Question 1

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Accepted Answer

A) there will be a shortage of doctors in the United States. 
B) the number of doctors in the United States will decrease and the number of doctors needed will increase. 
C) the number of doctors in the United States will increase and the number of doctors needed will decrease. 
D) there will be a surplus of doctors in the United States. 
A) there will be a shortage of doctors in the United States. 
B) the number of doctors in the United States will decrease and the number of doctors needed will increase. 
C) the number of doctors in the United States will increase and the number of doctors needed will decrease. 
D) there will be a surplus of doctors in the United States.

Question 2

Since 1994,obesity rates in the United States

Accepted Answer

A) have been on a slow and steady decline. 
B) have increased in all 50 states. 
C) have primarily increased in the Southeast and remained constant or slightly decreased in the remainder of the country. 
D) have remained fairly constant throughout the country. 
A) have been on a slow and steady decline. 
B) have increased in all 50 states. 
C) have primarily increased in the Southeast and remained constant or slightly decreased in the remainder of the country. 
D) have remained fairly constant throughout the country.

Question 3

What is technology and what factors does it depend on?

Accepted Answer

Technology is the processes a firm uses

Question 4

Zane's Vanes is a service that restores old weather vanes.Zane has just spent $125 purchasing a 1920s era weather vane which he expects to restore and sell for $500 once the work is completed.After having spent $125,Zane realizes that he will need to spend an additional $200 on materials to complete the restoration.Alternatively,he can sell the weather vane without restoring it for $200.What is his marginal benefit if he sells the weather vane without restoring it?

Accepted Answer

A) $75 
B) $125 
C) $200 
D) $300 
A) $75 
B) $125 
C) $200 
D) $300

Question 5

You explain to your friend Haslina,who runs a catering service called "Meals in a Zip," about an economic theory which asserts that consumers will purchase less of a product at higher prices than they will at lower prices.She contends that the theory is incorrect because over the past two years she has raised the price of her catered meals and yet has seen a brisk increase in sales.How would you respond to Haslina?

Accepted Answer

A) Haslina is right; she has evidence to back her claim.The theory must be erroneous. 
B) I will explain to her that she is making the error of reverse causality: it is the increase in demand that has enabled her to raise her prices 
C) I will explain to her that there are some omitted variables that have contributed to an increase in her sales such as changes in income. 
D) Haslina is making the mistake of assuming that correlation implies causation. 
A) Haslina is right; she has evidence to back her claim.The theory must be erroneous. 
B) I will explain to her that she is making the error of reverse causality: it is the increase in demand that has enabled her to raise her prices 
C) I will explain to her that there are some omitted variables that have contributed to an increase in her sales such as changes in income. 
D) Haslina is making the mistake of assuming that correlation implies causation.

Question 6

Trina's Tropical Fish Store sells goldfish for $2 each and angelfish for $10 each.What is the opportunity cost of buying a goldfish?

Accepted Answer

A) 5 angelfish 
B) 1/5 of an angelfish 
C) $10 
D) $2 
A) 5 angelfish 
B) 1/5 of an angelfish 
C) $10 
D) $2

Question 7

Figure 1-1
  
-Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in sales of alcoholic beverages between 2008 and 2010.

Accepted Answer

A) 23.8% 
B) 40% 
C) 42.9% 
D) 73.3% 
A) 23.8% 
B) 40% 
C) 42.9% 
D) 73.3%

Question 8

Which of the following is motivated by an equity concern?

Accepted Answer

A) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. 
B) Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia. 
C) In November 2003, the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region. 
D) The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment. 
A) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. 
B) Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia. 
C) In November 2003, the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region. 
D) The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment.

Question 9

Which of the following is motivated by an efficiency concern?

Accepted Answer

A) In 2009, the Obama administration increased unemployment benefits. 
B) As part of an economic stimulus package, each taxpayer received a $3,000 tax rebate check. 
C) Following a six-month drought, a city banned homeowners from watering their lawns in an effort to conserve water. 
D) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. 
A) In 2009, the Obama administration increased unemployment benefits. 
B) As part of an economic stimulus package, each taxpayer received a $3,000 tax rebate check. 
C) Following a six-month drought, a city banned homeowners from watering their lawns in an effort to conserve water. 
D) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need.

Question 10

Optimal decisions are made at the point where marginal cost equals zero.

Accepted Answer

A) True 
 B)False

Question 11

At a recent company meeting,Ravi Batra,sales manager of Life's a Beach,a surfboard producer announced,"We have increased our sales by 13 percent in just 9 months." Suppose 9 months ago,its sales amounted to $245,000,what is the value of its sales today?

Accepted Answer

A) $31,850 
B) $207,638 
C) $276,850 
D) $359,905 
A) $31,850 
B) $207,638 
C) $276,850 
D) $359,905

Question 12

Productive efficiency is achieved when

Accepted Answer

A) firms add a low profit margin to the goods and services they produce. 
B) firms produce the goods and services that consumers value most. 
C) firms produce goods and services at the lowest cost. 
D) there are no shortages or surpluses in the market. 
A) firms add a low profit margin to the goods and services they produce. 
B) firms produce the goods and services that consumers value most. 
C) firms produce goods and services at the lowest cost. 
D) there are no shortages or surpluses in the market.

Question 13

A college must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

Accepted Answer

A) True 
 B)False

Question 14

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Accepted Answer

A) revenue received from 
B) extra cost of 
C) total value of 
D) sales tax on 
A) revenue received from 
B) extra cost of 
C) total value of 
D) sales tax on

Question 15

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

Accepted Answer

A) There are no problems and everyone, including consumers, is satisfied. 
B) There is too much production of low-cost, high-quality goods and services. 
C) Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. 
D) Unemployment is too high. 
A) There are no problems and everyone, including consumers, is satisfied. 
B) There is too much production of low-cost, high-quality goods and services. 
C) Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. 
D) Unemployment is too high.

Question 16

Which of the following is counted as "capital" in economics?

Accepted Answer

A) the money people have 
B) the machines workers have to work with 
C) the accumulated skills and training workers have 
D) the wealth people have 
A) the money people have 
B) the machines workers have to work with 
C) the accumulated skills and training workers have 
D) the wealth people have

Question 17

Suppose that to increase sales of hybrid vehicles,auto manufacturers are offering large cash incentives.This is an example of a macroeconomics topic.

Accepted Answer

A) True 
 B)False

Question 18

Suppose the extra cost to a doctor of keeping her office open on Saturdays is $800.Then,the doctor should not stay open on Saturdays if keeping the office open can only bring in additional revenue of $800.

Accepted Answer

A) True 
 B)False

Question 19

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

Accepted Answer

A) there is a positive relationship between hybrid automobile prices and quantities purchased by consumers. 
B) there is a negative relationship between hybrid automobile prices and quantities purchased by consumers. 
C) there is a direct relationship between hybrid automobile prices and quantities purchased by consumers. 
D) there is a one-to-one relationship between hybrid automobile prices and quantities purchased by consumers. 
A) there is a positive relationship between hybrid automobile prices and quantities purchased by consumers. 
B) there is a negative relationship between hybrid automobile prices and quantities purchased by consumers. 
C) there is a direct relationship between hybrid automobile prices and quantities purchased by consumers. 
D) there is a one-to-one relationship between hybrid automobile prices and quantities purchased by consumers.

Question 20

Article Summary
In an August 2013 speech from the Lincoln Memorial, President Obama was expected to emphasize that increased economic equality is needed to improve racial equality. Economic gaps based on race have endured for 50 years, with the differences in unemployment rates between blacks and whites remaining virtually unchanged and the gap in wealth actually increasing. "If you look at 50 years after the 1960s civil rights movement, the most stubborn and persistent challenge when it comes to the nation's racial challenge remains in the areas of economics and wealth," said Marc Morial, president of the National Urban League.

-Refer to the Article Summary.The article mentions increased economic equality is needed in terms of wealth,and for some people this means a more equitable distribution of wealth.What is meant by a more equitable distribution of wealth?

Accepted Answer

A) a more allocatively efficient distribution of wealth 
B) a more productively efficient distribution of wealth 
C) a more fair distribution of wealth 
D) wealth distributed based on income levels 
A) a more allocatively efficient distribution of wealth 
B) a more productively efficient distribution of wealth 
C) a more fair distribution of wealth 
D) wealth distributed based on income levels

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Since 1994,obesity rates in the United States

What is technology and what factors does it depend on?

Trina's Tropical Fish Store sells goldfish for $2 each and angelfish for $10 each.What is the opportunity cost of buying a goldfish?

Figure 1-1 -Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in sales of alcoholic beverages between 2008 and 2010.

Which of the following is motivated by an equity concern?

Which of the following is motivated by an efficiency concern?

Optimal decisions are made at the point where marginal cost equals zero.

At a recent company meeting,Ravi Batra,sales manager of Life's a Beach,a surfboard producer announced,"We have increased our sales by 13 percent in just 9 months." Suppose 9 months ago,its sales amounted to $245,000,what is the value of its sales today?

Productive efficiency is achieved when

A college must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

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

Which of the following is counted as "capital" in economics?

Suppose that to increase sales of hybrid vehicles,auto manufacturers are offering large cash incentives.This is an example of a macroeconomics topic.

Suppose the extra cost to a doctor of keeping her office open on Saturdays is $800.Then,the doctor should not stay open on Saturdays if keeping the office open can only bring in additional revenue of $800.

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

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

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Since 1994,obesity rates in the United States

What is technology and what factors does it depend on?

Trina's Tropical Fish Store sells goldfish for $2 each and angelfish for $10 each.What is the opportunity cost of buying a goldfish?

Figure 1-1 -Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in sales of alcoholic beverages between 2008 and 2010.

Which of the following is motivated by an equity concern?

Which of the following is motivated by an efficiency concern?

Optimal decisions are made at the point where marginal cost equals zero.

At a recent company meeting,Ravi Batra,sales manager of Life's a Beach,a surfboard producer announced,"We have increased our sales by 13 percent in just 9 months." Suppose 9 months ago,its sales amounted to $245,000,what is the value of its sales today?

Productive efficiency is achieved when

A college must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

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

Which of the following is counted as "capital" in economics?

Suppose that to increase sales of hybrid vehicles,auto manufacturers are offering large cash incentives.This is an example of a macroeconomics topic.

Suppose the extra cost to a doctor of keeping her office open on Saturdays is $800.Then,the doctor should not stay open on Saturdays if keeping the office open can only bring in additional revenue of $800.

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

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