Question 1

One example of physical capital is the amount of savings that you have.

Accepted Answer

A) True 
 B)False

Question 2

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Accepted Answer

A) there will be a shortage of doctors in the United States. 
B) the number of doctors in the United States will decrease and the number of doctors needed will increase. 
C) the number of doctors in the United States will increase and the number of doctors needed will decrease. 
D) there will be a surplus of doctors in the United States. 
A) there will be a shortage of doctors in the United States. 
B) the number of doctors in the United States will decrease and the number of doctors needed will increase. 
C) the number of doctors in the United States will increase and the number of doctors needed will decrease. 
D) there will be a surplus of doctors in the United States.

Question 3

Which of the following is motivated by an equity concern?

Accepted Answer

A) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs,thus harming lower-income students with greater financial need. 
B) Following the removal of subsidies in urban water use,household demand for water decreased quite significantly in Bogor,Indonesia. 
C) In November 2003,the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region. 
D) The United States protects intellectual property rights,allowing inventors to prevent others from using their inventions without payment. 
A) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs,thus harming lower-income students with greater financial need. 
B) Following the removal of subsidies in urban water use,household demand for water decreased quite significantly in Bogor,Indonesia. 
C) In November 2003,the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region. 
D) The United States protects intellectual property rights,allowing inventors to prevent others from using their inventions without payment.

Question 4

In economics,the difference between a firm's revenues and its costs is referred to as

Accepted Answer

A) physical capital. 
B) profit. 
C) capital gains. 
D) factor payments. 
A) physical capital. 
B) profit. 
C) capital gains. 
D) factor payments.

Question 5

Which of the following correctly describes the relationship between economic efficiency and economic equity?

Accepted Answer

A) They are both automatically achieved in a free market economy. 
B) They always call for opposite outcomes. 
C) There is no conflict between the two goals. 
D) There is often a trade-off between the two. 
A) They are both automatically achieved in a free market economy. 
B) They always call for opposite outcomes. 
C) There is no conflict between the two goals. 
D) There is often a trade-off between the two.

Question 6

DeShawn's Detailing is a service that details cars at the customers' homes or places of work.DeShawn's cost for a basic detailing package is $40,and he charges $75 for this service.For a total price of $90,DeShawn will also detail the car's engine,a service that adds an additional $20 to the total cost of the package.
-What is the marginal cost of adding the engine detailing to the basic detailing package?

Accepted Answer

A) $20 
B) $30 
C) $60 
D) $60 plus the value of his time 
A) $20 
B) $30 
C) $60 
D) $60 plus the value of his time

Question 7

Table 1-6
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Hours } \
\text { Open }
\end{array} & \begin{array} { c } 
\text { Total Revenue } \
\text { (dollars) }
\end{array} \
\hline 1 & \$ 275 \
\hline 2 & 375 \
\hline 3 & 450 \
\hline 4 & 500 \
\hline 5 & 530 \
\hline 6 & 550 \
\hline
\end{array}$$ Ivan runs a custom jewelry shop in Sparkle City.He is debating whether he should extend his hours of operation.Ivan figures that his sales revenue will depend on the number of additional hours the jewelry shop is open as shown in the table above.He would have to hire a worker for those hours at a wage rate of $25 per hour.
-Refer to Table 1-6.What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?

Accepted Answer

A) $10 
B) $20 
C) $25 
D) $91.67 
A) $10 
B) $20 
C) $25 
D) $91.67

Question 8

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomics topic.

Accepted Answer

A) True 
 B)False

Question 9

Microeconomics is the study of

Accepted Answer

A) how households and firms make choices. 
B) the economy as a whole. 
C) the global economy. 
D) topics such as unemployment,inflation,and economic growth. 
A) how households and firms make choices. 
B) the economy as a whole. 
C) the global economy. 
D) topics such as unemployment,inflation,and economic growth.

Question 10

In the United States in 2012,the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases)was lowest for people in the age range of ________,and the percentage of people with diabetes was lowest for people in the age range of ________.

Accepted Answer

A) 20-44;20-44 
B) 45-64;65 and older 
C) 65 and older;65 and older 
D) 65 and older;20-44 
A) 20-44;20-44 
B) 45-64;65 and older 
C) 65 and older;65 and older 
D) 65 and older;20-44

Question 11

Technology is defined as

Accepted Answer

A) the process of developing and revising models. 
B) new innovations and creations. 
C) the processes used to produce goods and services. 
D) the process of recycling products. 
A) the process of developing and revising models. 
B) new innovations and creations. 
C) the processes used to produce goods and services. 
D) the process of recycling products.

Question 12

Which of the following is a normative economic statement?

Accepted Answer

A) Tobacco products should be banned in all public spaces. 
B) The increase in tobacco taxes has caused an increase in the price of cigarettes. 
C) Better awareness of health risks has decreased tobacco use. 
D) A reduction in tobacco subsidies has caused the price of tobacco to increase. 
A) Tobacco products should be banned in all public spaces. 
B) The increase in tobacco taxes has caused an increase in the price of cigarettes. 
C) Better awareness of health risks has decreased tobacco use. 
D) A reduction in tobacco subsidies has caused the price of tobacco to increase.

Question 13

On a two-dimensional graph,________ allows for the effects of additional variables.

Accepted Answer

A) moving along a curve 
B) shifting curves 
C) eliminating a curve 
D) adding an additional curve 
A) moving along a curve 
B) shifting curves 
C) eliminating a curve 
D) adding an additional curve

Question 14

If a straight line passes through the point x = 8 and y = 4 and also through the point x = 12 and y = 6,the slope of this line is

Accepted Answer

A) negative 4 divided by 2. 
B) two. 
C) negative one half. 
D) one half. 
A) negative 4 divided by 2. 
B) two. 
C) negative one half. 
D) one half.

Question 15

In the United States in 2012,the number of new,diagnosed diabetes cases was lowest for people in the age range of ________,and the rate of new diabetes cases per 1,000 people was lowest for people in the age range of ________.

Accepted Answer

A) 20-44;20-44 
B) 45-64;65 and older 
C) 45-64;45-64 
D) 65 and older;20-44 
A) 20-44;20-44 
B) 45-64;65 and older 
C) 45-64;45-64 
D) 65 and older;20-44

Question 16

Marginal benefit is the benefit that your activity provides to someone else.

Accepted Answer

A) True 
 B)False

Question 17

A college must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

Accepted Answer

A) True 
 B)False

Question 18

Mr.Peabody chooses to invest in companies that produce goods and services at the lowest possible cost.Mr.Peabody is investing in companies that are

Accepted Answer

A) allocatively efficient. 
B) productively efficient. 
C) guaranteed to make a profit. 
D) all of the above 
A) allocatively efficient. 
B) productively efficient. 
C) guaranteed to make a profit. 
D) all of the above

Question 19

Suppose the extra cost to a car wash of advertising one additional day each month on a local radio station is $175.Then,the car wash should advertize that one additional day each month if doing so brings in additional revenue of $175 or more each month.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a normative economic statement?

Accepted Answer

A) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. 
B) With falling home prices and rising mortgage interest rates,the amount of foreclosures has increased. 
C) The federal government is considering raising the gasoline tax to promote the use of public transportation. 
D) Fashion designers should be allowed to copyright designs to promote innovation. 
A) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. 
B) With falling home prices and rising mortgage interest rates,the amount of foreclosures has increased. 
C) The federal government is considering raising the gasoline tax to promote the use of public transportation. 
D) Fashion designers should be allowed to copyright designs to promote innovation.

Exam 1: Economics: Foundations and Models

One example of physical capital is the amount of savings that you have.

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Which of the following is motivated by an equity concern?

In economics,the difference between a firm's revenues and its costs is referred to as

Which of the following correctly describes the relationship between economic efficiency and economic equity?

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomics topic.

Microeconomics is the study of

In the United States in 2012,the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases)was lowest for people in the age range of ________,and the percentage of people with diabetes was lowest for people in the age range of ________.

Technology is defined as

Which of the following is a normative economic statement?

On a two-dimensional graph,________ allows for the effects of additional variables.

If a straight line passes through the point x = 8 and y = 4 and also through the point x = 12 and y = 6,the slope of this line is

In the United States in 2012,the number of new,diagnosed diabetes cases was lowest for people in the age range of ________,and the rate of new diabetes cases per 1,000 people was lowest for people in the age range of ________.

Marginal benefit is the benefit that your activity provides to someone else.

A college must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

Mr.Peabody chooses to invest in companies that produce goods and services at the lowest possible cost.Mr.Peabody is investing in companies that are

Suppose the extra cost to a car wash of advertising one additional day each month on a local radio station is $175.Then,the car wash should advertize that one additional day each month if doing so brings in additional revenue of $175 or more each month.

Which of the following is a normative economic statement?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology,production,and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In the United States in 2012,the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases)was lowest for people in the age range of ,and the percentage of people with diabetes was lowest for people in the age range of .

In the United States in 2012,the number of new,diagnosed diabetes cases was lowest for people in the age range of ,and the rate of new diabetes cases per 1,000 people was lowest for people in the age range of .