Question 1

An arrangement that allows buyers and sellers to exchange things is called

Accepted Answer

A)  a contract. 
B)  a market. 
C)  money. 
D)  efficient. 
A)  a contract. 
B)  a market. 
C)  money. 
D)  efficient. B

Question 2

Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s).
-If you work 4 extra hours, and the slope of the curve showing the relationship between your income and work hours is 8, your income will increase by

Accepted Answer

A)  $2. 
B)  $4. 
C)  $12. 
D)  $32. 
A)  $2. 
B)  $4. 
C)  $12. 
D)  $32. D

Question 3

Macroeconomics is best described as the study of

Accepted Answer

A)  very large issues. 
B)  the choices made by individual households, firms, and governments. 
C)  the nation's economy as a whole. 
D)  the relationship between inflation and wage inequality. 
A)  very large issues. 
B)  the choices made by individual households, firms, and governments. 
C)  the nation's economy as a whole. 
D)  the relationship between inflation and wage inequality. C

Question 4

One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"

Accepted Answer

A) True 
 B)False

Question 5

The effort used to coordinate the factors of production is a description of

Accepted Answer

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

Question 6

Which of the following is a question answered with normative economic reasoning?

Accepted Answer

A)  If the college offers free textbooks for students, will more students read their textbooks? 
B)  If the college provided less financial aid for out-of-state students, would more in-state students benefit? 
C)  If the college increased its enrollment requirements, would class size decline? 
D)  Should the college increase tuition to fund its athletic programs? 
A)  If the college offers free textbooks for students, will more students read their textbooks? 
B)  If the college provided less financial aid for out-of-state students, would more in-state students benefit? 
C)  If the college increased its enrollment requirements, would class size decline? 
D)  Should the college increase tuition to fund its athletic programs?

Question 7

Figure 1A.1 
  
-Refer to Figure 1A.1. The slope of the line between the points where income equals 50 and income equals 200 is

Accepted Answer

A)  0.2. 
B)  5. 
C)  10. 
D)  50. 
A)  0.2. 
B)  5. 
C)  10. 
D)  50.

Question 8

Because resources are limited

Accepted Answer

A)  only the very wealthy can get everything they want. 
B)  firms will be forced out of business. 
C)  the availability of goods will be limited but the availability of services will not. 
D)  people must make choices. 
A)  only the very wealthy can get everything they want. 
B)  firms will be forced out of business. 
C)  the availability of goods will be limited but the availability of services will not. 
D)  people must make choices.

Question 9

The financial crisis and recession which began in 2007

Accepted Answer

A)  impacted only high-income countries. 
B)  was only severe in the United States. 
C)  had a global impact. 
D)  impacted only low-income countries. 
A)  impacted only high-income countries. 
B)  was only severe in the United States. 
C)  had a global impact. 
D)  impacted only low-income countries.

Question 10

Which of the following is a macroeconomic question?

Accepted Answer

A)  Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax? 
B)  Why did a leading computer manufacturer establish call centers in India? 
C)  Why does a pharmaceutical manufacturer try to lower its production costs? 
D)  Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous? 
A)  Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax? 
B)  Why did a leading computer manufacturer establish call centers in India? 
C)  Why does a pharmaceutical manufacturer try to lower its production costs? 
D)  Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous?

Question 11

Normative economics

Accepted Answer

A)  is the focus of most modern economic reasoning. 
B)  answers the question "What ought to be?" 
C)  predicts the consequences of alternative actions. 
D)  answers the question "What is?" 
A)  is the focus of most modern economic reasoning. 
B)  answers the question "What ought to be?" 
C)  predicts the consequences of alternative actions. 
D)  answers the question "What is?"

Question 12

If the price of a 32GB memory card decreases from $25 to $20, the percentage change is

Accepted Answer

A)  -20 percent. 
B)  -33 percent. 
C)  -50 percent. 
D)  -60 percent. 
A)  -20 percent. 
B)  -33 percent. 
C)  -50 percent. 
D)  -60 percent.

Question 13

Figure 1A.2
-Refer to Figure 1A.2. The slope between points a and c is

Accepted Answer

A)  -5. 
B)  -6. 
C)  10. 
D)  30. 
A)  -5. 
B)  -6. 
C)  10. 
D)  30.

Question 14

We can use macroeconomic analysis to

Accepted Answer

A)  learn how to balance a checkbook. 
B)  study the choices made by households. 
C)  understand marginal changes in the macroeconomy. 
D)  understand why economies grow. 
A)  learn how to balance a checkbook. 
B)  study the choices made by households. 
C)  understand marginal changes in the macroeconomy. 
D)  understand why economies grow.

Question 15

Tradeoff is

Accepted Answer

A)  allowing the government and other organizations to choose for us. 
B)  sacrificing one thing for another. 
C)  deciding who consumes the products produced in an economy. 
D)  holding other variables fixed. 
A)  allowing the government and other organizations to choose for us. 
B)  sacrificing one thing for another. 
C)  deciding who consumes the products produced in an economy. 
D)  holding other variables fixed.

Question 16

Figure 1A.2
-Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?

Accepted Answer

A)  0 
B)  5 
C)  10 
D)  15 
A)  0 
B)  5 
C)  10 
D)  15

Question 17

Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s).
-According to the Application, the average cost of abating one ton of CO2 emissions through the hybrid subsidy is $177, but a switch from coal to natural gas in power plants would reduce CO2 emissions at less than one-third the cost of the hybrid subsidy. The increase in cost associated with the reduction of one ton of CO2 emissions (assuming that each unit of CO2emissions is measured in tons)describes the economic concept of

Accepted Answer

A)  using assumptions to simplify. 
B)  ceteris paribus. 
C)  marginal thinking. 
D)  rational self interest. 
A)  using assumptions to simplify. 
B)  ceteris paribus. 
C)  marginal thinking. 
D)  rational self interest.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A small change in a variable is

Accepted Answer

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

Question 20

Deciding if a company will produce automobiles by robotics or manual labor answers the economic question of

Accepted Answer

A)  who consumes the products produced. 
B)  what products will be produced. 
C)  where will the products be consumed. 
D)  how will the products be produced. 
A)  who consumes the products produced. 
B)  what products will be produced. 
C)  where will the products be consumed. 
D)  how will the products be produced.

An arrangement that allows buyers and sellers to exchange things is called

Macroeconomics is best described as the study of

One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"

The effort used to coordinate the factors of production is a description of

Which of the following is a question answered with normative economic reasoning?

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where income equals 50 and income equals 200 is

Because resources are limited

The financial crisis and recession which began in 2007

Which of the following is a macroeconomic question?

Normative economics

If the price of a 32GB memory card decreases from $25 to $20, the percentage change is

Figure 1A.2 -Refer to Figure 1A.2. The slope between points a and c is

We can use macroeconomic analysis to

Tradeoff is

Figure 1A.2 -Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?

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

A small change in a variable is

Deciding if a company will produce automobiles by robotics or manual labor answers the economic question of

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's 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

Exam 1: Introduction: What Is Economics?

An arrangement that allows buyers and sellers to exchange things is called

Macroeconomics is best described as the study of

One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"

The effort used to coordinate the factors of production is a description of

Which of the following is a question answered with normative economic reasoning?

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where income equals 50 and income equals 200 is

Because resources are limited

The financial crisis and recession which began in 2007

Which of the following is a macroeconomic question?

Normative economics

If the price of a 32GB memory card decreases from $25 to $20, the percentage change is

Figure 1A.2 -Refer to Figure 1A.2. The slope between points a and c is

We can use macroeconomic analysis to

Tradeoff is

Figure 1A.2 -Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?

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

A small change in a variable is

Deciding if a company will produce automobiles by robotics or manual labor answers the economic question of

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's 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