Question 1

A factor of production is the same as:

Accepted Answer

A) the amount of a good produced. 
B) the price of a good. 
C) a profit of a firm. 
D) an opportunity cost. 
E) a resource. 
A) the amount of a good produced. 
B) the price of a good. 
C) a profit of a firm. 
D) an opportunity cost. 
E) a resource.

Question 2

Economists use models to:

Accepted Answer

A) abstract from the complexities of the world. 
B) understand economic behavior. 
C) explain and help predict human behavior. 
D) do all of these. 
A) abstract from the complexities of the world. 
B) understand economic behavior. 
C) explain and help predict human behavior. 
D) do all of these.

Question 3

Microeconomics is concerned with:

Accepted Answer

A) some specific market in the economic system. 
B) the entire economic system. 
C) reducing national unemployment and inflation rates. 
D) what causes changes in the overall level of economic activity. 
A) some specific market in the economic system. 
B) the entire economic system. 
C) reducing national unemployment and inflation rates. 
D) what causes changes in the overall level of economic activity.

Question 4

"An increase in the federal minimum wage causes an increase in unemployment among teenagers" is a:

Accepted Answer

A) statement of positive economics. 
B) statement of normative economics. 
C) testable value judgment. 
D) fallacy of composition. 
A) statement of positive economics. 
B) statement of normative economics. 
C) testable value judgment. 
D) fallacy of composition.

Question 5

Economics is the study of how people:

Accepted Answer

A) vote for political leaders who decide what is to be produced. 
B) make choices to produce and consume goods and services. 
C) establish social institutions that maximize well-being. 
D) develop value systems that affect their consumption choices. 
A) vote for political leaders who decide what is to be produced. 
B) make choices to produce and consume goods and services. 
C) establish social institutions that maximize well-being. 
D) develop value systems that affect their consumption choices.

Question 6

Computer programs or software are an example of:

Accepted Answer

A) land. 
B) labor. 
C) capital. 
D) none of these. 
A) land. 
B) labor. 
C) capital. 
D) none of these.

Question 7

Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy.

Accepted Answer

A) b and d 
B) macro; micro 
C) positive; normative 
D) normative; positive 
A) b and d 
B) macro; micro 
C) positive; normative 
D) normative; positive

Question 8

Which of the following is a positive statement?

Accepted Answer

A) I think we should pass a constitutional amendment to reduce the deficit. 
B) President Clinton's way of dealing with the economy is better than President Bush's. 
C) I hope interest rates come down soon. 
D) If taxes are raised, unemployment will drop. 
A) I think we should pass a constitutional amendment to reduce the deficit. 
B) President Clinton's way of dealing with the economy is better than President Bush's. 
C) I hope interest rates come down soon. 
D) If taxes are raised, unemployment will drop.

Question 9

Complete the following analogy: A criminal is to a police artist's sketch as the economy is to:

Accepted Answer

A) money. 
B) an economic model. 
C) a resource. 
D) Ceteris paribus . 
E) scarcity. 
A) money. 
B) an economic model. 
C) a resource. 
D) Ceteris paribus . 
E) scarcity.

Question 10

Scarcity:

Accepted Answer

A) exists because resources are unlimited while human wants are limited. 
B) means we are unable to have as much as we would like to have. 
C) will likely be eliminated as technology continues to expand. 
D) is not an issue addressed in economics. 
A) exists because resources are unlimited while human wants are limited. 
B) means we are unable to have as much as we would like to have. 
C) will likely be eliminated as technology continues to expand. 
D) is not an issue addressed in economics.

Question 11

The statement "The income tax is unfair to those who work hard to earn their incomes" is an example of positive economic analysis.

Accepted Answer

A) True 
 B)False

Question 12

The Ceteris paribus assumption is important when building economic models.

Accepted Answer

A) True 
 B)False

Question 13

The sun is an example of:

Accepted Answer

A) a natural resource. 
B) capital. 
C) labor. 
D) none of these. 
A) a natural resource. 
B) capital. 
C) labor. 
D) none of these.

Question 14

The statement "Cutting government spending is the best way to boost consumer confidence" is an example of normative economics.

Accepted Answer

A) True 
 B)False

Question 15

The statement "It is better to suffer a little more unemployment than a little lower price" is an example of normative economic analysis.

Accepted Answer

A) True 
 B)False

Question 16

A textbook is an example of:

Accepted Answer

A) capital. 
B) a natural resource. 
C) labor. 
D) all of these. 
A) capital. 
B) a natural resource. 
C) labor. 
D) all of these.

A factor of production is the same as:

Economists use models to:

Microeconomics is concerned with:

"An increase in the federal minimum wage causes an increase in unemployment among teenagers" is a:

Economics is the study of how people:

Computer programs or software are an example of:

Economists use economic analysis to understand an individual market. They then use economic analysis to guide future national economic policy.

Which of the following is a positive statement?

Complete the following analogy: A criminal is to a police artist's sketch as the economy is to:

Scarcity:

The statement "The income tax is unfair to those who work hard to earn their incomes" is an example of positive economic analysis.

The Ceteris paribus assumption is important when building economic models.

The sun is an example of:

The statement "Cutting government spending is the best way to boost consumer confidence" is an example of normative economics.

The statement "It is better to suffer a little more unemployment than a little lower price" is an example of normative economic analysis.

A textbook is an example of:

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exam 1: Introducing the Economic Way of Thinking

A factor of production is the same as:

Economists use models to:

Microeconomics is concerned with:

"An increase in the federal minimum wage causes an increase in unemployment among teenagers" is a:

Economics is the study of how people:

Computer programs or software are an example of:

Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy.

Which of the following is a positive statement?

Complete the following analogy: A criminal is to a police artist's sketch as the economy is to:

Scarcity:

The statement "The income tax is unfair to those who work hard to earn their incomes" is an example of positive economic analysis.

The Ceteris paribus assumption is important when building economic models.

The sun is an example of:

The statement "Cutting government spending is the best way to boost consumer confidence" is an example of normative economics.

The statement "It is better to suffer a little more unemployment than a little lower price" is an example of normative economic analysis.

A textbook is an example of:

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Economists use economic analysis to understand an individual market. They then use economic analysis to guide future national economic policy.