Question 1

If you eat at a Las Vegas casino that charges $12 for its all you can eat buffet, then the marginal cost of your third trip to the buffet is

Accepted Answer

A)  zero. 
B)  $4. 
C)  $12. 
D)  $36. 
A)  zero. 
B)  $4. 
C)  $12. 
D)  $36.

Question 2

Refer to the information provided in Figure 1.5 below to answer the questions that follow.   Figure 1.5
-Refer to Figure 1.5. In many industries, as firms produce additional units, average costs of production decline as the firm produces an additional unit, but average costs declines by a smaller and smaller amount as production continues to increase. If output is graphed on the horizontal axis and average costs are graphed on the vertical axis, the relationship between average costs and output would be 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 3

Refer to the information provided in Figure 1.5 below to answer the questions that follow.   Figure 1.5
-Refer to Figure 1.5. Panel A shows a curve with a slope that is

Accepted Answer

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

Question 4

The slope of a curved line is constant.

Accepted Answer

A) True 
 B)False

Question 5

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 6

If the slope of a straight line is 4 and if Y (the variable on the vertical axis) decreases by 20, then X (the variable on the horizontal axis)

Accepted Answer

A)  increases by 5. 
B)  decreases by 5. 
C)  increases by 80. 
D)  decreases by 80. 
A)  increases by 5. 
B)  decreases by 5. 
C)  increases by 80. 
D)  decreases by 80.

Question 7

If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $3,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is

Accepted Answer

A)  $5,600. 
B)  $5,900. 
C)  $10,100. 
D)  $11,600. 
A)  $5,600. 
B)  $5,900. 
C)  $10,100. 
D)  $11,600.

Question 8

A market is considered efficient if profit opportunities remain continually available.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  negative. 
B)  increasing at a decreasing rate. 
C)  decreasing at an increasing rate. 
D)  positive 
A)  negative. 
B)  increasing at a decreasing rate. 
C)  decreasing at an increasing rate. 
D)  positive

Question 10

Studying economics helps us to better understand society.

Accepted Answer

A) True 
 B)False

Question 11

Refer to the information provided in Figure 1.7 below to answer the questions that follow.   Figure 1.7
-Refer to Figure 1.7. The slope of the line between Points D and B is

Accepted Answer

A)  1.5. 
B)  0.67. 
C)  -0.67. 
D)  -1.5. 
A)  1.5. 
B)  0.67. 
C)  -0.67. 
D)  -1.5.

Question 12

Refer to the information provided in Figure 1.7 below to answer the questions that follow.   Figure 1.7
-Refer to Figure 1.7. The slope of the line between Points A and B is

Accepted Answer

A)  1.5. 
B)  0.67. 
C)  -0.67. 
D)  -1.5. 
A)  1.5. 
B)  0.67. 
C)  -0.67. 
D)  -1.5.

Question 13

Salary caps are imposed when league officials believe some football team owners are taking advantage of their deep pockets and buying more quality players than the other owners can afford to buy. Which of the following criteria are they using to guide their actions?

Accepted Answer

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

Question 14

The concept of equity would explain the redistribution from the rich to the poor which is achieved from a tax system that requires taxes to

Accepted Answer

A)  fall when income rises. 
B)  rise when income rises. 
C)  remain stable when income rises. 
D)  be unrelated to income. 
A)  fall when income rises. 
B)  rise when income rises. 
C)  remain stable when income rises. 
D)  be unrelated to income.

Question 15

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.

Question 16

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

Accepted Answer

A)  How will an increase in the price of diesel fuel affect truck drivers? 
B)  What fraction of an income-tax rebate check will be spent on consumer goods? 
C)  Should the government provide free prescription drugs to lower-income citizens? 
D)  How will an increase in the minimum wage affect migrant workers? 
A)  How will an increase in the price of diesel fuel affect truck drivers? 
B)  What fraction of an income-tax rebate check will be spent on consumer goods? 
C)  Should the government provide free prescription drugs to lower-income citizens? 
D)  How will an increase in the minimum wage affect migrant workers?

Question 17

Studying how Joshua allocates his time between school and video games is an example of

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  industrial organization. 
D)  descriptive economics. 
A)  macroeconomics. 
B)  microeconomics. 
C)  industrial organization. 
D)  descriptive economics.

Question 18

The Industrial Revolution refers to the rise of the modern factory system in ________ during the late eighteenth and early nineteenth centuries.

Accepted Answer

A)  the United States 
B)  England 
C)  France 
D)  Germany 
A)  the United States 
B)  England 
C)  France 
D)  Germany

Question 19

Which of the following is a macroeconomics question?

Accepted Answer

A)  Should we have a constitutional amendment to balance the federal budget? 
B)  Why does a firm decide to enter a particular market? 
C)  Should the government prevent the merger of two large firms? 
D)  Should the government put a tax on alcohol in an attempt to reduce highway fatalities? 
A)  Should we have a constitutional amendment to balance the federal budget? 
B)  Why does a firm decide to enter a particular market? 
C)  Should the government prevent the merger of two large firms? 
D)  Should the government put a tax on alcohol in an attempt to reduce highway fatalities?

Question 20

A measure that can change from observation to observation is known as a(n)

Accepted Answer

A)  empirical measure. 
B)  model. 
C)  causality. 
D)  variable. 
A)  empirical measure. 
B)  model. 
C)  causality. 
D)  variable.

If you eat at a Las Vegas casino that charges $12 for its all you can eat buffet, then the marginal cost of your third trip to the buffet is

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. Panel A shows a curve with a slope that is

The slope of a curved line is constant.

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

If the slope of a straight line is 4 and if Y (the variable on the vertical axis) decreases by 20, then X (the variable on the horizontal axis)

A market is considered efficient if profit opportunities remain continually available.

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

Studying economics helps us to better understand society.

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -Refer to Figure 1.7. The slope of the line between Points D and B is

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -Refer to Figure 1.7. The slope of the line between Points A and B is

Salary caps are imposed when league officials believe some football team owners are taking advantage of their deep pockets and buying more quality players than the other owners can afford to buy. Which of the following criteria are they using to guide their actions?

The concept of equity would explain the redistribution from the rich to the poor which is achieved from a tax system that requires taxes to

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

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

Studying how Joshua allocates his time between school and video games is an example of

The Industrial Revolution refers to the rise of the modern factory system in ________ during the late eighteenth and early nineteenth centuries.

Which of the following is a macroeconomics question?

A measure that can change from observation to observation is known as a(n)

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

If you eat at a Las Vegas casino that charges $12 for its all you can eat buffet, then the marginal cost of your third trip to the buffet is

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. Panel A shows a curve with a slope that is

The slope of a curved line is constant.

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

If the slope of a straight line is 4 and if Y (the variable on the vertical axis) decreases by 20, then X (the variable on the horizontal axis)

A market is considered efficient if profit opportunities remain continually available.

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

Studying economics helps us to better understand society.

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -Refer to Figure 1.7. The slope of the line between Points D and B is

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -Refer to Figure 1.7. The slope of the line between Points A and B is

Salary caps are imposed when league officials believe some football team owners are taking advantage of their deep pockets and buying more quality players than the other owners can afford to buy. Which of the following criteria are they using to guide their actions?

The concept of equity would explain the redistribution from the rich to the poor which is achieved from a tax system that requires taxes to

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

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

Studying how Joshua allocates his time between school and video games is an example of

The Industrial Revolution refers to the rise of the modern factory system in ________ during the late eighteenth and early nineteenth centuries.

Which of the following is a macroeconomics question?

A measure that can change from observation to observation is known as a(n)

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