Question 1

Economists measure opportunity cost

Accepted Answer

A)  only when it is on the margin. 
B)  as the best thing given up. 
C)  as the sum of all forgone opportunities. 
D)  as the same as marginal benefit. 
E)  as equal to the sum of all the sunk costs. 
A)  only when it is on the margin. 
B)  as the best thing given up. 
C)  as the sum of all forgone opportunities. 
D)  as the same as marginal benefit. 
E)  as equal to the sum of all the sunk costs.

Question 2

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something. 
B)  how much money and time it takes to consume something. 
C)  the value of the highest-valued alternative that is forgone in making a choice. 
D)  the total of all other alternatives that are forgone in making a choice. 
E)  the sunk cost of any decision. 
A)  how much money is paid for something. 
B)  how much money and time it takes to consume something. 
C)  the value of the highest-valued alternative that is forgone in making a choice. 
D)  the total of all other alternatives that are forgone in making a choice. 
E)  the sunk cost of any decision.

Question 3

John decides to leave college early and play professional sports.Which of the following economic principles does John use?
i.personal economic policies
ii.marginal cost versus marginal benefit analysis
iii.normative versus positive economics

Accepted Answer

A)  i and ii 
B)  i, ii and iii 
C)  ii only 
D)  i and iii 
E)  ii and iii 
A)  i and ii 
B)  i, ii and iii 
C)  ii only 
D)  i and iii 
E)  ii and iii

Question 4

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

Accepted Answer

A)  "For whom will goods be produced?" 
B)  "When will the goods be produced?" 
C)  "Where will the goods be produced?" 
D)  "How will the goods be produced?" 
E)  "Why will the goods be produced?" 
A)  "For whom will goods be produced?" 
B)  "When will the goods be produced?" 
C)  "Where will the goods be produced?" 
D)  "How will the goods be produced?" 
E)  "Why will the goods be produced?"

Question 5

Normative statements
i.describe how the world is.
ii.describe how the world ought to be.
iii.depend on people's values and cannot be tested.

Accepted Answer

A)  i only. 
B)  ii only. 
C)  iii only. 
D)  ii and iii. 
E)  i and iii. 
A)  i only. 
B)  ii only. 
C)  iii only. 
D)  ii and iii. 
E)  i and iii.

Question 6

A trend is

Accepted Answer

A)  a measure of closeness on a scatter diagram. 
B)  a general tendency for a variable to rise or fall. 
C)  the maximum value of a variable. 
D)  the minimum value of a variable. 
E)  the difference between the maximum value of a variable and the minimum value of the variable. 
A)  a measure of closeness on a scatter diagram. 
B)  a general tendency for a variable to rise or fall. 
C)  the maximum value of a variable. 
D)  the minimum value of a variable. 
E)  the difference between the maximum value of a variable and the minimum value of the variable.

Question 7

Which of the following is a macroeconomic issue?

Accepted Answer

A)  The price of a ticket to Walt Disney World in Orlando is increased. 
B)  The National Football League signs a new television contract. 
C)  The number of jobs and production in Zimbabwe increase. 
D)  The Iowa corn harvest is smaller than normal. 
E)  Utilities are required to install more anti-pollution devices. 
A)  The price of a ticket to Walt Disney World in Orlando is increased. 
B)  The National Football League signs a new television contract. 
C)  The number of jobs and production in Zimbabwe increase. 
D)  The Iowa corn harvest is smaller than normal. 
E)  Utilities are required to install more anti-pollution devices.

Question 8

Different nations answer the what,how,and for whom questions differently.China,for instance,builds dams using many workers and only a little capital equipment.The United States builds dams using a few workers and a lot of capital equipment.Which economic question are these two nations answering and why do the answers differ?

Accepted Answer

The nations are answering the "how" ques

Question 9

The cost of a one-unit increase in an activity is called the

Accepted Answer

A)  opportunity benefit. 
B)  rational cost. 
C)  marginal cost. 
D)  marginal benefit. 
E)  margin. 
A)  opportunity benefit. 
B)  rational cost. 
C)  marginal cost. 
D)  marginal benefit. 
E)  margin.

Question 10

The opportunity cost of a one-unit increase in an activity

Accepted Answer

A)  is greater than the marginal benefit. 
B)  is called rational cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity. 
A)  is greater than the marginal benefit. 
B)  is called rational cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity.

Question 11

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

Accepted Answer

A)  you must ignore the problem of scarcity. 
B)  you considered the marginal cost and marginal benefit of your choice. 
C)  you have used the ceteris paribus assumption. 
D)  you have made a positive statement. 
E)  you must have considered the social interest. 
A)  you must ignore the problem of scarcity. 
B)  you considered the marginal cost and marginal benefit of your choice. 
C)  you have used the ceteris paribus assumption. 
D)  you have made a positive statement. 
E)  you must have considered the social interest.

Question 12

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

Accepted Answer

A)  3. 
B)  3/20 
C)  2/20. 
D)  1/20. 
E)  0. 
A)  3. 
B)  3/20 
C)  2/20. 
D)  1/20. 
E)  0.

Question 13

Macroeconomics is the study of

Accepted Answer

A)  the actions of individual consumers. 
B)  national or global economies. 
C)  the actions of individual businesses. 
D)  the government. 
E)  how ceteris paribus affects causation. 
A)  the actions of individual consumers. 
B)  national or global economies. 
C)  the actions of individual businesses. 
D)  the government. 
E)  how ceteris paribus affects causation.

Question 14

Gregory is considering attending a concert with a ticket price of $40.He estimates that the cost of driving to the concert and parking there will add an additional $20.In order to attend the concert,Gregory will have to take time off from his part-time job.He estimates that he will lose 5 hours at work,at a wage of $8 per hour.Gregory's opportunity cost of attending the concert equals

Accepted Answer

A)  $80. 
B)  $100. 
C)  $40. 
D)  $60. 
E)  $20. 
A)  $80. 
B)  $100. 
C)  $40. 
D)  $60. 
E)  $20.

Question 15

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

Accepted Answer

A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse. 
A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse.

Question 16

When you make the decision to spend your time attending class,which economic question are you answering?

Accepted Answer

A)  What? 
B)  How? 
C)  For whom? 
D)  Why? 
E)  Is this in the social interest? 
A)  What? 
B)  How? 
C)  For whom? 
D)  Why? 
E)  Is this in the social interest?

Question 17

Making choices on the margin means

Accepted Answer

A)  scribbling on the edges of your notebook paper. 
B)  comparing all relevant alternatives systematically and incrementally. 
C)  making a decision based on emotions. 
D)  making decisions in the largest possible increments. 
E)  taking account of all marginal benefits, all opportunity costs, and all sunk costs. 
A)  scribbling on the edges of your notebook paper. 
B)  comparing all relevant alternatives systematically and incrementally. 
C)  making a decision based on emotions. 
D)  making decisions in the largest possible increments. 
E)  taking account of all marginal benefits, all opportunity costs, and all sunk costs.

Question 18

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.

Accepted Answer

A)  what 
B)  how 
C)  for whom 
D)  where 
E)  why 
A)  what 
B)  how 
C)  for whom 
D)  where 
E)  why

Question 19

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

Accepted Answer

A)  for whom 
B)  what 
C)  how 
D)  why 
E)  social interest vs. self-interest 
A)  for whom 
B)  what 
C)  how 
D)  why 
E)  social interest vs. self-interest

Question 20

The vertical axis in a graph

Accepted Answer

A)  is named the y-axis. 
B)  is named the x-axis. 
C)  measures time in a cross-section and time series graph. 
D)  has no origin. 
E)  measures time only in a time series graph. 
A)  is named the y-axis. 
B)  is named the x-axis. 
C)  measures time in a cross-section and time series graph. 
D)  has no origin. 
E)  measures time only in a time series graph.

Economists measure opportunity cost

Opportunity cost is best defined as

John decides to leave college early and play professional sports.Which of the following economic principles does John use? i.personal economic policies ii.marginal cost versus marginal benefit analysis iii.normative versus positive economics

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

Normative statements i.describe how the world is. ii.describe how the world ought to be. iii.depend on people's values and cannot be tested.

A trend is

Which of the following is a macroeconomic issue?

The cost of a one-unit increase in an activity is called the

The opportunity cost of a one-unit increase in an activity

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

Macroeconomics is the study of

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

When you make the decision to spend your time attending class,which economic question are you answering?

Making choices on the margin means

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

The vertical axis in a graph

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: Getting Started

Economists measure opportunity cost

Opportunity cost is best defined as

John decides to leave college early and play professional sports.Which of the following economic principles does John use? i.personal economic policies ii.marginal cost versus marginal benefit analysis iii.normative versus positive economics

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

Normative statements i.describe how the world is. ii.describe how the world ought to be. iii.depend on people's values and cannot be tested.

A trend is

Which of the following is a macroeconomic issue?

The cost of a one-unit increase in an activity is called the

The opportunity cost of a one-unit increase in an activity

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

Macroeconomics is the study of

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

When you make the decision to spend your time attending class,which economic question are you answering?

Making choices on the margin means

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

The vertical axis in a graph

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters