Question 1

How are the fundamental economic decisions determined in North Korea?

Accepted Answer

A)  Individuals, firms, and the government interact in a market to make these economic decisions. 
B)  These decisions are made by the country's elders who have had much experience in answering these questions. 
C)  The government decides because North Korea is a centrally planned economy. 
D)  The United Nations decides because North Korea is a developing economy. 
A)  Individuals, firms, and the government interact in a market to make these economic decisions. 
B)  These decisions are made by the country's elders who have had much experience in answering these questions. 
C)  The government decides because North Korea is a centrally planned economy. 
D)  The United Nations decides because North Korea is a developing economy.

Question 2

In the market for factors of production,firms earn income by selling goods and services to households.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Which of the following statements about economic resources is true?

Accepted Answer

A)  Economic resources include financial capital and money. 
B)  Economic resources are also called factors of production. 
C)  Economic resources are used only by businesses. 
D)  All economic resources are man-made. 
A)  Economic resources include financial capital and money. 
B)  Economic resources are also called factors of production. 
C)  Economic resources are used only by businesses. 
D)  All economic resources are man-made.

Question 5

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 6

"The distribution of income should be left to the market" is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 7

What is a centrally planned economy?

Accepted Answer

A centrally planned economy is

Question 8

The extra cost associated with undertaking an activity is called

Accepted Answer

A)  net loss. 
B)  marginal cost. 
C)  opportunity cost. 
D)  foregone cost. 
A)  net loss. 
B)  marginal cost. 
C)  opportunity cost. 
D)  foregone cost.

Question 9

The prevalence of Alzheimer's dementia is very high among residents living in nursing homes.A student concludes that it is likely that living in nursing home causes Alzheimer's dementia.What is the flaw in the student's reasoning?

Accepted Answer

A)  The student has failed to take into account other causes of Alzheimer's disease. 
B)  The student is drawing a false conclusion; he is confusing cause and effect. 
C)  The student is using an inadequate sample size. 
D)  The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents. 
A)  The student has failed to take into account other causes of Alzheimer's disease. 
B)  The student is drawing a false conclusion; he is confusing cause and effect. 
C)  The student is using an inadequate sample size. 
D)  The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents.

Question 10

What are some of the reasons given for the the decline in the number of physicians choosing to enter private practices?

Accepted Answer

The reasons include lower insu

Question 11

Economists assume that individuals

Accepted Answer

A)  behave in unpredictable ways. 
B)  will never take actions to help others. 
C)  prefer to live in a society that values fairness above all else. 
D)  are rational and respond to incentives. 
A)  behave in unpredictable ways. 
B)  will never take actions to help others. 
C)  prefer to live in a society that values fairness above all else. 
D)  are rational and respond to incentives.

Question 12

Which of the following questions or statements regarding medical school is normative?

Accepted Answer

A)  How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? 
B)  Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care. 
C)  What role does tuition play in a student's decision about whether to attend medical school? 
D)  Have tuition increases had a large effect or a small effect on the number of applications to medical school? 
A)  How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? 
B)  Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care. 
C)  What role does tuition play in a student's decision about whether to attend medical school? 
D)  Have tuition increases had a large effect or a small effect on the number of applications to medical school?

Question 13

DeShawn's Detailing is a service that details cars at the customers' homes or places of work.DeShawn's cost for a basic detailing package is $40,and he charges $75 for this service.For a total price of $90,DeShawn will also detail the car's engine,a service that adds an additional $20 to the total cost of the package.Should DeShawn continue to offer the engine detailing service?

Accepted Answer

A)  yes, he still makes a profit by selling the engine detailing service with the basic detailing package 
B)  yes, but only if he raises the price of the basic detailing package 
C)  no, his marginal benefit is less than his marginal cost 
D)  More information is needed for DeShawn to make this decision. 
A)  yes, he still makes a profit by selling the engine detailing service with the basic detailing package 
B)  yes, but only if he raises the price of the basic detailing package 
C)  no, his marginal benefit is less than his marginal cost 
D)  More information is needed for DeShawn to make this decision.

Question 14

What is meant by the statement that "optimal decisions are made at the margin"?

Accepted Answer

In economics,the word "marginal" means "

Question 15

Figure 1-2
  
-Refer to Figure 1-2.Calculate the area of the triangle A.

Accepted Answer

A)  $1.3 million 
B)  $2.6 million 
C)  $3.4 million 
D)  $5.2 million 
A)  $1.3 million 
B)  $2.6 million 
C)  $3.4 million 
D)  $5.2 million

Question 16

Consider the following economic agents:
A.the government
B.consumers
C.producers
Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Accepted Answer

A)  the government 
B)  producers 
C)  consumers 
D)  consumers and producers 
E)  the government, consumers and producers 
A)  the government 
B)  producers 
C)  consumers 
D)  consumers and producers 
E)  the government, consumers and producers

Question 17

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 18

Economists assume that rational people do all of the following except

Accepted Answer

A)  use all available information as they act to achieve their goals. 
B)  undertake activities that benefit others and hurt themselves. 
C)  weigh the benefits and costs of all possible alternative actions. 
D)  respond to economic incentives. 
A)  use all available information as they act to achieve their goals. 
B)  undertake activities that benefit others and hurt themselves. 
C)  weigh the benefits and costs of all possible alternative actions. 
D)  respond to economic incentives.

Question 19

According to census figures,between 1970 and 2007 the number of doctors who described themselves as self-employed

Accepted Answer

A)  fell by more than 50 percent. 
B)  more than doubled. 
C)  has remained fairly constant. 
D)  fell to almost zero before rising back to its original level. 
A)  fell by more than 50 percent. 
B)  more than doubled. 
C)  has remained fairly constant. 
D)  fell to almost zero before rising back to its original level.

Question 20

All of the following contributed to the downfall of the Soviet Union in 1991 except

Accepted Answer

A)  public dissatisfaction with low living standards and political repression. 
B)  an inability to produce low-cost consumer goods that households wanted. 
C)  lack of high-quality goods and services. 
D)  lack of a strong dictator who can coordinate economic activities. 
A)  public dissatisfaction with low living standards and political repression. 
B)  an inability to produce low-cost consumer goods that households wanted. 
C)  lack of high-quality goods and services. 
D)  lack of a strong dictator who can coordinate economic activities.

How are the fundamental economic decisions determined in North Korea?

In the market for factors of production,firms earn income by selling goods and services to households.

Since 1994,obesity rates in the United States

Which of the following statements about economic resources is true?

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?

"The distribution of income should be left to the market" is an example of a positive economic statement.

What is a centrally planned economy?

The extra cost associated with undertaking an activity is called

The prevalence of Alzheimer's dementia is very high among residents living in nursing homes.A student concludes that it is likely that living in nursing home causes Alzheimer's dementia.What is the flaw in the student's reasoning?

What are some of the reasons given for the the decline in the number of physicians choosing to enter private practices?

Economists assume that individuals

Which of the following questions or statements regarding medical school is normative?

What is meant by the statement that "optimal decisions are made at the margin"?

Figure 1-2 -Refer to Figure 1-2.Calculate the area of the triangle A.

Consider the following economic agents: A.the government B.consumers C.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

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

Economists assume that rational people do all of the following except

According to census figures,between 1970 and 2007 the number of doctors who described themselves as self-employed

All of the following contributed to the downfall of the Soviet Union in 1991 except

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 1: Economics: Foundations and Models

How are the fundamental economic decisions determined in North Korea?

In the market for factors of production,firms earn income by selling goods and services to households.

Since 1994,obesity rates in the United States

Which of the following statements about economic resources is true?

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?

"The distribution of income should be left to the market" is an example of a positive economic statement.

What is a centrally planned economy?

The extra cost associated with undertaking an activity is called

The prevalence of Alzheimer's dementia is very high among residents living in nursing homes.A student concludes that it is likely that living in nursing home causes Alzheimer's dementia.What is the flaw in the student's reasoning?

What are some of the reasons given for the the decline in the number of physicians choosing to enter private practices?

Economists assume that individuals

Which of the following questions or statements regarding medical school is normative?

What is meant by the statement that "optimal decisions are made at the margin"?

Figure 1-2 -Refer to Figure 1-2.Calculate the area of the triangle A.

Consider the following economic agents: A.the government B.consumers C.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

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

Economists assume that rational people do all of the following except

According to census figures,between 1970 and 2007 the number of doctors who described themselves as self-employed

All of the following contributed to the downfall of the Soviet Union in 1991 except

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters