Question 1

How can the influence of a third variable be shown on a two-dimensional graph?

Accepted Answer

A) by allowing the relationship to be nonlinear 
B) by allowing the position of the relationship line or curve to shift on the graph 
C) by drawing a third axis coming out of the two axes 
D) by super-imposing the third variable on the two-dimensional graph 
A) by allowing the relationship to be nonlinear 
B) by allowing the position of the relationship line or curve to shift on the graph 
C) by drawing a third axis coming out of the two axes 
D) by super-imposing the third variable on the two-dimensional graph

Question 2

The unemployment rate is too high is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a problem inherent in centrally planned economies?

Accepted Answer

A) Households and firms make poor decisions in choosing how resources are allocated. 
B) There is too little production of low-cost, high-quality goods and services. 
C) Production managers are more concerned with satisfying consumer wants than with satisfying government's orders. 
D) Exports tend to exceed imports. 
A) Households and firms make poor decisions in choosing how resources are allocated. 
B) There is too little production of low-cost, high-quality goods and services. 
C) Production managers are more concerned with satisfying consumer wants than with satisfying government's orders. 
D) Exports tend to exceed imports.

Question 4

The economic analysis of minimum wage involves both normative and positive analysis.Consider the following consequences of a minimum wage:
a.The minimum wage law causes unemployment.
b.Unemployment would be lower without a minimum wage law.
c.Minimum wage laws benefit some workers and harm others.
d.The minimum wage should be more than $7.25 per hour.
Which of the consequences above are positive statements and which are normative statements?

Accepted Answer

A) a, b, and c are positive statements and d is a normative statement. 
B) a and b are positive statements, c and d are normative statement. 
C) Only a is a positive statement, b, c and d are normative statements. 
D) a and c are positive statements, b and d are normative statements 
A) a, b, and c are positive statements and d is a normative statement. 
B) a and b are positive statements, c and d are normative statement. 
C) Only a is a positive statement, b, c and d are normative statements. 
D) a and c are positive statements, b and d are normative statements

How can the influence of a third variable be shown on a two-dimensional graph?

The unemployment rate is too high is an example of a positive economic statement.

Which of the following is a problem inherent in centrally planned economies?

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

How can the influence of a third variable be shown on a two-dimensional graph?

The unemployment rate is too high is an example of a positive economic statement.

Which of the following is a problem inherent in centrally planned economies?

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