Question 1

Graphs are useful because of the way they

Accepted Answer

A)  facilitate interpretation and analysis of data. 
B)  clarify interpretation and analysis of ideas. 
C)  permit a person to easily see relationships. 
D)  convey an idea that might otherwise take many words. 
E)  All of these responses are correct. 
A)  facilitate interpretation and analysis of data. 
B)  clarify interpretation and analysis of ideas. 
C)  permit a person to easily see relationships. 
D)  convey an idea that might otherwise take many words. 
E)  All of these responses are correct. E

Question 2

If Taiwanese workers can produce all goods at lower wages than American workers, then

Accepted Answer

A)  Americans can still gain by trading with Taiwan. 
B)  Americans can only lose if they import from Taiwan. 
C)  Taiwan can only lose if it trades with America. 
D)  there are no gains from trade that are possible in this case. 
E)  Americans should be self-sufficient. 
A)  Americans can still gain by trading with Taiwan. 
B)  Americans can only lose if they import from Taiwan. 
C)  Taiwan can only lose if it trades with America. 
D)  there are no gains from trade that are possible in this case. 
E)  Americans should be self-sufficient. A

Question 3

The use of abstraction in economics is analogous to the use of a road map providing directions to a location.

Accepted Answer

A) True 
 B)False  True

Question 4

A small increase in productivity growth can have a huge impact on a country's standard of living.

Accepted Answer

A) True 
 B)False

Question 5

If an airline company has several empty seats on a flight and the full price of an air ticket is $500 and the marginal cost per passenger is $100, then it will be profitable for the airline to

Accepted Answer

A)  charge a stand-by passenger no less than the full fare of $500. 
B)  charge a stand-by passenger less than $100. 
C)  charge a stand-by passenger more than $500. 
D)  charge a stand-by passenger more than $100. 
E)  fill the seats at the last minute for any price. 
A)  charge a stand-by passenger no less than the full fare of $500. 
B)  charge a stand-by passenger less than $100. 
C)  charge a stand-by passenger more than $500. 
D)  charge a stand-by passenger more than $100. 
E)  fill the seats at the last minute for any price.

Question 6

If a decision maker uses marginal analysis, then the relevant costs are the

Accepted Answer

A)  full costs of a particular activity or product. 
B)  fixed costs that do not vary with the extra activity or output. 
C)  profits obtained on the activity or product. 
D)  average costs for a particular activity or product. 
E)  additional costs of a particular activity or product. 
A)  full costs of a particular activity or product. 
B)  fixed costs that do not vary with the extra activity or output. 
C)  profits obtained on the activity or product. 
D)  average costs for a particular activity or product. 
E)  additional costs of a particular activity or product.

Question 7

Economic efficiency and income equality are often conflicting goals in an economy.

Accepted Answer

A) True 
 B)False

Question 8

How does correlation differ from causation? Give an example of each to illustrate your answer.

Accepted Answer

Correlation means that two (or more) var

Question 9

Even though international trade is undertaken voluntarily, a country that engages in trade may not benefit from it.

Accepted Answer

A) True 
 B)False

Question 10

When controls over market prices are enacted, the consequences are always clear.

Accepted Answer

A) True 
 B)False

Question 11

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

Accepted Answer

Attempts to repeal the laws of supply an

Question 12

Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?

Accepted Answer

A)  Y = a + X 
B)  X = bY 
C)  X = a 
D)  Y = a 
A)  Y = a + X 
B)  X = bY 
C)  X = a 
D)  Y = a

Question 13

If an economic curve has a negative slope, then one variable

Accepted Answer

A)  falls as the other rises. 
B)  changes at a slower rate than another. 
C)  has a smaller value than another variable. 
D)  changes after another variable. 
A)  falls as the other rises. 
B)  changes at a slower rate than another. 
C)  has a smaller value than another variable. 
D)  changes after another variable.

Question 14

The word "theory" means the same to the scientist as it does to the man on the street.

Accepted Answer

A) True 
 B)False

Question 15

The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth. This layer protects humans from ultraviolet radiation, which causes skin cancer. Industry has been prohibited from using these substances in aerosol cans, but the government has been reluctant to ban their use altogether because of the serious economic consequences. Economists analyze such problems and refer to them as

Accepted Answer

A)  issues of unfairness. 
B)  examples of excess abstraction. 
C)  externalities. 
D)  comparative advantage issues. 
E)  examples of trade-offs between output and equality. 
A)  issues of unfairness. 
B)  examples of excess abstraction. 
C)  externalities. 
D)  comparative advantage issues. 
E)  examples of trade-offs between output and equality.

Question 16

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States, Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

Accepted Answer

A) True 
 B)False

Question 17

Marginal analysis involves looking at the extra costs involved in a decision.

Accepted Answer

A) True 
 B)False

Question 18

A ray through the origin always has a slope of one.

Accepted Answer

A) True 
 B)False

Question 19

Jack, an outstanding high school baseball player, has to decide whether to sign a contract with a major league baseball organization or to go to college. If Jack is determining his opportunity costs to go to college instead, he would include

Accepted Answer

A)  just the tuition and fees he would pay. 
B)  the tuition and fees he would pay and the costs of books he must purchase. 
C)  the tuition and fees he would pay, the costs of the books he must purchase plus the costs of room and board. 
D)  the tuition and fees he would pay, the costs of books he must purchase, the extra costs of room and board to live on campus minus the income he would receive from playing professional baseball. 
E)  the tuition and fees he would pay, the costs of books he must purchase, the extra costs of room and board to live on campus plus the income he would receive from playing professional baseball. 
A)  just the tuition and fees he would pay. 
B)  the tuition and fees he would pay and the costs of books he must purchase. 
C)  the tuition and fees he would pay, the costs of the books he must purchase plus the costs of room and board. 
D)  the tuition and fees he would pay, the costs of books he must purchase, the extra costs of room and board to live on campus minus the income he would receive from playing professional baseball. 
E)  the tuition and fees he would pay, the costs of books he must purchase, the extra costs of room and board to live on campus plus the income he would receive from playing professional baseball.

Question 20

The steepness of a curve is partially determined by the units of measurement.

Accepted Answer

A) True 
 B)False

Graphs are useful because of the way they

If Taiwanese workers can produce all goods at lower wages than American workers, then

The use of abstraction in economics is analogous to the use of a road map providing directions to a location.

A small increase in productivity growth can have a huge impact on a country's standard of living.

If an airline company has several empty seats on a flight and the full price of an air ticket is $500 and the marginal cost per passenger is $100, then it will be profitable for the airline to

If a decision maker uses marginal analysis, then the relevant costs are the

Economic efficiency and income equality are often conflicting goals in an economy.

How does correlation differ from causation? Give an example of each to illustrate your answer.

Even though international trade is undertaken voluntarily, a country that engages in trade may not benefit from it.

When controls over market prices are enacted, the consequences are always clear.

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?

If an economic curve has a negative slope, then one variable

The word "theory" means the same to the scientist as it does to the man on the street.

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States, Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

Marginal analysis involves looking at the extra costs involved in a decision.

A ray through the origin always has a slope of one.

Jack, an outstanding high school baseball player, has to decide whether to sign a contract with a major league baseball organization or to go to college. If Jack is determining his opportunity costs to go to college instead, he would include

The steepness of a curve is partially determined by the units of measurement.

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Us Economy

Filters

Exam 1: What Is Economics

Graphs are useful because of the way they

If Taiwanese workers can produce all goods at lower wages than American workers, then

The use of abstraction in economics is analogous to the use of a road map providing directions to a location.

A small increase in productivity growth can have a huge impact on a country's standard of living.

If an airline company has several empty seats on a flight and the full price of an air ticket is $500 and the marginal cost per passenger is $100, then it will be profitable for the airline to

If a decision maker uses marginal analysis, then the relevant costs are the

Economic efficiency and income equality are often conflicting goals in an economy.

How does correlation differ from causation? Give an example of each to illustrate your answer.

Even though international trade is undertaken voluntarily, a country that engages in trade may not benefit from it.

When controls over market prices are enacted, the consequences are always clear.

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?

If an economic curve has a negative slope, then one variable

The word "theory" means the same to the scientist as it does to the man on the street.

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States, Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

Marginal analysis involves looking at the extra costs involved in a decision.

A ray through the origin always has a slope of one.

Jack, an outstanding high school baseball player, has to decide whether to sign a contract with a major league baseball organization or to go to college. If Jack is determining his opportunity costs to go to college instead, he would include

The steepness of a curve is partially determined by the units of measurement.

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Us Economy

Filters