Question 1

(Last Word)Which of the following has to do with the problem of distinguishing cause and effect in economic reasoning?

Accepted Answer

A)  The law of large numbers. 
B)  The law of averages. 
C)  The post hoc,ergo propter hoc fallacy. 
D)  The fallacy of composition. 
A)  The law of large numbers. 
B)  The law of averages. 
C)  The post hoc,ergo propter hoc fallacy. 
D)  The fallacy of composition.

Question 2

Microeconomics:

Accepted Answer

A)  is the basis for the "after this,therefore because of this" fallacy. 
B)  is not concerned with details,but only with the overall big picture of the economy. 
C)  is concerned with individual economic units and specific markets. 
D)  describes the aggregate flows of output and income. 
A)  is the basis for the "after this,therefore because of this" fallacy. 
B)  is not concerned with details,but only with the overall big picture of the economy. 
C)  is concerned with individual economic units and specific markets. 
D)  describes the aggregate flows of output and income.

Question 3

Any point inside the production possibilities curve indicates:

Accepted Answer

A)  the presence of technological change. 
B)  that resources are imperfectly substitutable among alternative uses. 
C)  the presence of inflationary pressures. 
D)  that more output could be produced with the available resources. 
A)  the presence of technological change. 
B)  that resources are imperfectly substitutable among alternative uses. 
C)  the presence of inflationary pressures. 
D)  that more output could be produced with the available resources.

Question 4

Answer the question on the basis of the following five data sets wherein it is assumed that the variable shown on the left is the independent variable and the one on the right is the dependent variable.Assume in graphing these data that the independent variable is shown on the horizontal axis and the dependent variable on the vertical axis. $\quad $$\quad $(1)$\quad $$\quad $$\quad $$\quad $(2)$\quad $$\quad $$\quad $$\quad $(3)$\quad $$\quad $$\quad $$\quad $(4)$\quad $$\quad $$\quad $$\quad $(5)
$\begin{array}{rl}
{J} & K \
\hline 0 & 10 \
40 & 20 \
80 & 30 \
120 & 40 \
160 & 50 \
200 & 60
\end{array}
\begin{array}{rr}
\mathrm{L} & \mathrm{M} \
\hline 0 & -15 \
30 & -5 \
60 & 5 \
90 & 15 \
120 & 25 \
150 & 35
\end{array}\
\begin{array}{rl}
\mathrm{N}& \mathrm{P} \
\hline 100 & 40 \
80 & 50 \
60 & 60 \
40 & 70 \
20 & 80 \
0 & 90
\end{array}
\begin{array}{rc}
\mathrm{R}& \mathrm{T} \
\hline 0 & -15 \
20 & -25 \
40 & -35 \
60 & -45 \
80 & -55 \
100 & -65
\end{array}
\begin{array}{rr}
\mathrm{U} & \mathrm{V }\
\hline 0 & 0 \
5 & 10 \
10 & 20 \
15 & 30 \
20 & 40 \
25 & 50
\end{array}$ Refer to the data sets.Which of the data sets would graph as an upsloping line?

Accepted Answer

A)  1 only. 
B)  1,2,and 3 only. 
C)  4 and 5 only. 
D)  1,2,and 5 only. 
A)  1 only. 
B)  1,2,and 3 only. 
C)  4 and 5 only. 
D)  1,2,and 5 only.

Question 5

Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students.This example illustrates:

Accepted Answer

A)  distorted priorities. 
B)  opportunity costs. 
C)  increasing opportunity costs. 
D)  productive efficiency. 
A)  distorted priorities. 
B)  opportunity costs. 
C)  increasing opportunity costs. 
D)  productive efficiency.

Question 6

An economic hypothesis:

Accepted Answer

A)  has the same meaning as an economic principle or economic law. 
B)  is usually a normative statement. 
C)  is a possible explanation of cause and effect. 
D)  is a stronger generalization than an economic law. 
A)  has the same meaning as an economic principle or economic law. 
B)  is usually a normative statement. 
C)  is a possible explanation of cause and effect. 
D)  is a stronger generalization than an economic law.

Question 7

The scientific method is:

Accepted Answer

A)  not applicable to economics because economics deals with human beings. 
B)  also known as the economic perspective. 
C)  analysis that moves from broad generalizations called laws to theories and then to hypotheses. 
D)  used by economists and other social scientists,as well as by physical scientists and life scientists,to formulate and test hypotheses. 
A)  not applicable to economics because economics deals with human beings. 
B)  also known as the economic perspective. 
C)  analysis that moves from broad generalizations called laws to theories and then to hypotheses. 
D)  used by economists and other social scientists,as well as by physical scientists and life scientists,to formulate and test hypotheses.

Question 8

The four factors of production are:

Accepted Answer

A)  land,labor,capital,and money. 
B)  land,labor,capital,and entrepreneurial ability. 
C)  labor,capital,technology,and entrepreneurial ability. 
D)  labor,capital,entrepreneurial ability,and money. 
A)  land,labor,capital,and money. 
B)  land,labor,capital,and entrepreneurial ability. 
C)  labor,capital,technology,and entrepreneurial ability. 
D)  labor,capital,entrepreneurial ability,and money.

Question 9

The economizing problem is one of deciding how to make the best use of:

Accepted Answer

A)  virtually unlimited resources to satisfy virtually unlimited wants. 
B)  limited resources to satisfy virtually unlimited wants. 
C)  unlimited resources to satisfy limited wants. 
D)  limited resources to satisfy limited wants. 
A)  virtually unlimited resources to satisfy virtually unlimited wants. 
B)  limited resources to satisfy virtually unlimited wants. 
C)  unlimited resources to satisfy limited wants. 
D)  limited resources to satisfy limited wants.

Question 10

Which of the following will enable a nation to obtain a combination of consumer goods and capital goods outside its production possibilities curve?

Accepted Answer

A)  Full employment. 
B)  International specialization and trade. 
C)  Full production. 
D)  Productive efficiency. 
A)  Full employment. 
B)  International specialization and trade. 
C)  Full production. 
D)  Productive efficiency.

Question 11

(Consider This)The assertion by economists that "there is no free lunch":

Accepted Answer

A)  is contradicted by the presence of free goods offered by firms. 
B)  applies to goods that have prices,not to goods given away free by firms. 
C)  remains true even for goods given away free by firms. 
D)  applies to agricultural goods but not to manufactured goods. 
A)  is contradicted by the presence of free goods offered by firms. 
B)  applies to goods that have prices,not to goods given away free by firms. 
C)  remains true even for goods given away free by firms. 
D)  applies to agricultural goods but not to manufactured goods.

Question 12

If we say that two variables are inversely related,this means that:

Accepted Answer

A)  the two graph as an upsloping line. 
B)  an increase in one variable is associated with a decrease in the other. 
C)  an increase in one variable is associated with an increase in the other. 
D)  the resulting relationship can be portrayed by a straight line parallel to the horizontal axis. 
A)  the two graph as an upsloping line. 
B)  an increase in one variable is associated with a decrease in the other. 
C)  an increase in one variable is associated with an increase in the other. 
D)  the resulting relationship can be portrayed by a straight line parallel to the horizontal axis.

Question 13

All of the following could immediately or eventually lead to an inward shift of a nation's production possibilities curve,except:

Accepted Answer

A)  emigration of skilled workers to other nations. 
B)  a decline in the birth rate. 
C)  an increase in the average skill level of all occupational groups. 
D)  depletion and reduced availability of major energy resources. 
A)  emigration of skilled workers to other nations. 
B)  a decline in the birth rate. 
C)  an increase in the average skill level of all occupational groups. 
D)  depletion and reduced availability of major energy resources.

Question 14

(Last Word)If variables X and Y are positively correlated,this means that:

Accepted Answer

A)  X is the cause of Y. 
B)  Y is the cause of X. 
C)  causation necessarily exists,but we don't know whether X or Y is the cause. 
D)  causation may or may not exist between X and Y. 
A)  X is the cause of Y. 
B)  Y is the cause of X. 
C)  causation necessarily exists,but we don't know whether X or Y is the cause. 
D)  causation may or may not exist between X and Y.

Question 15

The process by which capital goods are accumulated is known as investment.

Accepted Answer

A) True 
 B)False

Question 16

The process by which economists test hypotheses against facts to develop theories,principles,and models is called:

Accepted Answer

A)  the economic perspective. 
B)  the scientific method. 
C)  policy economics. 
D)  microeconomics. 
A)  the economic perspective. 
B)  the scientific method. 
C)  policy economics. 
D)  microeconomics.

Question 17

Which of the following is a capital resource?

Accepted Answer

A)  A computer programmer. 
B)  A corporate bond issued by a computer manufacturer. 
C)  Silicon (sand)used to make computer chips. 
D)  A piece of software used by a firm. 
A)  A computer programmer. 
B)  A corporate bond issued by a computer manufacturer. 
C)  Silicon (sand)used to make computer chips. 
D)  A piece of software used by a firm.

Question 18

Economists contend that most economic decisions are:

Accepted Answer

A)  random. 
B)  chaotic. 
C)  spontaneous. 
D)  purposeful. 
A)  random. 
B)  chaotic. 
C)  spontaneous. 
D)  purposeful.

Question 19

The study of economics is primarily concerned with:

Accepted Answer

A)  keeping private businesses from losing money. 
B)  demonstrating that capitalistic economies are superior to socialistic economies. 
C)  choices that are made in seeking the best use of resources. 
D)  determining the most equitable distribution of society's output. 
A)  keeping private businesses from losing money. 
B)  demonstrating that capitalistic economies are superior to socialistic economies. 
C)  choices that are made in seeking the best use of resources. 
D)  determining the most equitable distribution of society's output.

Question 20

Purposeful behavior implies that everyone will make identical choices.

Accepted Answer

A) True 
 B)False

(Last Word)Which of the following has to do with the problem of distinguishing cause and effect in economic reasoning?

Microeconomics:

Any point inside the production possibilities curve indicates:

Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students.This example illustrates:

An economic hypothesis:

The scientific method is:

The four factors of production are:

The economizing problem is one of deciding how to make the best use of:

Which of the following will enable a nation to obtain a combination of consumer goods and capital goods outside its production possibilities curve?

(Consider This)The assertion by economists that "there is no free lunch":

If we say that two variables are inversely related,this means that:

All of the following could immediately or eventually lead to an inward shift of a nation's production possibilities curve,except:

(Last Word)If variables X and Y are positively correlated,this means that:

The process by which capital goods are accumulated is known as investment.

The process by which economists test hypotheses against facts to develop theories,principles,and models is called:

Which of the following is a capital resource?

Economists contend that most economic decisions are:

The study of economics is primarily concerned with:

Purposeful behavior implies that everyone will make identical choices.

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

(Last Word)Which of the following has to do with the problem of distinguishing cause and effect in economic reasoning?

Microeconomics:

Any point inside the production possibilities curve indicates:

Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students.This example illustrates:

An economic hypothesis:

The scientific method is:

The four factors of production are:

The economizing problem is one of deciding how to make the best use of:

Which of the following will enable a nation to obtain a combination of consumer goods and capital goods outside its production possibilities curve?

(Consider This)The assertion by economists that "there is no free lunch":

If we say that two variables are inversely related,this means that:

All of the following could immediately or eventually lead to an inward shift of a nation's production possibilities curve,except:

(Last Word)If variables X and Y are positively correlated,this means that:

The process by which capital goods are accumulated is known as investment.

The process by which economists test hypotheses against facts to develop theories,principles,and models is called:

Which of the following is a capital resource?

Economists contend that most economic decisions are:

The study of economics is primarily concerned with:

Purposeful behavior implies that everyone will make identical choices.

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