Question 1

A graph illustrating how one variable changes over time is a Cartesian coordinate system.

Accepted Answer

A) True 
 B)False

Question 2

Resources are limited in both wealthy and poor societies.

Accepted Answer

A) True 
 B)False

Question 3

The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This statement is best described as

Accepted Answer

A)  an example of marginalism. 
B)  an example of the fallacy of composition. 
C)  a normative statement. 
D)  a positive statement. 
A)  an example of marginalism. 
B)  an example of the fallacy of composition. 
C)  a normative statement. 
D)  a positive statement.

Question 4

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

Accepted Answer

A)  The unemployment rate is six percent. 
B)  There should be no unemployment in an advanced industrial society. 
C)  Higher prices cause consumers to buy less. 
D)  Equilibrium price implies that quantity demanded equals quantity supplied. 
A)  The unemployment rate is six percent. 
B)  There should be no unemployment in an advanced industrial society. 
C)  Higher prices cause consumers to buy less. 
D)  Equilibrium price implies that quantity demanded equals quantity supplied.

Question 5

Refer to the information provided in Figure 1.7 below to answer the questions that follow.   Figure 1.7
-The slope of a horizontal line is

Accepted Answer

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

Question 6

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 7

Refer to Scenario 1.2 below to answer the questions that follow.
SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.
-Refer to Scenario 1.2. The statement that a 1% increase in the automobile emissions causes a 0.0003% increase in average global temperatures is an example of

Accepted Answer

A)  positive economics. 
B)  marginal economics. 
C)  normative economics. 
D)  the fallacy of logic. 
A)  positive economics. 
B)  marginal economics. 
C)  normative economics. 
D)  the fallacy of logic.

Question 8

Related to the Economics in Practice on p. 9: Based on a study of the effects of roommates on college grades discussed in the Economics in Practice, which of the following is true?

Accepted Answer

A)  The effects of roommates on grade point average are strong. 
B)  The effects of roommates on effort in school are strong. 
C)  The effects of roommates on fraternity membership are strong. 
D)  all of the above 
A)  The effects of roommates on grade point average are strong. 
B)  The effects of roommates on effort in school are strong. 
C)  The effects of roommates on fraternity membership are strong. 
D)  all of the above

Question 9

Refer to the information provided in Figure 1.7 below to answer the questions that follow.   Figure 1.7
-The slope of a vertical line is

Accepted Answer

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

Question 10

An approach to economics that applies statistical techniques and data to economic problems is called

Accepted Answer

A)  Ockham's razor. 
B)  laissez-faire economics. 
C)  empirical economics. 
D)  normative economics. 
A)  Ockham's razor. 
B)  laissez-faire economics. 
C)  empirical economics. 
D)  normative economics.

Question 11

Normative economics

Accepted Answer

A)  is the focus of most modern economic reasoning. 
B)  answers the question "What ought to be?" 
C)  predicts the consequences of alternative actions. 
D)  answers the question "What is?" 
A)  is the focus of most modern economic reasoning. 
B)  answers the question "What ought to be?" 
C)  predicts the consequences of alternative actions. 
D)  answers the question "What is?"

Question 12

Marginalism is

Accepted Answer

A)  the best alternative that we forgo when making a decision. 
B)  the study of how societies choose to use scarce resources. 
C)  a market situation in which profit opportunities are eliminated almost instantaneously. 
D)  the process of analyzing the additional costs or benefits arising from a decision. 
A)  the best alternative that we forgo when making a decision. 
B)  the study of how societies choose to use scarce resources. 
C)  a market situation in which profit opportunities are eliminated almost instantaneously. 
D)  the process of analyzing the additional costs or benefits arising from a decision.

Question 13

The rate of unemployment is a topic of microeconomics.

Accepted Answer

A) True 
 B)False

Question 14

Ockham's razor is the principle that states

Accepted Answer

A)  supply creates its own demand. 
B)  we must forgo something when making a decision. 
C)  costs which have been incurred cannot be avoided. 
D)  irrelevant detail should not be included in a model. 
A)  supply creates its own demand. 
B)  we must forgo something when making a decision. 
C)  costs which have been incurred cannot be avoided. 
D)  irrelevant detail should not be included in a model.

Question 15

Marco observed that every time the temperature rises above 90 degrees, he forgets to take out the trash. Based on this observation he concluded that temperatures above 90 degrees result in temporary memory loss. In actuality, Marco

Accepted Answer

A)  committed the fallacy of logic. 
B)  committed the ceteris paribus error. 
C)  was confusing causality. 
D)  showed good reasoning relating to the relationship between temperatures and memory. 
A)  committed the fallacy of logic. 
B)  committed the ceteris paribus error. 
C)  was confusing causality. 
D)  showed good reasoning relating to the relationship between temperatures and memory.

Question 16

Refer to Scenario 1.2 below to answer the questions that follow.
SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.
-Refer to Scenario 1.2. A graph of the volume of automobile emissions on one axis and the level of average global temperatures on the other axis is an example of

Accepted Answer

A)  an economic model. 
B)  an economic theory. 
C)  a variable theory. 
D)  inductive reasoning. 
A)  an economic model. 
B)  an economic theory. 
C)  a variable theory. 
D)  inductive reasoning.

Question 17

If you own a building and you decide to use that building to open a book store,

Accepted Answer

A)  there is no opportunity cost of using this building for a book store because you own it. 
B)  there is an opportunity cost of using this building for a book store because it could have been used in other ways. 
C)  the opportunity costs equal the cost of inventory. 
D)  the only cost relevant to this decision is the price you paid for the building. 
A)  there is no opportunity cost of using this building for a book store because you own it. 
B)  there is an opportunity cost of using this building for a book store because it could have been used in other ways. 
C)  the opportunity costs equal the cost of inventory. 
D)  the only cost relevant to this decision is the price you paid for the building.

Question 18

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. A graph of the value of the minimum wage on one axis and the level of teenage unemployment on the other axis is an example of

Accepted Answer

A)  an economic theory. 
B)  an economic model. 
C)  inductive reasoning. 
D)  a variable theory. 
A)  an economic theory. 
B)  an economic model. 
C)  inductive reasoning. 
D)  a variable theory.

Question 19

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied

Accepted Answer

A)  both are treated as unpredictable. 
B)  neither of those two variables is allowed to change. 
C)  all other variables are held fixed. 
D)  we recognize that some factors are unknown. 
A)  both are treated as unpredictable. 
B)  neither of those two variables is allowed to change. 
C)  all other variables are held fixed. 
D)  we recognize that some factors are unknown.

Question 20

Refer to the information provided in Figure 1.7 below to answer the questions that follow.   Figure 1.7
-Refer to Figure 1.7. At Point A the slope of the line is 0.67, so at Point C the slope would be

Accepted Answer

A)  greater than 0.67. 
B)  less than 0.67. 
C)  equal to 0.67. 
D)  indeterminate from this information. 
A)  greater than 0.67. 
B)  less than 0.67. 
C)  equal to 0.67. 
D)  indeterminate from this information.

A graph illustrating how one variable changes over time is a Cartesian coordinate system.

Resources are limited in both wealthy and poor societies.

The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This statement is best described as

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

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -The slope of a horizontal line is

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

Related to the Economics in Practice on p. 9: Based on a study of the effects of roommates on college grades discussed in the Economics in Practice, which of the following is true?

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -The slope of a vertical line is

An approach to economics that applies statistical techniques and data to economic problems is called

Normative economics

Marginalism is

The rate of unemployment is a topic of microeconomics.

Ockham's razor is the principle that states

Marco observed that every time the temperature rises above 90 degrees, he forgets to take out the trash. Based on this observation he concluded that temperatures above 90 degrees result in temporary memory loss. In actuality, Marco

If you own a building and you decide to use that building to open a book store,

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -Refer to Figure 1.7. At Point A the slope of the line is 0.67, so at Point C the slope would be

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

Exam 1: The Scope and Method of Economics

A graph illustrating how one variable changes over time is a Cartesian coordinate system.

Resources are limited in both wealthy and poor societies.

The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This statement is best described as

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

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -The slope of a horizontal line is

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

Related to the Economics in Practice on p. 9: Based on a study of the effects of roommates on college grades discussed in the Economics in Practice, which of the following is true?

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -The slope of a vertical line is

An approach to economics that applies statistical techniques and data to economic problems is called

Normative economics

Marginalism is

The rate of unemployment is a topic of microeconomics.

Ockham's razor is the principle that states

Marco observed that every time the temperature rises above 90 degrees, he forgets to take out the trash. Based on this observation he concluded that temperatures above 90 degrees result in temporary memory loss. In actuality, Marco

If you own a building and you decide to use that building to open a book store,

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -Refer to Figure 1.7. At Point A the slope of the line is 0.67, so at Point C the slope would be

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