Question 1

Markets do not determine the quantity of goods sold,only the price.

Accepted Answer

A) True 
 B)False

Question 2

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of

Accepted Answer

A)  Who consumes the products produced? 
B)  What will be produced? 
C)  Where will the products produced be consumed? 
D)  How will we produce the products? 
A)  Who consumes the products produced? 
B)  What will be produced? 
C)  Where will the products produced be consumed? 
D)  How will we produce the products?

Question 3

The slope of a straight line is

Accepted Answer

A)  constant. 
B)  increasing. 
C)  increasing if the line is upward sloping. 
D)  increasing if the line is downward sloping. 
A)  constant. 
B)  increasing. 
C)  increasing if the line is upward sloping. 
D)  increasing if the line is downward sloping.

Question 4

"How many iPhones will Apple sell this year?" is

Accepted Answer

A)  a microeconomic question. 
B)  both a microeconomic and macroeconomic question. 
C)  a macroeconomic question. 
D)  neither a microeconomic nor a macroeconomic question. 
A)  a microeconomic question. 
B)  both a microeconomic and macroeconomic question. 
C)  a macroeconomic question. 
D)  neither a microeconomic nor a macroeconomic question.

Question 5

In making stock buy or sell recommendations,most stock analysts use microeconomics

Accepted Answer

A)  to evaluate the merits of public policies. 
B)  to understand markets and predict changes. 
C)  to understand marginal changes in the macroeconomy. 
D)  to make managerial and personal decisions. 
A)  to evaluate the merits of public policies. 
B)  to understand markets and predict changes. 
C)  to understand marginal changes in the macroeconomy. 
D)  to make managerial and personal decisions.

Question 6

Which of the following is a macroeconomic question?

Accepted Answer

A)  Will a constitutional amendment to balance the federal budget lead to good economic policy? 
B)  Should a firm decide to enter a particular market? 
C)  Should the government prevent the merger of two large firms? 
D)  All of the above are macroeconomic questions. 
A)  Will a constitutional amendment to balance the federal budget lead to good economic policy? 
B)  Should a firm decide to enter a particular market? 
C)  Should the government prevent the merger of two large firms? 
D)  All of the above are macroeconomic questions.

Question 7

Which of the following is an example of a marginal question?

Accepted Answer

A)  How much will my chances of finding a job improve if I raise my GPA from a C to a C+ grade average? 
B)  What is the average cost of a college education? 
C)  How many students borrow money in order to attend college? 
D)  What is the average income of a college graduate? 
A)  How much will my chances of finding a job improve if I raise my GPA from a C to a C+ grade average? 
B)  What is the average cost of a college education? 
C)  How many students borrow money in order to attend college? 
D)  What is the average income of a college graduate?

Question 8

The worldwide recession in 2007 started from

Accepted Answer

A)  easy access to credit in the United States. 
B)  booming housing prices that ultimately dropped. 
C)  a large number of home purchasers who were unable to afford the homes. 
D)  All of the above are correct. 
A)  easy access to credit in the United States. 
B)  booming housing prices that ultimately dropped. 
C)  a large number of home purchasers who were unable to afford the homes. 
D)  All of the above are correct.

Question 9

Which of the following is a variable?

Accepted Answer

A)  your GPA 
B)  your hourly wage 
C)  the price of gasoline 
D)  All of the above are correct. 
A)  your GPA 
B)  your hourly wage 
C)  the price of gasoline 
D)  All of the above are correct.

Question 10

Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s).
-Using the midpoint formula,the percentage change of the number of iPhones from 1 to 2 should be the same if you instead go from 2 to 1.

Accepted Answer

A) True 
 B)False

Question 11

According to the book,the general consensus is that our policymakers do not know what they are doing and are managing our economy ineffectively.

Accepted Answer

A) True 
 B)False

Question 12

Richard runs a pizza delivery restaurant.List the three basic types of decisions economics studies and give an example from Richard's restaurant.

Accepted Answer

How much to produce? How many pizzas wil

Question 13

Which of the following is a topic NOT directly under macroeconomics?

Accepted Answer

A)  inflation 
B)  recessions 
C)  why the price of crude oil is high 
D)  All of the above are topics in macroeconomics. 
A)  inflation 
B)  recessions 
C)  why the price of crude oil is high 
D)  All of the above are topics in macroeconomics.

Question 14

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s).
-According to the Application,which of the following decreased the incentive to buy hybrid vehicles?

Accepted Answer

A)  Purchases of hybrid vehicles qualified for a $3,400 subsidy from the federal government. 
B)  Oil prices increased. 
C)  Hybrid vehicles were more expensive than regular vehicles. 
D)  Hybrid vehicles had lower emissions than the non-hybrid vehicles. 
A)  Purchases of hybrid vehicles qualified for a $3,400 subsidy from the federal government. 
B)  Oil prices increased. 
C)  Hybrid vehicles were more expensive than regular vehicles. 
D)  Hybrid vehicles had lower emissions than the non-hybrid vehicles.

Question 15

It takes longer to set up a business in Canada than in Mozambique.

Accepted Answer

A) True 
 B)False

Question 16

A student has a D grade average in her accounting course and a B grade average in her economics course.She decides to study an extra hour for her accounting exam and one less hour for her economics exam,hoping to improve her accounting grade while not hurting her economics grade.This is an example of

Accepted Answer

A)  thinking at the margin. 
B)  using assumptions to simplify. 
C)  ceteris paribus. 
D)  caveat emptor. 
A)  thinking at the margin. 
B)  using assumptions to simplify. 
C)  ceteris paribus. 
D)  caveat emptor.

Question 17

According to the Texas Transportation Institute,U.S.consumers waste ________ gallons of gasoline and diesel fuel each year because of traffic congestion.

Accepted Answer

A)  11 million 
B)  93 million 
C)  2.3 billion 
D)  12 trillion 
A)  11 million 
B)  93 million 
C)  2.3 billion 
D)  12 trillion

Question 18

Economists employ economic models

Accepted Answer

A)  because reality is complex. 
B)  to make the field more scientific. 
C)  to make reality more complex. 
D)  because economic theory is too easy without them. 
A)  because reality is complex. 
B)  to make the field more scientific. 
C)  to make reality more complex. 
D)  because economic theory is too easy without them.

Question 19

Would an economist consider clean air a scarce resource? Explain.

Accepted Answer

Yes,because the air has alternative uses

Question 20

An example of people acting in their own self-interest would include

Accepted Answer

A)  individuals joining a car pool to go to work when tolls are imposed on congested highways. 
B)  an adult, returning to college to pursue a degree to qualify for a promotion at work. 
C)  a teenager earns an A grade average in school in order to use her parents' car. 
D)  All of the above are examples of people acting in their own self-interest. 
A)  individuals joining a car pool to go to work when tolls are imposed on congested highways. 
B)  an adult, returning to college to pursue a degree to qualify for a promotion at work. 
C)  a teenager earns an A grade average in school in order to use her parents' car. 
D)  All of the above are examples of people acting in their own self-interest.

Markets do not determine the quantity of goods sold,only the price.

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of

The slope of a straight line is

"How many iPhones will Apple sell this year?" is

In making stock buy or sell recommendations,most stock analysts use microeconomics

Which of the following is a macroeconomic question?

Which of the following is an example of a marginal question?

The worldwide recession in 2007 started from

Which of the following is a variable?

According to the book,the general consensus is that our policymakers do not know what they are doing and are managing our economy ineffectively.

Richard runs a pizza delivery restaurant.List the three basic types of decisions economics studies and give an example from Richard's restaurant.

Which of the following is a topic NOT directly under macroeconomics?

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the Application,which of the following decreased the incentive to buy hybrid vehicles?

It takes longer to set up a business in Canada than in Mozambique.

According to the Texas Transportation Institute,U.S.consumers waste ________ gallons of gasoline and diesel fuel each year because of traffic congestion.

Economists employ economic models

Would an economist consider clean air a scarce resource? Explain.

An example of people acting in their own self-interest would include

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 1: Introduction: What Is Economics

Markets do not determine the quantity of goods sold,only the price.

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of

The slope of a straight line is

"How many iPhones will Apple sell this year?" is

In making stock buy or sell recommendations,most stock analysts use microeconomics

Which of the following is a macroeconomic question?

Which of the following is an example of a marginal question?

The worldwide recession in 2007 started from

Which of the following is a variable?

According to the book,the general consensus is that our policymakers do not know what they are doing and are managing our economy ineffectively.

Richard runs a pizza delivery restaurant.List the three basic types of decisions economics studies and give an example from Richard's restaurant.

Which of the following is a topic NOT directly under macroeconomics?

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the Application,which of the following decreased the incentive to buy hybrid vehicles?

It takes longer to set up a business in Canada than in Mozambique.

According to the Texas Transportation Institute,U.S.consumers waste ________ gallons of gasoline and diesel fuel each year because of traffic congestion.

Economists employ economic models

Would an economist consider clean air a scarce resource? Explain.

An example of people acting in their own self-interest would include

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters