Question 1

The benefit from a good or service that you purchase is measured by

Accepted Answer

A) the dollar amount that is paid for the good or service. 
B) the dollar amount you can get by selling the good or service. 
C) what you are willing to give up to obtain the good or service. 
D) how strong the incentives were that led to buying the good or service. 
E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service. 
A) the dollar amount that is paid for the good or service. 
B) the dollar amount you can get by selling the good or service. 
C) what you are willing to give up to obtain the good or service. 
D) how strong the incentives were that led to buying the good or service. 
E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service.

Question 2

In economics,cost is measured as ________,and benefit is measured as ________.

Accepted Answer

A) what you must give up to get something;what you are willing to give up to get it 
B) what you are willing to give up to get it;what you must give up to get something 
C) the amount of money that you pay for something;the amount of money that someone else is willing to pay you 
D) what you are willing to pay on the margin;what the government pays you when you are unemployed or retired 
E) the amount of money that you pay on the margin;the amount of money that you receive on the margin 
A) what you must give up to get something;what you are willing to give up to get it 
B) what you are willing to give up to get it;what you must give up to get something 
C) the amount of money that you pay for something;the amount of money that someone else is willing to pay you 
D) what you are willing to pay on the margin;what the government pays you when you are unemployed or retired 
E) the amount of money that you pay on the margin;the amount of money that you receive on the margin

Question 3

A normative statement

Accepted Answer

A) depends on someone's values. 
B) cannot use the word "should." 
C) says what is currently believed about the way the world operates. 
D) must be tested to determine if it is correct. 
E) can be tested to determine if it is correct. 
A) depends on someone's values. 
B) cannot use the word "should." 
C) says what is currently believed about the way the world operates. 
D) must be tested to determine if it is correct. 
E) can be tested to determine if it is correct.

Question 4

Two variables are unrelated if their graph is
I.a vertical line.
Ii.a 45 degree line.
Iii.a horizontal line.

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i,ii,and iii 
A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i,ii,and iii

Question 5

To economists,scarcity means that

Accepted Answer

A) limited wants cannot be satisfied by the unlimited resources. 
B) a person looking for work is not able to find work. 
C) the number of people without jobs rises when economic times are bad. 
D) there can never be answers to the what,how or for whom questions. 
E) unlimited wants cannot be satisfied by the limited resources. 
A) limited wants cannot be satisfied by the unlimited resources. 
B) a person looking for work is not able to find work. 
C) the number of people without jobs rises when economic times are bad. 
D) there can never be answers to the what,how or for whom questions. 
E) unlimited wants cannot be satisfied by the limited resources.

Question 6

Scarcity forces people to

Accepted Answer

A) choose among available alternatives. 
B) cheat and steal. 
C) be unwilling to help others. 
D) live at a low standard of living. 
E) consume as much as they can as quickly as they can. 
A) choose among available alternatives. 
B) cheat and steal. 
C) be unwilling to help others. 
D) live at a low standard of living. 
E) consume as much as they can as quickly as they can.

Question 7

Scarcity requires that we

Accepted Answer

A) produce efficiently. 
B) learn to limit our wants. 
C) have the most rapid economic growth possible. 
D) have unlimited resources. 
E) make choices about what goods and services to produce. 
A) produce efficiently. 
B) learn to limit our wants. 
C) have the most rapid economic growth possible. 
D) have unlimited resources. 
E) make choices about what goods and services to produce.

Question 8

As a curve approaches a maximum point,the slope will

Accepted Answer

A) be positive and then negative after the maximum point. 
B) be negative and then positive after the maximum point. 
C) remain constant on either side of the maximum point. 
D) increase before and after the maximum point. 
E) decrease before and after the maximum point. 
A) be positive and then negative after the maximum point. 
B) be negative and then positive after the maximum point. 
C) remain constant on either side of the maximum point. 
D) increase before and after the maximum point. 
E) decrease before and after the maximum point.

Question 9

The question "How are goods and services produced?" most closely addresses which of the following issues?

Accepted Answer

A) Should Ford build SUVs or luxury cars? 
B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
C) Should contractors build residential housing or shopping malls? 
D) Is income distributed fairly in the United States? 
E) Why are Christmas trees popular only in December? 
A) Should Ford build SUVs or luxury cars? 
B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
C) Should contractors build residential housing or shopping malls? 
D) Is income distributed fairly in the United States? 
E) Why are Christmas trees popular only in December?

Question 10

People must make choices because

Accepted Answer

A) most people enjoy shopping. 
B) of scarcity. 
C) there are many goods available. 
D) the question "What goods and services are produced?" is not adequately answered. 
E) making choices is in the social interest. 
A) most people enjoy shopping. 
B) of scarcity. 
C) there are many goods available. 
D) the question "What goods and services are produced?" is not adequately answered. 
E) making choices is in the social interest.

Question 11

The decision to go to graduate school is a rational one for a college student if the

Accepted Answer

A) cost is not too great. 
B) marginal cost exceeds the marginal benefit of graduate school. 
C) marginal benefit of graduate school exceeds the marginal cost. 
D) opportunity cost of graduate school equals zero. 
E) student carefully compared the social benefits of this decision. 
A) cost is not too great. 
B) marginal cost exceeds the marginal benefit of graduate school. 
C) marginal benefit of graduate school exceeds the marginal cost. 
D) opportunity cost of graduate school equals zero. 
E) student carefully compared the social benefits of this decision.

Question 12

A time-series graph measures

Accepted Answer

A) the value of one variable against the value of another variable. 
B) the value of an economic variable for different groups in a population at a point in time. 
C) time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D) time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E) time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure. 
A) the value of one variable against the value of another variable. 
B) the value of an economic variable for different groups in a population at a point in time. 
C) time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D) time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E) time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure.

Question 13

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A) to organize production so that scarcity does not occur. 
B) firms make profits. 
C) we make choices in the face of scarcity. 
D) to create incentives so that scarcity does not exist. 
E) businesses reach decisions. 
A) to organize production so that scarcity does not occur. 
B) firms make profits. 
C) we make choices in the face of scarcity. 
D) to create incentives so that scarcity does not exist. 
E) businesses reach decisions.

Question 14

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

Accepted Answer

A) a positive relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) no relationship. 
E) an invalid relationship. 
A) a positive relationship. 
B) a direct relationship. 
C) a negative relationship. 
D) no relationship. 
E) an invalid relationship.

Question 15

What is NOT true about rational choice?

Accepted Answer

A) It can result in different decisions for different individuals. 
B) It involves comparing costs and benefits. 
C) It might turn out not to have been the best choice after the event. 
D) It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E) It is the same for all individuals. 
A) It can result in different decisions for different individuals. 
B) It involves comparing costs and benefits. 
C) It might turn out not to have been the best choice after the event. 
D) It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E) It is the same for all individuals.

Question 16

Which of the following is true?
I.A rational choice is always made in the pursuit of social interest.
Ii.Economics is a social science.
Iii.Economists try to understand how the economic world works by testing positive statements.

Accepted Answer

A) ii and iii 
B) only i 
C) only ii 
D) only iii 
E) i and ii 
A) ii and iii 
B) only i 
C) only ii 
D) only iii 
E) i and ii

Question 17

Scarcity means that

Accepted Answer

A) what we can produce with our resources is greater than our material wants. 
B) resources are unlimited. 
C) wants are greater than what we can produce with our resources. 
D) governments must make up for shortages in resources. 
E) choices made in self-interest cannot be the same as those made in the social interest. 
A) what we can produce with our resources is greater than our material wants. 
B) resources are unlimited. 
C) wants are greater than what we can produce with our resources. 
D) governments must make up for shortages in resources. 
E) choices made in self-interest cannot be the same as those made in the social interest.

Question 18

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Accepted Answer

A) marginal benefit and marginal cost 
B) opportunity cost and the sunk cost 
C) positive benefits and normative costs 
D) normative benefits and positive costs 
E) self-interest and social-interest 
A) marginal benefit and marginal cost 
B) opportunity cost and the sunk cost 
C) positive benefits and normative costs 
D) normative benefits and positive costs 
E) self-interest and social-interest

Question 19

-In the above,in which figure(s)is (are)the slope the same at every point?

Accepted Answer

A) Figure A only 
B) Figures A and C 
C) Figure B only 
D) Figures A,C,and D 
E) Figures C and D 
A) Figure A only 
B) Figures A and C 
C) Figure B only 
D) Figures A,C,and D 
E) Figures C and D

Question 20

A time-series graph reveals whether there is a ________,which represents ________.

Accepted Answer

A) trend in a variable;a general tendency for the variable to rise or fall 
B) relationship between two variables;a cross-section relationship 
C) trends in two variables;unrelated variables 
D) relationship between two variables;a trend in a variable 
E) cross-section relationship;a general tendency for the variables to rise or fall 
A) trend in a variable;a general tendency for the variable to rise or fall 
B) relationship between two variables;a cross-section relationship 
C) trends in two variables;unrelated variables 
D) relationship between two variables;a trend in a variable 
E) cross-section relationship;a general tendency for the variables to rise or fall

The benefit from a good or service that you purchase is measured by

In economics,cost is measured as ,and benefit is measured as .

A normative statement

Two variables are unrelated if their graph is I.a vertical line. Ii.a 45 degree line. Iii.a horizontal line.

To economists,scarcity means that

Scarcity forces people to

Scarcity requires that we

As a curve approaches a maximum point,the slope will

The question "How are goods and services produced?" most closely addresses which of the following issues?

People must make choices because

The decision to go to graduate school is a rational one for a college student if the

A time-series graph measures

Which of the following statements best describes the study of economics? Economics studies how

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

What is NOT true about rational choice?

Which of the following is true? I.A rational choice is always made in the pursuit of social interest. Ii.Economics is a social science. Iii.Economists try to understand how the economic world works by testing positive statements.

Scarcity means that

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

-In the above,in which figure(s)is (are)the slope the same at every point?

A time-series graph reveals whether there is a ,which represents .

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 1: Getting Started

The benefit from a good or service that you purchase is measured by

In economics,cost is measured as ________,and benefit is measured as ________.

A normative statement

Two variables are unrelated if their graph is I.a vertical line. Ii.a 45 degree line. Iii.a horizontal line.

To economists,scarcity means that

Scarcity forces people to

Scarcity requires that we

As a curve approaches a maximum point,the slope will

The question "How are goods and services produced?" most closely addresses which of the following issues?

People must make choices because

The decision to go to graduate school is a rational one for a college student if the

A time-series graph measures

Which of the following statements best describes the study of economics? Economics studies how

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

What is NOT true about rational choice?

Which of the following is true? I.A rational choice is always made in the pursuit of social interest. Ii.Economics is a social science. Iii.Economists try to understand how the economic world works by testing positive statements.

Scarcity means that

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

-In the above,in which figure(s)is (are)the slope the same at every point?

A time-series graph reveals whether there is a ________,which represents ________.

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

In economics,cost is measured as ,and benefit is measured as .

A time-series graph reveals whether there is a ,which represents .