Question 1

Rational economic decision makers will make a change only if:

Accepted Answer

A) the change is free of risk. 
B) there are no costs involved. 
C) their expectations are correct. 
D) there is no uncertainty about the results of the change. 
E) the expected marginal benefit exceeds expected marginal cost. 
A) the change is free of risk. 
B) there are no costs involved. 
C) their expectations are correct. 
D) there is no uncertainty about the results of the change. 
E) the expected marginal benefit exceeds expected marginal cost.

Question 2

A rational individual gives more to charity when such contributions receive favorable tax treatment.

Accepted Answer

A) True 
 B)False

Question 3

The ceteris paribus assumption is a behavioral assumption.

Accepted Answer

A) True 
 B)False

Question 4

To tell a compelling story,an economist relies on:

Accepted Answer

A) case studies and parables. 
B) anecdotes and personal experiences. 
C) irrelevant data. 
D) anecdotes and irrelevant data. 
E) case studies,anecdotes,parables,personal experience,and supporting data. 
A) case studies and parables. 
B) anecdotes and personal experiences. 
C) irrelevant data. 
D) anecdotes and irrelevant data. 
E) case studies,anecdotes,parables,personal experience,and supporting data.

Question 5

In a 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 6

Economics:

Accepted Answer

A) studies human behavior when scarcity exists and choices must be made. 
B) provides the only reasonable explanation of how people make decisions. 
C) can accurately explain all human behavior since it is based on the assumption of rationality. 
D) is better at showing the way things ought to be than the other social sciences. 
E) is the only social science that can explain the existence and behavior of public institutions. 
A) studies human behavior when scarcity exists and choices must be made. 
B) provides the only reasonable explanation of how people make decisions. 
C) can accurately explain all human behavior since it is based on the assumption of rationality. 
D) is better at showing the way things ought to be than the other social sciences. 
E) is the only social science that can explain the existence and behavior of public institutions.

Question 7

Scarcity:

Accepted Answer

A) applies to a brain surgeon but not to a cab driver. 
B) is not a problem for a politician. 
C) exists only in rich countries. 
D) exists only in poor countries. 
E) occurs when a resource is not freely available. 
A) applies to a brain surgeon but not to a cab driver. 
B) is not a problem for a politician. 
C) exists only in rich countries. 
D) exists only in poor countries. 
E) occurs when a resource is not freely available.

Question 8

As resources are scarce,_____

Accepted Answer

A) opportunity costs are zero. 
B) people must make choices among alternatives. 
C) all human wants and desires can be satisfied. 
D) resource prices are fixed. 
E) commodities are free. 
A) opportunity costs are zero. 
B) people must make choices among alternatives. 
C) all human wants and desires can be satisfied. 
D) resource prices are fixed. 
E) commodities are free.

Question 9

The behavior of the entertainment industry in a city is a microeconomics topic.

Accepted Answer

A) True 
 B)False

Question 10

Economists classify all of the following as physical capital,except one.Which one is not capital?

Accepted Answer

A) A $20 bill in a firm's petty cash drawer 
B) The building where an economics class meets 
C) A plumber's wrench 
D) A railroad car 
E) A factory 
A) A $20 bill in a firm's petty cash drawer 
B) The building where an economics class meets 
C) A plumber's wrench 
D) A railroad car 
E) A factory

Rational economic decision makers will make a change only if:

A rational individual gives more to charity when such contributions receive favorable tax treatment.

The ceteris paribus assumption is a behavioral assumption.

To tell a compelling story,an economist relies on:

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

Economics:

Scarcity:

As resources are scarce,_____

The behavior of the entertainment industry in a city is a microeconomics topic.

Economists classify all of the following as physical capital,except one.Which one is not capital?

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 1: The Art and Science of Economic Analysis

Rational economic decision makers will make a change only if:

A rational individual gives more to charity when such contributions receive favorable tax treatment.

The ceteris paribus assumption is a behavioral assumption.

To tell a compelling story,an economist relies on:

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

Economics:

Scarcity:

As resources are scarce,_____

The behavior of the entertainment industry in a city is a microeconomics topic.

Economists classify all of the following as physical capital,except one.Which one is not capital?

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters