Question 1

In the final two decades of the twentieth century, per capita income in sub-Saharan Africa

Accepted Answer

A)  increased by approximately 35 percent. 
B)  remained relatively unchanged. 
C)  decreased by approximately 6 percent. 
D)  increased by more than 75 percent. 
A)  increased by approximately 35 percent. 
B)  remained relatively unchanged. 
C)  decreased by approximately 6 percent. 
D)  increased by more than 75 percent.

Question 2

One of the key economic questions is "who consumes the products?"

Accepted Answer

A) True 
 B)False

Question 3

Scarcity can best be defined as a situation in which

Accepted Answer

A)  there are no buyers willing to purchase what sellers have produced. 
B)  there are not enough goods to satisfy all of the buyers' demand. 
C)  the resources we use to produce goods and services are limited. 
D)  there is more than enough money to satisfy consumers' wants. 
A)  there are no buyers willing to purchase what sellers have produced. 
B)  there are not enough goods to satisfy all of the buyers' demand. 
C)  the resources we use to produce goods and services are limited. 
D)  there is more than enough money to satisfy consumers' wants.

Question 4

The study of the choices made by individual households, firms, and government is called

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  managerial economics. 
D)  market economics. 
A)  macroeconomics. 
B)  microeconomics. 
C)  managerial economics. 
D)  market economics.

Question 5

Resources are all of the following EXCEPT

Accepted Answer

A)  unlimited and in abundance. 
B)  the things we use to produce goods and services. 
C)  limited in quantity and can be used in different ways. 
D)  scarce and therefore require choices to be made. 
A)  unlimited and in abundance. 
B)  the things we use to produce goods and services. 
C)  limited in quantity and can be used in different ways. 
D)  scarce and therefore require choices to be made.

Question 6

One of the key economic questions is "where should products be produced?"

Accepted Answer

A) True 
 B)False

Question 7

Normative economics answers the question, "What ought to be?" Positive economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"

Accepted Answer

A) True 
 B)False

Question 8

Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s).
-According to the Application, one factor which was responsible for roughly one-third of hybrid vehicles purchased in 2007 was an increase in the price of gasoline. The increase in sales due to higher gasoline prices describe 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 9

When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine

Accepted Answer

A)  if the tax would be allocated equitably. 
B)  what tax amount should be charged. 
C)  who should be exempt from the tax. 
D)  how much revenue will the tax generate. 
A)  if the tax would be allocated equitably. 
B)  what tax amount should be charged. 
C)  who should be exempt from the tax. 
D)  how much revenue will the tax generate.

Question 10

One example of a microeconomic question is, "Should unemployment benefits be increased?"

Accepted Answer

A) True 
 B)False

Question 11

Slope is calculated as the

Accepted Answer

A)  change in the vertical variable divided by the change in the horizontal variable. 
B)  change in the horizontal variable divided by the change in the vertical variable. 
C)  the vertical axis divided by the horizontal axis. 
D)  change in the vertical variable. 
A)  change in the vertical variable divided by the change in the horizontal variable. 
B)  change in the horizontal variable divided by the change in the vertical variable. 
C)  the vertical axis divided by the horizontal axis. 
D)  change in the vertical variable.

Question 12

Figure 1A.1 
  
-Refer to Figure 1A.1. If the hours worked per week is 20, the income per week is

Accepted Answer

A)  50. 
B)  100. 
C)  150. 
D)  200. 
A)  50. 
B)  100. 
C)  150. 
D)  200.

Question 13

The congestion tax implemented in London reduced traffic volume and cut travel time for cars and buses in half.

Accepted Answer

A) True 
 B)False

Question 14

The physical and mental effort people use to produce goods and services is a description of which factor of production?

Accepted Answer

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

Question 15

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s).
-What is meant by the term "marginal change"?

Accepted Answer

A marginal change is

Question 16

If the variable on the vertical axis increases by 24 and the variable on the horizontal axis decreases by 3, the slope of the line is

Accepted Answer

A)  -24. 
B)  -8. 
C)  3. 
D)  72. 
A)  -24. 
B)  -8. 
C)  3. 
D)  72.

Question 17

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Accepted Answer

A) True 
 B)False

Question 18

Economic models are used to

Accepted Answer

A)  explain every detail of an economic theory. 
B)  explore decision making by individuals, firms and other organizations. 
C)  build physical renditions of government construction projects. 
D)  represent the complexities of economic environments. 
A)  explain every detail of an economic theory. 
B)  explore decision making by individuals, firms and other organizations. 
C)  build physical renditions of government construction projects. 
D)  represent the complexities of economic environments.

Question 19

There is a negative relationship between two variables if

Accepted Answer

A)  they move in opposite directions. 
B)  they move in the same direction. 
C)  one variable changes and the other does not. 
D)  neither variable moves. 
A)  they move in opposite directions. 
B)  they move in the same direction. 
C)  one variable changes and the other does not. 
D)  neither variable moves.

Question 20

Microeconomics is the study of aggregate behavior in the economy.

Accepted Answer

A) True 
 B)False

In the final two decades of the twentieth century, per capita income in sub-Saharan Africa

One of the key economic questions is "who consumes the products?"

Scarcity can best be defined as a situation in which

The study of the choices made by individual households, firms, and government is called

Resources are all of the following EXCEPT

One of the key economic questions is "where should products be produced?"

Normative economics answers the question, "What ought to be?" Positive economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"

When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine

One example of a microeconomic question is, "Should unemployment benefits be increased?"

Slope is calculated as the

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week is 20, the income per week is

The congestion tax implemented in London reduced traffic volume and cut travel time for cars and buses in half.

The physical and mental effort people use to produce goods and services is a description of which factor of production?

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s). -What is meant by the term "marginal change"?

If the variable on the vertical axis increases by 24 and the variable on the horizontal axis decreases by 3, the slope of the line is

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Economic models are used to

There is a negative relationship between two variables if

Microeconomics is the study of aggregate behavior in the economy.

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?

In the final two decades of the twentieth century, per capita income in sub-Saharan Africa

One of the key economic questions is "who consumes the products?"

Scarcity can best be defined as a situation in which

The study of the choices made by individual households, firms, and government is called

Resources are all of the following EXCEPT

One of the key economic questions is "where should products be produced?"

Normative economics answers the question, "What ought to be?" Positive economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"

When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine

One example of a microeconomic question is, "Should unemployment benefits be increased?"

Slope is calculated as the

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week is 20, the income per week is

The congestion tax implemented in London reduced traffic volume and cut travel time for cars and buses in half.

The physical and mental effort people use to produce goods and services is a description of which factor of production?

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s). -What is meant by the term "marginal change"?

If the variable on the vertical axis increases by 24 and the variable on the horizontal axis decreases by 3, the slope of the line is

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Economic models are used to

There is a negative relationship between two variables if

Microeconomics is the study of aggregate behavior in the economy.

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