Question 1

In economics,tangible merchandise is referred to as

Accepted Answer

A) invention. 
B) human capital. 
C) services. 
D) goods. 
A) invention. 
B) human capital. 
C) services. 
D) goods.

Question 2

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomics topic.

Accepted Answer

A) True 
 B)False

Question 3

What is an economic market?

Accepted Answer

An economic ic market refers t

Question 4

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

Accepted Answer

A) equitably 
B) rationally 
C) emotionally 
D) selfishly 
A) equitably 
B) rationally 
C) emotionally 
D) selfishly

Question 5

In a market economy,those who are willing and able to buy what is produced

Accepted Answer

A) receives what the government allows them to receive. 
B) receive the most of what is produced. 
C) receive no more than everyone else in the market. 
D) solely determine what is produced. 
A) receives what the government allows them to receive. 
B) receive the most of what is produced. 
C) receive no more than everyone else in the market. 
D) solely determine what is produced.

Question 6

What is scarcity,and why is it a fundamental concept in economics?

Accepted Answer

Scarcity refers to a situation in which

Question 7

Table 1-3
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Hours } \
\text { Open }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Revenue } \
\text { (dollars) }
\end{array} \
\hline 1 & \$ 70 \
\hline 2 & 120 \
\hline 3 & 160 \
\hline 4 & 184 \
\hline 5 & 200 \
\hline 6 & 210 \
\hline
\end{array}$$ 
Santiago runs a comic book store in the town of East Arbor.He is debating whether he should extend his hours of operation.Santiago figures that his sales revenue will depend on the number of hours the store is open as shown in the table above.He would have to hire a worker for those hours at a wage rate of $18 per hour.
-Refer to Table 1-3.What is Santiago's marginal cost if he decides to stay open for two hours instead of one hour?

Accepted Answer

A) $18 
B) $36 
C) $38 
D) $102 
A) $18 
B) $36 
C) $38 
D) $102

Question 8

Which of the following is an example of an activity undertaken by an entrepreneur?

Accepted Answer

A) deciding whether to purchase a gasoline-powered automobile or an electric vehicle. 
B) being appointed as the head of a charitable organization 
C) running for a seat on the city council 
D) starting your own cigar manufacturing business 
A) deciding whether to purchase a gasoline-powered automobile or an electric vehicle. 
B) being appointed as the head of a charitable organization 
C) running for a seat on the city council 
D) starting your own cigar manufacturing business

Question 9

A grocery store sells a bag of potatoes at a fixed price of $2.30.Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?

Accepted Answer

A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit 
A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit

Question 10

Society faces a trade-off in all of the following situations except

Accepted Answer

A) when deciding who will receive the goods and services produced. 
B) when deciding what goods and services will be produced. 
C) when deciding how goods and services will be produced. 
D) when some previously unemployed workers find jobs. 
A) when deciding who will receive the goods and services produced. 
B) when deciding what goods and services will be produced. 
C) when deciding how goods and services will be produced. 
D) when some previously unemployed workers find jobs.

Question 11

Figure 1-4
  
-Refer to Figure 1-4.Which of the following statements is false?

Accepted Answer

A) The slope of the tangent at E is positive. 
B) The slope of the tangent at F is negative. 
C) The slope of the tangent at E and the slope of the tangent at F are equal. 
D) Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero. 
A) The slope of the tangent at E is positive. 
B) The slope of the tangent at F is negative. 
C) The slope of the tangent at E and the slope of the tangent at F are equal. 
D) Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero.

Question 12

Which of the following is a normative economic statement?

Accepted Answer

A) Rising global demand for coal has led to increases in the price of coal. 
B) With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased. 
C) The state of Texas is considering increasing funds for light-rail development to promote the use of public transportation. 
D) Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable. 
A) Rising global demand for coal has led to increases in the price of coal. 
B) With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased. 
C) The state of Texas is considering increasing funds for light-rail development to promote the use of public transportation. 
D) Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable.

Question 13

Which of the following is a result of a market economy?

Accepted Answer

A) environmental protection 
B) an equal income distribution 
C) agreement on equity 
D) voluntary exchange 
A) environmental protection 
B) an equal income distribution 
C) agreement on equity 
D) voluntary exchange

Question 14

Allocative efficiency is achieved when firms produce goods and services

Accepted Answer

A) at the lowest possible cost. 
B) that consumers value most. 
C) at the lowest opportunity cost. 
D) at a marginal cost of zero. 
A) at the lowest possible cost. 
B) that consumers value most. 
C) at the lowest opportunity cost. 
D) at a marginal cost of zero.

Question 15

Based on projections from the U.S.Census Bureau and the Congressional Budget Office

Accepted Answer

A) there will be a significant increase in the demand for health care by the year 2020. 
B) there will be a significant decrease in the demand for health care by the year 2020. 
C) there will be no significant change in the demand for health care by the year 2020. 
D) the change in the supply of health care will more than make up for the change in demand for health care by the year 2020. 
A) there will be a significant increase in the demand for health care by the year 2020. 
B) there will be a significant decrease in the demand for health care by the year 2020. 
C) there will be no significant change in the demand for health care by the year 2020. 
D) the change in the supply of health care will more than make up for the change in demand for health care by the year 2020.

Question 16

Economists assume that rational behavior is useful in explaining choices people make

Accepted Answer

A) because irrational people do not make economic choices. 
B) even though people may not behave rationally all the time. 
C) because individuals act rationally all the time in all circumstances. 
D) even though people rarely, if ever, behave in a rational manner. 
A) because irrational people do not make economic choices. 
B) even though people may not behave rationally all the time. 
C) because individuals act rationally all the time in all circumstances. 
D) even though people rarely, if ever, behave in a rational manner.

Question 17

Economists assume that

Accepted Answer

A) individuals behave in unpredictable ways. 
B) consumer behavior is explained by the existence of unlimited resources. 
C) people put other people's interests ahead of their own. 
D) optimal decisions are made at the margin. 
A) individuals behave in unpredictable ways. 
B) consumer behavior is explained by the existence of unlimited resources. 
C) people put other people's interests ahead of their own. 
D) optimal decisions are made at the margin.

Question 18

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

Accepted Answer

A) True 
 B)False

Question 19

Figure 1-3
  
-Refer to Figure 1-3.Calculate the area of the trapezoid X.

Accepted Answer

A) $270 
B) $720 
C) $810 
D) $2,520 
A) $270 
B) $720 
C) $810 
D) $2,520

Question 20

Which of the following generates productive efficiency?

Accepted Answer

A) competition among sellers 
B) competition among buyers 
C) government inspectors 
D) government production rules and regulations 
A) competition among sellers 
B) competition among buyers 
C) government inspectors 
D) government production rules and regulations

In economics,tangible merchandise is referred to as

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomics topic.

What is an economic market?

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

In a market economy,those who are willing and able to buy what is produced

What is scarcity,and why is it a fundamental concept in economics?

Which of the following is an example of an activity undertaken by an entrepreneur?

A grocery store sells a bag of potatoes at a fixed price of $2.30.Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?

Society faces a trade-off in all of the following situations except

Figure 1-4 -Refer to Figure 1-4.Which of the following statements is false?

Which of the following is a normative economic statement?

Which of the following is a result of a market economy?

Allocative efficiency is achieved when firms produce goods and services

Based on projections from the U.S.Census Bureau and the Congressional Budget Office

Economists assume that rational behavior is useful in explaining choices people make

Economists assume that

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

Figure 1-3 -Refer to Figure 1-3.Calculate the area of the trapezoid X.

Which of the following generates productive efficiency?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 1: Economics: Foundations and Models

In economics,tangible merchandise is referred to as

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomics topic.

What is an economic market?

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

In a market economy,those who are willing and able to buy what is produced

What is scarcity,and why is it a fundamental concept in economics?

Which of the following is an example of an activity undertaken by an entrepreneur?

A grocery store sells a bag of potatoes at a fixed price of $2.30.Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?

Society faces a trade-off in all of the following situations except

Figure 1-4 -Refer to Figure 1-4.Which of the following statements is false?

Which of the following is a normative economic statement?

Which of the following is a result of a market economy?

Allocative efficiency is achieved when firms produce goods and services

Based on projections from the U.S.Census Bureau and the Congressional Budget Office

Economists assume that rational behavior is useful in explaining choices people make

Economists assume that

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

Figure 1-3 -Refer to Figure 1-3.Calculate the area of the trapezoid X.

Which of the following generates productive efficiency?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters