Question 1

Explain: "Economic theories must be tested."

Accepted Answer

Economists build models to explain econo

Question 2

Production efficiency:

Accepted Answer

A)  reflects how often economists make assumptions about important variables. 
B)  reflects how well resources are allocated. 
C)  reflects the fact that all labor is equally productive. 
D)  is an assumption used by economists that holds important variables constant. 
A)  reflects how often economists make assumptions about important variables. 
B)  reflects how well resources are allocated. 
C)  reflects the fact that all labor is equally productive. 
D)  is an assumption used by economists that holds important variables constant.

Question 3

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

Accepted Answer

A)  increase by 20 if temperature increases by 10 degrees. 
B)  increase by 2 if temperature increases by 10 degrees. 
C)  decrease by 20 if temperature increases by 10 degrees. 
D)  decrease by 2 if temperature increases by 10 degrees. 
A)  increase by 20 if temperature increases by 10 degrees. 
B)  increase by 2 if temperature increases by 10 degrees. 
C)  decrease by 20 if temperature increases by 10 degrees. 
D)  decrease by 2 if temperature increases by 10 degrees.

Question 4

Which of the following is NOT an example of market failure?

Accepted Answer

A)  Water is polluted by a paper company located by a river. 
B)  Air is polluted by a manufacturing firm. 
C)  Competition leads firms to provide products at the lowest possible price. 
D)  Consumers must buy water from one local water utility. 
A)  Water is polluted by a paper company located by a river. 
B)  Air is polluted by a manufacturing firm. 
C)  Competition leads firms to provide products at the lowest possible price. 
D)  Consumers must buy water from one local water utility.

Question 5

Positive questions involve the understanding of basic facts.

Accepted Answer

A) True 
 B)False

Question 6

If two variables are positively related,then as one variable:

Accepted Answer

A)  increases,the other variable decreases. 
B)  increases,the other variable increases. 
C)  decreases,the other variable decreases. 
D)  increases,the other variable increases and as one variable decreases,the other variable decreases. 
A)  increases,the other variable decreases. 
B)  increases,the other variable increases. 
C)  decreases,the other variable decreases. 
D)  increases,the other variable increases and as one variable decreases,the other variable decreases.

Question 7

A basic supposition of economics is that:

Accepted Answer

A)  people always,and in every case,respond to economic incentives. 
B)  in general,people respond to economic incentives. 
C)  history shows that tax incentives rarely work. 
D)  people do not respond to changes in costs and prices. 
A)  people always,and in every case,respond to economic incentives. 
B)  in general,people respond to economic incentives. 
C)  history shows that tax incentives rarely work. 
D)  people do not respond to changes in costs and prices.

Question 8

Suppose Mike has three hours of time to spend and he sets the following activities in order of priority: (1)see a movie; (2)attend a ball game; (3)study economics.Assume that each activity takes three hours.What is Mike's opportunity cost of seeing the movie?

Accepted Answer

A)  attending a ball game and studying economics 
B)  studying economics 
C)  attending a ball game 
D)  either attending a ball game or studying economics 
A)  attending a ball game and studying economics 
B)  studying economics 
C)  attending a ball game 
D)  either attending a ball game or studying economics

Question 9

The observation that highly productive countries have taller populations is an example of:

Accepted Answer

A)  cause and effect. 
B)  correlation. 
C)  causation. 
D)  allocative efficiency. 
A)  cause and effect. 
B)  correlation. 
C)  causation. 
D)  allocative efficiency.

Question 10

With the use of specialization:

Accepted Answer

A)  society is more productive,while individuals are less productive. 
B)  there are greater gains in material well-being. 
C)  there is more emphasis on self-reliance. 
D)  opportunity costs tend to be constant. 
A)  society is more productive,while individuals are less productive. 
B)  there are greater gains in material well-being. 
C)  there is more emphasis on self-reliance. 
D)  opportunity costs tend to be constant.

Question 11

Describe the ceteris paribus assumption and discuss how it might affect your purchase of fast-food meals this week.

Accepted Answer

To aid in model building,economists use

Question 12

The concept of scarcity implies that people must make choices among alternatives.

Accepted Answer

A) True 
 B)False

Question 13

Which topic is MOST likely to be studied in a microeconomics course?

Accepted Answer

A)  energy policy 
B)  unemployment 
C)  inflation 
D)  recession 
A)  energy policy 
B)  unemployment 
C)  inflation 
D)  recession

Question 14

Because of scarcity:

Accepted Answer

A)  resources are limitless. 
B)  wants are limited. 
C)  choices are unlimited. 
D)  we face tradeoffs in nearly every choice we make. 
A)  resources are limitless. 
B)  wants are limited. 
C)  choices are unlimited. 
D)  we face tradeoffs in nearly every choice we make.

Question 15

Microeconomics is concerned with issues such as:

Accepted Answer

A)  inflation. 
B)  unemployment. 
C)  which job to take. 
D)  interest rates. 
A)  inflation. 
B)  unemployment. 
C)  which job to take. 
D)  interest rates.

Question 16

For a nation,______ productivity growth leads to ______ standards of living.

Accepted Answer

A)  high;low 
B)  low;high 
C)  high;unchanging 
D)  high;high 
A)  high;low 
B)  low;high 
C)  high;unchanging 
D)  high;high

Question 17

Economic models must:

Accepted Answer

A)  be completely realistic to be useful. 
B)  include all relationships that exist in the relevant thing to be modeled. 
C)  completely represent the real world. 
D)  rely on the ceteris paribus assumption. 
A)  be completely realistic to be useful. 
B)  include all relationships that exist in the relevant thing to be modeled. 
C)  completely represent the real world. 
D)  rely on the ceteris paribus assumption.

Question 18

Which of the following is correct?

Accepted Answer

A)  Correlation and causation are synonyms. 
B)  Shortly after a new president is elected into office,the unemployment rate goes down.One must conclude that the new president's economic policies are responsible for the economic upturn. 
C)  The fact that two variables are correlated with each other does not mean that one causes the other. 
D)  If two variables move together,then they are causally related. 
A)  Correlation and causation are synonyms. 
B)  Shortly after a new president is elected into office,the unemployment rate goes down.One must conclude that the new president's economic policies are responsible for the economic upturn. 
C)  The fact that two variables are correlated with each other does not mean that one causes the other. 
D)  If two variables move together,then they are causally related.

Question 19

Economics is only about money.

Accepted Answer

A) True 
 B)False

Question 20

Use the following to answer questions 
Figure: Graph Examples
  
-(Figure: Graph Examples)Which graph in the figure is an example of a bar chart?

Accepted Answer

A)  graph A 
B)  graph B 
C)  graph C 
D)  graph D 
A)  graph A 
B)  graph B 
C)  graph C 
D)  graph D

Explain: "Economic theories must be tested."

Production efficiency:

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

Which of the following is NOT an example of market failure?

Positive questions involve the understanding of basic facts.

If two variables are positively related,then as one variable:

A basic supposition of economics is that:

Suppose Mike has three hours of time to spend and he sets the following activities in order of priority: (1)see a movie; (2)attend a ball game; (3)study economics.Assume that each activity takes three hours.What is Mike's opportunity cost of seeing the movie?

The observation that highly productive countries have taller populations is an example of:

With the use of specialization:

Describe the ceteris paribus assumption and discuss how it might affect your purchase of fast-food meals this week.

The concept of scarcity implies that people must make choices among alternatives.

Which topic is MOST likely to be studied in a microeconomics course?

Because of scarcity:

Microeconomics is concerned with issues such as:

For a nation, productivity growth leads to standards of living.

Economic models must:

Which of the following is correct?

Economics is only about money.

Use the following to answer questions Figure: Graph Examples -(Figure: Graph Examples)Which graph in the figure is an example of a bar chart?

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

Explain: "Economic theories must be tested."

Production efficiency:

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

Which of the following is NOT an example of market failure?

Positive questions involve the understanding of basic facts.

If two variables are positively related,then as one variable:

A basic supposition of economics is that:

Suppose Mike has three hours of time to spend and he sets the following activities in order of priority: (1)see a movie; (2)attend a ball game; (3)study economics.Assume that each activity takes three hours.What is Mike's opportunity cost of seeing the movie?

The observation that highly productive countries have taller populations is an example of:

With the use of specialization:

Describe the ceteris paribus assumption and discuss how it might affect your purchase of fast-food meals this week.

The concept of scarcity implies that people must make choices among alternatives.

Which topic is MOST likely to be studied in a microeconomics course?

Because of scarcity:

Microeconomics is concerned with issues such as:

For a nation,______ productivity growth leads to ______ standards of living.

Economic models must:

Which of the following is correct?

Economics is only about money.

Use the following to answer questions Figure: Graph Examples -(Figure: Graph Examples)Which graph in the figure is an example of a bar chart?

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

For a nation, productivity growth leads to standards of living.