of new apartments constructed. 
D)  Government control of rent is an injustice. 
A)  Government control of rent is a fair way to help poor people afford housing. 
B)  Government control of rent keeps landlords from charging too much rent. 
C)  Government control of rent decreases the number of new apartments constructed. 
D)  Government control of rent is an injustice.

Question 8

The television network newscaster reports that the national inflation rate the past year equaled 4 percent. This report would be of particular interest to a ____.

Accepted Answer

A)  microeconomist. 
B)  normative economist. 
C)  macroeconomist. 
D)  Ceteris paribus. 
E)  social science economist. 
A)  microeconomist. 
B)  normative economist. 
C)  macroeconomist. 
D)  Ceteris paribus. 
E)  social science economist.

Question 9

Policies to create jobs in the nation are the concern of:

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  both microeconomics and macroeconomics. 
D)  neither microeconomics nor macroeconomics. 
A)  macroeconomics. 
B)  microeconomics. 
C)  both microeconomics and macroeconomics. 
D)  neither microeconomics nor macroeconomics.

Question 10

The definition of a model is a:

Accepted Answer

A)  description of all variables affecting a situation. 
B)  positive analysis of all variables affecting an event. 
C)  simplified description of reality to understand and predict an economic event. 
D)  data adjusted for rational action. 
A)  description of all variables affecting a situation. 
B)  positive analysis of all variables affecting an event. 
C)  simplified description of reality to understand and predict an economic event. 
D)  data adjusted for rational action.

Question 11

Your scarcity problem would disappear if you were rich.

Accepted Answer

A) True 
 B)False

Question 12

People are forced to make choices because of:

Accepted Answer

A)  unlimited wants and unlimited resources. 
B)  limited wants and unlimited resources. 
C)  unlimited wants and limited resources. 
D)  limited wants and limited resources. 
E)  irrational wants and limited resources. 
A)  unlimited wants and unlimited resources. 
B)  limited wants and unlimited resources. 
C)  unlimited wants and limited resources. 
D)  limited wants and limited resources. 
E)  irrational wants and limited resources.

Question 13

Factors which determine the price of corn would be studied in macroeconomics.

Accepted Answer

A) True 
 B)False

Question 14

Exhibit 1A-1 Straight line
​  
-As shown in Exhibit 1A-1, the slope of straight line AB:

Accepted Answer

A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X. 
A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X.

Question 15

Which of the following is a normative economic statement?

Accepted Answer

A)  The unemployment rate for the United States is currently 5.4 percent. 
B)  The inflation rate in the United States is too high. 
C)  An increase in the price of a good will reduce the amount purchased. 
D)  Higher profits in an industry will attract more entrepreneurs into the industry. 
A)  The unemployment rate for the United States is currently 5.4 percent. 
B)  The inflation rate in the United States is too high. 
C)  An increase in the price of a good will reduce the amount purchased. 
D)  Higher profits in an industry will attract more entrepreneurs into the industry.

Question 16

ANSWER:
a
-The subject of economics is primarily the study of:

Accepted Answer

A)  the government decision-making process. 
B)  how to operate a business successfully. 
C)  decision-making because of the problem of scarcity. 
D)  how to make money in the stock market. 
A)  the government decision-making process. 
B)  how to operate a business successfully. 
C)  decision-making because of the problem of scarcity. 
D)  how to make money in the stock market.

Question 17

Exhibit 1A-6 Straight line  
-A shift in a curve represents a change in:

Accepted Answer

A)  the variable on the horizontal axis. 
B)  the variable on the vertical axis. 
C)  a third variable that is not on either axis. 
D)  any variable that is relevant to the relationship being graphed. 
A)  the variable on the horizontal axis. 
B)  the variable on the vertical axis. 
C)  a third variable that is not on either axis. 
D)  any variable that is relevant to the relationship being graphed.

Question 18

An entrepreneur is:

Accepted Answer

A)  an employee in a factory. 
B)  the manager of a factory. 
C)  the person who conceives and starts a business. 
D)  the person who contracts to work for a specific price. 
E)  the person who does not assume any risk in business. 
A)  an employee in a factory. 
B)  the manager of a factory. 
C)  the person who conceives and starts a business. 
D)  the person who contracts to work for a specific price. 
E)  the person who does not assume any risk in business.

Question 19

Exhibit 1A-3 Straight line  
-In Exhibit 1A-3, the slope of straight line AB is:

Accepted Answer

A)  positive. 
B)  zero. 
C)  negative. 
D)  variable. 
A)  positive. 
B)  zero. 
C)  negative. 
D)  variable.

Question 20

The statement, "John buys more of good X as his income increases, Ceteris paribus," means:

Accepted Answer

A)  John's income is being held constant. 
B)  John's purchases of good X are being held constant. 
C)  John's income and purchases of this good are being held constant. 
D)  the price of this good is being allowed to change. 
A)  John's income is being held constant. 
B)  John's purchases of good X are being held constant. 
C)  John's income and purchases of this good are being held constant. 
D)  the price of this good is being allowed to change.

Policies to determine the price of troll dolls are a concern of macroeconomics.

Exhibit 1A-4 Straight line -In Exhibit 1A-4, the slope of straight line A-D is:

An inverse relationship exists when:

Economic theories, or models, enable us to predict and to give reasonable explanations regarding economic variables.

Distinguish a direct and an inverse or negative relationship. Provide an example of each type of relationship.

Which of the following would be of particular interest to a microeconomist?

Which of the following is a statement of positive economics?

The television network newscaster reports that the national inflation rate the past year equaled 4 percent. This report would be of particular interest to a ____.

Policies to create jobs in the nation are the concern of:

The definition of a model is a:

Your scarcity problem would disappear if you were rich.

People are forced to make choices because of:

Factors which determine the price of corn would be studied in macroeconomics.

Exhibit 1A-1 Straight line -As shown in Exhibit 1A-1, the slope of straight line AB:

Which of the following is a normative economic statement?

ANSWER: a -The subject of economics is primarily the study of:

Exhibit 1A-6 Straight line -A shift in a curve represents a change in:

An entrepreneur is:

Exhibit 1A-3 Straight line -In Exhibit 1A-3, the slope of straight line AB is:

The statement, "John buys more of good X as his income increases, Ceteris paribus," means:

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exam 1: Introducing the Economic Way of Thinking

Policies to determine the price of troll dolls are a concern of macroeconomics.

Exhibit 1A-4 Straight line -In Exhibit 1A-4, the slope of straight line A-D is:

An inverse relationship exists when:

Economic theories, or models, enable us to predict and to give reasonable explanations regarding economic variables.

Distinguish a direct and an inverse or negative relationship. Provide an example of each type of relationship.

Which of the following would be of particular interest to a microeconomist?

Which of the following is a statement of positive economics?

The television network newscaster reports that the national inflation rate the past year equaled 4 percent. This report would be of particular interest to a ____.

Policies to create jobs in the nation are the concern of:

The definition of a model is a:

Your scarcity problem would disappear if you were rich.

People are forced to make choices because of:

Factors which determine the price of corn would be studied in macroeconomics.

Exhibit 1A-1 Straight line ​ -As shown in Exhibit 1A-1, the slope of straight line AB:

Which of the following is a normative economic statement?

ANSWER: a -The subject of economics is primarily the study of:

Exhibit 1A-6 Straight line -A shift in a curve represents a change in:

An entrepreneur is:

Exhibit 1A-3 Straight line -In Exhibit 1A-3, the slope of straight line AB is:

The statement, "John buys more of good X as his income increases, Ceteris paribus," means:

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exhibit 1A-1 Straight line -As shown in Exhibit 1A-1, the slope of straight line AB: