Question 1

An economist's main professional objective is to _____

Accepted Answer

A) become wealthy. 
B) control the government's decision-making processes. 
C) understand how the economy works. 
D) discover which stock prices will decrease. 
E) understand the psychology of participants in markets. 
A) become wealthy. 
B) control the government's decision-making processes. 
C) understand how the economy works. 
D) discover which stock prices will decrease. 
E) understand the psychology of participants in markets.

Question 2

Labor is the physical and mental effort used to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 3

Economic theory allows economists to predict the behavior of a specific person or firm.

Accepted Answer

A) True 
 B)False

Question 4

To tell a compelling story,an economist relies on _____

Accepted Answer

A) mathematical calculations. 
B) complex models. 
C) irrelevant data. 
D) anecdotes and irrelevant data. 
E) case studies, anecdotes, parables, personal experience, and supporting data. 
A) mathematical calculations. 
B) complex models. 
C) irrelevant data. 
D) anecdotes and irrelevant data. 
E) case studies, anecdotes, parables, personal experience, and supporting data.

Question 5

In economics,capital refers to _____

Accepted Answer

A) wages earned by workers. 
B) dividends and interest earned by investors. 
C) the foreign reserves held by governments. 
D) machines, buildings, tools, and knowledge. 
E) the net worth of firms. 
A) wages earned by workers. 
B) dividends and interest earned by investors. 
C) the foreign reserves held by governments. 
D) machines, buildings, tools, and knowledge. 
E) the net worth of firms.

Question 6

You want to sell your old iPad to your cousin,who wants to give you $200 for it.You will have to pay to ship the iPad to your cousin.As a rational decision maker,you should sell your iPad if the shipping fee is _____

Accepted Answer

A) $350. 
B) $250. 
C) $301. 
D) $299. 
E) $199. 
A) $350. 
B) $250. 
C) $301. 
D) $299. 
E) $199.

Question 7

Macroeconomists analyze _____

Accepted Answer

A) the role of labor unions in industries. 
B) the effect of a tariff on the demand for a good. 
C) the factors that influence the spending decisions of particular households. 
D) the impact of unemployment on the growth rate of an economy. 
E) the factors that affect the output decisions of individual firms. 
A) the role of labor unions in industries. 
B) the effect of a tariff on the demand for a good. 
C) the factors that influence the spending decisions of particular households. 
D) the impact of unemployment on the growth rate of an economy. 
E) the factors that affect the output decisions of individual firms.

Question 8

A resource is something that _____

Accepted Answer

A) is used to produce goods and services. 
B) is provided by nature, and not produced by society. 
C) exists in unlimited quantities in developed countries. 
D) must be produced by a firm. 
E) is always available free of cost. 
A) is used to produce goods and services. 
B) is provided by nature, and not produced by society. 
C) exists in unlimited quantities in developed countries. 
D) must be produced by a firm. 
E) is always available free of cost.

Question 9

Exhibit 1.3
  
-Refer to Exhibit 1.3 of the Scientific Method: Step-by-Step.Step 4 is _____

Accepted Answer

A) Formulate a hypothesis. 
B) Test the hypothesis. 
C) Identify the question and define relevant variables. 
D) Use the hypothesis until a better one shows up. 
E) Specify assumptions. 
A) Formulate a hypothesis. 
B) Test the hypothesis. 
C) Identify the question and define relevant variables. 
D) Use the hypothesis until a better one shows up. 
E) Specify assumptions.

Question 10

Profit is the payment made for land resources.

Accepted Answer

A) True 
 B)False

Question 11

Rent is the payment received by resource owners for the use of their natural resources.

Accepted Answer

A) True 
 B)False

Question 12

Scarcity occurs when the amount people desire is less than the amount available at a zero price.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the best definition of economics?

Accepted Answer

A) An investigation of the evolutionary process of mankind 
B) A study of society as a system of interconnected parts 
C) A study of how people deal with the problem of scarcity 
D) An examination of the structure and the role of the government in an economy 
E) A study of how to conduct free and fair elections in a country 
A) An investigation of the evolutionary process of mankind 
B) A study of society as a system of interconnected parts 
C) A study of how people deal with the problem of scarcity 
D) An examination of the structure and the role of the government in an economy 
E) A study of how to conduct free and fair elections in a country

Question 14

Table 1.1
 $$\begin{array} { | l | l | } 
\hline \text { Hours } & \text { Revenue } \
\hline 1 & 10 \
\hline 2 & 20 \
\hline 3 & 30 \
\hline 4 & 40 \
\hline 5 & 50 \
\hline
\end{array}$$ Sergio tutors fellow students for $10 an hour.
-Refer to Table 1.1.What is Sergio's marginal benefit if he tutors for three hours instead of two hours?

Accepted Answer

A) $50 
B) $40 
C) $30 
D) $20 
E) $10 
A) $50 
B) $40 
C) $30 
D) $20 
E) $10

Question 15

Economics is as much an art as it is a science.

Accepted Answer

A) True 
 B)False

Question 16

Goods and services are bought and sold in _____

Accepted Answer

A) product markets. 
B) resource markets. 
C) foreign exchange markets. 
D) the stock market. 
E) the spot market. 
A) product markets. 
B) resource markets. 
C) foreign exchange markets. 
D) the stock market. 
E) the spot market.

Question 17

Rational self-interest is equivalent to pure selfishness.

Accepted Answer

A) True 
 B)False

Question 18

In the circular-flow model,households supply all of the following except _____

Accepted Answer

A) labor. 
B) goods and services. 
C) capital. 
D) entrepreneurial ability. 
E) natural resources. 
A) labor. 
B) goods and services. 
C) capital. 
D) entrepreneurial ability. 
E) natural resources.

Question 19

Which of the following sentences is the best example of scarcity of time?

Accepted Answer

A) Peter buys a hamburger. 
B) John-Michael wants to spend his money on a new hoverboard. 
C) Alexander is doing homework instead of going to the movies with his friends. 
D) Amanda, a geography teacher, is retired and spends her time gardening. 
E) Bill is unemployed. 
A) Peter buys a hamburger. 
B) John-Michael wants to spend his money on a new hoverboard. 
C) Alexander is doing homework instead of going to the movies with his friends. 
D) Amanda, a geography teacher, is retired and spends her time gardening. 
E) Bill is unemployed.

Question 20

Given that consumers need time and information to make good choices,which of the following is correct?

Accepted Answer

A) Paying for information is a waste of money. 
B) Acquiring more information is always rational. 
C) Brand names offer no informational content. 
D) Consumers are willing to pay for information that improves choices. 
E) Marginal analysis does not apply to the acquisition of information. 
A) Paying for information is a waste of money. 
B) Acquiring more information is always rational. 
C) Brand names offer no informational content. 
D) Consumers are willing to pay for information that improves choices. 
E) Marginal analysis does not apply to the acquisition of information.

Exam 1: The Art and Science of Economic Analysis

An economist's main professional objective is to _____

Labor is the physical and mental effort used to produce goods and services.

Economic theory allows economists to predict the behavior of a specific person or firm.

To tell a compelling story,an economist relies on _____

In economics,capital refers to _____

You want to sell your old iPad to your cousin,who wants to give you $200 for it.You will have to pay to ship the iPad to your cousin.As a rational decision maker,you should sell your iPad if the shipping fee is _____

Macroeconomists analyze _____

A resource is something that _____

Exhibit 1.3 -Refer to Exhibit 1.3 of the Scientific Method: Step-by-Step.Step 4 is _____

Profit is the payment made for land resources.

Rent is the payment received by resource owners for the use of their natural resources.

Scarcity occurs when the amount people desire is less than the amount available at a zero price.

Which of the following is the best definition of economics?

Table 1.1 Hours Revenue 1 10 2 20 3 30 4 40 5 50 Sergio tutors fellow students for $10 an hour. -Refer to Table 1.1.What is Sergio's marginal benefit if he tutors for three hours instead of two hours?

Economics is as much an art as it is a science.

Goods and services are bought and sold in _____

Rational self-interest is equivalent to pure selfishness.

In the circular-flow model,households supply all of the following except _____

Which of the following sentences is the best example of scarcity of time?

Given that consumers need time and information to make good choices,which of the following is correct?

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, interest, entrepreneurship, and Corporate Finance

Transaction Costs, asymmetric Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Poverty and Redistribution

International Trade

International Finance

Economic Development

Filters