Question 1

Scarcity is BEST defined as when

Accepted Answer

A)  the quantity demanded exceeds the quantity supplied. 
B)  the quantity supplied exceeds the quantity demanded. 
C)  unlimited resources exceed limited wants. 
D)  unlimited wants exceed limited resources. 
A)  the quantity demanded exceeds the quantity supplied. 
B)  the quantity supplied exceeds the quantity demanded. 
C)  unlimited resources exceed limited wants. 
D)  unlimited wants exceed limited resources. D

Question 2

Which effect does NOT deal with macroeconomics?

Accepted Answer

A)  effect of the budget deficit on the economy 
B)  effect of monetary policy on inflation 
C)  effect of Walmart's pricing policies on consumers 
D)  effect of government policies on the country's unemployment rate 
A)  effect of the budget deficit on the economy 
B)  effect of monetary policy on inflation 
C)  effect of Walmart's pricing policies on consumers 
D)  effect of government policies on the country's unemployment rate C

Question 3

A store sells one candy bar for $0.89 and two candy bars for $1.50. The marginal cost of the second candy bar is $0.75.

Accepted Answer

A) True 
 B)False  False

Question 4

People tend to make rational choices for which they rely on

Accepted Answer

A)  scarcity. 
B)  utility. 
C)  information. 
D)  ceteris paribus. 
A)  scarcity. 
B)  utility. 
C)  information. 
D)  ceteris paribus.

Question 5

Markets provide an incentive structure to

Accepted Answer

A)  maximize equity. 
B)  eliminate scarcity. 
C)  maximize market information. 
D)  maximize efficiency. 
A)  maximize equity. 
B)  eliminate scarcity. 
C)  maximize market information. 
D)  maximize efficiency.

Question 6

Individuals do not experience opportunity costs unless external costs occur.

Accepted Answer

A) True 
 B)False

Question 7

In the equation C = a + bY, Y is the dependent variable and a is the intercept.

Accepted Answer

A) True 
 B)False

Question 8

The situation in which markets fail to provide efficiently is called

Accepted Answer

A)  market failure. 
B)  uneconomic efficiency. 
C)  market collapse. 
D)  government failure. 
A)  market failure. 
B)  uneconomic efficiency. 
C)  market collapse. 
D)  government failure.

Question 9

A graph of a business cycle that plots output on the vertical axis and quarters of the year on the horizontal axis is an example of a

Accepted Answer

A)  bar chart. 
B)  pie chart. 
C)  scatter plot. 
D)  time series. 
A)  bar chart. 
B)  pie chart. 
C)  scatter plot. 
D)  time series.

Question 10

Supply and demand analysis is used

Accepted Answer

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

Question 11

If a society produces a pie at the lowest possible cost and then distributes the pie evenly among its population, then _____ achieved.

Accepted Answer

A)  production and allocative efficiency are 
B)  only production efficiency is 
C)  neither production efficiency nor allocative efficiency is 
D)  only allocative efficiency is 
A)  production and allocative efficiency are 
B)  only production efficiency is 
C)  neither production efficiency nor allocative efficiency is 
D)  only allocative efficiency is

Question 12

Why do economists develop models (stylized facts) to help with analysis? Discuss the strengths and weaknesses of such an approach.

Accepted Answer

By using stylized facts, economists dist

Question 13

A national health care system is an example of an institution that influences the wealth of nations.

Accepted Answer

A) True 
 B)False

Question 14

Economic analysis gives us a structure for making decisions in a rational manner.

Accepted Answer

A) True 
 B)False

Question 15

Explain the following statement: Economic theories must be tested.

Accepted Answer

Economists build models to explain econo

Question 16

_____ is the fairness of various issues and policies.

Accepted Answer

A)  Equity 
B)  Efficiency 
C)  Choice 
D)  Scarcity 
A)  Equity 
B)  Efficiency 
C)  Choice 
D)  Scarcity

Question 17

The opportunity cost of undertaking an activity is defined as the _____ activity.

Accepted Answer

A)  cost forgone by not undertaking another 
B)  monetary cost of undertaking that 
C)  benefit forgone by not undertaking the next best 
D)  monetary benefit of undertaking that 
A)  cost forgone by not undertaking another 
B)  monetary cost of undertaking that 
C)  benefit forgone by not undertaking the next best 
D)  monetary benefit of undertaking that

Question 18

Compare and contrast the focuses of macroeconomics and microeconomics.

Accepted Answer

Macroeconomics focuses on the

Question 19

Consider the equation Y = e + fX. Which letter represents the slope?

Accepted Answer

A)  e 
B)  f 
C)  X 
D)  Y 
A)  e 
B)  f 
C)  X 
D)  Y

Question 20

Model building leads to theories that must then be tested.

Accepted Answer

A) True 
 B)False

Scarcity is BEST defined as when

Which effect does NOT deal with macroeconomics?

A store sells one candy bar for $0.89 and two candy bars for $1.50. The marginal cost of the second candy bar is $0.75.

People tend to make rational choices for which they rely on

Markets provide an incentive structure to

Individuals do not experience opportunity costs unless external costs occur.

In the equation C = a + bY, Y is the dependent variable and a is the intercept.

The situation in which markets fail to provide efficiently is called

A graph of a business cycle that plots output on the vertical axis and quarters of the year on the horizontal axis is an example of a

Supply and demand analysis is used

If a society produces a pie at the lowest possible cost and then distributes the pie evenly among its population, then _____ achieved.

Why do economists develop models (stylized facts) to help with analysis? Discuss the strengths and weaknesses of such an approach.

A national health care system is an example of an institution that influences the wealth of nations.

Economic analysis gives us a structure for making decisions in a rational manner.

Explain the following statement: Economic theories must be tested.

_____ is the fairness of various issues and policies.

The opportunity cost of undertaking an activity is defined as the _____ activity.

Compare and contrast the focuses of macroeconomics and microeconomics.

Consider the equation Y = e + fX. Which letter represents the slope?

Model building leads to theories that must then be tested.

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

Exam 1: Exploring Economics

Scarcity is BEST defined as when

Which effect does NOT deal with macroeconomics?

A store sells one candy bar for $0.89 and two candy bars for $1.50. The marginal cost of the second candy bar is $0.75.

People tend to make rational choices for which they rely on

Markets provide an incentive structure to

Individuals do not experience opportunity costs unless external costs occur.

In the equation C = a + bY, Y is the dependent variable and a is the intercept.

The situation in which markets fail to provide efficiently is called

A graph of a business cycle that plots output on the vertical axis and quarters of the year on the horizontal axis is an example of a

Supply and demand analysis is used

If a society produces a pie at the lowest possible cost and then distributes the pie evenly among its population, then _____ achieved.

Why do economists develop models (stylized facts) to help with analysis? Discuss the strengths and weaknesses of such an approach.

A national health care system is an example of an institution that influences the wealth of nations.

Economic analysis gives us a structure for making decisions in a rational manner.

Explain the following statement: Economic theories must be tested.

_____ is the fairness of various issues and policies.

The opportunity cost of undertaking an activity is defined as the _____ activity.

Compare and contrast the focuses of macroeconomics and microeconomics.

Consider the equation Y = e + fX. Which letter represents the slope?

Model building leads to theories that must then be tested.

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters