Question 1

The slope of a straight line

Accepted Answer

A)  is constant. 
B)  is negative. 
C)  is zero. 
D)  changes along the curve. 
A)  is constant. 
B)  is negative. 
C)  is zero. 
D)  changes along the curve.

Question 2

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s).
-According to the Application, the amount of e-mail spam would significantly decrease if

Accepted Answer

A)  the cost of sending spam exceeded its profitability. 
B)  states passed laws making spam illegal. 
C)  e-mail filters were developed to separate spam from legitimate e-mail. 
D)  more people responded to spam e-mails. 
A)  the cost of sending spam exceeded its profitability. 
B)  states passed laws making spam illegal. 
C)  e-mail filters were developed to separate spam from legitimate e-mail. 
D)  more people responded to spam e-mails.

Question 3

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s).
-According to the Application, one idea to reduce the volume of e-mail spam is to charge the sender for each commercial e-mail sent.

Accepted Answer

A) True 
 B)False

Question 4

Ceteris paribus is the same as rise / run.

Accepted Answer

A) True 
 B)False

Question 5

An economic model is a

Accepted Answer

A)  realistic version of an economic environment. 
B)  detailed version of an economic issue. 
C)  fictional representation of an entire economy. 
D)  simplified representation of an economic environment. 
A)  realistic version of an economic environment. 
B)  detailed version of an economic issue. 
C)  fictional representation of an entire economy. 
D)  simplified representation of an economic environment.

Question 6

When economists assume that people are rational and respond to incentives, they mean

Accepted Answer

A)  people act with kindness. 
B)  people are altruistic. 
C)  people act in their own self-interest. 
D)  people are selfish. 
A)  people act with kindness. 
B)  people are altruistic. 
C)  people act in their own self-interest. 
D)  people are selfish.

Question 7

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT a macroeconomic question?

Accepted Answer

A)  Should we have a constitutional amendment requiring the federal government to balance the budget each year? 
B)  Should restaurants be required to list the number of calories for each product on their menus? 
C)  How does a fiscal stimulus package affect gross domestic product? 
D)  Should Congress enact tougher immigration laws to reduce unemployment? 
A)  Should we have a constitutional amendment requiring the federal government to balance the budget each year? 
B)  Should restaurants be required to list the number of calories for each product on their menus? 
C)  How does a fiscal stimulus package affect gross domestic product? 
D)  Should Congress enact tougher immigration laws to reduce unemployment?

Question 9

The slope of a nonlinear curve

Accepted Answer

A)  is constant. 
B)  is negative. 
C)  is zero. 
D)  changes along the curve. 
A)  is constant. 
B)  is negative. 
C)  is zero. 
D)  changes along the curve.

Question 10

Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle.

Accepted Answer

A) True 
 B)False

Question 11

Describe the field of economics known as microeconomics.

Accepted Answer

Microeconomics is the study of

Question 12

Jerome has a "C" average in his philosophy course and a "B" average in his economics course. He decides to study an extra hour for his philosophy exam. This is an example of

Accepted Answer

A)  thinking at the margin. 
B)  using assumptions to simplify. 
C)  ceteris paribus. 
D)  caveat emptor. 
A)  thinking at the margin. 
B)  using assumptions to simplify. 
C)  ceteris paribus. 
D)  caveat emptor.

Question 13

If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is

Accepted Answer

A)  0.25. 
B)  4. 
C)  15. 
D)  100. 
A)  0.25. 
B)  4. 
C)  15. 
D)  100.

Question 14

Figure 1A.1 
  
-Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

Accepted Answer

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

Question 15

To make things simpler and focus attention on what really matters, economists would

Accepted Answer

A)  use assumptions. 
B)  ignore all variables. 
C)  think at the margin. 
D)  respond to incentives. 
A)  use assumptions. 
B)  ignore all variables. 
C)  think at the margin. 
D)  respond to incentives.

Question 16

Figure 1A.1 
  
-Refer to Figure 1A.1. If the hours worked per week is 30, the income per week is

Accepted Answer

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

Question 17

Describe the field of economics known as macroeconomics.

Accepted Answer

Macroeconomics is the study of

Question 18

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).
-When the government converted the highway from 4 lanes into 6 lanes, they claimed the capacity had increased by 50 percent. When the government switched the highway back from 6 lanes to 4 lanes, they claimed the capacity had been decreased by 33 percent. Had the government used the midpoint method, the percentage increase would have been ________ percent and the percentage decrease would have been ________ percent.

Accepted Answer

A)  33; 50 
B)  33; 33 
C)  40; 40 
D)  50; 50 
A)  33; 50 
B)  33; 33 
C)  40; 40 
D)  50; 50

Question 19

A key assumption of most economic analysis is that people are altruistic, meaning that they act in their own self-interest.

Accepted Answer

A) True 
 B)False

Question 20

When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?

Accepted Answer

A)  thinking at the margin 
B)  isolating variables 
C)  making assumptions 
D)  all of the above 
A)  thinking at the margin 
B)  isolating variables 
C)  making assumptions 
D)  all of the above

The slope of a straight line

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s). -According to the Application, the amount of e-mail spam would significantly decrease if

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s). -According to the Application, one idea to reduce the volume of e-mail spam is to charge the sender for each commercial e-mail sent.

Ceteris paribus is the same as rise / run.

An economic model is a

When economists assume that people are rational and respond to incentives, they mean

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Which of the following is NOT a macroeconomic question?

The slope of a nonlinear curve

Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle.

Describe the field of economics known as microeconomics.

Jerome has a "C" average in his philosophy course and a "B" average in his economics course. He decides to study an extra hour for his philosophy exam. This is an example of

If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

To make things simpler and focus attention on what really matters, economists would

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week is 30, the income per week is

Describe the field of economics known as macroeconomics.

A key assumption of most economic analysis is that people are altruistic, meaning that they act in their own self-interest.

When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?

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?

The slope of a straight line

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s). -According to the Application, the amount of e-mail spam would significantly decrease if

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s). -According to the Application, one idea to reduce the volume of e-mail spam is to charge the sender for each commercial e-mail sent.

Ceteris paribus is the same as rise / run.

An economic model is a

When economists assume that people are rational and respond to incentives, they mean

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Which of the following is NOT a macroeconomic question?

The slope of a nonlinear curve

Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle.

Describe the field of economics known as microeconomics.

Jerome has a "C" average in his philosophy course and a "B" average in his economics course. He decides to study an extra hour for his philosophy exam. This is an example of

If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

To make things simpler and focus attention on what really matters, economists would

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week is 30, the income per week is

Describe the field of economics known as macroeconomics.

A key assumption of most economic analysis is that people are altruistic, meaning that they act in their own self-interest.

When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?

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