Question 1

In economics,"capital" refers to

Accepted Answer

A) money 
B) stocks,bonds,and other financial assets 
C) the seat of government 
D) machines,buildings,tools,and knowledge 
E) net worth (assets minus liabilities) 
A) money 
B) stocks,bonds,and other financial assets 
C) the seat of government 
D) machines,buildings,tools,and knowledge 
E) net worth (assets minus liabilities)

Question 2

Which of the following is a microeconomic topic?

Accepted Answer

A) the job search behavior of a college graduate 
B) the impact of policy on the unemployment rate 
C) the impact of policy on the inflation rate 
D) the national debt 
E) the balance of payments 
A) the job search behavior of a college graduate 
B) the impact of policy on the unemployment rate 
C) the impact of policy on the inflation rate 
D) the national debt 
E) the balance of payments

Question 3

Which of the following would an economist classify as capital?

Accepted Answer

A) 100 shares of Microsoft stock 
B) a $50 bill 
C) a credit card 
D) a lawyer's personal computer 
E) a bauxite mine in Jamaica 
A) 100 shares of Microsoft stock 
B) a $50 bill 
C) a credit card 
D) a lawyer's personal computer 
E) a bauxite mine in Jamaica

Question 4

A product that is physical and tangible is refered to as a(n)

Accepted Answer

A) service 
B) good 
C) resource 
D) commodity 
E) asset 
A) service 
B) good 
C) resource 
D) commodity 
E) asset

Question 5

A good economic theory

Accepted Answer

A) has realistic assumptions 
B) contains as much detail as possible 
C) cannot be proven false 
D) predicts well 
E) can only be presented in mathematical terms 
A) has realistic assumptions 
B) contains as much detail as possible 
C) cannot be proven false 
D) predicts well 
E) can only be presented in mathematical terms

Question 6

The fact that people have unlimited wants means that

Accepted Answer

A) they always want more of at least one good 
B) each person has an unlimited desire for every good 
C) labor unions demand wage increases 
D) selfish people are not concerned about others 
E) people buy goods without regard to what they can afford 
A) they always want more of at least one good 
B) each person has an unlimited desire for every good 
C) labor unions demand wage increases 
D) selfish people are not concerned about others 
E) people buy goods without regard to what they can afford

Question 7

The scientific method is useful

Accepted Answer

A) only in fields of science such as chemistry and physics 
B) for testing the validity of theoretical predictions 
C) for testing the validity of a model's assumptions 
D) when no economic variables can be assumed to be constant 
E) only if a theory has been proven to be true 
A) only in fields of science such as chemistry and physics 
B) for testing the validity of theoretical predictions 
C) for testing the validity of a model's assumptions 
D) when no economic variables can be assumed to be constant 
E) only if a theory has been proven to be true

Question 8

If a business produces and sells only one unit of a good,its profit would be the

Accepted Answer

A) price received for the good 
B) price of the product minus the cost of the resources used to produce the product 
C) return paid to the firm's bank on its outstanding loans 
D) price of the product minus the wages paid for the labor used to produce it 
E) wages paid for the labor used to produce the product minus the price 
A) price received for the good 
B) price of the product minus the cost of the resources used to produce the product 
C) return paid to the firm's bank on its outstanding loans 
D) price of the product minus the wages paid for the labor used to produce it 
E) wages paid for the labor used to produce the product minus the price

Question 9

Economic theories are

Accepted Answer

A) useful because they are as exact as theories in the physical sciences 
B) useless because they are based on abstractions 
C) useful because they allow us to make predictions 
D) too complex to understand because they include all of reality 
E) useful in predicting events only if their assumptions are realistic 
A) useful because they are as exact as theories in the physical sciences 
B) useless because they are based on abstractions 
C) useful because they allow us to make predictions 
D) too complex to understand because they include all of reality 
E) useful in predicting events only if their assumptions are realistic

Question 10

Rent is the payment received by resource owners for the use of their natural resources.

Accepted Answer

A) True 
 B)False

Question 11

Michigan has an abundant supply of fresh water.However,an economist would consider it a scarce resource because

Accepted Answer

A) water is necessary for humans' physical survival 
B) pollution will eventually destroy all life in the Great Lakes 
C) water is limited relative to people's unlimited wants 
D) water commands a very high price 
E) nature can destroy water as well as create it 
A) water is necessary for humans' physical survival 
B) pollution will eventually destroy all life in the Great Lakes 
C) water is limited relative to people's unlimited wants 
D) water commands a very high price 
E) nature can destroy water as well as create it

Question 12

In macroeconomics,we analyze

Accepted Answer

A) all of the following 
B) the overall performance of the economy as a whole 
C) arrangements through which specific products are exchanged 
D) influences on the decision making of particular households 
E) the factors that affect the decisions of individual firms 
A) all of the following 
B) the overall performance of the economy as a whole 
C) arrangements through which specific products are exchanged 
D) influences on the decision making of particular households 
E) the factors that affect the decisions of individual firms

Question 13

When economists say that people act as rational decision makers,that means

Accepted Answer

A) they gather all relevant information before making their purchases 
B) once a pattern of behavior has been established,people tend to become set in their ways 
C) people respond in predictable ways to changes in costs and benefits 
D) people rarely make errors when they are permitted to make transactions 
E) once made,decisions are never reversed 
A) they gather all relevant information before making their purchases 
B) once a pattern of behavior has been established,people tend to become set in their ways 
C) people respond in predictable ways to changes in costs and benefits 
D) people rarely make errors when they are permitted to make transactions 
E) once made,decisions are never reversed

Question 14

'Which of the following is the best definition of economics?

Accepted Answer

A) An investigation of the quantities and prices of the various goods produced by the nations of the world. 
B) A study of why inflation and unemployment periodically plague the U.S.economy. 
C) An analysis of how individuals and societies deal with the problem of scarcity. 
D) An examination of the role that money plays in the economy. 
E) A study of how goods and services are distributed throughout the world. 
A) An investigation of the quantities and prices of the various goods produced by the nations of the world. 
B) A study of why inflation and unemployment periodically plague the U.S.economy. 
C) An analysis of how individuals and societies deal with the problem of scarcity. 
D) An examination of the role that money plays in the economy. 
E) A study of how goods and services are distributed throughout the world.

Question 15

Which of the following is an example of capital?

Accepted Answer

A) pizza ovens 
B) bulldozers 
C) a college education 
D) carpentry skills 
E) all of the above 
A) pizza ovens 
B) bulldozers 
C) a college education 
D) carpentry skills 
E) all of the above

Question 16

Goods and services are exchanged in

Accepted Answer

A) product markets 
B) resource markets 
C) inventory markets 
D) classified markets 
E) government markets 
A) product markets 
B) resource markets 
C) inventory markets 
D) classified markets 
E) government markets

Question 17

Natural resources are

Accepted Answer

A) not considered scarce because no one pays for them 
B) only desired for use in producing other goods 
C) included in the category of resources called gifts of nature 
D) available in unlimited quantities 
E) not considered scarce because they are not produced by society 
A) not considered scarce because no one pays for them 
B) only desired for use in producing other goods 
C) included in the category of resources called gifts of nature 
D) available in unlimited quantities 
E) not considered scarce because they are not produced by society

Question 18

According to a 2011 survey by PayScale.com,the increase in median pay for economics majors with 10-20 years of experience compared to economics majors with 0-5 years of experience is:

Accepted Answer

A) 150% 
B) 100% 
C) 80% 
D) 60% 
E) 25% 
A) 150% 
B) 100% 
C) 80% 
D) 60% 
E) 25%

Question 19

Microeconomics is the study of

Accepted Answer

A) marginal or inferior products 
B) the economic behavior of individual decision makers 
C) the behavior of the economy as a whole 
D) how to use the fewest natural resources to produce goods and services 
E) government's role as a producer in the economy 
A) marginal or inferior products 
B) the economic behavior of individual decision makers 
C) the behavior of the economy as a whole 
D) how to use the fewest natural resources to produce goods and services 
E) government's role as a producer in the economy

Question 20

Because people's wants are unlimited but resources are scarce,

Accepted Answer

A) only the rich get everything they want 
B) choices must be made 
C) there will be more services produced than goods 
D) people search for spiritual fulfillment rather than material fulfillment 
E) poor people never get anything they want 
A) only the rich get everything they want 
B) choices must be made 
C) there will be more services produced than goods 
D) people search for spiritual fulfillment rather than material fulfillment 
E) poor people never get anything they want

Exam 1: The Art and Science of Economic Analysis

In economics,"capital" refers to

Which of the following is a microeconomic topic?

Which of the following would an economist classify as capital?

A product that is physical and tangible is refered to as a(n)

A good economic theory

The fact that people have unlimited wants means that

The scientific method is useful

If a business produces and sells only one unit of a good,its profit would be the

Economic theories are

Rent is the payment received by resource owners for the use of their natural resources.

Michigan has an abundant supply of fresh water.However,an economist would consider it a scarce resource because

In macroeconomics,we analyze

When economists say that people act as rational decision makers,that means

'Which of the following is the best definition of economics?

Which of the following is an example of capital?

Goods and services are exchanged in

Natural resources are

According to a 2011 survey by PayScale.com,the increase in median pay for economics majors with 10-20 years of experience compared to economics majors with 0-5 years of experience is:

Microeconomics is the study of

Because people's wants are unlimited but resources are scarce,

Economic Tools and Economics Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aaggregate Expenditure and Aggregate Demand

Baggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

Externalities and the Environment

International Finance

Economic Development

understanding Graphs

National Income Accounts

The Algebra of Demand-Side Equilibrium

Filters