Question 1

The statement "American workers are lazy" is an example of positive economic analysis.

Accepted Answer

A) True 
 B)False

Question 2

The basic difference between macroeconomics and microeconomics is:

Accepted Answer

A)  microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. 
B)  microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. 
C)  microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. 
D)  microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment. 
A)  microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. 
B)  microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. 
C)  microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. 
D)  microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

Question 3

Distinguish between macroeconomics and microeconomics.

Accepted Answer

Macroeconomics studies the ent

Question 4

An upward-sloping straight line exhibits a direct relationship between two variables.

Accepted Answer

A) True 
 B)False

Question 5

A review of the performance of the economy during the Bush administration is the concern of:

Accepted Answer

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

Question 6

Microeconomics only looks at the behavior of one consumer or one firm in a market, while macroeconomics looks at the behavior of an entire industry or group of consumers.

Accepted Answer

A) True 
 B)False

Question 7

Exhibit 1A-6 Straight line  
-In Exhibit 1A-6, the slope of the straight line A-D is:

Accepted Answer

A)  0. 
B)  1. 
C)  1/2. 
D)  −1. 
A)  0. 
B)  1. 
C)  1/2. 
D)  −1.

Question 8

Exhibit 1A-8 Straight line relationship  
-According to the Exhibit 1A-8, the relationship between the price and quantity purchased of pizza is:

Accepted Answer

A)  direct. 
B)  inverse. 
C)  complex. 
D)  independent. 
A)  direct. 
B)  inverse. 
C)  complex. 
D)  independent.

Question 9

Exhibit 1A-2 Straight line
​  
-As shown in Exhibit 1A-2, the slope of straight line CD:

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 10

Which of the following is the best example of an activity that would be undertaken by an entrepreneur?

Accepted Answer

A)  Buying and selling of stocks and bonds. 
B)  Starting a new business. 
C)  Working on an assembly line. 
D)  Running for political office. 
A)  Buying and selling of stocks and bonds. 
B)  Starting a new business. 
C)  Working on an assembly line. 
D)  Running for political office.

Question 11

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

Accepted Answer

A)  1. 
B)  5. 
C)  1/2. 
D)  −1. 
A)  1. 
B)  5. 
C)  1/2. 
D)  −1.

Question 12

Exhibit 1A-2 Straight line
​  
-In Exhibit 1A-2, the slope of straight line CD is:

Accepted Answer

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

Question 13

A conditional statement such as if event A occurs, then event B follows is an example of normative economics.

Accepted Answer

A) True 
 B)False

Question 14

The branch of economics that focuses on decision making for the economy as a whole is called:

Accepted Answer

A)  normative economics. 
B)  macroeconomics. 
C)  microeconomics. 
D)  consumer economics. 
A)  normative economics. 
B)  macroeconomics. 
C)  microeconomics. 
D)  consumer economics.

Question 15

Positive economics:

Accepted Answer

A)  will usually tell us which policy is best. 
B)  reveals "what ought to be" in economic matters. 
C)  is of little use to policy makers. 
D)  is the scientific study of "what is" among economic relationships. 
A)  will usually tell us which policy is best. 
B)  reveals "what ought to be" in economic matters. 
C)  is of little use to policy makers. 
D)  is the scientific study of "what is" among economic relationships.

Question 16

Which of the following represents positive economics?

Accepted Answer

A)  Policy A is fair. 
B)  Outcome B is the best objective to achieve. 
C)  If policy A is followed, then outcome B results. 
D)  All of these. 
A)  Policy A is fair. 
B)  Outcome B is the best objective to achieve. 
C)  If policy A is followed, then outcome B results. 
D)  All of these.

Question 17

Suppose two variables are directly related. If one variable rises, then the other variable:

Accepted Answer

A)  also rises. 
B)  falls. 
C)  remains unchanged. 
D)  reacts unpredictably. 
A)  also rises. 
B)  falls. 
C)  remains unchanged. 
D)  reacts unpredictably.

Question 18

Natural resources are:

Accepted Answer

A)  not considered scarce because no one pays for them. 
B)  only desired for use in producing other goods. 
C)  included in the category of resources called land. 
D)  available in unlimited quantities. 
A)  not considered scarce because no one pays for them. 
B)  only desired for use in producing other goods. 
C)  included in the category of resources called land. 
D)  available in unlimited quantities.

Question 19

Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy.

Accepted Answer

A)  b and d 
B)  macro; micro 
C)  positive; normative 
D)  normative; positive 
A)  b and d 
B)  macro; micro 
C)  positive; normative 
D)  normative; positive

Question 20

Which of the following would an economist classify as capital?

Accepted Answer

A)  100 shares of Microsoft stock. 
B)  $50 bill. 
C)  credit card. 
D)  lawyer's personal computer. 
A)  100 shares of Microsoft stock. 
B)  $50 bill. 
C)  credit card. 
D)  lawyer's personal computer.

The statement "American workers are lazy" is an example of positive economic analysis.

The basic difference between macroeconomics and microeconomics is:

Distinguish between macroeconomics and microeconomics.

An upward-sloping straight line exhibits a direct relationship between two variables.

A review of the performance of the economy during the Bush administration is the concern of:

Microeconomics only looks at the behavior of one consumer or one firm in a market, while macroeconomics looks at the behavior of an entire industry or group of consumers.

Exhibit 1A-6 Straight line -In Exhibit 1A-6, the slope of the straight line A-D is:

Exhibit 1A-8 Straight line relationship -According to the Exhibit 1A-8, the relationship between the price and quantity purchased of pizza is:

Exhibit 1A-2 Straight line -As shown in Exhibit 1A-2, the slope of straight line CD:

Which of the following is the best example of an activity that would be undertaken by an entrepreneur?

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

Exhibit 1A-2 Straight line -In Exhibit 1A-2, the slope of straight line CD is:

A conditional statement such as if event A occurs, then event B follows is an example of normative economics.

The branch of economics that focuses on decision making for the economy as a whole is called:

Positive economics:

Which of the following represents positive economics?

Suppose two variables are directly related. If one variable rises, then the other variable:

Natural resources are:

Economists use economic analysis to understand an individual market. They then use economic analysis to guide future national economic policy.

Which of the following would an economist classify as capital?

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

The statement "American workers are lazy" is an example of positive economic analysis.

The basic difference between macroeconomics and microeconomics is:

Distinguish between macroeconomics and microeconomics.

An upward-sloping straight line exhibits a direct relationship between two variables.

A review of the performance of the economy during the Bush administration is the concern of:

Microeconomics only looks at the behavior of one consumer or one firm in a market, while macroeconomics looks at the behavior of an entire industry or group of consumers.

Exhibit 1A-6 Straight line -In Exhibit 1A-6, the slope of the straight line A-D is:

Exhibit 1A-8 Straight line relationship -According to the Exhibit 1A-8, the relationship between the price and quantity purchased of pizza is:

Exhibit 1A-2 Straight line ​ -As shown in Exhibit 1A-2, the slope of straight line CD:

Which of the following is the best example of an activity that would be undertaken by an entrepreneur?

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

Exhibit 1A-2 Straight line ​ -In Exhibit 1A-2, the slope of straight line CD is:

A conditional statement such as if event A occurs, then event B follows is an example of normative economics.

The branch of economics that focuses on decision making for the economy as a whole is called:

Positive economics:

Which of the following represents positive economics?

Suppose two variables are directly related. If one variable rises, then the other variable:

Natural resources are:

Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy.

Which of the following would an economist classify as capital?

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-2 Straight line -As shown in Exhibit 1A-2, the slope of straight line CD:

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

Exhibit 1A-2 Straight line -In Exhibit 1A-2, the slope of straight line CD is:

Economists use economic analysis to understand an individual market. They then use economic analysis to guide future national economic policy.