Question 1

Which of the following is a microeconomic topic?

Accepted Answer

A)  the U.S.inflation rate in 2009 
B)  the price of an iPad sold by Apple 
C)  the U.S.unemployment rate in March 2010 
D)  the U.S.rate of growth in GDP for the first quarter in 2010 
A)  the U.S.inflation rate in 2009 
B)  the price of an iPad sold by Apple 
C)  the U.S.unemployment rate in March 2010 
D)  the U.S.rate of growth in GDP for the first quarter in 2010

Question 2

People tend to make rational choices,to help make these,they rely on:

Accepted Answer

A)  scarcity. 
B)  utility. 
C)  information. 
D)  ceteris paribus. 
A)  scarcity. 
B)  utility. 
C)  information. 
D)  ceteris paribus.

Question 3

The main focus of efficiency is:

Accepted Answer

A)  firms charging high prices for their goods. 
B)  firms earning the largest profits. 
C)  consumers getting the goods and services they want at the lowest possible resource cost. 
D)  consumers paying high prices. 
A)  firms charging high prices for their goods. 
B)  firms earning the largest profits. 
C)  consumers getting the goods and services they want at the lowest possible resource cost. 
D)  consumers paying high prices.

Question 4

In the equation Y = e + fX,_____ is the independent variable and _____ is the slope.

Accepted Answer

A)  Y;e 
B)  Y;f 
C)  X;e 
D)  X;f 
A)  Y;e 
B)  Y;f 
C)  X;e 
D)  X;f

Question 5

The country of Economia has higher productivity rate than Productstan.Which statement is therefore correct?

Accepted Answer

A)  Economia has a lower standard of living for its citizens than Productstan. 
B)  It cannot be determined from the information given which country has the higher standard of living. 
C)  Economia has a higher standard of living for its citizens than Productstan. 
D)  It can be assumed that both have the same high standard of living because productivity and living standards are unrelated. 
A)  Economia has a lower standard of living for its citizens than Productstan. 
B)  It cannot be determined from the information given which country has the higher standard of living. 
C)  Economia has a higher standard of living for its citizens than Productstan. 
D)  It can be assumed that both have the same high standard of living because productivity and living standards are unrelated.

Question 6

Economic analysis cannot be applied to concepts outside economics.

Accepted Answer

A) True 
 B)False

Question 7

Thinking at the margin means that the individual thinks about the additional costs and benefits of doing something.

Accepted Answer

A) True 
 B)False

Question 8

There would be no economic problems in a world where all resources are:

Accepted Answer

A)  unlimited. 
B)  privately owned. 
C)  owned by the government. 
D)  scarce. 
A)  unlimited. 
B)  privately owned. 
C)  owned by the government. 
D)  scarce.

Question 9

Economists use graphs:

Accepted Answer

A)  because they represent relationships between variables. 
B)  because they are more efficient than models. 
C)  because they are less efficient than models. 
D)  it makes the analysis more complicated. 
A)  because they represent relationships between variables. 
B)  because they are more efficient than models. 
C)  because they are less efficient than models. 
D)  it makes the analysis more complicated.

Question 10

"If the price of carrots drops,ceteris paribus,people will buy more carrots." What would be a way of explaining that statement?

Accepted Answer

A)  The relationship between the price of carrots and the number of carrots that people buy is independent of other things. 
B)  If carrots are the only available goods,people will buy more of them if the price decreases. 
C)  If the price of carrots drops and everything else remains the same,the number of carrots people buy will increase. 
D)  As the price of carrots decreases,and all other prices decrease,then the quantity of carrots purchased will increase. 
A)  The relationship between the price of carrots and the number of carrots that people buy is independent of other things. 
B)  If carrots are the only available goods,people will buy more of them if the price decreases. 
C)  If the price of carrots drops and everything else remains the same,the number of carrots people buy will increase. 
D)  As the price of carrots decreases,and all other prices decrease,then the quantity of carrots purchased will increase.

Question 11

Rational behavior:

Accepted Answer

A)  means incentives don't matter. 
B)  requires people to consider the total costs and total benefits of their decisions. 
C)  requires thinking at the margin. 
D)  requires perfect information. 
A)  means incentives don't matter. 
B)  requires people to consider the total costs and total benefits of their decisions. 
C)  requires thinking at the margin. 
D)  requires perfect information.

Question 12

When the ceteris paribus assumption is violated in economics,the effect is shown by:

Accepted Answer

A)  a movement down along the curve. 
B)  a movement up along the curve. 
C)  a shift of the entire curve. 
D)  correlation but not causation. 
A)  a movement down along the curve. 
B)  a movement up along the curve. 
C)  a shift of the entire curve. 
D)  correlation but not causation.

Question 13

Which of the following represents incentives for decisions?

Accepted Answer

A)  tax deductions for individual retirement accounts 
B)  investment tax credits for businesses 
C)  tax deductions for education savings account 
D)  All of these are incentives. 
A)  tax deductions for individual retirement accounts 
B)  investment tax credits for businesses 
C)  tax deductions for education savings account 
D)  All of these are incentives.

Question 14

"How do interest rates influence employment?" is an example of a normative question.

Accepted Answer

A) True 
 B)False

Question 15

Hitting your snooze alarm before you get out of bed 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 16

Economists understand that people respond to:

Accepted Answer

A)  laws. 
B)  incentives. 
C)  threats more than rewards. 
D)  positives,but not negatives. 
A)  laws. 
B)  incentives. 
C)  threats more than rewards. 
D)  positives,but not negatives.

Question 17

Economists generally have _________ to say about equity than efficiency.

Accepted Answer

A)  less 
B)  a little bit more 
C)  about the same 
D)  much more 
A)  less 
B)  a little bit more 
C)  about the same 
D)  much more

Question 18

Use the following to answer question
Figure: Graph Interpretation  
-(Figure: Graph Interpretation)In the graph,a negative relationship is depicted with a slope of -0.4.

Accepted Answer

A) True 
 B)False

Question 19

The government can always successfully intervene if market failure exists.

Accepted Answer

A) True 
 B)False

Question 20

Private markets will typically maximize production efficiency because they provide:

Accepted Answer

A)  incentives for profit. 
B)  equity. 
C)  market information. 
D)  tax revenue for the government sector. 
A)  incentives for profit. 
B)  equity. 
C)  market information. 
D)  tax revenue for the government sector.

Which of the following is a microeconomic topic?

People tend to make rational choices,to help make these,they rely on:

The main focus of efficiency is:

In the equation Y = e + fX,_ is the independent variable and _ is the slope.

The country of Economia has higher productivity rate than Productstan.Which statement is therefore correct?

Economic analysis cannot be applied to concepts outside economics.

Thinking at the margin means that the individual thinks about the additional costs and benefits of doing something.

There would be no economic problems in a world where all resources are:

Economists use graphs:

"If the price of carrots drops,ceteris paribus,people will buy more carrots." What would be a way of explaining that statement?

Rational behavior:

When the ceteris paribus assumption is violated in economics,the effect is shown by:

Which of the following represents incentives for decisions?

"How do interest rates influence employment?" is an example of a normative question.

Hitting your snooze alarm before you get out of bed is an example of:

Economists understand that people respond to:

Economists generally have _________ to say about equity than efficiency.

Use the following to answer question Figure: Graph Interpretation -(Figure: Graph Interpretation)In the graph,a negative relationship is depicted with a slope of -0.4.

The government can always successfully intervene if market failure exists.

Private markets will typically maximize production efficiency because they provide:

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

Which of the following is a microeconomic topic?

People tend to make rational choices,to help make these,they rely on:

The main focus of efficiency is:

In the equation Y = e + fX,_____ is the independent variable and _____ is the slope.

The country of Economia has higher productivity rate than Productstan.Which statement is therefore correct?

Economic analysis cannot be applied to concepts outside economics.

Thinking at the margin means that the individual thinks about the additional costs and benefits of doing something.

There would be no economic problems in a world where all resources are:

Economists use graphs:

"If the price of carrots drops,ceteris paribus,people will buy more carrots." What would be a way of explaining that statement?

Rational behavior:

When the ceteris paribus assumption is violated in economics,the effect is shown by:

Which of the following represents incentives for decisions?

"How do interest rates influence employment?" is an example of a normative question.

Hitting your snooze alarm before you get out of bed is an example of:

Economists understand that people respond to:

Economists generally have _________ to say about equity than efficiency.

Use the following to answer question Figure: Graph Interpretation -(Figure: Graph Interpretation)In the graph,a negative relationship is depicted with a slope of -0.4.

The government can always successfully intervene if market failure exists.

Private markets will typically maximize production efficiency because they provide:

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

In the equation Y = e + fX,_ is the independent variable and _ is the slope.