Question 1

We can use macroeconomic analysis to

Accepted Answer

A)  learn how to balance a checkbook. 
B)  study the choices made by households. 
C)  understand marginal changes in the macroeconomy. 
D)  understand why economies grow. 
A)  learn how to balance a checkbook. 
B)  study the choices made by households. 
C)  understand marginal changes in the macroeconomy. 
D)  understand why economies grow.

Question 2

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 3

If information is less costly and more easily available, then usually this

Accepted Answer

A)  makes markets more efficient. 
B)  makes markets less efficient. 
C)  increases profit opportunities. 
D)  increases the opportunity cost of acquiring more information. 
A)  makes markets more efficient. 
B)  makes markets less efficient. 
C)  increases profit opportunities. 
D)  increases the opportunity cost of acquiring more information.

Question 4

Because all workers should be able to earn a living wage, the minimum wage should be raised to $11.50 per hour in the United States. This statement is best described as

Accepted Answer

A)  a normative statement. 
B)  a positive statement. 
C)  a marginal statement. 
D)  an implication of an efficient market. 
A)  a normative statement. 
B)  a positive statement. 
C)  a marginal statement. 
D)  an implication of an efficient market.

Question 5

Refer to the information provided in Figure 1.5 below to answer the questions that follow.   Figure 1.5
-Refer to Figure 1.5. As income increases, consumption increases, but for each additional increase in income, consumption increases by a larger and larger amount. If consumption is graphed on the vertical axis and income is graphed on the horizontal axis, the relationship between consumption and income would look like which of the following Panels?

Accepted Answer

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

Question 6

Studying how the management of Hewlett Packard decides how many computers to produce and the price to charge for its computers would be considered

Accepted Answer

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

Question 7

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.

Question 8

Normative economics looks at outcomes of economic behavior and evaluates them as good or bad.

Accepted Answer

A) True 
 B)False

Question 9

Economists often refer to "good deals" as

Accepted Answer

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Refer to the information provided in Figure 1.6 below to answer the questions that follow.   Figure 1.6
-Refer to Figure 1.6. The slope of the line between Points A and B is

Accepted Answer

A)  positive and increasing. 
B)  positive and constant. 
C)  negative and decreasing. 
D)  negative and constant. 
A)  positive and increasing. 
B)  positive and constant. 
C)  negative and decreasing. 
D)  negative and constant.

Question 12

The slope of a horizontal line is

Accepted Answer

A)  negative. 
B)  zero. 
C)  continually changing. 
D)  infinite. 
A)  negative. 
B)  zero. 
C)  continually changing. 
D)  infinite.

Question 13

There is great concern over the idea that citizens should have to provide specific identification to be able to vote in elections. A study of the costs and benefits of implementing a voter identification program is an example of

Accepted Answer

A)  laissez-faire economics. 
B)  positive economics. 
C)  labor economics. 
D)  normative economics. 
A)  laissez-faire economics. 
B)  positive economics. 
C)  labor economics. 
D)  normative economics.

Question 14

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)  equity. 
B)  normative economics. 
C)  positive economics. 
D)  Ockham's razor. 
A)  equity. 
B)  normative economics. 
C)  positive economics. 
D)  Ockham's razor.

Question 15

Resources are unlimited in a wealthy society.

Accepted Answer

A) True 
 B)False

Question 16

Refer to the information provided in Figure 1.5 below to answer the questions that follow.   Figure 1.5
-Refer to Figure 1.5. Which of the Panels shows a curve or line that has a slope that is positive and increasing?

Accepted Answer

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

Question 17

The slope of a straight line is not constant unless the line is vertical or horizontal.

Accepted Answer

A) True 
 B)False

Question 18

A change in economic output is potentially efficient

Accepted Answer

A)  if the value of the resulting gains exceeds the value of the resulting losses. 
B)  if the value of the resulting gains exactly equals the value of the resulting losses. 
C)  only if no one is made worse off. 
D)  if the value of the resulting gains is less than the value of the resulting losses. 
A)  if the value of the resulting gains exceeds the value of the resulting losses. 
B)  if the value of the resulting gains exactly equals the value of the resulting losses. 
C)  only if no one is made worse off. 
D)  if the value of the resulting gains is less than the value of the resulting losses.

We can use macroeconomic analysis to

Economists often refer to risk-free ventures as

If information is less costly and more easily available, then usually this

Because all workers should be able to earn a living wage, the minimum wage should be raised to $11.50 per hour in the United States. This statement is best described as

Studying how the management of Hewlett Packard decides how many computers to produce and the price to charge for its computers would be considered

The slope of a non-linear curve

Normative economics looks at outcomes of economic behavior and evaluates them as good or bad.

Economists often refer to "good deals" as

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

Refer to the information provided in Figure 1.6 below to answer the questions that follow. Figure 1.6 -Refer to Figure 1.6. The slope of the line between Points A and B is

The slope of a horizontal line is

There is great concern over the idea that citizens should have to provide specific identification to be able to vote in elections. A study of the costs and benefits of implementing a voter identification program is an example of

Resources are unlimited in a wealthy society.

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. Which of the Panels shows a curve or line that has a slope that is positive and increasing?

The slope of a straight line is not constant unless the line is vertical or horizontal.

A change in economic output is potentially efficient

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

Money, the Federal Reserve, and the Interest Rate

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

Policy Effects and Cost 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 Economies

Critical Thinking About Research

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Exam 1: The Scope and Method of Economics

We can use macroeconomic analysis to

Economists often refer to risk-free ventures as

If information is less costly and more easily available, then usually this

Because all workers should be able to earn a living wage, the minimum wage should be raised to $11.50 per hour in the United States. This statement is best described as

Studying how the management of Hewlett Packard decides how many computers to produce and the price to charge for its computers would be considered

The slope of a non-linear curve

Normative economics looks at outcomes of economic behavior and evaluates them as good or bad.

Economists often refer to "good deals" as

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

Refer to the information provided in Figure 1.6 below to answer the questions that follow. Figure 1.6 -Refer to Figure 1.6. The slope of the line between Points A and B is

The slope of a horizontal line is

There is great concern over the idea that citizens should have to provide specific identification to be able to vote in elections. A study of the costs and benefits of implementing a voter identification program is an example of

Resources are unlimited in a wealthy society.

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. Which of the Panels shows a curve or line that has a slope that is positive and increasing?

The slope of a straight line is not constant unless the line is vertical or horizontal.

A change in economic output is potentially efficient

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

Money, the Federal Reserve, and the Interest Rate

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

Policy Effects and Cost 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 Economies

Critical Thinking About Research

Filters