Question 1

Allocative efficiency occurs when:

Accepted Answer

A)  production is allocated equally among all citizens. 
B)  people who wants a product the most gets it. 
C)  goods are produced at the lowest possible cost. 
D)  resources are equally allocated between the private and public sectors of the economy. 
A)  production is allocated equally among all citizens. 
B)  people who wants a product the most gets it. 
C)  goods are produced at the lowest possible cost. 
D)  resources are equally allocated between the private and public sectors of the economy.

Question 2

Government intervention in the market is helpful when:

Accepted Answer

A)  consumers are free to buy from many different firms. 
B)  consumers are forced to buy from just one firm. 
C)  business firms face increasing competition from new entrants into the market. 
D)  business firms always use the cleanest technologies available to mitigate pollution. 
A)  consumers are free to buy from many different firms. 
B)  consumers are forced to buy from just one firm. 
C)  business firms face increasing competition from new entrants into the market. 
D)  business firms always use the cleanest technologies available to mitigate pollution.

Question 3

Excessive pollution is an example of market failure.

Accepted Answer

A) True 
 B)False

Question 4

Use the following to answer questions 
Figure: Sales and Advertising  
-(Figure: Sales and Advertising)The graph shows the advertising expenditures and the resulting sales (in bottles)of a new caffeinated beverage called Jump.If the company that manufactures Jump spends $3,000 on advertising,how many bottles of Jump will it sell?

Accepted Answer

A)  13,500 
B)  9,000 
C)  10,000 
D)  7,000 
A)  13,500 
B)  9,000 
C)  10,000 
D)  7,000

Question 5

Which of the following concepts would be addressed by microeconomics?

Accepted Answer

A)  national unemployment rate 
B)  reasons for a decline in a country's total output 
C)  price of college tuition that an individual student pays 
D)  inflation rate in Brazil 
A)  national unemployment rate 
B)  reasons for a decline in a country's total output 
C)  price of college tuition that an individual student pays 
D)  inflation rate in Brazil

Question 6

Scarcity is best defined as when the quantity demanded exceeds quantity supplied.

Accepted Answer

A) True 
 B)False

Question 7

Evaluate the following statement: "To be useful,a model must be completely realistic."

Accepted Answer

This statement is NOT true.To be useful,

Question 8

Which of the following statements does NOT describe model building in economics?

Accepted Answer

A)  Models are developed to cover specific behaviors only. 
B)  Models are created and then tested. 
C)  Models are used to help understand the general economy. 
D)  Assumptions are used to analyze an economic issue. 
A)  Models are developed to cover specific behaviors only. 
B)  Models are created and then tested. 
C)  Models are used to help understand the general economy. 
D)  Assumptions are used to analyze an economic issue.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Reasons to study economics include all of the following,EXCEPT that you:

Accepted Answer

A)  will always live in a world of scarcity and choices. 
B)  will understand more about how governments and businesses interact. 
C)  may become a better prepared voter. 
D)  will learn exactly how to invest your cash short-term for the highest return on investment. 
A)  will always live in a world of scarcity and choices. 
B)  will understand more about how governments and businesses interact. 
C)  may become a better prepared voter. 
D)  will learn exactly how to invest your cash short-term for the highest return on investment.

Question 11

The concept of equity relates to how quickly something can be produced.

Accepted Answer

A) True 
 B)False

Question 12

Individuals do not experience opportunity costs unless external costs occur.

Accepted Answer

A) True 
 B)False

Question 13

Distinguish between macroeconomics and microeconomics.

Accepted Answer

Macroeconomics focuses on the behavior o

Question 14

Macroeconomics is concerned with issues such as:

Accepted Answer

A)  which orange juice to buy. 
B)  unemployment. 
C)  which job to take. 
D)  what price to charge for goods. 
A)  which orange juice to buy. 
B)  unemployment. 
C)  which job to take. 
D)  what price to charge for goods.

Question 15

Economists generally define institutions as all of these,EXCEPT as a:

Accepted Answer

A)  government free of corruption. 
B)  government that controls resource allocation. 
C)  legal system that enforces contracts and laws. 
D)  strong monetary system. 
A)  government free of corruption. 
B)  government that controls resource allocation. 
C)  legal system that enforces contracts and laws. 
D)  strong monetary system.

Question 16

Why do economists focus on efficiency rather than equity?

Accepted Answer

Economists generally stay out of discuss

Question 17

The field of economics that is concerned about the broader issues in the economy such as inflation,unemployment,and national output of goods and services is called:

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  national economics. 
D)  labor force economics. 
A)  macroeconomics. 
B)  microeconomics. 
C)  national economics. 
D)  labor force economics.

Question 18

In the equation S = 130 - 2T,where S is hot chocolate sales and T is temperature,sales:

Accepted Answer

A)  decrease by 10 if temperature falls by 5 degrees. 
B)  decrease by 2 if temperature falls by 5 degrees. 
C)  increase by 10 if temperature falls by 5 degrees. 
D)  increase by 2 if temperature falls by 5 degrees. 
A)  decrease by 10 if temperature falls by 5 degrees. 
B)  decrease by 2 if temperature falls by 5 degrees. 
C)  increase by 10 if temperature falls by 5 degrees. 
D)  increase by 2 if temperature falls by 5 degrees.

Question 19

Paying a salesperson more for increased sales is an example of:

Accepted Answer

A)  an incentive. 
B)  an opportunity cost. 
C)  efficiency. 
D)  equity. 
A)  an incentive. 
B)  an opportunity cost. 
C)  efficiency. 
D)  equity.

Question 20

A nation's standard of living is primarily a function of:

Accepted Answer

A)  natural resource availability. 
B)  government benefits. 
C)  national defense. 
D)  productivity. 
A)  natural resource availability. 
B)  government benefits. 
C)  national defense. 
D)  productivity.

Allocative efficiency occurs when:

Government intervention in the market is helpful when:

Excessive pollution is an example of market failure.

Which of the following concepts would be addressed by microeconomics?

Scarcity is best defined as when the quantity demanded exceeds quantity supplied.

Evaluate the following statement: "To be useful,a model must be completely realistic."

Which of the following statements does NOT describe model building in economics?

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

Reasons to study economics include all of the following,EXCEPT that you:

The concept of equity relates to how quickly something can be produced.

Individuals do not experience opportunity costs unless external costs occur.

Distinguish between macroeconomics and microeconomics.

Macroeconomics is concerned with issues such as:

Economists generally define institutions as all of these,EXCEPT as a:

Why do economists focus on efficiency rather than equity?

The field of economics that is concerned about the broader issues in the economy such as inflation,unemployment,and national output of goods and services is called:

In the equation S = 130 - 2T,where S is hot chocolate sales and T is temperature,sales:

Paying a salesperson more for increased sales is an example of:

A nation's standard of living is primarily a function of:

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

Allocative efficiency occurs when:

Government intervention in the market is helpful when:

Excessive pollution is an example of market failure.

Which of the following concepts would be addressed by microeconomics?

Scarcity is best defined as when the quantity demanded exceeds quantity supplied.

Evaluate the following statement: "To be useful,a model must be completely realistic."

Which of the following statements does NOT describe model building in economics?

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

Reasons to study economics include all of the following,EXCEPT that you:

The concept of equity relates to how quickly something can be produced.

Individuals do not experience opportunity costs unless external costs occur.

Distinguish between macroeconomics and microeconomics.

Macroeconomics is concerned with issues such as:

Economists generally define institutions as all of these,EXCEPT as a:

Why do economists focus on efficiency rather than equity?

The field of economics that is concerned about the broader issues in the economy such as inflation,unemployment,and national output of goods and services is called:

In the equation S = 130 - 2T,where S is hot chocolate sales and T is temperature,sales:

Paying a salesperson more for increased sales is an example of:

A nation's standard of living is primarily a function of:

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