Question 1

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces,then $50 is the marginal cost of producing the 5th necklace.

Accepted Answer

A) True 
 B)False

Question 2

A college must decide if it wants to offer more adult literacy classes.This decision involves answering the economic question of "for whom to produce."

Accepted Answer

A) True 
 B)False

Question 3

All of the following are part of an economic model except

Accepted Answer

A)  assumptions. 
B)  hypotheses. 
C)  data. 
D)  opinions. 
A)  assumptions. 
B)  hypotheses. 
C)  data. 
D)  opinions.

Question 4

"The distribution of income should be determined by the government" is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 5

If it costs Sinclair $300 to produce 3 suede jackets and $420 to produce 4 suede jackets,then the difference of $120 is the marginal cost of producing the 4th suede jacket.

Accepted Answer

A) True 
 B)False

Question 6

The government makes all economic decisions in a market economy.

Accepted Answer

A) True 
 B)False

Question 7

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

Accepted Answer

A)  equitably 
B)  rationally 
C)  emotionally 
D)  selfishly 
A)  equitably 
B)  rationally 
C)  emotionally 
D)  selfishly

Question 8

Examining the conditions that could lead to unemployment in an economy is an example of microeconomics topic.

Accepted Answer

A) True 
 B)False

Question 9

The relationship between consumer spending and disposable personal income is

Accepted Answer

A)  an inverse relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  independent. 
A)  an inverse relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  independent.

Question 10

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Accepted Answer

A)  an additional unit 
B)  the total number of units 
C)  no units 
D)  only profitable units 
A)  an additional unit 
B)  the total number of units 
C)  no units 
D)  only profitable units

Question 11

Explain why economics is considered a social science.

Accepted Answer

Economics is a social science

Question 12

Which of the following is motivated by an efficiency concern?

Accepted Answer

A)  In December 2006, the Bush administration restarted a short-term housing assistance program for victims of Hurricane Katrina. 
B)  Each year, the University of Notre Dame conducts a lottery to parcel out the 30,000 seats available to contributors, former athletes and parents in the 80,000-seat stadium. 
C)  The United Network for Organ Sharing advocates a system of rationing scarce kidneys that would favor young patients over old in an effort to wring more life out of donated organs. 
D)  The federal government's housing choice voucher program assists very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. 
A)  In December 2006, the Bush administration restarted a short-term housing assistance program for victims of Hurricane Katrina. 
B)  Each year, the University of Notre Dame conducts a lottery to parcel out the 30,000 seats available to contributors, former athletes and parents in the 80,000-seat stadium. 
C)  The United Network for Organ Sharing advocates a system of rationing scarce kidneys that would favor young patients over old in an effort to wring more life out of donated organs. 
D)  The federal government's housing choice voucher program assists very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.

Question 13

Suppose that to increase sales of hybrid vehicles,auto manufacturers are offering large cash incentives.This is an example of a macroeconomics topic.

Accepted Answer

A) True 
 B)False

Question 14

Economic models do all of the following except

Accepted Answer

A)  answer economic questions. 
B)  portray reality in all its minute details. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  simplify some aspect of economic life. 
A)  answer economic questions. 
B)  portray reality in all its minute details. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  simplify some aspect of economic life.

Question 15

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Accepted Answer

A)  revenue received from 
B)  extra cost of 
C)  total value of 
D)  sales tax on 
A)  revenue received from 
B)  extra cost of 
C)  total value of 
D)  sales tax on

Question 16

The U.S.Bureau of Labor Statistics predicts that 9 of the 20 fastest growing occupations over the next ten years will be in

Accepted Answer

A)  the medical field. 
B)  the travel and leisure industry. 
C)  education. 
D)  construction. 
A)  the medical field. 
B)  the travel and leisure industry. 
C)  education. 
D)  construction.

Question 17

What is a marginal cost?

Accepted Answer

Marginal cost is the

Question 18

Technology is defined as

Accepted Answer

A)  the process of developing and revising models. 
B)  new innovations and creations. 
C)  the processes used to produce goods and services. 
D)  the process of recycling products. 
A)  the process of developing and revising models. 
B)  new innovations and creations. 
C)  the processes used to produce goods and services. 
D)  the process of recycling products.

Question 19

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics?
a.gasoline prices
b.unemployment
c.inflation
d.health care costs
e.air pollution
f.economic growth

Accepted Answer

b,c,and f are primar

Question 20

In economics,the accumulated skills and training that workers have is known as

Accepted Answer

A)  human capital. 
B)  entrepreneurship. 
C)  physical capital. 
D)  innovation. 
A)  human capital. 
B)  entrepreneurship. 
C)  physical capital. 
D)  innovation.

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces,then $50 is the marginal cost of producing the 5th necklace.

A college must decide if it wants to offer more adult literacy classes.This decision involves answering the economic question of "for whom to produce."

All of the following are part of an economic model except

"The distribution of income should be determined by the government" is an example of a positive economic statement.

If it costs Sinclair $300 to produce 3 suede jackets and $420 to produce 4 suede jackets,then the difference of $120 is the marginal cost of producing the 4th suede jacket.

The government makes all economic decisions in a market economy.

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

Examining the conditions that could lead to unemployment in an economy is an example of microeconomics topic.

The relationship between consumer spending and disposable personal income is

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Explain why economics is considered a social science.

Which of the following is motivated by an efficiency concern?

Suppose that to increase sales of hybrid vehicles,auto manufacturers are offering large cash incentives.This is an example of a macroeconomics topic.

Economic models do all of the following except

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

The U.S.Bureau of Labor Statistics predicts that 9 of the 20 fastest growing occupations over the next ten years will be in

What is a marginal cost?

Technology is defined as

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a.gasoline prices b.unemployment c.inflation d.health care costs e.air pollution f.economic growth

In economics,the accumulated skills and training that workers have is known as

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice,taxes,and the Distribution of Income

Filters

Exam 1: Economics: Foundations and Models

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces,then $50 is the marginal cost of producing the 5th necklace.

A college must decide if it wants to offer more adult literacy classes.This decision involves answering the economic question of "for whom to produce."

All of the following are part of an economic model except

"The distribution of income should be determined by the government" is an example of a positive economic statement.

If it costs Sinclair $300 to produce 3 suede jackets and $420 to produce 4 suede jackets,then the difference of $120 is the marginal cost of producing the 4th suede jacket.

The government makes all economic decisions in a market economy.

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

Examining the conditions that could lead to unemployment in an economy is an example of microeconomics topic.

The relationship between consumer spending and disposable personal income is

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Explain why economics is considered a social science.

Which of the following is motivated by an efficiency concern?

Suppose that to increase sales of hybrid vehicles,auto manufacturers are offering large cash incentives.This is an example of a macroeconomics topic.

Economic models do all of the following except

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

The U.S.Bureau of Labor Statistics predicts that 9 of the 20 fastest growing occupations over the next ten years will be in

What is a marginal cost?

Technology is defined as

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a.gasoline prices b.unemployment c.inflation d.health care costs e.air pollution f.economic growth

In economics,the accumulated skills and training that workers have is known as

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice,taxes,and the Distribution of Income

Filters