Question 1

Which of the following is the fundamental resource that is the basis of labor?

Accepted Answer

A)  Capital 
B)  Natural resources 
C)  Time 
D)  Money 
E)  Entrepreneurial ability 
A)  Capital 
B)  Natural resources 
C)  Time 
D)  Money 
E)  Entrepreneurial ability

Question 2

Economists believe that:

Accepted Answer

A)  people who choose to promote the interests of others cannot be acting rationally in their own self-interest. 
B)  people show concern only for those whom they know personally. 
C)  charitable donations would disappear if tax deductions for charitable giving were eliminated. 
D)  the notion of self-interest rules out concern for others. 
E)  concern for the welfare of others is consistent with the concept of self-interest. 
A)  people who choose to promote the interests of others cannot be acting rationally in their own self-interest. 
B)  people show concern only for those whom they know personally. 
C)  charitable donations would disappear if tax deductions for charitable giving were eliminated. 
D)  the notion of self-interest rules out concern for others. 
E)  concern for the welfare of others is consistent with the concept of self-interest.

Question 3

An entrepreneur is:

Accepted Answer

A)  an individual who has an education. 
B)  an organizer who seeks profitable opportunities and is willing to accept risks. 
C)  a person who is hired by a firm to manage its operations. 
D)  a person who earns profit without accepting any risks. 
E)  a person who is appointed by the board of directors of a firm for a term of five years. 
A)  an individual who has an education. 
B)  an organizer who seeks profitable opportunities and is willing to accept risks. 
C)  a person who is hired by a firm to manage its operations. 
D)  a person who earns profit without accepting any risks. 
E)  a person who is appointed by the board of directors of a firm for a term of five years.

Question 4

Economic information:

Accepted Answer

A)  is usually scarce and costly to acquire. 
B)  is usually available free to any decision maker. 
C)  is usually not required for rational decision making. 
D)  must be complete before any decision is made. 
E)  is usually useful only to governments. 
A)  is usually scarce and costly to acquire. 
B)  is usually available free to any decision maker. 
C)  is usually not required for rational decision making. 
D)  must be complete before any decision is made. 
E)  is usually useful only to governments.

Question 5

The choices made by economic decision makers:

Accepted Answer

A)  are government decisions only. 
B)  are the primary focus of economics. 
C)  are not important in economic analysis. 
D)  occur infrequently. 
E)  do not involve ordinary citizens. 
A)  are government decisions only. 
B)  are the primary focus of economics. 
C)  are not important in economic analysis. 
D)  occur infrequently. 
E)  do not involve ordinary citizens.

Question 6

Which of the following is an example of a positive economic statement?

Accepted Answer

A)  Workers with families should be paid at least the minimum wage. 
B)  If crime rates reduced, the world would be a better place to live in. 
C)  Marginal tax rates should be reduced for individuals in the highest tax bracket. 
D)  An increase in the price of gasoline will cause a reduction in the amount of gasoline purchased. 
E)  Corrupt politicians ought to be voted out of office. 
A)  Workers with families should be paid at least the minimum wage. 
B)  If crime rates reduced, the world would be a better place to live in. 
C)  Marginal tax rates should be reduced for individuals in the highest tax bracket. 
D)  An increase in the price of gasoline will cause a reduction in the amount of gasoline purchased. 
E)  Corrupt politicians ought to be voted out of office.

Question 7

Scarcity:

Accepted Answer

A)  applies to a brain surgeon but not to a cab driver. 
B)  is not a problem for a politician. 
C)  exists only in rich countries. 
D)  exists only in poor countries. 
E)  occurs when a resource is not freely available. 
A)  applies to a brain surgeon but not to a cab driver. 
B)  is not a problem for a politician. 
C)  exists only in rich countries. 
D)  exists only in poor countries. 
E)  occurs when a resource is not freely available.

Question 8

Consumers need information to make good choices. In the context of this information, which of the following is correct?

Accepted Answer

A)  Advertising is always harmful to consumers. 
B)  Information is scarce and therefore valuable. 
C)  Brand names offer no informational content. 
D)  Acquiring more information is always rational. 
E)  Marginal analysis does not apply to the acquisition of information. 
A)  Advertising is always harmful to consumers. 
B)  Information is scarce and therefore valuable. 
C)  Brand names offer no informational content. 
D)  Acquiring more information is always rational. 
E)  Marginal analysis does not apply to the acquisition of information.

Question 9

Natural resources:

Accepted Answer

A)  include bodies of water, trees, oil reserves, and minerals. 
B)  are not scarce. 
C)  are exhaustible as long as they are managed properly. 
D)  are the result of human effort. 
E)  are machines used in the production process. 
A)  include bodies of water, trees, oil reserves, and minerals. 
B)  are not scarce. 
C)  are exhaustible as long as they are managed properly. 
D)  are the result of human effort. 
E)  are machines used in the production process.

Question 10

The payments in return for labor and capital are _____, respectively.

Accepted Answer

A)  profit and rent 
B)  interest and profit 
C)  rent and wages 
D)  profit and wages 
E)  wages and interest 
A)  profit and rent 
B)  interest and profit 
C)  rent and wages 
D)  profit and wages 
E)  wages and interest

Which of the following is the fundamental resource that is the basis of labor?

Economists believe that:

An entrepreneur is:

Economic information:

The choices made by economic decision makers:

Which of the following is an example of a positive economic statement?

Scarcity:

Consumers need information to make good choices. In the context of this information, which of the following is correct?

Natural resources:

The payments in return for labor and capital are _____, respectively.

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

Which of the following is the fundamental resource that is the basis of labor?

Economists believe that:

An entrepreneur is:

Economic information:

The choices made by economic decision makers:

Which of the following is an example of a positive economic statement?

Scarcity:

Consumers need information to make good choices. In the context of this information, which of the following is correct?

Natural resources:

The payments in return for labor and capital are _____, respectively.

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