Question 1

Information plays an important role in the market because it allows:

Accepted Answer

A)  market participants to make good decisions based on cost-benefit analysis. 
B)  sellers to "pad" their sales pitch. 
C)  the media to grow in importance. 
D)  managers to make more risky decisions. 
A)  market participants to make good decisions based on cost-benefit analysis. 
B)  sellers to "pad" their sales pitch. 
C)  the media to grow in importance. 
D)  managers to make more risky decisions. A

Question 2

The decisions made by individuals and firms are covered in microeconomics.

Accepted Answer

A) True 
 B)False  True

Question 3

The basic idea of opportunity cost is that:

Accepted Answer

A)  buyers miss opportunities to find better bargains. 
B)  using resources in an activity imposes costs on other people. 
C)  the decision to use resources in one activity means that they cannot be used elsewhere. 
D)  economic agents are always looking for better opportunities. 
A)  buyers miss opportunities to find better bargains. 
B)  using resources in an activity imposes costs on other people. 
C)  the decision to use resources in one activity means that they cannot be used elsewhere. 
D)  economic agents are always looking for better opportunities. C

Question 4

Stylized economic models must include:

Accepted Answer

A)  assumptions. 
B)  inflation. 
C)  money. 
D)  complexity. 
A)  assumptions. 
B)  inflation. 
C)  money. 
D)  complexity.

Question 5

What drives and disciplines markets?

Accepted Answer

A)  equity 
B)  prices and profits 
C)  ceteris paribus assumptions 
D)  efficiency 
A)  equity 
B)  prices and profits 
C)  ceteris paribus assumptions 
D)  efficiency

Question 6

Choosing to work an extra hour of overtime is an example of:

Accepted Answer

A)  thinking at the margin. 
B)  efficiency. 
C)  equity. 
D)  market equilibrium. 
A)  thinking at the margin. 
B)  efficiency. 
C)  equity. 
D)  market equilibrium.

Question 7

Resources are:

Accepted Answer

A)  unlimited but wants are limited. 
B)  limited but efficiency is unlimited. 
C)  limited but wants are unlimited. 
D)  unlimited but efficiency is limited. 
A)  unlimited but wants are limited. 
B)  limited but efficiency is unlimited. 
C)  limited but wants are unlimited. 
D)  unlimited but efficiency is limited.

Question 8

Supply and demand analysis is used:

Accepted Answer

A)  only in microeconomics. 
B)  only in macroeconomics. 
C)  in both microeconomics and macroeconomics. 
D)  in neither microeconomics nor macroeconomics. 
A)  only in microeconomics. 
B)  only in macroeconomics. 
C)  in both microeconomics and macroeconomics. 
D)  in neither microeconomics nor macroeconomics.

Question 9

Government intervention in the market is helpful when:

Accepted Answer

A)  consumers are free to buy from a number of different firms. 
B)  consumers and firms have good information. 
C)  firms face increasing competition from new entrants into the market. 
D)  business firms engage in production activities that pollute the air and water. 
A)  consumers are free to buy from a number of different firms. 
B)  consumers and firms have good information. 
C)  firms face increasing competition from new entrants into the market. 
D)  business firms engage in production activities that pollute the air and water.

Question 10

If variable S falls as variable X falls,then S and X have a positive relationship and the slope of the line is positive.

Accepted Answer

A) True 
 B)False

Question 11

If temperature and ice cream sales are positively related,as the temperature:

Accepted Answer

A)  rises,ice cream sales fall. 
B)  rises,ice cream sales stay the same. 
C)  falls,ice cream sales decline. 
D)  falls,ice cream sales rise. 
A)  rises,ice cream sales fall. 
B)  rises,ice cream sales stay the same. 
C)  falls,ice cream sales decline. 
D)  falls,ice cream sales rise.

Question 12

Ceteris paribus means:

Accepted Answer

A)  everything changes. 
B)  everything is held constant. 
C)  other things being equal. 
D)  nothing changes. 
A)  everything changes. 
B)  everything is held constant. 
C)  other things being equal. 
D)  nothing changes.

Question 13

All of the following fall under the category of microeconomics,EXCEPT:

Accepted Answer

A)  cooks at McDonalds supply labor in return for wages. 
B)  the cost of living has risen due to rising housing and food prices. 
C)  Jonathan decided to go to the movies instead of go to work. 
D)  Pepsi experienced an increase in revenue last quarter. 
A)  cooks at McDonalds supply labor in return for wages. 
B)  the cost of living has risen due to rising housing and food prices. 
C)  Jonathan decided to go to the movies instead of go to work. 
D)  Pepsi experienced an increase in revenue last quarter.

Question 14

Suppose that a store sells candy bars for $0.89 for one,and $1.50 for two.The marginal cost of the second candy bar is:

Accepted Answer

A)  $0.61. 
B)  $0.75. 
C)  $0.89. 
D)  $1.50. 
A)  $0.61. 
B)  $0.75. 
C)  $0.89. 
D)  $1.50.

Question 15

Time series graphs allow us to see trends in one variable over a set time frame.

Accepted Answer

A) True 
 B)False

Question 16

The opportunity cost of undertaking an activity is defined as the:

Accepted Answer

A)  cost forgone by not undertaking another activity. 
B)  monetary cost of undertaking that activity. 
C)  benefit forgone by not undertaking the next-best activity. 
D)  monetary benefit of undertaking that activity. 
A)  cost forgone by not undertaking another activity. 
B)  monetary cost of undertaking that activity. 
C)  benefit forgone by not undertaking the next-best activity. 
D)  monetary benefit of undertaking that activity.

Question 17

Macroeconomics deals with aggregate variables and microeconomics deals with individual issues.

Accepted Answer

A) True 
 B)False

Question 18

Use the following to answer question
Figure: Weight Loss and Exercise Time  
-(Figure: Weight Loss and Exercise Time)According to the data in the graph,where weight loss is shown on the y axis,every 2 extra hours of exercise:

Accepted Answer

A)  increases weight by 1 pound. 
B)  decreases weight by 1/2 pound. 
C)  decreases weight by 1 pound. 
D)  increases weight by 1/2 pound. 
A)  increases weight by 1 pound. 
B)  decreases weight by 1/2 pound. 
C)  decreases weight by 1 pound. 
D)  increases weight by 1/2 pound.

Question 19

Model building leads to theories that must then be tested.

Accepted Answer

A) True 
 B)False

Question 20

Economics deals only with financial issues.

Accepted Answer

A) True 
 B)False

Information plays an important role in the market because it allows:

The decisions made by individuals and firms are covered in microeconomics.

The basic idea of opportunity cost is that:

Stylized economic models must include:

What drives and disciplines markets?

Choosing to work an extra hour of overtime is an example of:

Resources are:

Supply and demand analysis is used:

Government intervention in the market is helpful when:

If variable S falls as variable X falls,then S and X have a positive relationship and the slope of the line is positive.

If temperature and ice cream sales are positively related,as the temperature:

Ceteris paribus means:

All of the following fall under the category of microeconomics,EXCEPT:

Suppose that a store sells candy bars for $0.89 for one,and $1.50 for two.The marginal cost of the second candy bar is:

Time series graphs allow us to see trends in one variable over a set time frame.

The opportunity cost of undertaking an activity is defined as the:

Macroeconomics deals with aggregate variables and microeconomics deals with individual issues.

Use the following to answer question Figure: Weight Loss and Exercise Time -(Figure: Weight Loss and Exercise Time)According to the data in the graph,where weight loss is shown on the y axis,every 2 extra hours of exercise:

Model building leads to theories that must then be tested.

Economics deals only with financial issues.

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomic

Filters

Exam 1: Exploring Economics

Information plays an important role in the market because it allows:

The decisions made by individuals and firms are covered in microeconomics.

The basic idea of opportunity cost is that:

Stylized economic models must include:

What drives and disciplines markets?

Choosing to work an extra hour of overtime is an example of:

Resources are:

Supply and demand analysis is used:

Government intervention in the market is helpful when:

If variable S falls as variable X falls,then S and X have a positive relationship and the slope of the line is positive.

If temperature and ice cream sales are positively related,as the temperature:

Ceteris paribus means:

All of the following fall under the category of microeconomics,EXCEPT:

Suppose that a store sells candy bars for $0.89 for one,and $1.50 for two.The marginal cost of the second candy bar is:

Time series graphs allow us to see trends in one variable over a set time frame.

The opportunity cost of undertaking an activity is defined as the:

Macroeconomics deals with aggregate variables and microeconomics deals with individual issues.

Use the following to answer question Figure: Weight Loss and Exercise Time -(Figure: Weight Loss and Exercise Time)According to the data in the graph,where weight loss is shown on the y axis,every 2 extra hours of exercise:

Model building leads to theories that must then be tested.

Economics deals only with financial issues.

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomic

Filters