Question 1

If a variable increases from 100 to 150,then using the initial value approach its percentage growth is

Accepted Answer

A)  -50 percent. 
B)  15 percent. 
C)  40 percent. 
D)  50 percent. 
A)  -50 percent. 
B)  15 percent. 
C)  40 percent. 
D)  50 percent.

Question 2

Deciding if a company will produce automobiles by manual labor or with the use of robots 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

When you need to know how to get from San Francisco to New York,which of the following details regarding reality are deemed not important and are usually assumed to not be included in your map?

Accepted Answer

A)  the temperature while you travel 
B)  the number of lanes on the freeway 
C)  the number of cars on the freeway 
D)  All of the above are deemed unimportant and are assumed as not included in your map. 
A)  the temperature while you travel 
B)  the number of lanes on the freeway 
C)  the number of cars on the freeway 
D)  All of the above are deemed unimportant and are assumed as not included in your map.

Question 4

An economic model is

Accepted Answer

A)  a small but completely working economy. 
B)  a simplified representation of an economic environment. 
C)  any graph. 
D)  all of the above 
A)  a small but completely working economy. 
B)  a simplified representation of an economic environment. 
C)  any graph. 
D)  all of the above

Question 5

A variable is

Accepted Answer

A)  something that always has the same value. 
B)  something that can take on different values. 
C)  something that cannot be measured. 
D)  something that varies over time. 
A)  something that always has the same value. 
B)  something that can take on different values. 
C)  something that cannot be measured. 
D)  something that varies over time.

Question 6

Which of the following is NOT a market?

Accepted Answer

A)  a group of children trading Pokemon cards 
B)  a cattle auction 
C)  your college bookstore 
D)  All of the above are markets. 
A)  a group of children trading Pokemon cards 
B)  a cattle auction 
C)  your college bookstore 
D)  All of the above are markets.

Question 7

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).
-If the government converted the highway from 4 lanes into 6 lanes,then using the regular method of calculating percentages,the percentage increase would have been ________ percent.If the government converted the highway from 6 lanes into 4 lanes,then using the regular method,the percentage increase would have been ________ percent.

Accepted Answer

A)  40; 40 
B)  50; 33 
C)  100; 50 
D)  33; 33 
A)  40; 40 
B)  50; 33 
C)  100; 50 
D)  33; 33

Question 8

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

Accepted Answer

A)  A business owner can use macroeconomics to determine whether college graduates are better employees than non-college graduates. 
B)  A business owner can use macroeconomics to predict whether the Fed will increase or decrease the interest rates in the future in order to determine whether to borrow money now or later. 
C)  A business owner can use macroeconomics to predict whether gold prices will be higher today or in the future. 
D)  A business owner can use macroeconomics to predict if it should sell more red t-shirts as opposed to white t-shirts. 
A)  A business owner can use macroeconomics to determine whether college graduates are better employees than non-college graduates. 
B)  A business owner can use macroeconomics to predict whether the Fed will increase or decrease the interest rates in the future in order to determine whether to borrow money now or later. 
C)  A business owner can use macroeconomics to predict whether gold prices will be higher today or in the future. 
D)  A business owner can use macroeconomics to predict if it should sell more red t-shirts as opposed to white t-shirts.

Question 9

Macroeconomics involves the study of the decision-making of individuals or individual firms.

Accepted Answer

A) True 
 B)False

Question 10

In which of the following markets is a person's time and effort exchanged for money?

Accepted Answer

A)  consumer market 
B)  capital market 
C)  labor market 
D)  goods market 
A)  consumer market 
B)  capital market 
C)  labor market 
D)  goods market

Question 11

All topics concerning taxes are within the realm of macroeconomics.

Accepted Answer

A) True 
 B)False

Question 12

When,after seeing the current mortgage interest rates and immediately deciding to start the search for a new house,you are using

Accepted Answer

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

Question 13

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Accepted Answer

A) True 
 B)False

Question 14

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).
-If you use the midpoint method to describe the change in the number of lanes from 1 to 2,then the percentage change you would calculate is

Accepted Answer

A)  33 percent. 
B)  50 percent. 
C)  66 percent. 
D)  100 percent. 
A)  33 percent. 
B)  50 percent. 
C)  66 percent. 
D)  100 percent.

Question 15

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by

Accepted Answer

A)  governments. 
B)  individuals. 
C)  firms. 
D)  both B and C 
A)  governments. 
B)  individuals. 
C)  firms. 
D)  both B and C

Question 16

Ceteris paribus means "Let the buyer beware."

Accepted Answer

A) True 
 B)False

Question 17

According to the text,the solution economists propose to the problem of traffic congestion is to

Accepted Answer

A)  impose a tax for the use of a road during peak times. 
B)  make cars smaller. 
C)  make gasoline cheaper. 
D)  make the roads wider. 
A)  impose a tax for the use of a road during peak times. 
B)  make cars smaller. 
C)  make gasoline cheaper. 
D)  make the roads wider.

Question 18

The slope of a nonlinear relationship changes as the variables change.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT an example of a question answered by positive analysis?

Accepted Answer

A)  How will an increase in the price of gasoline affect taxi drivers? 
B)  What fraction of an income-tax cut will be spent on consumer goods? 
C)  How will an increase in interest rates affect investment in factories? 
D)  Should the government increase the minimum wage? 
A)  How will an increase in the price of gasoline affect taxi drivers? 
B)  What fraction of an income-tax cut will be spent on consumer goods? 
C)  How will an increase in interest rates affect investment in factories? 
D)  Should the government increase the minimum wage?

Question 20

Economic analysis includes commuting time as part of the cost of traffic congestion.

Accepted Answer

A) True 
 B)False

If a variable increases from 100 to 150,then using the initial value approach its percentage growth is

Deciding if a company will produce automobiles by manual labor or with the use of robots answers the economic question of

When you need to know how to get from San Francisco to New York,which of the following details regarding reality are deemed not important and are usually assumed to not be included in your map?

An economic model is

A variable is

Which of the following is NOT a market?

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

Macroeconomics involves the study of the decision-making of individuals or individual firms.

In which of the following markets is a person's time and effort exchanged for money?

All topics concerning taxes are within the realm of macroeconomics.

When,after seeing the current mortgage interest rates and immediately deciding to start the search for a new house,you are using

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by

Ceteris paribus means "Let the buyer beware."

According to the text,the solution economists propose to the problem of traffic congestion is to

The slope of a nonlinear relationship changes as the variables change.

Which of the following is NOT an example of a question answered by positive analysis?

Economic analysis includes commuting time as part of the cost of traffic congestion.

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

If a variable increases from 100 to 150,then using the initial value approach its percentage growth is

Deciding if a company will produce automobiles by manual labor or with the use of robots answers the economic question of

When you need to know how to get from San Francisco to New York,which of the following details regarding reality are deemed not important and are usually assumed to not be included in your map?

An economic model is

A variable is

Which of the following is NOT a market?

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

Macroeconomics involves the study of the decision-making of individuals or individual firms.

In which of the following markets is a person's time and effort exchanged for money?

All topics concerning taxes are within the realm of macroeconomics.

When,after seeing the current mortgage interest rates and immediately deciding to start the search for a new house,you are using

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by

Ceteris paribus means "Let the buyer beware."

According to the text,the solution economists propose to the problem of traffic congestion is to

The slope of a nonlinear relationship changes as the variables change.

Which of the following is NOT an example of a question answered by positive analysis?

Economic analysis includes commuting time as part of the cost of traffic congestion.

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