Question 1

Scatter plots use time and one other variable to determine possible relationships.

Accepted Answer

A) True 
 B)False

Question 2

Correlation between two variables is not enough evidence to suggest that a causal relationship exists between the two variables.

Accepted Answer

A) True 
 B)False

Question 3

There are no instances where efficient solutions to problems conflict with equity issues.

Accepted Answer

A) True 
 B)False

Question 4

_____ occur(s)when goods are produced at the lowest possible cost,and _____ occur(s)when individuals who desire a product the most receive those goods and services.

Accepted Answer

A)  Production efficiency;allocative efficiency 
B)  Production possibilities;allocative possibilities 
C)  Allocative possibilities;production possibilities 
D)  Allocative efficiency;production efficiency 
A)  Production efficiency;allocative efficiency 
B)  Production possibilities;allocative possibilities 
C)  Allocative possibilities;production possibilities 
D)  Allocative efficiency;production efficiency

Question 5

Which of the following is NOT a key principle of economics?

Accepted Answer

A)  People follow incentives. 
B)  Productivity determines our standard of living. 
C)  Rational thinking requires perfect information. 
D)  Government can sometimes correct market failure. 
A)  People follow incentives. 
B)  Productivity determines our standard of living. 
C)  Rational thinking requires perfect information. 
D)  Government can sometimes correct market failure.

Question 6

A theory composed of a number of assumptions and facts boiled down to their basic relevant elements is called a:

Accepted Answer

A)  metaphor. 
B)  model. 
C)  conclusion. 
D)  practice. 
A)  metaphor. 
B)  model. 
C)  conclusion. 
D)  practice.

Question 7

Macroeconomics focuses on:

Accepted Answer

A)  decisions made by individuals. 
B)  decisions made by firms. 
C)  the decision to purchase a new home for a family. 
D)  decisions for the entire economy. 
A)  decisions made by individuals. 
B)  decisions made by firms. 
C)  the decision to purchase a new home for a family. 
D)  decisions for the entire economy.

Question 8

A rich person does not experience scarcity.

Accepted Answer

A) True 
 B)False

Question 9

When two variables appear to be related according to a scatter plot,one must be causing the other to occur.

Accepted Answer

A) True 
 B)False

Question 10

Which is the BEST example of a microeconomic issue?

Accepted Answer

A)  whether the Federal Reserve will raise interest rate this week 
B)  whether the unemployment rate will exceed 6% this month 
C)  whether the country's price level has increased last quarter 
D)  whether the production of automobiles decreased last year 
A)  whether the Federal Reserve will raise interest rate this week 
B)  whether the unemployment rate will exceed 6% this month 
C)  whether the country's price level has increased last quarter 
D)  whether the production of automobiles decreased last year

Question 11

Which of the following questions is NOT an example involving marginal analysis?

Accepted Answer

A)  Should a university offer another section of a class? 
B)  Should a restaurant stay open another hour? 
C)  Should K-Mart convert all its stores to Sears stores? 
D)  Should Boeing hire another assembly-line worker? 
A)  Should a university offer another section of a class? 
B)  Should a restaurant stay open another hour? 
C)  Should K-Mart convert all its stores to Sears stores? 
D)  Should Boeing hire another assembly-line worker?

Question 12

International finance is generally studied in:

Accepted Answer

A)  microeconomics. 
B)  macroeconomics. 
C)  deductive logic. 
D)  inductive logic. 
A)  microeconomics. 
B)  macroeconomics. 
C)  deductive logic. 
D)  inductive logic.

Question 13

Examining whether the country's price level has increased last quarter is a macroeconomic topic.

Accepted Answer

A) True 
 B)False

Question 14

The assumption that people will act in a way to maximize their self-interest is a reasonable one for most cases that economists analyze.

Accepted Answer

A) True 
 B)False

Question 15

Explain what is meant by economic efficiency.Does efficiency imply that the fastest production processes or the most powerful equipment must always be used? Explain.

Accepted Answer

Output is greater when people produce go

Question 16

Which of the following is a key idea in economic thinking?

Accepted Answer

A)  Scarcity exists for the poor but not for the rich. 
B)  Incentives matter. 
C)  The value of a good can be objectively measured,and is the same for everyone. 
D)  All of these are key ideas in economic thinking. 
A)  Scarcity exists for the poor but not for the rich. 
B)  Incentives matter. 
C)  The value of a good can be objectively measured,and is the same for everyone. 
D)  All of these are key ideas in economic thinking.

Question 17

Economists look for rational responses to incentives.

Accepted Answer

A) True 
 B)False

Question 18

The ____________ of parking at school includes the amount of time I have to search for a parking space.

Accepted Answer

A)  opportunity cost 
B)  equity concerns 
C)  efficiency 
D)  productivity 
A)  opportunity cost 
B)  equity concerns 
C)  efficiency 
D)  productivity

Question 19

The opportunity cost of one good is the quantity of resources that could be used to purchase the next best choice.

Accepted Answer

A) True 
 B)False

Question 20

Use the following to answer question
Figure: Mileage and Speed by Car Weight  
-(Figure: Mileage and Speed by Car Weight)Which of the following statements about the graph is correct?

Accepted Answer

A)  Mileage is related only to speed,not car weight. 
B)  Speed is related to mileage and car weight. 
C)  Mileage is related to both speed and car weight. 
D)  Mileage is unrelated to speed and car weight. 
A)  Mileage is related only to speed,not car weight. 
B)  Speed is related to mileage and car weight. 
C)  Mileage is related to both speed and car weight. 
D)  Mileage is unrelated to speed and car weight.

Scatter plots use time and one other variable to determine possible relationships.

Correlation between two variables is not enough evidence to suggest that a causal relationship exists between the two variables.

There are no instances where efficient solutions to problems conflict with equity issues.

_ occur(s)when goods are produced at the lowest possible cost,and _ occur(s)when individuals who desire a product the most receive those goods and services.

Which of the following is NOT a key principle of economics?

A theory composed of a number of assumptions and facts boiled down to their basic relevant elements is called a:

Macroeconomics focuses on:

A rich person does not experience scarcity.

When two variables appear to be related according to a scatter plot,one must be causing the other to occur.

Which is the BEST example of a microeconomic issue?

Which of the following questions is NOT an example involving marginal analysis?

International finance is generally studied in:

Examining whether the country's price level has increased last quarter is a macroeconomic topic.

The assumption that people will act in a way to maximize their self-interest is a reasonable one for most cases that economists analyze.

Explain what is meant by economic efficiency.Does efficiency imply that the fastest production processes or the most powerful equipment must always be used? Explain.

Which of the following is a key idea in economic thinking?

Economists look for rational responses to incentives.

The ____________ of parking at school includes the amount of time I have to search for a parking space.

The opportunity cost of one good is the quantity of resources that could be used to purchase the next best choice.

Use the following to answer question Figure: Mileage and Speed by Car Weight -(Figure: Mileage and Speed by Car Weight)Which of the following statements about the graph is correct?

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

Scatter plots use time and one other variable to determine possible relationships.

Correlation between two variables is not enough evidence to suggest that a causal relationship exists between the two variables.

There are no instances where efficient solutions to problems conflict with equity issues.

_____ occur(s)when goods are produced at the lowest possible cost,and _____ occur(s)when individuals who desire a product the most receive those goods and services.

Which of the following is NOT a key principle of economics?

A theory composed of a number of assumptions and facts boiled down to their basic relevant elements is called a:

Macroeconomics focuses on:

A rich person does not experience scarcity.

When two variables appear to be related according to a scatter plot,one must be causing the other to occur.

Which is the BEST example of a microeconomic issue?

Which of the following questions is NOT an example involving marginal analysis?

International finance is generally studied in:

Examining whether the country's price level has increased last quarter is a macroeconomic topic.

The assumption that people will act in a way to maximize their self-interest is a reasonable one for most cases that economists analyze.

Explain what is meant by economic efficiency.Does efficiency imply that the fastest production processes or the most powerful equipment must always be used? Explain.

Which of the following is a key idea in economic thinking?

Economists look for rational responses to incentives.

The ____________ of parking at school includes the amount of time I have to search for a parking space.

The opportunity cost of one good is the quantity of resources that could be used to purchase the next best choice.

Use the following to answer question Figure: Mileage and Speed by Car Weight -(Figure: Mileage and Speed by Car Weight)Which of the following statements about the graph is correct?

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

_ occur(s)when goods are produced at the lowest possible cost,and _ occur(s)when individuals who desire a product the most receive those goods and services.