Question 1

The _____ is the absolute price of a good or service that has been adjusted for the changing value of money.

Accepted Answer

A) market price 
B) choke price 
C) nominal price 
D) real price 
A) market price 
B) choke price 
C) nominal price 
D) real price

Question 2

In microeconomics,the term price generally refers to the:

Accepted Answer

A) relative price of an item. 
B) dollar price of an item. 
C) absolute price of an item. 
D) choke price of an item. 
A) relative price of an item. 
B) dollar price of an item. 
C) absolute price of an item. 
D) choke price of an item.

Question 3

Which of the following is an example of a positive economic statement?

Accepted Answer

A) The distribution of income in the United States should be more equal. 
B) The after-tax distribution of income is more equal than the pre-tax distribution of income. 
C) The tax system should be more progressive so that the after-tax distribution of income can be more equal. 
D) The government should not be involved in the income redistribution schemes. 
A) The distribution of income in the United States should be more equal. 
B) The after-tax distribution of income is more equal than the pre-tax distribution of income. 
C) The tax system should be more progressive so that the after-tax distribution of income can be more equal. 
D) The government should not be involved in the income redistribution schemes.

Question 4

What is the opportunity cost of going to college? What is the opportunity cost of attending class?

Accepted Answer

The answer should include the direct,exp

Question 5

If a production possibility frontier (PPF)is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

Accepted Answer

A) an increasing opportunity cost of producing T-shirts. 
B) an increasing opportunity cost of producing shoes. 
C) constant opportunity cost of producing T-shirts. 
D) constant opportunity cost of producing shoes. 
A) an increasing opportunity cost of producing T-shirts. 
B) an increasing opportunity cost of producing shoes. 
C) constant opportunity cost of producing T-shirts. 
D) constant opportunity cost of producing shoes.

Question 6

Economic theory:

Accepted Answer

A) can determine which public policy is the most desirable. 
B) tries to account for all possible influences. 
C) is a tool for understanding economic relationships. 
D) uses no assumptions in deriving results. 
A) can determine which public policy is the most desirable. 
B) tries to account for all possible influences. 
C) is a tool for understanding economic relationships. 
D) uses no assumptions in deriving results.

Question 7

In the production possibility frontier in Figure 1-1,which point(s)is (are)efficient?

Accepted Answer

A) A,B,and C 
B) A and E 
C) B and C 
D) E 
A) A,B,and C 
B) A and E 
C) B and C 
D) E

Question 8

The opportunity cost of traffic congestion includes:

Accepted Answer

A) lower use of gasoline. 
B) longer commuting time to work. 
C) more fuel efficient cars. 
D) more freeways being built. 
A) lower use of gasoline. 
B) longer commuting time to work. 
C) more fuel efficient cars. 
D) more freeways being built.

Question 9

The production possibility frontier in Figure 1-1 exhibits _____ opportunity cost of apples.

Accepted Answer

A) increasing 
B) decreasing 
C) constant 
D) zero 
A) increasing 
B) decreasing 
C) constant 
D) zero

Question 10

Write down a normative statement and a positive statement with reference to the minimum wage and then explain each.

Accepted Answer

'Higher minimum wages lead to limited em

Question 11

Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:

Accepted Answer

A) increased by 20 percent during this period. 
B) increased by 100 percent during this period. 
C) increased by 200 percent during this period. 
D) increased by 300 percent during this period. 
A) increased by 20 percent during this period. 
B) increased by 100 percent during this period. 
C) increased by 200 percent during this period. 
D) increased by 300 percent during this period.

Question 12

Rubber,a major cash crop in Country X,reported a significant decline in production during a certain year.The government set up two committees,one of which was assigned the task of investigating the cause of the drop in production while the other was asked to prescribe a recovery policy.Suggest a positive and a normative statement made by each of these two groups within this context.

Accepted Answer

The first committee that has been assign

The _____ is the absolute price of a good or service that has been adjusted for the changing value of money.

In microeconomics,the term price generally refers to the:

Which of the following is an example of a positive economic statement?

What is the opportunity cost of going to college? What is the opportunity cost of attending class?

If a production possibility frontier (PPF)is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

Economic theory:

In the production possibility frontier in Figure 1-1,which point(s)is (are)efficient?

The opportunity cost of traffic congestion includes:

The production possibility frontier in Figure 1-1 exhibits _____ opportunity cost of apples.

Write down a normative statement and a positive statement with reference to the minimum wage and then explain each.

Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

Exam 1: An Introduction to Microeconomics

The _____ is the absolute price of a good or service that has been adjusted for the changing value of money.

In microeconomics,the term price generally refers to the:

Which of the following is an example of a positive economic statement?

What is the opportunity cost of going to college? What is the opportunity cost of attending class?

If a production possibility frontier (PPF)is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

Economic theory:

In the production possibility frontier in Figure 1-1,which point(s)is (are)efficient?

The opportunity cost of traffic congestion includes:

The production possibility frontier in Figure 1-1 exhibits _____ opportunity cost of apples.

Write down a normative statement and a positive statement with reference to the minimum wage and then explain each.

Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters