Question 1

The extra cost associated with undertaking some action is its:

Accepted Answer

A)  marginal benefit. 
B)  marginal cost. 
C)  net cost. 
D)  total cost. 
A)  marginal benefit. 
B)  marginal cost. 
C)  net cost. 
D)  total cost.

Question 2

If a graph drawn for the relationship between hot chocolate sales and temperature is downward sloping,then sales of hot chocolate:

Accepted Answer

A)  fall as temperature falls. 
B)  rise as temperature falls. 
C)  rise over time. 
D)  fall over time. 
A)  fall as temperature falls. 
B)  rise as temperature falls. 
C)  rise over time. 
D)  fall over time.

Question 3

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

Accepted Answer

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

Question 4

Which of the following is a microeconomic statement?

Accepted Answer

A)  The unemployment rate fell by 2%. 
B)  All businesses in the United States experienced a decrease in revenues of 5% due to the recession. 
C)  About 15% of the teachers were laid off last week. 
D)  GDP increased by 6% last quarter. 
A)  The unemployment rate fell by 2%. 
B)  All businesses in the United States experienced a decrease in revenues of 5% due to the recession. 
C)  About 15% of the teachers were laid off last week. 
D)  GDP increased by 6% last quarter.

Question 5

A common definition of economics is that it is the study of:

Accepted Answer

A)  the allocation of scarce resources to competing wants. 
B)  maximizing net personal disposable income. 
C)  the factors underlying financial markets. 
D)  maximizing personal financial wealth. 
A)  the allocation of scarce resources to competing wants. 
B)  maximizing net personal disposable income. 
C)  the factors underlying financial markets. 
D)  maximizing personal financial wealth.

Question 6

In the equation C = a + bY,Y is the dependent variable and a is the intercept.

Accepted Answer

A) True 
 B)False

Question 7

Simple graphs never provide information about the relationship between variables.

Accepted Answer

A) True 
 B)False

Question 8

When the ______ outweigh(s)the ______ of the information,people attempt to obtain the information.

Accepted Answer

A)  costs;benefits 
B)  benefits;costs 
C)  equity;efficiency 
D)  efficiency;equity 
A)  costs;benefits 
B)  benefits;costs 
C)  equity;efficiency 
D)  efficiency;equity

Question 9

What is the opportunity cost of you taking this economics class?

Accepted Answer

Each student will have a different respo

Question 10

Explain the difference between positive questions and normative questions.

Accepted Answer

Positive questions involve the understan

Question 11

An example of a microeconomics question would be the reasons for increases and decreases in the price of bread.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  130 when the temperature is 0. 
B)  65 when the temperature is 0. 
C)  132 when the temperature is 0. 
D)  128 when the temperature is 0. 
A)  130 when the temperature is 0. 
B)  65 when the temperature is 0. 
C)  132 when the temperature is 0. 
D)  128 when the temperature is 0.

Question 13

Opportunity costs exist because:

Accepted Answer

A)  using resources for one activity means that their use elsewhere must be given up. 
B)  sellers are unwilling to give up their product without a price. 
C)  there are opportunities to find ways to reduce costs. 
D)  buyers always have an opportunity to go to another seller. 
A)  using resources for one activity means that their use elsewhere must be given up. 
B)  sellers are unwilling to give up their product without a price. 
C)  there are opportunities to find ways to reduce costs. 
D)  buyers always have an opportunity to go to another seller.

Question 14

Scarcity occurs when an individual's resources exceed his wants.

Accepted Answer

A) True 
 B)False

Question 15

Most economists agree that there is no legitimate role for government to play in the economy.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following paired variables might indicate a correlation but NOT causation?

Accepted Answer

A)  advertising expenditures and sales 
B)  snowfall amounts and stock market performance 
C)  age and health care expenditures 
D)  grade point average and future income 
A)  advertising expenditures and sales 
B)  snowfall amounts and stock market performance 
C)  age and health care expenditures 
D)  grade point average and future income

Question 17

Macroeconomics is concerned about the broader issues in the economy such as inflation,unemployment,and national output of goods and services.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is TRUE?

Accepted Answer

A)  Low productivity and low pay go together. 
B)  High productivity and low pay go together. 
C)  Low productivity and high pay go together. 
D)  The most productive countries are those with the lowest average per capita incomes. 
A)  Low productivity and low pay go together. 
B)  High productivity and low pay go together. 
C)  Low productivity and high pay go together. 
D)  The most productive countries are those with the lowest average per capita incomes.

Question 19

Normative questions involve societal beliefs on what should or should not be done.

Accepted Answer

A) True 
 B)False

Question 20

It must be recognized that private markets:

Accepted Answer

A)  will always produce the most rational level of production. 
B)  can fail. 
C)  satisfy everyone. 
D)  will never produce the most rational outcome. 
A)  will always produce the most rational level of production. 
B)  can fail. 
C)  satisfy everyone. 
D)  will never produce the most rational outcome.

The extra cost associated with undertaking some action is its:

If a graph drawn for the relationship between hot chocolate sales and temperature is downward sloping,then sales of hot chocolate:

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

Which of the following is a microeconomic statement?

A common definition of economics is that it is the study of:

In the equation C = a + bY,Y is the dependent variable and a is the intercept.

Simple graphs never provide information about the relationship between variables.

When the outweigh(s)the of the information,people attempt to obtain the information.

What is the opportunity cost of you taking this economics class?

Explain the difference between positive questions and normative questions.

An example of a microeconomics question would be the reasons for increases and decreases in the price of bread.

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

Opportunity costs exist because:

Scarcity occurs when an individual's resources exceed his wants.

Most economists agree that there is no legitimate role for government to play in the economy.

Which of the following paired variables might indicate a correlation but NOT causation?

Macroeconomics is concerned about the broader issues in the economy such as inflation,unemployment,and national output of goods and services.

Which of the following statements is TRUE?

Normative questions involve societal beliefs on what should or should not be done.

It must be recognized that private markets:

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

The extra cost associated with undertaking some action is its:

If a graph drawn for the relationship between hot chocolate sales and temperature is downward sloping,then sales of hot chocolate:

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

Which of the following is a microeconomic statement?

A common definition of economics is that it is the study of:

In the equation C = a + bY,Y is the dependent variable and a is the intercept.

Simple graphs never provide information about the relationship between variables.

When the ______ outweigh(s)the ______ of the information,people attempt to obtain the information.

What is the opportunity cost of you taking this economics class?

Explain the difference between positive questions and normative questions.

An example of a microeconomics question would be the reasons for increases and decreases in the price of bread.

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

Opportunity costs exist because:

Scarcity occurs when an individual's resources exceed his wants.

Most economists agree that there is no legitimate role for government to play in the economy.

Which of the following paired variables might indicate a correlation but NOT causation?

Macroeconomics is concerned about the broader issues in the economy such as inflation,unemployment,and national output of goods and services.

Which of the following statements is TRUE?

Normative questions involve societal beliefs on what should or should not be done.

It must be recognized that private markets:

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

When the outweigh(s)the of the information,people attempt to obtain the information.