Question 1

Which of the following is associated with macroeconomics?

Accepted Answer

A)  An examination of the incomes of Harvard Business School graduates. 
B)  An empirical investigation of the general price level and unemployment rates since 1990. 
C)  A study of the trend of pecan prices since the Second World War. 
D)  A case study of pricing and production in the textbook industry. 
A)  An examination of the incomes of Harvard Business School graduates. 
B)  An empirical investigation of the general price level and unemployment rates since 1990. 
C)  A study of the trend of pecan prices since the Second World War. 
D)  A case study of pricing and production in the textbook industry.

Question 2

Answer the question on the basis of the following production possibilities tables for two countries,North Cantina and South Cantina:   Refer to the tables.If North Cantina is producing at production alternative B,the opportunity cost of the eleventh unit of consumer goods will be:

Accepted Answer

A)  10 units of capital goods. 
B)  1/4 of a unit of capital goods. 
C)  8 units of capital goods. 
D)  1/8 of a unit of capital goods. 
A)  10 units of capital goods. 
B)  1/4 of a unit of capital goods. 
C)  8 units of capital goods. 
D)  1/8 of a unit of capital goods.

Question 3

Assume an economy is incurring unemployment.The effect of resolving this problem will be to:

Accepted Answer

A)  move the level of actual output on to the economy's production possibilities curve. 
B)  create a less equal distribution of income. 
C)  shift its production possibilities curve to the left. 
D)  shift its production possibilities curve to the right. 
A)  move the level of actual output on to the economy's production possibilities curve. 
B)  create a less equal distribution of income. 
C)  shift its production possibilities curve to the left. 
D)  shift its production possibilities curve to the right.

Question 4

Suppose that a fully employed economy produces only two goods,hamburgers and flat-panel TVs.If the economy is currently producing more than the optimal quantity of hamburgers,then to attain the optimal allocation of resources it should:

Accepted Answer

A)  produce more hamburgers and fewer TVs. 
B)  produce more TVs and fewer hamburgers. 
C)  produce more of both goods. 
D)  produce fewer of both goods. 
A)  produce more hamburgers and fewer TVs. 
B)  produce more TVs and fewer hamburgers. 
C)  produce more of both goods. 
D)  produce fewer of both goods.

Question 5

Alex sees that his neighbors' lawns all need mowing.He offers to provide the service in exchange for a wage of $20 per hour.Some neighbors accept Alex's offer and others refuse.Economists would describe Alex's behavior as:

Accepted Answer

A)  rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants. 
B)  greedy because he is asking for a high wage that some of his neighbors can't afford to pay. 
C)  selfish because he is asking for a wage that is higher than others might charge. 
D)  irrational because some neighbors refused his offer. 
A)  rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants. 
B)  greedy because he is asking for a high wage that some of his neighbors can't afford to pay. 
C)  selfish because he is asking for a wage that is higher than others might charge. 
D)  irrational because some neighbors refused his offer.

Question 6

If a positive relationship exists between x and y:

Accepted Answer

A)  an increase in x will cause y to decrease. 
B)  a decrease in x will cause y to increase. 
C)  the relationship will graph as an upsloping line. 
D)  the vertical intercept must be positive. 
A)  an increase in x will cause y to decrease. 
B)  a decrease in x will cause y to increase. 
C)  the relationship will graph as an upsloping line. 
D)  the vertical intercept must be positive.

Question 7

The slope of a budget line reflects the:

Accepted Answer

A)  desirability of the two products. 
B)  price ratio of the two products. 
C)  amount of the consumer's income. 
D)  utility ratio of the two products. 
A)  desirability of the two products. 
B)  price ratio of the two products. 
C)  amount of the consumer's income. 
D)  utility ratio of the two products.

Question 8

Although sleeping in on a work day or school day has an opportunity cost,sleeping late on the weekend does not.

Accepted Answer

A) True 
 B)False

Question 9

(Consider This)In response to the terrorist attacks of September 11,2001,the government decided to allocate more resources toward defense goods.The government's decision reflects their assessment that:

Accepted Answer

A)  the marginal benefits of additional defense goods outweighed the marginal cost. 
B)  the marginal cost of additional defense goods outweighed the marginal benefit. 
C)  there cannot be too many defense goods. 
D)  civilian goods are not worth producing. 
A)  the marginal benefits of additional defense goods outweighed the marginal cost. 
B)  the marginal cost of additional defense goods outweighed the marginal benefit. 
C)  there cannot be too many defense goods. 
D)  civilian goods are not worth producing.

Question 10

Any combination of goods lying outside of the budget line:

Accepted Answer

A)  implies that the consumer is not spending all his income. 
B)  yields less utility than any point on the budget line. 
C)  yields less utility than any point inside the budget line. 
D)  is unattainable,given the consumer's income. 
A)  implies that the consumer is not spending all his income. 
B)  yields less utility than any point on the budget line. 
C)  yields less utility than any point inside the budget line. 
D)  is unattainable,given the consumer's income.

Which of the following is associated with macroeconomics?

Answer the question on the basis of the following production possibilities tables for two countries,North Cantina and South Cantina: Refer to the tables.If North Cantina is producing at production alternative B,the opportunity cost of the eleventh unit of consumer goods will be:

Assume an economy is incurring unemployment.The effect of resolving this problem will be to:

Suppose that a fully employed economy produces only two goods,hamburgers and flat-panel TVs.If the economy is currently producing more than the optimal quantity of hamburgers,then to attain the optimal allocation of resources it should:

Alex sees that his neighbors' lawns all need mowing.He offers to provide the service in exchange for a wage of $20 per hour.Some neighbors accept Alex's offer and others refuse.Economists would describe Alex's behavior as:

If a positive relationship exists between x and y:

The slope of a budget line reflects the:

Although sleeping in on a work day or school day has an opportunity cost,sleeping late on the weekend does not.

(Consider This)In response to the terrorist attacks of September 11,2001,the government decided to allocate more resources toward defense goods.The government's decision reflects their assessment that:

Any combination of goods lying outside of the budget line:

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

Technology RD and Efficiency

The Demand for Resources

Wage Determination

Rent Interest and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Filters

Exam 1: Limits, Alternatives, and Choices

Which of the following is associated with macroeconomics?

Answer the question on the basis of the following production possibilities tables for two countries,North Cantina and South Cantina: Refer to the tables.If North Cantina is producing at production alternative B,the opportunity cost of the eleventh unit of consumer goods will be:

Assume an economy is incurring unemployment.The effect of resolving this problem will be to:

Suppose that a fully employed economy produces only two goods,hamburgers and flat-panel TVs.If the economy is currently producing more than the optimal quantity of hamburgers,then to attain the optimal allocation of resources it should:

Alex sees that his neighbors' lawns all need mowing.He offers to provide the service in exchange for a wage of $20 per hour.Some neighbors accept Alex's offer and others refuse.Economists would describe Alex's behavior as:

If a positive relationship exists between x and y:

The slope of a budget line reflects the:

Although sleeping in on a work day or school day has an opportunity cost,sleeping late on the weekend does not.

(Consider This)In response to the terrorist attacks of September 11,2001,the government decided to allocate more resources toward defense goods.The government's decision reflects their assessment that:

Any combination of goods lying outside of the budget line:

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

Technology RD and Efficiency

The Demand for Resources

Wage Determination

Rent Interest and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Filters