Question 1

Economics is about allocating limited resources to maximize an individual or society's well-being or satisfaction.

Accepted Answer

A) True 
 B)False

Question 2

The broad scope of economics analysis allows us to reflect on everyday choices in addition to more global issues.

Accepted Answer

A) True 
 B)False

Question 3

Linear relationships show the same slope between any two points on a line.

Accepted Answer

A) True 
 B)False

Question 4

If you plot temperature on the y axis and time on the x axis,then you have created a:

Accepted Answer

A)  time series. 
B)  scatter plot. 
C)  pie chart. 
D)  bar chart. 
A)  time series. 
B)  scatter plot. 
C)  pie chart. 
D)  bar chart.

Question 5

Economics is BEST defined as the study of how:

Accepted Answer

A)  to classify resources used to produce final goods and services. 
B)  resources are apportioned to satisfy human wants. 
C)  people make rational decisions. 
D)  technology can be used to change scarce resources into free resources. 
A)  to classify resources used to produce final goods and services. 
B)  resources are apportioned to satisfy human wants. 
C)  people make rational decisions. 
D)  technology can be used to change scarce resources into free resources.

Question 6

Pie charts:

Accepted Answer

A)  depict two variables to see if any correlation exists. 
B)  show how data can be split into percentages by category. 
C)  include a variable for time. 
D)  show trends of data over time. 
A)  depict two variables to see if any correlation exists. 
B)  show how data can be split into percentages by category. 
C)  include a variable for time. 
D)  show trends of data over time.

Question 7

If a restaurant that traditionally has served only lunch and dinner wants to open for breakfast,which of the following factors should be considered?

Accepted Answer

A)  rent 
B)  furniture 
C)  cost of the additional food 
D)  insurance costs 
A)  rent 
B)  furniture 
C)  cost of the additional food 
D)  insurance costs

Question 8

Discounted matinee movie ticket prices demonstrate that:

Accepted Answer

A)  people follow incentives. 
B)  government intervention in the market is helpful. 
C)  market outcomes are always equitable. 
D)  the cost of living is decreasing. 
A)  people follow incentives. 
B)  government intervention in the market is helpful. 
C)  market outcomes are always equitable. 
D)  the cost of living is decreasing.

Question 9

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 consumer tastes change in the region where Jump is marketed and base sales increase by 1,500 bottles,what is the equation of the "shifted" line?

Accepted Answer

A)  Sales = 1,500 + 2 · Advertising 
B)  Sales = 4,500 + 2 · Advertising 
C)  Sales = 3,000 + 1,502 · Advertising 
D)  Sales = 3,000 + 2 · Advertising 
A)  Sales = 1,500 + 2 · Advertising 
B)  Sales = 4,500 + 2 · Advertising 
C)  Sales = 3,000 + 1,502 · Advertising 
D)  Sales = 3,000 + 2 · Advertising

Question 10

Scarcity is BEST defined as when:

Accepted Answer

A)  the quantity demanded exceeds quantity supplied. 
B)  the quantity supplied exceeds quantity demanded. 
C)  unlimited resources exceed limited wants. 
D)  unlimited wants exceed limited resources. 
A)  the quantity demanded exceeds quantity supplied. 
B)  the quantity supplied exceeds quantity demanded. 
C)  unlimited resources exceed limited wants. 
D)  unlimited wants exceed limited resources.

Question 11

Use the following to answer questions 
Figure: Graph Interpretation  
-(Figure: Graph Interpretation)In the graph,the equation for the line is:

Accepted Answer

A)  R = 120 - 0.4S. 
B)  R = 120 - 300S. 
C)  R = 120 + 0.4S. 
D)  S = 300 + 120R. 
A)  R = 120 - 0.4S. 
B)  R = 120 - 300S. 
C)  R = 120 + 0.4S. 
D)  S = 300 + 120R.

Question 12

What are some examples of the types of issues analyzed by microeconomics? What are some topics examined by macroeconomics?

Accepted Answer

There are many different examples of the

Question 13

Use the following to answer question 
Figure: Education and Earnings  
-(Figure: Education and Earnings)The hypothetical graph shows the relationship between years of education and salary.Which statement is NOT correct?

Accepted Answer

A)  A person with 13 years of education can expect to earn $25,000. 
B)  The slope of the line is 5,000. 
C)  The line represents a simple model of the relationship between education and earnings. 
D)  The relationship between the two variables is nonlinear. 
A)  A person with 13 years of education can expect to earn $25,000. 
B)  The slope of the line is 5,000. 
C)  The line represents a simple model of the relationship between education and earnings. 
D)  The relationship between the two variables is nonlinear.

Question 14

When government policies are being designed:

Accepted Answer

A)  there is usually a tradeoff between equity and efficiency. 
B)  equity and efficiency goals are usually independent of each other. 
C)  equity can usually be achieved without an efficiency loss. 
D)  increasing efficiency usually results in more equity. 
A)  there is usually a tradeoff between equity and efficiency. 
B)  equity and efficiency goals are usually independent of each other. 
C)  equity can usually be achieved without an efficiency loss. 
D)  increasing efficiency usually results in more equity.

Question 15

Macroeconomics focuses on decisions made for the entire economy.

Accepted Answer

A) True 
 B)False

Question 16

Briefly describe how macroeconomics and microeconomics are related.How do they differ?

Accepted Answer

Microeconomics looks at the individual c

Question 17

Allocative inefficiency implies that:

Accepted Answer

A)  goods are produced at too high at cost. 
B)  the people who want a specific good the most cannot get it,while others can. 
C)  too many Twinkies and too few Ding Dongs were produced. 
D)  workers are lazy. 
A)  goods are produced at too high at cost. 
B)  the people who want a specific good the most cannot get it,while others can. 
C)  too many Twinkies and too few Ding Dongs were produced. 
D)  workers are lazy.

Question 18

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.The vertical intercept for the equation graphed is 3,000 bottles.

Accepted Answer

A) True 
 B)False

Question 19

Production inefficiency implies that:

Accepted Answer

A)  goods are produced at too high a cost. 
B)  people who want the specific goods cannot get them at any price. 
C)  too many Twinkies and too few Ding Dongs were produced. 
D)  workers are lazy. 
A)  goods are produced at too high a cost. 
B)  people who want the specific goods cannot get them at any price. 
C)  too many Twinkies and too few Ding Dongs were produced. 
D)  workers are lazy.

Question 20

The core problem in economics is:

Accepted Answer

A)  unemployment. 
B)  economic growth. 
C)  inflation. 
D)  scarcity. 
A)  unemployment. 
B)  economic growth. 
C)  inflation. 
D)  scarcity.

Economics is about allocating limited resources to maximize an individual or society's well-being or satisfaction.

The broad scope of economics analysis allows us to reflect on everyday choices in addition to more global issues.

Linear relationships show the same slope between any two points on a line.

If you plot temperature on the y axis and time on the x axis,then you have created a:

Economics is BEST defined as the study of how:

Pie charts:

If a restaurant that traditionally has served only lunch and dinner wants to open for breakfast,which of the following factors should be considered?

Discounted matinee movie ticket prices demonstrate that:

Scarcity is BEST defined as when:

Use the following to answer questions Figure: Graph Interpretation -(Figure: Graph Interpretation)In the graph,the equation for the line is:

What are some examples of the types of issues analyzed by microeconomics? What are some topics examined by macroeconomics?

Use the following to answer question Figure: Education and Earnings -(Figure: Education and Earnings)The hypothetical graph shows the relationship between years of education and salary.Which statement is NOT correct?

When government policies are being designed:

Macroeconomics focuses on decisions made for the entire economy.

Briefly describe how macroeconomics and microeconomics are related.How do they differ?

Allocative inefficiency implies that:

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.The vertical intercept for the equation graphed is 3,000 bottles.

Production inefficiency implies that:

The core problem in economics is:

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

Economics is about allocating limited resources to maximize an individual or society's well-being or satisfaction.

The broad scope of economics analysis allows us to reflect on everyday choices in addition to more global issues.

Linear relationships show the same slope between any two points on a line.

If you plot temperature on the y axis and time on the x axis,then you have created a:

Economics is BEST defined as the study of how:

Pie charts:

If a restaurant that traditionally has served only lunch and dinner wants to open for breakfast,which of the following factors should be considered?

Discounted matinee movie ticket prices demonstrate that:

Scarcity is BEST defined as when:

Use the following to answer questions Figure: Graph Interpretation -(Figure: Graph Interpretation)In the graph,the equation for the line is:

What are some examples of the types of issues analyzed by microeconomics? What are some topics examined by macroeconomics?

Use the following to answer question Figure: Education and Earnings -(Figure: Education and Earnings)The hypothetical graph shows the relationship between years of education and salary.Which statement is NOT correct?

When government policies are being designed:

Macroeconomics focuses on decisions made for the entire economy.

Briefly describe how macroeconomics and microeconomics are related.How do they differ?

Allocative inefficiency implies that:

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.The vertical intercept for the equation graphed is 3,000 bottles.

Production inefficiency implies that:

The core problem in economics is:

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