Question 1

If you can buy 9 DVDs for $126 or you could buy 10 DVDs for $130,then the marginal cost of the tenth DVD is:

Accepted Answer

A) $4. 
B) $13. 
C) $14. 
D) $130. 
A) $4. 
B) $13. 
C) $14. 
D) $130. A

Question 2

If you eat at a sushi restaurant that charges $20 for its all you can eat sushi special,then the marginal cost of your 10th piece of sushi is

Accepted Answer

A) zero. 
B) $2. 
C) $200. 
D) $2,000. 
A) zero. 
B) $2. 
C) $200. 
D) $2,000. A

Question 3

Refer to Scenario 1.1 below to answer the questions that follow.
SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment.The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time.The economist concludes that a 1% increase in minimum wage causes a 0.2% increase in teenage unemployment.From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers.
-Refer to Scenario 1.1.The statement that a 1% increase in the minimum wage causes a 0.2% increase in teenage unemployment is an example of

Accepted Answer

A) the fallacy of composition. 
B) normative economics. 
C) positive economics. 
D) Ockham's razor. 
A) the fallacy of composition. 
B) normative economics. 
C) positive economics. 
D) Ockham's razor. C

Question 4

The study of how benefits are determined for city employees would be considered

Accepted Answer

A) microeconomics. 
B) macroeconomics. 
C) descriptive economics. 
D) institutional economics. 
A) microeconomics. 
B) macroeconomics. 
C) descriptive economics. 
D) institutional economics.

Question 5

Which of the following is NOT listed in the book as a reason to study economics?

Accepted Answer

A) to learn a way of thinking 
B) to understand society 
C) to be an informed citizen 
D) to learn how to make lots of money 
A) to learn a way of thinking 
B) to understand society 
C) to be an informed citizen 
D) to learn how to make lots of money

Question 6

If the slope of a straight line is 4 and if X (the variable on the horizontal axis)increases by 12,then Y (the variable on the vertical axis)will

Accepted Answer

A) decrease by 3. 
B) decrease by 0.33. 
C) increase by 3. 
D) increase by 48. 
A) decrease by 3. 
B) decrease by 0.33. 
C) increase by 3. 
D) increase by 48.

Question 7

Which of the following statements is NOT correct?

Accepted Answer

A) Economics is a behavioral science. 
B) In large measure,economics is the study of how people make choices. 
C) If poverty were eliminated,there would be no reason to study economics. 
D) Economic analysis can be used to explain how both individuals and societies make decisions. 
A) Economics is a behavioral science. 
B) In large measure,economics is the study of how people make choices. 
C) If poverty were eliminated,there would be no reason to study economics. 
D) Economic analysis can be used to explain how both individuals and societies make decisions.

Question 8

There is a possibility that a national sales tax will be implemented.Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals.This argument is motivated by concerns over

Accepted Answer

A) economic growth. 
B) economic stability. 
C) efficiency. 
D) equity. 
A) economic growth. 
B) economic stability. 
C) efficiency. 
D) equity.

Question 9

Economists often refer to risk-free ventures as

Accepted Answer

A) efficient market outcomes. 
B) profit opportunities. 
C) those with no opportunity costs. 
D) break-even propositions. 
A) efficient market outcomes. 
B) profit opportunities. 
C) those with no opportunity costs. 
D) break-even propositions.

Question 10

Positive economics seeks to understand behavior,but not make judgments.

Accepted Answer

A) True 
 B)False

Question 11

The study of economics

Accepted Answer

A) is a very narrow endeavor. 
B) is a way of analyzing decision-making processes caused by scarcity. 
C) is concerned with proving that capitalism is better than socialism. 
D) focuses on how a business should function. 
A) is a very narrow endeavor. 
B) is a way of analyzing decision-making processes caused by scarcity. 
C) is concerned with proving that capitalism is better than socialism. 
D) focuses on how a business should function.

Question 12

Resources are unlimited in a wealthy society.

Accepted Answer

A) True 
 B)False

Question 13

At a political rally,you stand up to see better.Everyone else stands up,as well.This is an example of

Accepted Answer

A) ceteris paribus. 
B) the post hoc,ergo propter hoc fallacy. 
C) the fallacy of composition. 
D) Ockham's razor. 
A) ceteris paribus. 
B) the post hoc,ergo propter hoc fallacy. 
C) the fallacy of composition. 
D) Ockham's razor.

Question 14

Among the fundamental concepts in economics are

Accepted Answer

A) opportunity cost. 
B) marginalism. 
C) efficient markets. 
D) all of the above 
A) opportunity cost. 
B) marginalism. 
C) efficient markets. 
D) all of the above

Question 15

Which of the following is the best definition of economics?

Accepted Answer

A) the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided 
B) the study of how consumers spend their income 
C) the study of how business firms decide what inputs to hire and what outputs to produce 
D) the study of how the federal government allocates tax dollars 
A) the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided 
B) the study of how consumers spend their income 
C) the study of how business firms decide what inputs to hire and what outputs to produce 
D) the study of how the federal government allocates tax dollars

Question 16

Refer to the information provided in Figure 1.4 below to answer the questions that follow.   Figure 1.4
-Refer to Figure 1.4.Which of the following curves or lines has a zero slope throughout?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 17

You have noticed that there is an increase in the number of homeless people in your city.At the same time you observe that there are also a number of vacant apartments.You believe that the government could reduce the number of homeless people if landlords were required to rent their apartments for less than they are currently charging.This policy recommendation would be motivated by concerns over

Accepted Answer

A) efficiency. 
B) equity. 
C) economic growth. 
D) stability. 
A) efficiency. 
B) equity. 
C) economic growth. 
D) stability.

Question 18

Which of the following is an example of a positive statement?

Accepted Answer

A) There should be no unemployment in an advanced industrial society. 
B) Higher prices cause consumers to purchase less. 
C) Consumption should be distributed fairly in society. 
D) People should pollute as little as possible. 
A) There should be no unemployment in an advanced industrial society. 
B) Higher prices cause consumers to purchase less. 
C) Consumption should be distributed fairly in society. 
D) People should pollute as little as possible.

Question 19

To isolate the impact of one single factor,economists invoke the assumption of

Accepted Answer

A) inductive reasoning. 
B) Ockham's razor. 
C) ceteris paribus. 
D) post hoc,ergo propter hoc. 
A) inductive reasoning. 
B) Ockham's razor. 
C) ceteris paribus. 
D) post hoc,ergo propter hoc.

Question 20

The slope of a non-linear curve

Accepted Answer

A) is always positive. 
B) must first increase then decrease. 
C) is not constant. 
D) is constant. 
A) is always positive. 
B) must first increase then decrease. 
C) is not constant. 
D) is constant.

If you can buy 9 DVDs for $126 or you could buy 10 DVDs for $130,then the marginal cost of the tenth DVD is:

If you eat at a sushi restaurant that charges $20 for its all you can eat sushi special,then the marginal cost of your 10th piece of sushi is

The study of how benefits are determined for city employees would be considered

Which of the following is NOT listed in the book as a reason to study economics?

If the slope of a straight line is 4 and if X (the variable on the horizontal axis)increases by 12,then Y (the variable on the vertical axis)will

Which of the following statements is NOT correct?

Economists often refer to risk-free ventures as

Positive economics seeks to understand behavior,but not make judgments.

The study of economics

Resources are unlimited in a wealthy society.

At a political rally,you stand up to see better.Everyone else stands up,as well.This is an example of

Among the fundamental concepts in economics are

Which of the following is the best definition of economics?

Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 -Refer to Figure 1.4.Which of the following curves or lines has a zero slope throughout?

Which of the following is an example of a positive statement?

To isolate the impact of one single factor,economists invoke the assumption of

The slope of a non-linear curve

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade,comparative Advantage,and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

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Exam 1: The Scope and Method of Economics

If you can buy 9 DVDs for $126 or you could buy 10 DVDs for $130,then the marginal cost of the tenth DVD is:

If you eat at a sushi restaurant that charges $20 for its all you can eat sushi special,then the marginal cost of your 10th piece of sushi is

The study of how benefits are determined for city employees would be considered

Which of the following is NOT listed in the book as a reason to study economics?

If the slope of a straight line is 4 and if X (the variable on the horizontal axis)increases by 12,then Y (the variable on the vertical axis)will

Which of the following statements is NOT correct?

Economists often refer to risk-free ventures as

Positive economics seeks to understand behavior,but not make judgments.

The study of economics

Resources are unlimited in a wealthy society.

At a political rally,you stand up to see better.Everyone else stands up,as well.This is an example of

Among the fundamental concepts in economics are

Which of the following is the best definition of economics?

Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 -Refer to Figure 1.4.Which of the following curves or lines has a zero slope throughout?

Which of the following is an example of a positive statement?

To isolate the impact of one single factor,economists invoke the assumption of

The slope of a non-linear curve

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade,comparative Advantage,and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

Filters