Question 1

There is a positive relationship between two variables if the two variables

Accepted Answer

A)  have positive values. 
B)  move in opposite directions. 
C)  move in the same direction. 
D)  have negative values. 
A)  have positive values. 
B)  move in opposite directions. 
C)  move in the same direction. 
D)  have negative values.

Question 2

Normative economics questions "What ought to be?" while positive economics predicts the consequences of alternative actions,answering the questions "What is?" or "What will be?"

Accepted Answer

A) True 
 B)False

Question 3

Microeconomics is best described as the study of

Accepted Answer

A)  the choices made by individual households, firms, and governments. 
B)  inflation, unemployment, gross national product, and the nation's economy as a whole. 
C)  how markets interact in the aggregate economy. 
D)  marginal changes in the economy. 
A)  the choices made by individual households, firms, and governments. 
B)  inflation, unemployment, gross national product, and the nation's economy as a whole. 
C)  how markets interact in the aggregate economy. 
D)  marginal changes in the economy.

Question 4

Positive economics

Accepted Answer

A)  is the focus of most modern economic reasoning. 
B)  concerns the forces that affect economic activity. 
C)  predicts the consequences of alternative actions. 
D)  All of the above are correct. 
A)  is the focus of most modern economic reasoning. 
B)  concerns the forces that affect economic activity. 
C)  predicts the consequences of alternative actions. 
D)  All of the above are correct.

Question 5

Which of the following is a microeconomic question?

Accepted Answer

A)  Should we have a constitutional amendment to balance the federal budget? 
B)  Why do some countries grow faster than others? 
C)  Should the government prevent the merger of two large firms? 
D)  All of the above are microeconomic questions. 
A)  Should we have a constitutional amendment to balance the federal budget? 
B)  Why do some countries grow faster than others? 
C)  Should the government prevent the merger of two large firms? 
D)  All of the above are microeconomic questions.

Question 6

The four elements of the economic way of thinking include all of the following EXCEPT

Accepted Answer

A)  economists use assumptions to make things simpler and focus attention on what really matters. 
B)  economic analysis often involves variables and how they affect one another. 
C)  economic analysis assumes that people act irrationally and that they are not motivated by self-interest. 
D)  economists often consider how a small change in one variable affects another variable. 
A)  economists use assumptions to make things simpler and focus attention on what really matters. 
B)  economic analysis often involves variables and how they affect one another. 
C)  economic analysis assumes that people act irrationally and that they are not motivated by self-interest. 
D)  economists often consider how a small change in one variable affects another variable.

Question 7

The effort used to coordinate the factors of production and produce goods and services is called

Accepted Answer

A)  entrepreneurship. 
B)  capital accumulation. 
C)  land ownership. 
D)  land. 
A)  entrepreneurship. 
B)  capital accumulation. 
C)  land ownership. 
D)  land.

Question 8

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 midpoint method,the percentage increase would have been ________ percent.If the government converted the highway from 6 lanes into 4 lanes,then using the midpoint method,the percentage increase would have been ________ percent.

Accepted Answer

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

Question 9

Who is associated with the following summary of the economic way of thinking: "The theory of economics does not furnish a body of settled conclusions immediately acceptable to policy.It is a method rather than a doctrine,an apparatus of the mind,a technique of thinking which helps its processor draw correct conclusions."

Accepted Answer

A)  John Maynard Keynes 
B)  Alfred Marshall 
C)  Adam Smith 
D)  President Harry Truman 
A)  John Maynard Keynes 
B)  Alfred Marshall 
C)  Adam Smith 
D)  President Harry Truman

Question 10

If variable A falls as variable B falls,then a line generated by putting variable A on the x-axis and variable B on the y-axis should be upward sloping.

Accepted Answer

A) True 
 B)False

Question 11

How are percentage changes calculated?

Accepted Answer

Percentage change is (New Value - Initia

Question 12

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

Accepted Answer

A) True 
 B)False

Question 13

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a microeconomic question?

Accepted Answer

A)  Is it sensible for the government to subsidize college education? 
B)  Why do some countries grow faster than others? 
C)  Should Congress and the president take action to reduce the unemployment rate? 
D)  All of the above are microeconomic questions. 
A)  Is it sensible for the government to subsidize college education? 
B)  Why do some countries grow faster than others? 
C)  Should Congress and the president take action to reduce the unemployment rate? 
D)  All of the above are microeconomic questions.

Question 15

Is money a scarce factor of production? Explain.

Accepted Answer

No.Money is not used to produc

Question 16

When economists assume that people are rational and respond to incentives,they mean

Accepted Answer

A)  people act with kindness. 
B)  people are altruistic. 
C)  people act in their own self-interest. 
D)  none of the above 
A)  people act with kindness. 
B)  people are altruistic. 
C)  people act in their own self-interest. 
D)  none of the above

Question 17

Allocating more hours toward studying for your economics exam gives you a higher grade.Based on this observation,hours spent studying and your economics grade exhibit

Accepted Answer

A)  a positive relationship. 
B)  a negative relationship. 
C)  no relationship. 
D)  an unpredictable relationship. 
A)  a positive relationship. 
B)  a negative relationship. 
C)  no relationship. 
D)  an unpredictable relationship.

Question 18

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s).
-According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO₂ emissions.

Accepted Answer

A) True 
 B)False

Question 19

Distinguish between movement along a curve and shifting a curve.

Accepted Answer

When depicted on a line graph with varia

Question 20

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 simple percentage change formulas,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

There is a positive relationship between two variables if the two variables

Normative economics questions "What ought to be?" while positive economics predicts the consequences of alternative actions,answering the questions "What is?" or "What will be?"

Microeconomics is best described as the study of

Positive economics

Which of the following is a microeconomic question?

The four elements of the economic way of thinking include all of the following EXCEPT

The effort used to coordinate the factors of production and produce goods and services is called

If variable A falls as variable B falls,then a line generated by putting variable A on the x-axis and variable B on the y-axis should be upward sloping.

How are percentage changes calculated?

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Which of the following is a microeconomic question?

Is money a scarce factor of production? Explain.

When economists assume that people are rational and respond to incentives,they mean

Allocating more hours toward studying for your economics exam gives you a higher grade.Based on this observation,hours spent studying and your economics grade exhibit

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO₂ emissions.

Distinguish between movement along a curve and shifting a curve.

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

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Exam 1: Introduction: What Is Economics

There is a positive relationship between two variables if the two variables

Normative economics questions "What ought to be?" while positive economics predicts the consequences of alternative actions,answering the questions "What is?" or "What will be?"

Microeconomics is best described as the study of

Positive economics

Which of the following is a microeconomic question?

The four elements of the economic way of thinking include all of the following EXCEPT

The effort used to coordinate the factors of production and produce goods and services is called

If variable A falls as variable B falls,then a line generated by putting variable A on the x-axis and variable B on the y-axis should be upward sloping.

How are percentage changes calculated?

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Which of the following is a microeconomic question?

Is money a scarce factor of production? Explain.

When economists assume that people are rational and respond to incentives,they mean

Allocating more hours toward studying for your economics exam gives you a higher grade.Based on this observation,hours spent studying and your economics grade exhibit

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO₂ emissions.

Distinguish between movement along a curve and shifting a curve.

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