Question 1

Which of the following is a topic studied by macroeconomists?

Accepted Answer

A)  Aggregate demand in an economy 
B)  Price determination by a firm 
C)  The consumption choice of a single household 
D)  The production decision of a firm 
A)  Aggregate demand in an economy 
B)  Price determination by a firm 
C)  The consumption choice of a single household 
D)  The production decision of a firm A

Question 2

Maria has to choose between driving and taking a train to destination A. Traveling by train will cost her $400 and will take 4 hours. Driving to destination A takes 6 hours, and the required amount of gasoline costs $250. Her opportunity cost of time is $15 per hour.
-Refer to the scenario above.Maria should choose to ________.

Accepted Answer

A)  drive, as it will save her $120 
B)  travel by train, because it is quicker 
C)  drive, as it will give her a real saving of $150 
D)  travel by train, as it will save her $30 in travel time 
A)  drive, as it will save her $120 
B)  travel by train, because it is quicker 
C)  drive, as it will give her a real saving of $150 
D)  travel by train, as it will save her $30 in travel time A

Question 3

Maria has to choose between driving and taking a train to destination A. Traveling by train will cost her $400 and will take 4 hours. Driving to destination A takes 6 hours, and the required amount of gasoline costs $250. Her opportunity cost of time is $15 per hour.
-Refer to the scenario above.What is the total cost involved if Maria chooses to travel by train?

Accepted Answer

A)  $60 
B)  $400 
C)  $420 
D)  $460 
A)  $60 
B)  $400 
C)  $420 
D)  $460 D

Question 4

Explain the term "free riders."

Accepted Answer

Free riders are people who do not contri

Question 5

In economics,scarcity refers to the situation of ________.

Accepted Answer

A)  making the best use of limited information 
B)  having more wants than the amount of available resources 
C)  the government rationing available goods and services 
D)  sellers setting the prices of their products too high for people to be able to afford them 
A)  making the best use of limited information 
B)  having more wants than the amount of available resources 
C)  the government rationing available goods and services 
D)  sellers setting the prices of their products too high for people to be able to afford them

Question 6

An individual has 8 hours to spare.She has to divide her time between two activities: reading and writing.Which of the following allocations will completely exhaust the individual's budget?

Accepted Answer

A)  3 hours of reading and 4 hours of writing 
B)  4 hours of reading and 6 hours of writing 
C)  2 hours of reading and 2 hours of writing 
D)  5 hours of reading and 3 hours of writing 
A)  3 hours of reading and 4 hours of writing 
B)  4 hours of reading and 6 hours of writing 
C)  2 hours of reading and 2 hours of writing 
D)  5 hours of reading and 3 hours of writing

Question 7

Which of the following statements is true of optimization?

Accepted Answer

A)  Optimization analysis only relates to the financial budget of an economic agent. 
B)  Individuals who optimize do not consider costs when choosing the most feasible alternative. 
C)  Economic agents can optimize only when they are able to perfectly estimate all future costs and benefits. 
D)  Economic agents who optimize attempt to choose the best feasible option, given the information that they have. 
A)  Optimization analysis only relates to the financial budget of an economic agent. 
B)  Individuals who optimize do not consider costs when choosing the most feasible alternative. 
C)  Economic agents can optimize only when they are able to perfectly estimate all future costs and benefits. 
D)  Economic agents who optimize attempt to choose the best feasible option, given the information that they have.

Question 8

Maria has to choose between driving and taking a train to destination A. Traveling by train will cost her $400 and will take 4 hours. Driving to destination A takes 6 hours, and the required amount of gasoline costs $250. Her opportunity cost of time is $15 per hour.
-Refer to the scenario above.If Maria borrows her parents' car and pays for only the gasoline,what is her total cost of driving to destination A?

Accepted Answer

A)  $90 
B)  $250 
C)  $300 
D)  $340 
A)  $90 
B)  $250 
C)  $300 
D)  $340

Question 9

A consumer has $40 that he wants to spend.He faces four choices: a camera that costs $60,a cell phone that costs $150,a book that costs $10,and a Bluetooth speaker that costs $45.Which of the following is a feasible option for the consumer?

Accepted Answer

A)  The book 
B)  The camera 
C)  The cell phone 
D)  The Bluetooth speaker 
A)  The book 
B)  The camera 
C)  The cell phone 
D)  The Bluetooth speaker

Question 10

Which of the following is NOT a scarce resource?

Accepted Answer

A)  Gold 
B)  Pollution 
C)  Petroleum 
D)  iPhones 
A)  Gold 
B)  Pollution 
C)  Petroleum 
D)  iPhones

Question 11

Suppose that Jinelle,an engineer,has to choose between two jobs.Which of the following statements is true?

Accepted Answer

A)  When deciding between jobs, she should consider both the wage and the non-wage attributes of each job. 
B)  When deciding between jobs, she should focus only on the costs of each job and ignore the benefits. 
C)  When deciding between jobs, she should only focus on the benefits of each job and ignore the costs. 
D)  When deciding between jobs, she should consider the wage attributes and ignore the non-wage attributes of each job. 
A)  When deciding between jobs, she should consider both the wage and the non-wage attributes of each job. 
B)  When deciding between jobs, she should focus only on the costs of each job and ignore the benefits. 
C)  When deciding between jobs, she should only focus on the benefits of each job and ignore the costs. 
D)  When deciding between jobs, she should consider the wage attributes and ignore the non-wage attributes of each job.

Question 12

Which of the following best describes equilibrium?

Accepted Answer

A)  A situation where the government intervenes to allocate resources 
B)  A situation where only one individual or firm makes an optimal decision 
C)  A situation where no economic agent would benefit by changing his or her behavior 
D)  A situation where economic agents do not optimize as they do not have perfect information 
A)  A situation where the government intervenes to allocate resources 
B)  A situation where only one individual or firm makes an optimal decision 
C)  A situation where no economic agent would benefit by changing his or her behavior 
D)  A situation where economic agents do not optimize as they do not have perfect information

Question 13

________ is the study of how individuals,households,governments,and firms make choices and how those choices affect prices,the allocation of resources,and the well-being of other agents.

Accepted Answer

A)  Cost-benefit analysis 
B)  Microeconomics 
C)  Macroeconomics 
D)  Empiricism 
A)  Cost-benefit analysis 
B)  Microeconomics 
C)  Macroeconomics 
D)  Empiricism

Question 14

Empiricism is analysis that uses ________ to test theories.

Accepted Answer

A)  data 
B)  illustrations 
C)  philosophy 
D)  value judgments 
A)  data 
B)  illustrations 
C)  philosophy 
D)  value judgments

Question 15

A consumer has $50 to spend.He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each.Which of the following combinations of the two goods will entirely exhaust his budget constraint?

Accepted Answer

A)  3 magazines and 4 DVDs 
B)  2 magazines and 4 DVDs 
C)  6 magazines and 1 DVD 
D)  2 magazines and 2 DVDs 
A)  3 magazines and 4 DVDs 
B)  2 magazines and 4 DVDs 
C)  6 magazines and 1 DVD 
D)  2 magazines and 2 DVDs

Question 16

A consumer has a monthly income of $100 that he wants to spend on two goods: rugs priced at $10 and chairs priced at $5.What is the consumer's opportunity cost of buying a rug? What is his opportunity cost of buying a chair? Use a table to represent the consumer's budget constraint.

Accepted Answer

Opportunity cost is the best alternative

Question 17

Maria has to choose between driving and taking a train to destination A. Traveling by train will cost her $400 and will take 4 hours. Driving to destination A takes 6 hours, and the required amount of gasoline costs $250. Her opportunity cost of time is $15 per hour.
-Refer to the scenario above.If Maria's opportunity cost of time increases to $80 per hour,the cost of taking the train is ________.

Accepted Answer

A)  $320 
B)  $720 
C)  $800 
D)  $970 
A)  $320 
B)  $720 
C)  $800 
D)  $970

Question 18

________ is the study of an economy as a whole.

Accepted Answer

A)  Microeconomics 
B)  Cost-benefit analysis 
C)  Behavioral economics 
D)  Macroeconomics 
A)  Microeconomics 
B)  Cost-benefit analysis 
C)  Behavioral economics 
D)  Macroeconomics

Question 19

A consumer has $20 that he wants to spend on two goods: pens priced at $2 each and pencils priced at $1 each.Which of the following correctly represents his budget constraint?

Accepted Answer

A)  $20 = ($2/Quantity of pens) + ($1/Quantity of pencils) 
B)  $20 = ($2 × Quantity of pens) + ($1 × Quantity of pencils) 
C)  $20 = ($3/Quantity of pens + Quantity of pencils) 
D)  $20 = $3 × (Quantity of pens - Quantity of pencils) 
A)  $20 = ($2/Quantity of pens) + ($1/Quantity of pencils) 
B)  $20 = ($2 × Quantity of pens) + ($1 × Quantity of pencils) 
C)  $20 = ($3/Quantity of pens + Quantity of pencils) 
D)  $20 = $3 × (Quantity of pens - Quantity of pencils)

Question 20

Who among the following is an example of a free rider?

Accepted Answer

A)  A housekeeper cleaning a house 
B)  A tax evader enjoying national security 
C)  A consumer paying for pollution control 
D)  An individual who buys a ticket for a baseball game 
A)  A housekeeper cleaning a house 
B)  A tax evader enjoying national security 
C)  A consumer paying for pollution control 
D)  An individual who buys a ticket for a baseball game

Which of the following is a topic studied by macroeconomists?

Explain the term "free riders."

In economics,scarcity refers to the situation of ________.

An individual has 8 hours to spare.She has to divide her time between two activities: reading and writing.Which of the following allocations will completely exhaust the individual's budget?

Which of the following statements is true of optimization?

A consumer has $40 that he wants to spend.He faces four choices: a camera that costs $60,a cell phone that costs $150,a book that costs $10,and a Bluetooth speaker that costs $45.Which of the following is a feasible option for the consumer?

Which of the following is NOT a scarce resource?

Suppose that Jinelle,an engineer,has to choose between two jobs.Which of the following statements is true?

Which of the following best describes equilibrium?

________ is the study of how individuals,households,governments,and firms make choices and how those choices affect prices,the allocation of resources,and the well-being of other agents.

Empiricism is analysis that uses ________ to test theories.

A consumer has $50 to spend.He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each.Which of the following combinations of the two goods will entirely exhaust his budget constraint?

A consumer has a monthly income of $100 that he wants to spend on two goods: rugs priced at $10 and chairs priced at $5.What is the consumer's opportunity cost of buying a rug? What is his opportunity cost of buying a chair? Use a table to represent the consumer's budget constraint.

________ is the study of an economy as a whole.

A consumer has $20 that he wants to spend on two goods: pens priced at $2 each and pencils priced at $1 each.Which of the following correctly represents his budget constraint?

Who among the following is an example of a free rider?

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

Exam 1: The Principles and Practice of Economics

Which of the following is a topic studied by macroeconomists?

Explain the term "free riders."

In economics,scarcity refers to the situation of ________.

An individual has 8 hours to spare.She has to divide her time between two activities: reading and writing.Which of the following allocations will completely exhaust the individual's budget?

Which of the following statements is true of optimization?

A consumer has $40 that he wants to spend.He faces four choices: a camera that costs $60,a cell phone that costs $150,a book that costs $10,and a Bluetooth speaker that costs $45.Which of the following is a feasible option for the consumer?

Which of the following is NOT a scarce resource?

Suppose that Jinelle,an engineer,has to choose between two jobs.Which of the following statements is true?

Which of the following best describes equilibrium?

________ is the study of how individuals,households,governments,and firms make choices and how those choices affect prices,the allocation of resources,and the well-being of other agents.

Empiricism is analysis that uses ________ to test theories.

A consumer has $50 to spend.He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each.Which of the following combinations of the two goods will entirely exhaust his budget constraint?

A consumer has a monthly income of $100 that he wants to spend on two goods: rugs priced at $10 and chairs priced at $5.What is the consumer's opportunity cost of buying a rug? What is his opportunity cost of buying a chair? Use a table to represent the consumer's budget constraint.

________ is the study of an economy as a whole.

A consumer has $20 that he wants to spend on two goods: pens priced at $2 each and pencils priced at $1 each.Which of the following correctly represents his budget constraint?

Who among the following is an example of a free rider?

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters