Question 1

A theory is a deliberate simplification or abstraction of factual relationships.

Accepted Answer

A) True 
 B)False  True

Question 2

Economic models are often expressed in

Accepted Answer

A)  equations. 
B)  words. 
C)  graphs. 
D)  physical objects.. 
A)  equations. 
B)  words. 
C)  graphs. 
D)  physical objects.. C

Question 3

When residents surrounding an airport complain about noise from aircraft landings and takeoffs,the relevant economic analysis is that of

Accepted Answer

A)  externalities. 
B)  equality-efficiency trade-off. 
C)  comparative advantage. 
D)  the cost decrease of the service sector. 
E)  the cost disease of personal services. 
A)  externalities. 
B)  equality-efficiency trade-off. 
C)  comparative advantage. 
D)  the cost decrease of the service sector. 
E)  the cost disease of personal services. A

Question 4

If a voluntary trade takes place,

Accepted Answer

A)  both parties will benefit from the transaction. 
B)  only one party will benefit from the transaction. 
C)  neither party will benefit from the transaction. 
D)  both parties will benefit only if the government regulates the transaction. 
A)  both parties will benefit from the transaction. 
B)  only one party will benefit from the transaction. 
C)  neither party will benefit from the transaction. 
D)  both parties will benefit only if the government regulates the transaction.

Question 5

Dryden Press can produce 10,000 textbooks using 10 machines and 100 workers or using five machines and 300 workers.It can produce 20,000 textbooks using 10 machines and 300 workers or five machines and 600 workers.Construct a two-dimensional contour-type graph to show the relationship between the output of textbooks and the labor and machinery inputs.

Accepted Answer

Figure 1-4
 @#IMG-DLM& 
The labor and capital inpu

Question 6

Unemployment and inflation are important determinants of short-run material welfare,whereas productivity growth is an important determinant of long-run material well-being.

Accepted Answer

A) True 
 B)False

Question 7

The United States has been willing to trade off greater efficiency for greater wage equality.

Accepted Answer

A) True 
 B)False

Question 8

Even though international trade in undertaken voluntarily,a country that engages in trade may not benefit from it.

Accepted Answer

A) True 
 B)False

Question 9

The United States produces both automobiles and computers more efficiently than Mexico.Nevertheless,it is possible that both nations would benefit from trade in these items.The reason for this is

Accepted Answer

A)  the law of comparative advantage. 
B)  the inflation-unemployment trade-off. 
C)  externalities. 
D)  the cost disease of personal services. 
E)  attempts to repeal the law of supply and demand. 
A)  the law of comparative advantage. 
B)  the inflation-unemployment trade-off. 
C)  externalities. 
D)  the cost disease of personal services. 
E)  attempts to repeal the law of supply and demand.

Question 10

In the 19th century,Russian peasants noticed that during cholera epidemics there were lots of doctors around; in an attempt to eliminate cholera,they killed all the doctors.This is an example of

Accepted Answer

A)  mistaking correlation with causation. 
B)  the fallacy of opportunism. 
C)  excessive abstraction. 
D)  rationality. 
E)  marginal analysis. 
A)  mistaking correlation with causation. 
B)  the fallacy of opportunism. 
C)  excessive abstraction. 
D)  rationality. 
E)  marginal analysis.

Question 11

Economic theory simplifies relationships to explain how the relationships interact.

Accepted Answer

A) True 
 B)False

Question 12

The lower left-hand corner of a graph where the two axes meet is called the graph's origin.

Accepted Answer

A) True 
 B)False

Question 13

Value judgments are based on people's tastes,preferences,and ethical opinions.

Accepted Answer

A) True 
 B)False

Question 14

The slope of a curved line at a particular point is

Accepted Answer

A)  always greater than the slope of a straight line at the same point. 
B)  always smaller than the slope of a straight line at the same point. 
C)  defined as the slope of the straight line representing the average values for the entire curve. 
D)  defined as the slope of the straight line that is tangent to the curve at that point. 
A)  always greater than the slope of a straight line at the same point. 
B)  always smaller than the slope of a straight line at the same point. 
C)  defined as the slope of the straight line representing the average values for the entire curve. 
D)  defined as the slope of the straight line that is tangent to the curve at that point.

Question 15

Economics is a social science in the sense that it

Accepted Answer

A)  rigorously examines human behavior. 
B)  is not as scientific as physics. 
C)  relies on historical data instead of mathematical data. 
D)  relies on statistics instead of mathematics. 
E)  All of the above are correct. 
A)  rigorously examines human behavior. 
B)  is not as scientific as physics. 
C)  relies on historical data instead of mathematical data. 
D)  relies on statistics instead of mathematics. 
E)  All of the above are correct.

Question 16

A vertical line always has a slope of one.

Accepted Answer

A) True 
 B)False

Question 17

Rent control is usually justified on the grounds that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay.It also prevents landlords from reaping windfalls as property values rise.Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages.The proponents of rent controls support them primarily on the grounds of

Accepted Answer

A)  efficiency. 
B)  equality. 
C)  externalities. 
D)  cost disease of services. 
A)  efficiency. 
B)  equality. 
C)  externalities. 
D)  cost disease of services.

Question 18

A line that rises from left to right has a positive slope.

Accepted Answer

A) True 
 B)False

Question 19

Economists use models in order to

Accepted Answer

A)  experiment with alternative circumstances. 
B)  make educated guesses about real life events. 
C)  predict outcomes under various hypothetical conditions. 
D)  increase understanding of how a relationship actually works. 
E)  All of the above are correct. 
A)  experiment with alternative circumstances. 
B)  make educated guesses about real life events. 
C)  predict outcomes under various hypothetical conditions. 
D)  increase understanding of how a relationship actually works. 
E)  All of the above are correct.

Question 20

Economic analysis requires both mathematical reasoning and historical study.

Accepted Answer

A) True 
 B)False

A theory is a deliberate simplification or abstraction of factual relationships.

Economic models are often expressed in

When residents surrounding an airport complain about noise from aircraft landings and takeoffs,the relevant economic analysis is that of

If a voluntary trade takes place,

Unemployment and inflation are important determinants of short-run material welfare,whereas productivity growth is an important determinant of long-run material well-being.

The United States has been willing to trade off greater efficiency for greater wage equality.

Even though international trade in undertaken voluntarily,a country that engages in trade may not benefit from it.

The United States produces both automobiles and computers more efficiently than Mexico.Nevertheless,it is possible that both nations would benefit from trade in these items.The reason for this is

In the 19th century,Russian peasants noticed that during cholera epidemics there were lots of doctors around; in an attempt to eliminate cholera,they killed all the doctors.This is an example of

Economic theory simplifies relationships to explain how the relationships interact.

The lower left-hand corner of a graph where the two axes meet is called the graph's origin.

Value judgments are based on people's tastes,preferences,and ethical opinions.

The slope of a curved line at a particular point is

Economics is a social science in the sense that it

A vertical line always has a slope of one.

A line that rises from left to right has a positive slope.

Economists use models in order to

Economic analysis requires both mathematical reasoning and historical study.

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters

Exam 1: What Is Economics?

A theory is a deliberate simplification or abstraction of factual relationships.

Economic models are often expressed in

When residents surrounding an airport complain about noise from aircraft landings and takeoffs,the relevant economic analysis is that of

If a voluntary trade takes place,

Unemployment and inflation are important determinants of short-run material welfare,whereas productivity growth is an important determinant of long-run material well-being.

The United States has been willing to trade off greater efficiency for greater wage equality.

Even though international trade in undertaken voluntarily,a country that engages in trade may not benefit from it.

The United States produces both automobiles and computers more efficiently than Mexico.Nevertheless,it is possible that both nations would benefit from trade in these items.The reason for this is

In the 19th century,Russian peasants noticed that during cholera epidemics there were lots of doctors around; in an attempt to eliminate cholera,they killed all the doctors.This is an example of

Economic theory simplifies relationships to explain how the relationships interact.

The lower left-hand corner of a graph where the two axes meet is called the graph's origin.

Value judgments are based on people's tastes,preferences,and ethical opinions.

The slope of a curved line at a particular point is

Economics is a social science in the sense that it

A vertical line always has a slope of one.

A line that rises from left to right has a positive slope.

Economists use models in order to

Economic analysis requires both mathematical reasoning and historical study.

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters