Question 1

For the following, please answer "True" or "False" and explain why.

-Under most circumstances,the application of taxes on goods will only affect who gets the goods.

Accepted Answer

A) True 
 B)False  False

Question 2

For the following, please answer "True" or "False" and explain why.
-Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems.

Accepted Answer

A) True 
 B)False  True

Question 3

Economists tend to judge a model based upon

Accepted Answer

A)  the reality of its assumptions. 
B)  the accuracy of its predictions. 
C)  its simplicity. 
D)  its complexity. 
A)  the reality of its assumptions. 
B)  the accuracy of its predictions. 
C)  its simplicity. 
D)  its complexity. B

Question 4

One million automobiles have a defect that could cause the car to explode; however,only one of those cars will actually explode.Nobody knows which one car it is.When the car does explode,the victim's family will sue the automaker for $1 million and win.The defect costs $2 per car to repair.What does economics predict about the automaker's decision to repair the defect?

Accepted Answer

Correcting the defect will cos

Question 5

Which of the following is an example of a normative statement?

Accepted Answer

A)  A higher price for a good causes people to want to buy less of that good. 
B)  A lower price for a good causes people to want to buy more of that good. 
C)  To make the good available to more people, a lower price should be set. 
D)  If you consume this good, you will be better off. 
A)  A higher price for a good causes people to want to buy less of that good. 
B)  A lower price for a good causes people to want to buy more of that good. 
C)  To make the good available to more people, a lower price should be set. 
D)  If you consume this good, you will be better off.

Question 6

Which one of the following is NOT a key trade-off a society faces?

Accepted Answer

A)  Who gets the goods and services 
B)  Who produces the goods and services 
C)  Which goods and services to produce 
D)  How to produce 
A)  Who gets the goods and services 
B)  Who produces the goods and services 
C)  Which goods and services to produce 
D)  How to produce

Question 7

Which of the following is an example of a positive statement?

Accepted Answer

A)  Since this good is bad for you, you should not consume it. 
B)  If this good is bad for you, you should not consume it. 
C)  If you consume this good, you will get sick. 
D)  None of the above 
A)  Since this good is bad for you, you should not consume it. 
B)  If this good is bad for you, you should not consume it. 
C)  If you consume this good, you will get sick. 
D)  None of the above

Question 8

A microeconomic model CANNOT be used to

Accepted Answer

A)  evaluate the impact of a price change on a firm's revenue. 
B)  predict the impact on a rise of the minimum wage on unemployment. 
C)  evaluate the fairness of the proposal to nationalize health insurance. 
D)  evaluate the effect of an increase in stadium size on the price of a sport team's tickets. 
A)  evaluate the impact of a price change on a firm's revenue. 
B)  predict the impact on a rise of the minimum wage on unemployment. 
C)  evaluate the fairness of the proposal to nationalize health insurance. 
D)  evaluate the effect of an increase in stadium size on the price of a sport team's tickets.

Question 9

Who or what is responsible for the allocation of scarce resources into the production of most goods in the U.S.?

Accepted Answer

A)  the American government 
B)  the UN 
C)  the Federal Reserve Bank 
D)  markets and prices 
A)  the American government 
B)  the UN 
C)  the Federal Reserve Bank 
D)  markets and prices

Question 10

Which of the following statements is a normative statement?

Accepted Answer

A)  Minimum wage reduces employment. 
B)  Minimum wages causes surplus in labor market. 
C)  Minimum wage will improve the living of junior works more than senior workers. 
D)  Minimum wage should be welcomed by the low income class. 
A)  Minimum wage reduces employment. 
B)  Minimum wages causes surplus in labor market. 
C)  Minimum wage will improve the living of junior works more than senior workers. 
D)  Minimum wage should be welcomed by the low income class.

Question 11

Society faces trade-offs because of

Accepted Answer

A)  government regulations. 
B)  greedy corporations. 
C)  faceless bureaucrats. 
D)  scarcity. 
A)  government regulations. 
B)  greedy corporations. 
C)  faceless bureaucrats. 
D)  scarcity.

Question 12

A market

Accepted Answer

A)  always involves the personal exchange of goods for money. 
B)  allows interactions between consumers and firms. 
C)  always takes place at a physical location. 
D)  has no influence on prices. 
A)  always involves the personal exchange of goods for money. 
B)  allows interactions between consumers and firms. 
C)  always takes place at a physical location. 
D)  has no influence on prices.

Question 13

An automobile manufacturer is trying to make decisions about using more workers or more equipment.This belongs to the trade-off

Accepted Answer

A)  Which goods and services to produce 
B)  How to produce 
C)  Who gets the goods and services 
D)  Who produces the goods and services 
A)  Which goods and services to produce 
B)  How to produce 
C)  Who gets the goods and services 
D)  Who produces the goods and services

Question 14

For the following, please answer "True" or "False" and explain why.
-If actual experience supports two competing theories,then both theories are proven to be true.

Accepted Answer

A) True 
 B)False

Question 15

In the supply-demand models to analyze the wheat market,we assume that wheat sold by different sellers is largely the same.We make this assumption

Accepted Answer

A)  to test the model. 
B)  to easily predict the market price. 
C)  to simplify the model while keeping important details. 
D)  to avoid the complexities in the real world. 
A)  to test the model. 
B)  to easily predict the market price. 
C)  to simplify the model while keeping important details. 
D)  to avoid the complexities in the real world.

Question 16

For the following, please answer "True" or "False" and explain why.
-Normative analysis offers decision makers the most valuable information when choosing among alternatives.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of making assumptions in economic model building is to

Accepted Answer

A)  force the model to yield the correct answer. 
B)  minimize the amount of work an economist must do. 
C)  simplify the model while keeping important details. 
D)  express the relationship mathematically. 
A)  force the model to yield the correct answer. 
B)  minimize the amount of work an economist must do. 
C)  simplify the model while keeping important details. 
D)  express the relationship mathematically.

Question 18

In year 2008,1334 million lbs milk was produced and sold in U.S.This is

Accepted Answer

A)  the decision of the U.S. department of agriculture. 
B)  quantity determined by the interactions in the market. 
C)  the maximum amount the producers could produce. 
D)  what consumers needed. 
A)  the decision of the U.S. department of agriculture. 
B)  quantity determined by the interactions in the market. 
C)  the maximum amount the producers could produce. 
D)  what consumers needed.

Question 19

Consumers choose their cellphone plans according to their needs and package features.This is an example of

Accepted Answer

A)  importance of information to consumers' choices. 
B)  importance of making personal budget. 
C)  maximizing an objective that is subject to a constraint. 
D)  minimize the cost of cellphone usage. 
A)  importance of information to consumers' choices. 
B)  importance of making personal budget. 
C)  maximizing an objective that is subject to a constraint. 
D)  minimize the cost of cellphone usage.

Question 20

Microeconomic Models are used to

Accepted Answer

A)  make predictions. 
B)  explain real-life phenomena. 
C)  evaluate policy alternatives. 
D)  All of the above. 
A)  make predictions. 
B)  explain real-life phenomena. 
C)  evaluate policy alternatives. 
D)  All of the above.

For the following, please answer "True" or "False" and explain why. -Under most circumstances,the application of taxes on goods will only affect who gets the goods.

For the following, please answer "True" or "False" and explain why. -Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems.

Economists tend to judge a model based upon

Which of the following is an example of a normative statement?

Which one of the following is NOT a key trade-off a society faces?

Which of the following is an example of a positive statement?

A microeconomic model CANNOT be used to

Who or what is responsible for the allocation of scarce resources into the production of most goods in the U.S.?

Which of the following statements is a normative statement?

Society faces trade-offs because of

A market

An automobile manufacturer is trying to make decisions about using more workers or more equipment.This belongs to the trade-off

For the following, please answer "True" or "False" and explain why. -If actual experience supports two competing theories,then both theories are proven to be true.

In the supply-demand models to analyze the wheat market,we assume that wheat sold by different sellers is largely the same.We make this assumption

For the following, please answer "True" or "False" and explain why. -Normative analysis offers decision makers the most valuable information when choosing among alternatives.

The purpose of making assumptions in economic model building is to

In year 2008,1334 million lbs milk was produced and sold in U.S.This is

Consumers choose their cellphone plans according to their needs and package features.This is an example of

Microeconomic Models are used to

Supply and Demand

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Game Theory

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Property Rights, externalities, rivalry, and Exclusion

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 1: Introduction

For the following, please answer "True" or "False" and explain why. -Under most circumstances,the application of taxes on goods will only affect who gets the goods.

For the following, please answer "True" or "False" and explain why. -Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems.

Economists tend to judge a model based upon

Which of the following is an example of a normative statement?

Which one of the following is NOT a key trade-off a society faces?

Which of the following is an example of a positive statement?

A microeconomic model CANNOT be used to

Who or what is responsible for the allocation of scarce resources into the production of most goods in the U.S.?

Which of the following statements is a normative statement?

Society faces trade-offs because of

A market

An automobile manufacturer is trying to make decisions about using more workers or more equipment.This belongs to the trade-off

For the following, please answer "True" or "False" and explain why. -If actual experience supports two competing theories,then both theories are proven to be true.

In the supply-demand models to analyze the wheat market,we assume that wheat sold by different sellers is largely the same.We make this assumption

For the following, please answer "True" or "False" and explain why. -Normative analysis offers decision makers the most valuable information when choosing among alternatives.

The purpose of making assumptions in economic model building is to

In year 2008,1334 million lbs milk was produced and sold in U.S.This is

Consumers choose their cellphone plans according to their needs and package features.This is an example of

Microeconomic Models are used to

Supply and Demand

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Game Theory

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Property Rights, externalities, rivalry, and Exclusion

Asymmetric Information

Contracts and Moral Hazards

Filters