Question 1

A small, one-unit change in value is called a marginal change.

Accepted Answer

A) True 
 B)False

Question 2

In the past few centuries, choices have led to a substantial decline in the standards of living around the globe.

Accepted Answer

A) True 
 B)False

Question 3

A key assumption of most economic analysis is that people act rationally, meaning they respond to incentives.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of a normative question?

Accepted Answer

A)  How will an increase in the inheritance tax affect tax revenues? 
B)  What fraction of an income tax cut will be spent on imported goods? 
C)  Should Florida implement a state income tax to reduce its deficit? 
D)  How will an increase in unemployment benefits affect the unemployment rate? 
A)  How will an increase in the inheritance tax affect tax revenues? 
B)  What fraction of an income tax cut will be spent on imported goods? 
C)  Should Florida implement a state income tax to reduce its deficit? 
D)  How will an increase in unemployment benefits affect the unemployment rate?

Question 5

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).
-Slope is calculated as rise / run.

Accepted Answer

A) True 
 B)False

Question 6

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).
-The origin of a graph is the intersection of the two axes, where the value of both variables is zero.

Accepted Answer

A) True 
 B)False

Question 7

The slope of a curve measures

Accepted Answer

A)  the change in one variable in response to the change in the other variable. 
B)  the length of the curve. 
C)  only the change in the horizontal variable. 
D)  only the change in the vertical variable. 
A)  the change in one variable in response to the change in the other variable. 
B)  the length of the curve. 
C)  only the change in the horizontal variable. 
D)  only the change in the vertical variable.

Question 8

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Accepted Answer

A) True 
 B)False

Question 9

Explain three ways we can use macroeconomic analysis.

Accepted Answer

Macroeconomics explains why some resourc

Question 10

Give an example of something that is scarce in your life and explain the choices you've made because of scarcity.

Accepted Answer

Responses

Question 11

An economic model is a detailed version of an economic environment.

Accepted Answer

A) True 
 B)False

Question 12

The knowledge and skills acquired by a worker through education and experience 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 13

Adam Smith

Accepted Answer

A)  is considered the founder of economics. 
B)  introduced the concept of ceteris paribus to the discussion of supply and demand. 
C)  is responsible for refining the model of supply and demand. 
D)  is the author of this text. 
A)  is considered the founder of economics. 
B)  introduced the concept of ceteris paribus to the discussion of supply and demand. 
C)  is responsible for refining the model of supply and demand. 
D)  is the author of this text.

Question 14

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).
-To increase income by $120 when the slope of the curve showing the relationship between your income and work hours is 8, how many extra hours will you need to work?

Accepted Answer

A)  8 
B)  15 
C)  112 
D)  960 
A)  8 
B)  15 
C)  112 
D)  960

Question 15

Scarcity is a situation in which resources are unlimited in quantity and can be used in different ways.

Accepted Answer

A) True 
 B)False

Question 16

Would an economist consider clean air a scarce resource? Explain.

Accepted Answer

Yes, because the air had alternative use

Question 17

Which of the following is a microeconomic question?

Accepted Answer

A)  Should the government decrease unemployment benefits to reduce the unemployment rate ? 
B)  Why do some countries have higher inflation rates than other countries? 
C)  Should the government subsidize corn farmers to encourage the production of ethanol? 
D)  Should congress decrease taxes to help stimulate the economy? 
A)  Should the government decrease unemployment benefits to reduce the unemployment rate ? 
B)  Why do some countries have higher inflation rates than other countries? 
C)  Should the government subsidize corn farmers to encourage the production of ethanol? 
D)  Should congress decrease taxes to help stimulate the economy?

Question 18

Microeconomics 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

A small, one-unit change in value is called a marginal change.

In the past few centuries, choices have led to a substantial decline in the standards of living around the globe.

A key assumption of most economic analysis is that people act rationally, meaning they respond to incentives.

Which of the following is an example of a normative question?

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). -Slope is calculated as rise / run.

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). -The origin of a graph is the intersection of the two axes, where the value of both variables is zero.

The slope of a curve measures

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Explain three ways we can use macroeconomic analysis.

Give an example of something that is scarce in your life and explain the choices you've made because of scarcity.

An economic model is a detailed version of an economic environment.

The knowledge and skills acquired by a worker through education and experience is a description of which factor of production?

Adam Smith

Scarcity is a situation in which resources are unlimited in quantity and can be used in different ways.

Would an economist consider clean air a scarce resource? Explain.

Which of the following is a microeconomic question?

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

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?

A small, one-unit change in value is called a marginal change.

In the past few centuries, choices have led to a substantial decline in the standards of living around the globe.

A key assumption of most economic analysis is that people act rationally, meaning they respond to incentives.

Which of the following is an example of a normative question?

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). -Slope is calculated as rise / run.

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). -The origin of a graph is the intersection of the two axes, where the value of both variables is zero.

The slope of a curve measures

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Explain three ways we can use macroeconomic analysis.

Give an example of something that is scarce in your life and explain the choices you've made because of scarcity.

An economic model is a detailed version of an economic environment.

The knowledge and skills acquired by a worker through education and experience is a description of which factor of production?

Adam Smith

Scarcity is a situation in which resources are unlimited in quantity and can be used in different ways.

Would an economist consider clean air a scarce resource? Explain.

Which of the following is a microeconomic question?

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

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