Question 1

Which of the following does NOT deal with macroeconomics?

Accepted Answer

A)  the effect of the budget deficit on the economy 
B)  the effect of monetary policy on inflation 
C)  the effect of Walmart's pricing policies on consumers 
D)  the effect of the government policies on the country's unemployment rate 
A)  the effect of the budget deficit on the economy 
B)  the effect of monetary policy on inflation 
C)  the effect of Walmart's pricing policies on consumers 
D)  the effect of the government policies on the country's unemployment rate

Question 2

Which of the following is NOT true of economic model building?

Accepted Answer

A)  There may be exceptions to economic models. 
B)  Adding more complexity to models does not always provide greater insights. 
C)  Economic models always reach verifiable results. 
D)  Economic models provide generalizations about economic behavior. 
A)  There may be exceptions to economic models. 
B)  Adding more complexity to models does not always provide greater insights. 
C)  Economic models always reach verifiable results. 
D)  Economic models provide generalizations about economic behavior.

Question 3

The study of economics:

Accepted Answer

A)  primarily considers the stock market. 
B)  is about people's decisions regarding their use of scarce resources. 
C)  doesn't apply to decisions made by businesses. 
D)  states efficiency and equity don't conflict. 
A)  primarily considers the stock market. 
B)  is about people's decisions regarding their use of scarce resources. 
C)  doesn't apply to decisions made by businesses. 
D)  states efficiency and equity don't conflict.

Question 4

Time series graphs include the value of a variable on the vertical axis and minutes,hours,days,months,quarters,or years on the horizontal axis.

Accepted Answer

A) True 
 B)False

Question 5

Which is a characteristic of economic models?

Accepted Answer

A)  They try to boil down an economic situation to its most basic elements. 
B)  They are always complex because the economy is complex. 
C)  They attempt to reproduce reality exactly. 
D)  They try to avoid invoking the ceteris paribus assumption. 
A)  They try to boil down an economic situation to its most basic elements. 
B)  They are always complex because the economy is complex. 
C)  They attempt to reproduce reality exactly. 
D)  They try to avoid invoking the ceteris paribus assumption.

Question 6

Production efficiency occurs when goods are:

Accepted Answer

A)  produced with the lowest possible resource cost. 
B)  allocated equally. 
C)  delivered to those who have the greatest willingness and ability to acquire them. 
D)  allocated to those with the greatest need. 
A)  produced with the lowest possible resource cost. 
B)  allocated equally. 
C)  delivered to those who have the greatest willingness and ability to acquire them. 
D)  allocated to those with the greatest need.

Question 7

You will take the day off work if:

Accepted Answer

A)  marginal costs exceed marginal benefits. 
B)  marginal costs are less than marginal benefits. 
C)  you can make up the missed work tomorrow. 
D)  you have additional sick days to spare. 
A)  marginal costs exceed marginal benefits. 
B)  marginal costs are less than marginal benefits. 
C)  you can make up the missed work tomorrow. 
D)  you have additional sick days to spare.

Question 8

"Thinking at the margin" involves:

Accepted Answer

A)  influencing how individuals make decisions. 
B)  making wiser decisions given limited information. 
C)  maximizing an firm's or individual's well-being. 
D)  weighing the impact of one additional activity. 
A)  influencing how individuals make decisions. 
B)  making wiser decisions given limited information. 
C)  maximizing an firm's or individual's well-being. 
D)  weighing the impact of one additional activity.

Question 9

An economy exhibits production efficiency if:

Accepted Answer

A)  it produces more than enough clothes to clothe everyone. 
B)  economic growth increases every year. 
C)  it produces goods at the lowest cost possible. 
D)  it eliminates poverty. 
A)  it produces more than enough clothes to clothe everyone. 
B)  economic growth increases every year. 
C)  it produces goods at the lowest cost possible. 
D)  it eliminates poverty.

Question 10

Consider the equation Y = e + fX.Which letter represents the intercept?

Accepted Answer

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

Question 11

When we analyze the relationship between inflation and the money supply,we assume that:

Accepted Answer

A)  all other factors that affect the rate of inflation remain constant. 
B)  this relationship holds only in a democratic country. 
C)  this relationship reflects a nonlinear relationship. 
D)  the money supply is backed by gold alone. 
A)  all other factors that affect the rate of inflation remain constant. 
B)  this relationship holds only in a democratic country. 
C)  this relationship reflects a nonlinear relationship. 
D)  the money supply is backed by gold alone.

Question 12

Describe how economists use models and how the results of stylized models may compare with those from more complex models.

Accepted Answer

By stylized,we mean that economists boil

Question 13

The field of economics that focuses on decision-making by individuals,businesses,industries,and government is called:

Accepted Answer

A)  macroeconomics. 
B)  decision science. 
C)  mini-economics. 
D)  microeconomics. 
A)  macroeconomics. 
B)  decision science. 
C)  mini-economics. 
D)  microeconomics.

Question 14

Our wants are always greater than our resources.

Accepted Answer

A) True 
 B)False

Question 15

Specialization in tasks in which one is more proficient coupled with trade:

Accepted Answer

A)  can lead to gains for all parties. 
B)  leads to gains for one party and losses for the other parties. 
C)  leads to losses for all parties. 
D)  works only with government intervention. 
A)  can lead to gains for all parties. 
B)  leads to gains for one party and losses for the other parties. 
C)  leads to losses for all parties. 
D)  works only with government intervention.

Question 16

Compare and contrast the focuses of microeconomics and macroeconomics.

Accepted Answer

Microeconomics deals with deci

Question 17

If a graph showed that as the amount of partying increased,your GPA decreased,then this relationship would be:

Accepted Answer

A)  negative. 
B)  positive. 
C)  definitely linear. 
D)  definitely nonlinear. 
A)  negative. 
B)  positive. 
C)  definitely linear. 
D)  definitely nonlinear.

Question 18

Specialization and exchange between two individuals generally benefit the poorer individual at the expense of the richer individual.

Accepted Answer

A) True 
 B)False

Question 19

Open access to information is necessary in order for a market to work efficiently.

Accepted Answer

A) True 
 B)False

Question 20

Generally speaking,private markets are the most efficient institutions for providing goods and services.

Accepted Answer

A) True 
 B)False

Which of the following does NOT deal with macroeconomics?

Which of the following is NOT true of economic model building?

The study of economics:

Time series graphs include the value of a variable on the vertical axis and minutes,hours,days,months,quarters,or years on the horizontal axis.

Which is a characteristic of economic models?

Production efficiency occurs when goods are:

You will take the day off work if:

"Thinking at the margin" involves:

An economy exhibits production efficiency if:

Consider the equation Y = e + fX.Which letter represents the intercept?

When we analyze the relationship between inflation and the money supply,we assume that:

Describe how economists use models and how the results of stylized models may compare with those from more complex models.

The field of economics that focuses on decision-making by individuals,businesses,industries,and government is called:

Our wants are always greater than our resources.

Specialization in tasks in which one is more proficient coupled with trade:

Compare and contrast the focuses of microeconomics and macroeconomics.

If a graph showed that as the amount of partying increased,your GPA decreased,then this relationship would be:

Specialization and exchange between two individuals generally benefit the poorer individual at the expense of the richer individual.

Open access to information is necessary in order for a market to work efficiently.

Generally speaking,private markets are the most efficient institutions for providing goods and services.

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 does NOT deal with macroeconomics?

Which of the following is NOT true of economic model building?

The study of economics:

Time series graphs include the value of a variable on the vertical axis and minutes,hours,days,months,quarters,or years on the horizontal axis.

Which is a characteristic of economic models?

Production efficiency occurs when goods are:

You will take the day off work if:

"Thinking at the margin" involves:

An economy exhibits production efficiency if:

Consider the equation Y = e + fX.Which letter represents the intercept?

When we analyze the relationship between inflation and the money supply,we assume that:

Describe how economists use models and how the results of stylized models may compare with those from more complex models.

The field of economics that focuses on decision-making by individuals,businesses,industries,and government is called:

Our wants are always greater than our resources.

Specialization in tasks in which one is more proficient coupled with trade:

Compare and contrast the focuses of microeconomics and macroeconomics.

If a graph showed that as the amount of partying increased,your GPA decreased,then this relationship would be:

Specialization and exchange between two individuals generally benefit the poorer individual at the expense of the richer individual.

Open access to information is necessary in order for a market to work efficiently.

Generally speaking,private markets are the most efficient institutions for providing goods and services.

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