Question 1

Marginal analysis involves undertaking an activity

Accepted Answer

A)  until its marginal costs start declining. 
B)  only when its marginal benefits are positive. 
C)  until its marginal benefits equal marginal costs. 
D)  only if its marginal costs are greater than its marginal benefits. 
A)  until its marginal costs start declining. 
B)  only when its marginal benefits are positive. 
C)  until its marginal benefits equal marginal costs. 
D)  only if its marginal costs are greater than its marginal benefits.

Question 2

Zane's Vanes is a service that restores old weather vanes.Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed.After having spent $125,Zane realizes that he will need to spend an additional $200 on materials to complete the restoration.Alternatively,he can sell the weather vane without restoring it for $200.What is his marginal benefit if he sells the weather vane without restoring it?

Accepted Answer

A)  $75 
B)  $125 
C)  $200 
D)  $300 
A)  $75 
B)  $125 
C)  $200 
D)  $300

Question 3

Which of the following statements is false?

Accepted Answer

A)  An inverse relationship has a negative slope value. 
B)  A direct relationship has a positive slope value. 
C)  A curved line has slope values that change at every point. 
D)  A straight line has a slope of zero. 
A)  An inverse relationship has a negative slope value. 
B)  A direct relationship has a positive slope value. 
C)  A curved line has slope values that change at every point. 
D)  A straight line has a slope of zero.

Question 4

If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon,what is the percentage change in price?

Accepted Answer

A)  7.8 percent 
B)  12.5 percent 
C)  27.7 percent 
D)  57.5 percent 
A)  7.8 percent 
B)  12.5 percent 
C)  27.7 percent 
D)  57.5 percent

Question 5

What is the difference between physical capital and human capital?

Accepted Answer

Physical capital includes manu

Question 6

The U.S.Bureau of Labor Statistics forecasts that by 2024,total employment in U.S.manufacturing will

Accepted Answer

A)  decline to 11.4 million. 
B)  increase to 12.3 million. 
C)  remain the same as it was in 2016. 
D)  virtually cease to exist. 
A)  decline to 11.4 million. 
B)  increase to 12.3 million. 
C)  remain the same as it was in 2016. 
D)  virtually cease to exist.

Question 7

Figure 1-6
  
-Refer to Figure 1-6.Calculate the area of the trapezoid X.

Accepted Answer

A)  $361 
B)  $450 
C)  $1,020 
D)  $1,140 
A)  $361 
B)  $450 
C)  $1,020 
D)  $1,140

Question 8

Which of the following contributed to the downfall of the Soviet Union in 1991?

Accepted Answer

A)  government dissatisfaction with high living standards and political freedom 
B)  an inability to produce low-cost consumer goods that households wanted 
C)  an overabundance of high-quality goods and services 
D)  the lack of a strong dictator who could coordinate economic activities 
A)  government dissatisfaction with high living standards and political freedom 
B)  an inability to produce low-cost consumer goods that households wanted 
C)  an overabundance of high-quality goods and services 
D)  the lack of a strong dictator who could coordinate economic activities

Question 9

What is the "omitted variable" problem in determining cause and effect?

Accepted Answer

A)  It is a problem that arises when an insignificant variable is given too much weight in an economic analysis leading to skewed conclusions about cause and effect. 
B)  It is a problem that arises when a significant variable is not given enough weight in an economic experiment leading to skewed conclusions about cause and effect. 
C)  It is a problem that arises when an insignificant economic variable that should have been omitted is included in an economic experiment leading to false conclusions about cause and effect. 
D)  It is a problem that arises when an economic variable that affects other variables is omitted from an analysis and its omission leads to false conclusions about cause and effect. 
A)  It is a problem that arises when an insignificant variable is given too much weight in an economic analysis leading to skewed conclusions about cause and effect. 
B)  It is a problem that arises when a significant variable is not given enough weight in an economic experiment leading to skewed conclusions about cause and effect. 
C)  It is a problem that arises when an insignificant economic variable that should have been omitted is included in an economic experiment leading to false conclusions about cause and effect. 
D)  It is a problem that arises when an economic variable that affects other variables is omitted from an analysis and its omission leads to false conclusions about cause and effect.

Question 10

In economics,an organization that produces a good or service is called a

Accepted Answer

A)  firm. 
B)  company. 
C)  business. 
D)  All of the above are correct. 
A)  firm. 
B)  company. 
C)  business. 
D)  All of the above are correct.

Question 11

In 2017,Peelville consumed 30,000 bananas.In 2018,banana consumption rose to 35,000.Calculate the percentage change in banana consumption.

Accepted Answer

A)  11.66% 
B)  14.28% 
C)  16.67% 
D)  22.25% 
A)  11.66% 
B)  14.28% 
C)  16.67% 
D)  22.25%

Question 12

Which of the following is a positive economic statement?

Accepted Answer

A)  People should not buy imported fruits and vegetables. 
B)  The government should subsidize solar power for homeowners. 
C)  The minimum wage law causes unemployment. 
D)  The number of work visas should not be limited by the government. 
A)  People should not buy imported fruits and vegetables. 
B)  The government should subsidize solar power for homeowners. 
C)  The minimum wage law causes unemployment. 
D)  The number of work visas should not be limited by the government.

Question 13

In a centrally planned economy,the government decides how economic resources will be allocated.

Accepted Answer

A) True 
 B)False

Question 14

Table 1-6
 $\begin{array}{|c|c|}
\hline \begin{array}{c}
\text { Hours } \
\text { Open }
\end{array} & \begin{array}{c}
\text { Total Revenue } \
\text { (dollars) }
\end{array} \
\hline 1 & \$ 275 \
\hline 2 & 375 \
\hline 3 & 450 \
\hline 4 & 500 \
\hline 5 & 530 \
\hline 6 & 550 \
\hline
\end{array}$ Ivan runs a custom jewelry shop in Sparkle City. He is debating whether he should extend his hours of operation. Ivan figures that his sales revenue will depend on the number of additional hours the jewelry shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $25 per hour.
-Refer to Table 1-6.What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?

Accepted Answer

A)  $10 
B)  $20 
C)  $25 
D)  $91.67 
A)  $10 
B)  $20 
C)  $25 
D)  $91.67

Question 15

Every society faces economic trade-offs.This means

Accepted Answer

A)  some people live better than others do. 
B)  not everyone can have enough goods to survive. 
C)  producing more of one good means less of another good can be produced. 
D)  society's output cannot be made available to all. 
A)  some people live better than others do. 
B)  not everyone can have enough goods to survive. 
C)  producing more of one good means less of another good can be produced. 
D)  society's output cannot be made available to all.

Question 16

Productive efficiency is achieved when firms produce goods and services

Accepted Answer

A)  most desired by society. 
B)  at the highest profit margin. 
C)  at the lowest cost. 
D)  of the highest quality. 
A)  most desired by society. 
B)  at the highest profit margin. 
C)  at the lowest cost. 
D)  of the highest quality.

Question 17

What is an economic market?

Accepted Answer

An economic market refers to a

Question 18

If the price of milk was $2.50 a gallon and it is now $3.25 a gallon,what is the percentage change in price?

Accepted Answer

A)  13 percent 
B)  30 percent 
C)  75 percent 
D)  77 percent 
A)  13 percent 
B)  30 percent 
C)  75 percent 
D)  77 percent

Question 19

As population declines,scarcity eventually disappears.

Accepted Answer

A) True 
 B)False

Question 20

Examining the conditions that could lead to economic growth is an example of a macroeconomic topic.

Accepted Answer

A) True 
 B)False

Marginal analysis involves undertaking an activity

Which of the following statements is false?

If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon,what is the percentage change in price?

What is the difference between physical capital and human capital?

The U.S.Bureau of Labor Statistics forecasts that by 2024,total employment in U.S.manufacturing will

Figure 1-6 -Refer to Figure 1-6.Calculate the area of the trapezoid X.

Which of the following contributed to the downfall of the Soviet Union in 1991?

What is the "omitted variable" problem in determining cause and effect?

In economics,an organization that produces a good or service is called a

In 2017,Peelville consumed 30,000 bananas.In 2018,banana consumption rose to 35,000.Calculate the percentage change in banana consumption.

Which of the following is a positive economic statement?

In a centrally planned economy,the government decides how economic resources will be allocated.

Every society faces economic trade-offs.This means

Productive efficiency is achieved when firms produce goods and services

What is an economic market?

If the price of milk was $2.50 a gallon and it is now $3.25 a gallon,what is the percentage change in price?

As population declines,scarcity eventually disappears.

Examining the conditions that could lead to economic growth is an example of a macroeconomic topic.

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

Exam 1: Economics: Foundations and Models

Marginal analysis involves undertaking an activity

Which of the following statements is false?

If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon,what is the percentage change in price?

What is the difference between physical capital and human capital?

The U.S.Bureau of Labor Statistics forecasts that by 2024,total employment in U.S.manufacturing will

Figure 1-6 -Refer to Figure 1-6.Calculate the area of the trapezoid X.

Which of the following contributed to the downfall of the Soviet Union in 1991?

What is the "omitted variable" problem in determining cause and effect?

In economics,an organization that produces a good or service is called a

In 2017,Peelville consumed 30,000 bananas.In 2018,banana consumption rose to 35,000.Calculate the percentage change in banana consumption.

Which of the following is a positive economic statement?

In a centrally planned economy,the government decides how economic resources will be allocated.

Every society faces economic trade-offs.This means

Productive efficiency is achieved when firms produce goods and services

What is an economic market?

If the price of milk was $2.50 a gallon and it is now $3.25 a gallon,what is the percentage change in price?

As population declines,scarcity eventually disappears.

Examining the conditions that could lead to economic growth is an example of a macroeconomic topic.

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters