Question 1

What is used to illustrate an independent relationship between two variables?

Accepted Answer

A)  An upward-sloping curve. 
B)  A downward-sloping curve. 
C)  A hill-shaped curve. 
D)  A horizontal or vertical line. 
A)  An upward-sloping curve. 
B)  A downward-sloping curve. 
C)  A hill-shaped curve. 
D)  A horizontal or vertical line.

Question 2

Microeconomics approaches the study of economics from the viewpoint of:

Accepted Answer

A)  individual or specific markets. 
B)  the national economy. 
C)  government units. 
D)  economywide markets. 
A)  individual or specific markets. 
B)  the national economy. 
C)  government units. 
D)  economywide markets.

Question 3

Which of the following would be of particular interest to a microeconomist?

Accepted Answer

A)  The price of fruit the typical household consumes. 
B)  The nation's inflation rate. 
C)  The nation's rate of unemployment. 
D)  The budget of the national government. 
E)  The growth of the economy. 
A)  The price of fruit the typical household consumes. 
B)  The nation's inflation rate. 
C)  The nation's rate of unemployment. 
D)  The budget of the national government. 
E)  The growth of the economy.

Question 4

Exhibit 1A-5  Straight line   In Exhibit 1A-5, as X increases along the horizontal axis, corresponding to points C-D on the line, the Y values decrease. The relationship between the X and Y variables is:

Accepted Answer

A)  direct. 
B)  inverse. 
C)  independent. 
D)  variable. 
A)  direct. 
B)  inverse. 
C)  independent. 
D)  variable.

Question 5

Policies to create jobs in the nation are the concern of:

Accepted Answer

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

Question 6

Exhibit 1A-3  Straight line   In Exhibit 1A-3, as X increases along the horizontal axis, corresponding to points A-B on the line, the Y values decrease. The relationship between the X and Y variables is:

Accepted Answer

A)  direct. 
B)  inverse. 
C)  independent. 
D)  variable. 
A)  direct. 
B)  inverse. 
C)  independent. 
D)  variable.

Question 7

Scarcity is a(n):

Accepted Answer

A)  problem only in industrialized economies. 
B)  condition measured by the quantity of goods available. 
C)  subjective concept that human wants can never be satisfied. 
D)  problem only in poor economies. 
A)  problem only in industrialized economies. 
B)  condition measured by the quantity of goods available. 
C)  subjective concept that human wants can never be satisfied. 
D)  problem only in poor economies.

Question 8

A textbook is an example of:

Accepted Answer

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

Question 9

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 10

The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is a(n) ____ economic statement, and the labor head's statement is a(n) ____ economic statement.

Accepted Answer

A)  normative; normative 
B)  normative; positive 
C)  positive; normative 
D)  positive; positive 
E)  proper; improper 
A)  normative; normative 
B)  normative; positive 
C)  positive; normative 
D)  positive; positive 
E)  proper; improper

Question 11

Exhibit 1A-1  Straight line   In Exhibit 1A-1, the slope of straight line AB is:

Accepted Answer

A)  1. 
B)  5. 
C)  1/2. 
D)  − 1. 
A)  1. 
B)  5. 
C)  1/2. 
D)  − 1.

Question 12

Which of the following is a macroeconomics topic?

Accepted Answer

A)  Wages of textile workers in the Northeast. 
B)  The cost of producing 10,000 bookcases. 
C)  The economy's annual growth rate. 
D)  National demand for fish. 
E)  Effects of farm subsidies on food prices. 
A)  Wages of textile workers in the Northeast. 
B)  The cost of producing 10,000 bookcases. 
C)  The economy's annual growth rate. 
D)  National demand for fish. 
E)  Effects of farm subsidies on food prices.

Question 13

The basic difference between macroeconomics and microeconomics is:

Accepted Answer

A)  microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. 
B)  microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. 
C)  microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. 
D)  microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment. 
A)  microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. 
B)  microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. 
C)  microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. 
D)  microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

Question 14

In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?

Accepted Answer

A)  "Price supports are important because America should preserve the small family farm." 
B)  "Without price supports, the price of wheat and corn will fall by over twenty percent." 
C)  "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." 
D)  "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in the United States." 
A)  "Price supports are important because America should preserve the small family farm." 
B)  "Without price supports, the price of wheat and corn will fall by over twenty percent." 
C)  "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." 
D)  "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in the United States."

What is used to illustrate an independent relationship between two variables?

Microeconomics approaches the study of economics from the viewpoint of:

Which of the following would be of particular interest to a microeconomist?

Exhibit 1A-5 Straight line In Exhibit 1A-5, as X increases along the horizontal axis, corresponding to points C-D on the line, the Y values decrease. The relationship between the X and Y variables is:

Policies to create jobs in the nation are the concern of:

Exhibit 1A-3 Straight line In Exhibit 1A-3, as X increases along the horizontal axis, corresponding to points A-B on the line, the Y values decrease. The relationship between the X and Y variables is:

Scarcity is a(n):

A textbook is an example of:

Microeconomics is concerned with:

The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is a(n) economic statement, and the labor head's statement is a(n) economic statement.

Exhibit 1A-1 Straight line In Exhibit 1A-1, the slope of straight line AB is:

Which of the following is a macroeconomics topic?

The basic difference between macroeconomics and microeconomics is:

In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

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

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

Exam 1: Introducing the Economic Way of Thinking

What is used to illustrate an independent relationship between two variables?

Microeconomics approaches the study of economics from the viewpoint of:

Which of the following would be of particular interest to a microeconomist?

Exhibit 1A-5 Straight line In Exhibit 1A-5, as X increases along the horizontal axis, corresponding to points C-D on the line, the Y values decrease. The relationship between the X and Y variables is:

Policies to create jobs in the nation are the concern of:

Exhibit 1A-3 Straight line In Exhibit 1A-3, as X increases along the horizontal axis, corresponding to points A-B on the line, the Y values decrease. The relationship between the X and Y variables is:

Scarcity is a(n):

A textbook is an example of:

Microeconomics is concerned with:

Exhibit 1A-1 Straight line In Exhibit 1A-1, the slope of straight line AB is:

Which of the following is a macroeconomics topic?

The basic difference between macroeconomics and microeconomics is:

In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

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

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters