Question 1

Microeconomics: A Contemporary Introduction, McEeachern 11e

Accepted Answer

A) True 
 B)False

Question 2

"There should be less discrimination against women" is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 3

Step one in the scientific method is to:

Accepted Answer

A)  formulate a hypothesis. 
B)  reflect an opinion. 
C)  specify assumptions. 
D)  identify the question and define relevant variables. 
E)  test the hypothesis. 
A)  formulate a hypothesis. 
B)  reflect an opinion. 
C)  specify assumptions. 
D)  identify the question and define relevant variables. 
E)  test the hypothesis.

Question 4

When economists refer to capital, they might mean:

Accepted Answer

A)  money. 
B)  human skills used in production. 
C)  stocks. 
D)  bonds. 
E)  bank loans. 
A)  money. 
B)  human skills used in production. 
C)  stocks. 
D)  bonds. 
E)  bank loans.

Question 5

As resources are scarce, _____.

Accepted Answer

A)  opportunity costs are zero. 
B)  people must make choices among alternatives. 
C)  all human wants and desires can be satisfied. 
D)  resource prices are fixed. 
E)  commodities are free. 
A)  opportunity costs are zero. 
B)  people must make choices among alternatives. 
C)  all human wants and desires can be satisfied. 
D)  resource prices are fixed. 
E)  commodities are free.

Question 6

The ceteris paribus assumption is the other-things-constant assumption.

Accepted Answer

A) True 
 B)False

Question 7

Economics is best defined as the study of how:

Accepted Answer

A)  individuals decide to use scarce resources in an attempt to satisfy their unlimited wants. 
B)  individuals can make money. 
C)  the government should deal with unemployment and inflation. 
D)  to eliminate the problem of scarce resources. 
E)  to run a business. 
A)  individuals decide to use scarce resources in an attempt to satisfy their unlimited wants. 
B)  individuals can make money. 
C)  the government should deal with unemployment and inflation. 
D)  to eliminate the problem of scarce resources. 
E)  to run a business.

Question 8

In a circular-flow model, households supply all of the following except :

Accepted Answer

A)  labor. 
B)  goods and services. 
C)  capital. 
D)  entrepreneurial ability. 
E)  natural resources. 
A)  labor. 
B)  goods and services. 
C)  capital. 
D)  entrepreneurial ability. 
E)  natural resources.

Question 9

Which of the following is true about the resource market?

Accepted Answer

A)  It facilitates the exchange of goods and services between buyers and sellers. 
B)  It facilitates the exchange of resources between buyers and sellers. 
C)  Firms are sellers in the resource market. 
D)  Households are buyers in the resource markets. 
E)  There is no flow of money in the resource market. 
A)  It facilitates the exchange of goods and services between buyers and sellers. 
B)  It facilitates the exchange of resources between buyers and sellers. 
C)  Firms are sellers in the resource market. 
D)  Households are buyers in the resource markets. 
E)  There is no flow of money in the resource market.

Question 10

In an economic model of consumer behavior, rational self-interest would likely be:

Accepted Answer

A)    a key variable. 
B)  the hypothesis of the model. 
C)  a behavioral assumption. 
D)  a prediction of the model. 
E)  a method of testing the model. 
A)    a key variable. 
B)  the hypothesis of the model. 
C)  a behavioral assumption. 
D)  a prediction of the model. 
E)  a method of testing the model.

Question 11

When constructing an economic model, economists:

Accepted Answer

A)  rely mostly on their own value judgments and ignore the far more complex world of facts. 
B)  always try to duplicate reality by including all available information. 
C)  use assumptions that are true for the individual but never true for the whole economy. 
D)  must rely on assumptions for the sake of simplification. 
E)  are primarily concerned with making realistic assumptions. 
A)  rely mostly on their own value judgments and ignore the far more complex world of facts. 
B)  always try to duplicate reality by including all available information. 
C)  use assumptions that are true for the individual but never true for the whole economy. 
D)  must rely on assumptions for the sake of simplification. 
E)  are primarily concerned with making realistic assumptions.

Question 12

When economic choice involves an adjustment to an existing situation, marginal analysis:

Accepted Answer

A)  has no practical applications or real-world uses. 
B)  eliminates incorrect decisions and bad choices. 
C)  involves comparing the additional costs and additional benefits of an activity before deciding. 
D)  involves examining only the total costs and total benefits of an activity before deciding. 
E)  guarantees an incorrect decision. 
A)  has no practical applications or real-world uses. 
B)  eliminates incorrect decisions and bad choices. 
C)  involves comparing the additional costs and additional benefits of an activity before deciding. 
D)  involves examining only the total costs and total benefits of an activity before deciding. 
E)  guarantees an incorrect decision.

Question 13

Which of the following is the best definition of economics?

Accepted Answer

A)  An investigation of the quantities and prices of the various goods produced by the nations of the world 
B)  A study of why inflation and unemployment periodically plague the U.S. economy 
C)  An analysis of how individuals and societies deal with the problem of scarcity 
D)  An examination of the role that money plays in the economy 
E)  A study of how goods and services are distributed throughout the world 
A)  An investigation of the quantities and prices of the various goods produced by the nations of the world 
B)  A study of why inflation and unemployment periodically plague the U.S. economy 
C)  An analysis of how individuals and societies deal with the problem of scarcity 
D)  An examination of the role that money plays in the economy 
E)  A study of how goods and services are distributed throughout the world

Question 14

Which of the following would an economist classify as physical capital?

Accepted Answer

A)  100 shares of Microsoft stock 
B)  A $50 bill 
C)  A credit card 
D)  A lawyer's laptop 
E)  A bauxite mine in Jamaica 
A)  100 shares of Microsoft stock 
B)  A $50 bill 
C)  A credit card 
D)  A lawyer's laptop 
E)  A bauxite mine in Jamaica

Question 15

The difference between a positive economic statement and a normative economic statement is that:

Accepted Answer

A)  a positive statement must be true, while a normative statement is often not true. 
B)  a normative statement must be true, while a positive statement is often not true. 
C)  a positive statement can be verified, while a normative statement cannot. 
D)  a normative statement can be verified, while a positive statement cannot. 
E)  a positive economic statement is a moral judgment, while a normative economic statement is not a moral judgment. 
A)  a positive statement must be true, while a normative statement is often not true. 
B)  a normative statement must be true, while a positive statement is often not true. 
C)  a positive statement can be verified, while a normative statement cannot. 
D)  a normative statement can be verified, while a positive statement cannot. 
E)  a positive economic statement is a moral judgment, while a normative economic statement is not a moral judgment.

Question 16

The difference between positive economic statements and normative economic statements is that:

Accepted Answer

A)  positive statements are based on opinion while normative statements are always true. 
B)  positive statements are based on opinion while normative statements are based on fact. 
C)  positive statements are true and normative statements are often false. 
D)  positive statements are often false and normative statements are true. 
E)  positive statements are based on fact while normative statements are based on opinion. 
A)  positive statements are based on opinion while normative statements are always true. 
B)  positive statements are based on opinion while normative statements are based on fact. 
C)  positive statements are true and normative statements are often false. 
D)  positive statements are often false and normative statements are true. 
E)  positive statements are based on fact while normative statements are based on opinion.

Question 17

Economists employ the scientific method. In part, this means that:

Accepted Answer

A)  there is a single economic theory accepted by all economists. 
B)  economic hypotheses are tested to determine their validity. 
C)  all economic laws have been proven true by laboratory tests. 
D)  personal values never enter into economic policy recommendations. 
E)  assumptions are not necessary in economic science. 
A)  there is a single economic theory accepted by all economists. 
B)  economic hypotheses are tested to determine their validity. 
C)  all economic laws have been proven true by laboratory tests. 
D)  personal values never enter into economic policy recommendations. 
E)  assumptions are not necessary in economic science.

Question 18

Which of the following is not a part of the scientific method in economics?

Accepted Answer

A)  Normative statements 
B)  Comparing predictions to evidence 
C)  Formulating a hypothesis 
D)  A hypothesis 
E)  Behavioral assumptions 
A)  Normative statements 
B)  Comparing predictions to evidence 
C)  Formulating a hypothesis 
D)  A hypothesis 
E)  Behavioral assumptions

Question 19

Goods and services are exchanged in:

Accepted Answer

A)  product markets. 
B)  resource markets. 
C)  inventory markets. 
D)  classified markets. 
E)  government markets. 
A)  product markets. 
B)  resource markets. 
C)  inventory markets. 
D)  classified markets. 
E)  government markets.

Question 20

Macroeconomists analyze:

Accepted Answer

A)  the labor market. 
B)  the arrangements through which specific products are exchanged. 
C)  influences on the decision making of particular households. 
D)  the impact of unemployment on the economy. 
E)  the factors that affect the decisions of individual firms. 
A)  the labor market. 
B)  the arrangements through which specific products are exchanged. 
C)  influences on the decision making of particular households. 
D)  the impact of unemployment on the economy. 
E)  the factors that affect the decisions of individual firms.

Microeconomics: A Contemporary Introduction, McEeachern 11e

"There should be less discrimination against women" is an example of a positive economic statement.

Step one in the scientific method is to:

When economists refer to capital, they might mean:

As resources are scarce, _____.

The ceteris paribus assumption is the other-things-constant assumption.

Economics is best defined as the study of how:

In a circular-flow model, households supply all of the following except :

Which of the following is true about the resource market?

In an economic model of consumer behavior, rational self-interest would likely be:

When constructing an economic model, economists:

When economic choice involves an adjustment to an existing situation, marginal analysis:

Which of the following is the best definition of economics?

Which of the following would an economist classify as physical capital?

The difference between a positive economic statement and a normative economic statement is that:

The difference between positive economic statements and normative economic statements is that:

Economists employ the scientific method. In part, this means that:

Which of the following is not a part of the scientific method in economics?

Goods and services are exchanged in:

Macroeconomists analyze:

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 1: The Art and Science of Economic Analysis

Microeconomics: A Contemporary Introduction, McEeachern 11e

"There should be less discrimination against women" is an example of a positive economic statement.

Step one in the scientific method is to:

When economists refer to capital, they might mean:

As resources are scarce, _____.

The ceteris paribus assumption is the other-things-constant assumption.

Economics is best defined as the study of how:

In a circular-flow model, households supply all of the following except :

Which of the following is true about the resource market?

In an economic model of consumer behavior, rational self-interest would likely be:

When constructing an economic model, economists:

When economic choice involves an adjustment to an existing situation, marginal analysis:

Which of the following is the best definition of economics?

Which of the following would an economist classify as physical capital?

The difference between a positive economic statement and a normative economic statement is that:

The difference between positive economic statements and normative economic statements is that:

Economists employ the scientific method. In part, this means that:

Which of the following is not a part of the scientific method in economics?

Goods and services are exchanged in:

Macroeconomists analyze:

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters