Question 1

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 2

-The slope of the line shown in the above figure is

Accepted Answer

A) 5. 
B) 2/5. 
C) 2/3. 
D) 5/2. 
E) 2. 
A) 5. 
B) 2/5. 
C) 2/3. 
D) 5/2. 
E) 2.

Question 3

Define marginal cost and marginal benefit.

Accepted Answer

Marginal cost is the opportuni

Question 4

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

Accepted Answer

A) horizontal line. 
B) vertical line. 
C) curve with a maximum. 
D) positively sloped line. 
E) negatively sloped line. 
A) horizontal line. 
B) vertical line. 
C) curve with a maximum. 
D) positively sloped line. 
E) negatively sloped line.

Question 5

The Latin term "ceteris paribus" means

Accepted Answer

A) "false unless proven true." 
B) "other things remaining the same." 
C) "after this,therefore because of this." 
D) "what is true of the whole is not necessarily true of the parts." 
E) "obviously true." 
A) "false unless proven true." 
B) "other things remaining the same." 
C) "after this,therefore because of this." 
D) "what is true of the whole is not necessarily true of the parts." 
E) "obviously true."

Question 6

A positive statement
I.makes a statement about how the world operates.
Ii.is a true statement.
Iii.can be tested against the facts.

Accepted Answer

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

Question 7

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

Accepted Answer

A) direct 
B) benefit's 
C) opportunity 
D) explicit 
E) sunk 
A) direct 
B) benefit's 
C) opportunity 
D) explicit 
E) sunk

Question 8

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Accepted Answer

A) forgone work. 
B) forgone party. 
C) forgone working and partying. 
D) forgone working or partying,depending on which was your next best choice. 
E) test because you are taking it. 
A) forgone work. 
B) forgone party. 
C) forgone working and partying. 
D) forgone working or partying,depending on which was your next best choice. 
E) test because you are taking it.

Question 9

For spring break,Melanie will either stay home or go to Daytona Beach.At home,Melanie pays $10 per day for food and earns $90 a day at her job.At Daytona Beach,Melanie will stay with friends and so has no lodging cost.She will pay $20 per day for food.In terms of dollars,Melanie's opportunity cost per day of going to Daytona Beach is how much?

Accepted Answer

Melanie's opportunity cost of

Question 10

All economic questions and problems arise from

Accepted Answer

A) the fact that society has more than it needs. 
B) turmoil in the stock market. 
C) the unequal distribution of income. 
D) a society's wants exceeding what its scarce resources can produce. 
E) the difference between self-interest and social interest. 
A) the fact that society has more than it needs. 
B) turmoil in the stock market. 
C) the unequal distribution of income. 
D) a society's wants exceeding what its scarce resources can produce. 
E) the difference between self-interest and social interest.

Question 11

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 12

Why does scarcity lead to the "what," "how," and "for whom" questions?

Accepted Answer

Human wants exceed the resources availab

Question 13

Microeconomics includes the study of the

Accepted Answer

A) aggregate effects on the national economy. 
B) recessions and inflation in the global economy. 
C) choices made by individuals and businesses. 
D) reasons why the government changes interest rates. 
E) nationwide unemployment rate. 
A) aggregate effects on the national economy. 
B) recessions and inflation in the global economy. 
C) choices made by individuals and businesses. 
D) reasons why the government changes interest rates. 
E) nationwide unemployment rate.

Question 14

Which of the following statements is the best example of the term ceteris paribus?

Accepted Answer

A) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B) More money should be spent on cleaning up the environment. 
C) The government budget surplus was $200 billion in 2000 because the economy was growing. 
D) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E) When studying the effects of a budget deficit,an economist must take account of all the factors involved. 
A) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B) More money should be spent on cleaning up the environment. 
C) The government budget surplus was $200 billion in 2000 because the economy was growing. 
D) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E) When studying the effects of a budget deficit,an economist must take account of all the factors involved.

Question 15

A rational choice is one that

Accepted Answer

A) always turns out for the best for the decision maker. 
B) creates no costs for the decision maker. 
C) must be made with perfect information. 
D) uses the available resources to most effectively satisfy the wants of the person making the choice. 
E) is made in the social interest rather than the self-interest. 
A) always turns out for the best for the decision maker. 
B) creates no costs for the decision maker. 
C) must be made with perfect information. 
D) uses the available resources to most effectively satisfy the wants of the person making the choice. 
E) is made in the social interest rather than the self-interest.

Question 16

Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?

Accepted Answer

A) The benefit the three students receive must be the same because they all make the same choice. 
B) The students made a rational choice as long as they face no scarcity. 
C) The students could each have different opportunity costs. 
D) The marginal cost of the decision is the same if they make the same score on the exam. 
E) Going out to eat,playing football,and watching TV are all called sunk costs. 
A) The benefit the three students receive must be the same because they all make the same choice. 
B) The students made a rational choice as long as they face no scarcity. 
C) The students could each have different opportunity costs. 
D) The marginal cost of the decision is the same if they make the same score on the exam. 
E) Going out to eat,playing football,and watching TV are all called sunk costs.

Question 17

In the diagram below,draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 18

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

Accepted Answer

A) a horizontal line. 
B) a vertical line. 
C) a positive relationship. 
D) a line with a positive slope. 
E) None of the above answers is correct. 
A) a horizontal line. 
B) a vertical line. 
C) a positive relationship. 
D) a line with a positive slope. 
E) None of the above answers is correct.

Question 19

Which of the following is a macroeconomic topic?
I.China increases interest rates to slow its economic growth.
Ii.Congress lowers tax rates to try and lower the unemployment rate.
Iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Accepted Answer

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

Question 20

Microeconomics includes the study of

Accepted Answer

A) how countries decide to fund their budget deficits. 
B) the choices that individuals and businesses make. 
C) how a nation promotes economic growth. 
D) the effect on the national economy of the choices that individuals make. 
E) the overall amount of production within the economy. 
A) how countries decide to fund their budget deficits. 
B) the choices that individuals and businesses make. 
C) how a nation promotes economic growth. 
D) the effect on the national economy of the choices that individuals make. 
E) the overall amount of production within the economy.

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

-The slope of the line shown in the above figure is

Define marginal cost and marginal benefit.

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

The Latin term "ceteris paribus" means

A positive statement I.makes a statement about how the world operates. Ii.is a true statement. Iii.can be tested against the facts.

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

All economic questions and problems arise from

-What does the slope of the line shown in the above figure equal?

Why does scarcity lead to the "what," "how," and "for whom" questions?

Microeconomics includes the study of the

Which of the following statements is the best example of the term ceteris paribus?

A rational choice is one that

Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?

In the diagram below,draw a straight line with a slope of zero.

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

Which of the following is a macroeconomic topic? I.China increases interest rates to slow its economic growth. Ii.Congress lowers tax rates to try and lower the unemployment rate. Iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Microeconomics includes the study of

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

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

-The slope of the line shown in the above figure is

Define marginal cost and marginal benefit.

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

The Latin term "ceteris paribus" means

A positive statement I.makes a statement about how the world operates. Ii.is a true statement. Iii.can be tested against the facts.

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

All economic questions and problems arise from

-What does the slope of the line shown in the above figure equal?

Why does scarcity lead to the "what," "how," and "for whom" questions?

Microeconomics includes the study of the

Which of the following statements is the best example of the term ceteris paribus?

A rational choice is one that

Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?

In the diagram below,draw a straight line with a slope of zero.

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

Which of the following is a macroeconomic topic? I.China increases interest rates to slow its economic growth. Ii.Congress lowers tax rates to try and lower the unemployment rate. Iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Microeconomics includes the study of

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