Question 1

The 3 key economic questions include all of the following EXCEPT

Accepted Answer

A)  "what products do we produce?" 
B)  "how do we produce these products?" 
C)  "where should these products be produced?" 
D)  "who consumes the products?" 
A)  "what products do we produce?" 
B)  "how do we produce these products?" 
C)  "where should these products be produced?" 
D)  "who consumes the products?"

Question 2

If the price of monthly satellite TV service increases from $40 to $50, the percentage change is

Accepted Answer

A)  5 percent. 
B)  20 percent. 
C)  25 percent. 
D)  45 percent. 
A)  5 percent. 
B)  20 percent. 
C)  25 percent. 
D)  45 percent.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

After the implementation of the congestion tax in London, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of

Accepted Answer

A)  responding to incentives. 
B)  the role of pricing in allocating resources. 
C)  caveat emptor. 
D)  comparative advantage. 
A)  responding to incentives. 
B)  the role of pricing in allocating resources. 
C)  caveat emptor. 
D)  comparative advantage.

Question 5

Slope is calculated as rise / run.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a question answered with positive economic analysis?

Accepted Answer

A)  Should the college reduce tuition for out-of-state residents? 
B)  Should the college charge higher tuition for part-time students? 
C)  If the college increased its eligibility requirements for enrollment, will class sizes decline? 
D)  Should the college eliminate its athletic program to cut its costs? 
A)  Should the college reduce tuition for out-of-state residents? 
B)  Should the college charge higher tuition for part-time students? 
C)  If the college increased its eligibility requirements for enrollment, will class sizes decline? 
D)  Should the college eliminate its athletic program to cut its costs?

Question 7

What is meant by the term "marginal change"?

Accepted Answer

A marginal change is

Question 8

An arrangement that allows buyers and sellers to exchange things is called

Accepted Answer

A)  a contract. 
B)  a market. 
C)  money. 
D)  efficient. 
A)  a contract. 
B)  a market. 
C)  money. 
D)  efficient.

Question 9

To determine an appropriate congestion tax, an economist has to assume that people respond to incentives.

Accepted Answer

A) True 
 B)False

Question 10

Economics is best defined as the study of

Accepted Answer

A)  financial decision-making. 
B)  how consumers make purchasing decisions. 
C)  the choices made by people faced with scarcity. 
D)  inflation, unemployment, and economic growth. 
A)  financial decision-making. 
B)  how consumers make purchasing decisions. 
C)  the choices made by people faced with scarcity. 
D)  inflation, unemployment, and economic growth.

Question 11

Which of the following is a microeconomic question?

Accepted Answer

A)  Should the government decrease unemployment benefits to reduce the unemployment rate? 
B)  Why do some countries have higher inflation rates than other countries? 
C)  Should the government subsidize corn farmers to encourage the production of ethanol? 
D)  Should congress decrease taxes to help stimulate the economy? 
A)  Should the government decrease unemployment benefits to reduce the unemployment rate? 
B)  Why do some countries have higher inflation rates than other countries? 
C)  Should the government subsidize corn farmers to encourage the production of ethanol? 
D)  Should congress decrease taxes to help stimulate the economy?

Question 12

One of the key economic questions is "who consumes the products?"

Accepted Answer

A) True 
 B)False

Question 13

If the variable on the vertical axis increases by 24 and the variable on the horizontal axis decreases by 3, the slope of the line is

Accepted Answer

A)  -24. 
B)  -8. 
C)  3. 
D)  72. 
A)  -24. 
B)  -8. 
C)  3. 
D)  72.

Question 14

The slope of a straight line

Accepted Answer

A)  is constant. 
B)  is negative. 
C)  is zero. 
D)  changes along the curve. 
A)  is constant. 
B)  is negative. 
C)  is zero. 
D)  changes along the curve.

Question 15

To think at the margin means to consider

Accepted Answer

A)  how nothing remains constant over time. 
B)  how a small change in one variable affects another variable. 
C)  how people behave in their own self-interest. 
D)  how people will decide what to purchase. 
A)  how nothing remains constant over time. 
B)  how a small change in one variable affects another variable. 
C)  how people behave in their own self-interest. 
D)  how people will decide what to purchase.

Question 16

The financial crisis and recession which began in 2007

Accepted Answer

A)  impacted only high-income countries. 
B)  was only severe in the United States. 
C)  had a global impact. 
D)  impacted only low-income countries. 
A)  impacted only high-income countries. 
B)  was only severe in the United States. 
C)  had a global impact. 
D)  impacted only low-income countries.

Question 17

Which of the following is NOT a macroeconomic question?

Accepted Answer

A)  Should we have a constitutional amendment requiring the federal government to balance the budget each year? 
B)  Should restaurants be required to list the number of calories for each product on their menus? 
C)  How does a fiscal stimulus package affect gross domestic product? 
D)  Should Congress enact tougher immigration laws to reduce unemployment? 
A)  Should we have a constitutional amendment requiring the federal government to balance the budget each year? 
B)  Should restaurants be required to list the number of calories for each product on their menus? 
C)  How does a fiscal stimulus package affect gross domestic product? 
D)  Should Congress enact tougher immigration laws to reduce unemployment?

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Deciding if a power company will generate electricity from wind power or coal answers the economic question of

Accepted Answer

A)  who consumes the products produced. 
B)  what products will be produced. 
C)  where will the products be consumed. 
D)  how will the products be produced. 
A)  who consumes the products produced. 
B)  what products will be produced. 
C)  where will the products be consumed. 
D)  how will the products be produced.

Question 20

Describe the field of economics known as macroeconomics.

Accepted Answer

Macroeconomics is the study of

The 3 key economic questions include all of the following EXCEPT

If the price of monthly satellite TV service increases from $40 to $50, the percentage change is

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

After the implementation of the congestion tax in London, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of

Slope is calculated as rise / run.

Which of the following is a question answered with positive economic analysis?

What is meant by the term "marginal change"?

An arrangement that allows buyers and sellers to exchange things is called

To determine an appropriate congestion tax, an economist has to assume that people respond to incentives.

Economics is best defined as the study of

Which of the following is a microeconomic question?

One of the key economic questions is "who consumes the products?"

If the variable on the vertical axis increases by 24 and the variable on the horizontal axis decreases by 3, the slope of the line is

The slope of a straight line

To think at the margin means to consider

The financial crisis and recession which began in 2007

Which of the following is NOT a macroeconomic question?

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

Deciding if a power company will generate electricity from wind power or coal answers the economic question of

Describe the field of economics known as macroeconomics.

The Key Principles of Economics

Demand, Supply, and Market Equilibrium

Elasticity: A Measure of Responsiveness

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry, Monopolistic Competition, and Oligopoly

Imperfect Information, External Benefits, and External Costs

The Labor Market and the Distribution of Income

Measuring a Nations Production and Income

Unemployment and Inflation

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and the Banking System

Monetary Policy and Inflation

International Trade and Finance

Filters

Exam 1: Introduction: What Is Economics

The 3 key economic questions include all of the following EXCEPT

If the price of monthly satellite TV service increases from $40 to $50, the percentage change is

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

After the implementation of the congestion tax in London, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of

Slope is calculated as rise / run.

Which of the following is a question answered with positive economic analysis?

What is meant by the term "marginal change"?

An arrangement that allows buyers and sellers to exchange things is called

To determine an appropriate congestion tax, an economist has to assume that people respond to incentives.

Economics is best defined as the study of

Which of the following is a microeconomic question?

One of the key economic questions is "who consumes the products?"

If the variable on the vertical axis increases by 24 and the variable on the horizontal axis decreases by 3, the slope of the line is

The slope of a straight line

To think at the margin means to consider

The financial crisis and recession which began in 2007

Which of the following is NOT a macroeconomic question?

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

Deciding if a power company will generate electricity from wind power or coal answers the economic question of

Describe the field of economics known as macroeconomics.

The Key Principles of Economics

Demand, Supply, and Market Equilibrium

Elasticity: A Measure of Responsiveness

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry, Monopolistic Competition, and Oligopoly

Imperfect Information, External Benefits, and External Costs

The Labor Market and the Distribution of Income

Measuring a Nations Production and Income

Unemployment and Inflation

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and the Banking System

Monetary Policy and Inflation

International Trade and Finance

Filters