Question 1

If you own a condo and you decide to lease it to your cousin,

Accepted Answer

A)  there is no opportunity cost of leasing the condo because you own it. 
B)  there is an opportunity cost of leasing the condo because you could have chosen to live in it. 
C)  there is no opportunity cost of leasing the condo because you collect rent from your cousin. 
D)  the only cost relevant to this decision is the price you paid for the condo. 
A)  there is no opportunity cost of leasing the condo because you own it. 
B)  there is an opportunity cost of leasing the condo because you could have chosen to live in it. 
C)  there is no opportunity cost of leasing the condo because you collect rent from your cousin. 
D)  the only cost relevant to this decision is the price you paid for the condo.

Question 2

Temperature is a measure that changes from time to time and is therefore an example of a(n)

Accepted Answer

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

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. Which of the Panels shows a curve or line that has a slope that is positive and decreasing?

Accepted Answer

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

Question 4

Refer to the information provided in Figure 1.3 below to answer the questions that follow.   Figure 1.3
-Refer to Figure 1.3. At Point A the slope of the line is 3, so at Point D the slope would be

Accepted Answer

A)  greater than 3. 
B)  less than 3. 
C)  equal to 3. 
D)  indeterminate from this information. 
A)  greater than 3. 
B)  less than 3. 
C)  equal to 3. 
D)  indeterminate from this information.

Question 5

The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of the

Accepted Answer

A)  ceteris paribus fallacy. 
B)  post hoc, ergo propter hoc fallacy. 
C)  fallacy of logic. 
D)  fallacy of inductive reasoning. 
A)  ceteris paribus fallacy. 
B)  post hoc, ergo propter hoc fallacy. 
C)  fallacy of logic. 
D)  fallacy of inductive reasoning.

Question 6

Refer to the information provided in Figure 1.3 below to answer the questions that follow.   Figure 1.3
-Refer to Figure 1.3. The slope of the line between Points B and D is

Accepted Answer

A)  -3. 
B)  -0.33. 
C)  0.33. 
D)  3. 
A)  -3. 
B)  -0.33. 
C)  0.33. 
D)  3.

Question 7

Economic growth is an increase in the total output of an economy.

Accepted Answer

A) True 
 B)False

Question 8

The value of the best alternative foregone is the opportunity cost of making a decision.

Accepted Answer

A) True 
 B)False

Question 9

Related to the Economics in Practice on p. 5: The opportunity cost to Apple of having the hard drive produced in Japan by Toshiba is

Accepted Answer

A)  the wages paid to Japanese workers. 
B)  the components of the hard drive which are not produced by Toshiba. 
C)  having the hard drive produced by the next best available company. 
D)  the value-added captured by Apple in the United States. 
A)  the wages paid to Japanese workers. 
B)  the components of the hard drive which are not produced by Toshiba. 
C)  having the hard drive produced by the next best available company. 
D)  the value-added captured by Apple in the United States.

Question 10

Dividing the change in quantity on the horizontal axis by the change in quantity on the vertical axis calculates the slope of a line.

Accepted Answer

A) True 
 B)False

Question 11

An efficient market is a market

Accepted Answer

A)  that deals in unlimited resources. 
B)  in which long-term profits are guaranteed. 
C)  in which profit opportunities are eliminated almost instantaneously. 
D)  in which there are no opportunity costs. 
A)  that deals in unlimited resources. 
B)  in which long-term profits are guaranteed. 
C)  in which profit opportunities are eliminated almost instantaneously. 
D)  in which there are no opportunity costs.

Question 12

There is a high correlation between the number of automobiles on the road and the amount of carbon emissions in the atmosphere. 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 13

You decide to go to LEGOLAND after you visit Disneyworld in Orlando. The cost of going to LEGOLAND after you visit Disneyworld is the ________ cost of getting from Disneyworld to LEGOLAND.

Accepted Answer

A)  efficiency 
B)  marginal time and money 
C)  opportunity 
D)  profit-maximizing 
A)  efficiency 
B)  marginal time and money 
C)  opportunity 
D)  profit-maximizing

Question 14

The common way of expressing the efficient market concept is

Accepted Answer

A)  "the only true market is a profitable market." 
B)  "there's no such thing as a free lunch." 
C)  "only without government interference can a market survive." 
D)  "once an efficient market, always an efficient market." 
A)  "the only true market is a profitable market." 
B)  "there's no such thing as a free lunch." 
C)  "only without government interference can a market survive." 
D)  "once an efficient market, always an efficient market."

Question 15

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 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 Panels shows a curve or line that has a slope that is first positive and then negative?

Accepted Answer

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

Question 17

You always have math problems to work in class whenever you forget to bring your calculator to school. Concluding that forgetting your calculator causes your professor to assign math problems is an example of the

Accepted Answer

A)  fallacy of logic. 
B)  fallacy of inductive reasoning. 
C)  ceteris paribus conditions. 
D)  post hoc, ergo propter hoc fallacy. 
A)  fallacy of logic. 
B)  fallacy of inductive reasoning. 
C)  ceteris paribus conditions. 
D)  post hoc, ergo propter hoc fallacy.

Question 18

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 19

Marginal cost refers to the incremental cost arising from a decision.

Accepted Answer

A) True 
 B)False

Question 20

Related to the Economics in Practice on p. 9: Prior to joining the glee club, Anjelica spent most of her free time studying in the library. Once she joined the glee club, Anjelica spent her free time hanging out in karaoke bars with other glee club members. This change in behavior is best described by

Accepted Answer

A)  the fallacy of logic. 
B)  the post hoc ergo prompter hoc fallacy. 
C)  the problem of peer effects. 
D)  the ceteris paribus error. 
A)  the fallacy of logic. 
B)  the post hoc ergo prompter hoc fallacy. 
C)  the problem of peer effects. 
D)  the ceteris paribus error.

If you own a condo and you decide to lease it to your cousin,

Temperature is a measure that changes from time to time and is therefore an example of a(n)

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 decreasing?

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. At Point A the slope of the line is 3, so at Point D the slope would be

The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of the

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. The slope of the line between Points B and D is

Economic growth is an increase in the total output of an economy.

The value of the best alternative foregone is the opportunity cost of making a decision.

Related to the Economics in Practice on p. 5: The opportunity cost to Apple of having the hard drive produced in Japan by Toshiba is

Dividing the change in quantity on the horizontal axis by the change in quantity on the vertical axis calculates the slope of a line.

An efficient market is a market

There is a high correlation between the number of automobiles on the road and the amount of carbon emissions in the atmosphere. This statement is best described as

You decide to go to LEGOLAND after you visit Disneyworld in Orlando. The cost of going to LEGOLAND after you visit Disneyworld is the ________ cost of getting from Disneyworld to LEGOLAND.

The common way of expressing the efficient market concept is

Which of the following is not listed in the book as a reason to study 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 Panels shows a curve or line that has a slope that is first positive and then negative?

You always have math problems to work in class whenever you forget to bring your calculator to school. Concluding that forgetting your calculator causes your professor to assign math problems is an example of the

Among the fundamental concepts in economics are

Marginal cost refers to the incremental cost arising from a decision.

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

If you own a condo and you decide to lease it to your cousin,

Temperature is a measure that changes from time to time and is therefore an example of a(n)

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 decreasing?

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. At Point A the slope of the line is 3, so at Point D the slope would be

The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of the

Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 -Refer to Figure 1.3. The slope of the line between Points B and D is

Economic growth is an increase in the total output of an economy.

The value of the best alternative foregone is the opportunity cost of making a decision.

Related to the Economics in Practice on p. 5: The opportunity cost to Apple of having the hard drive produced in Japan by Toshiba is

Dividing the change in quantity on the horizontal axis by the change in quantity on the vertical axis calculates the slope of a line.

An efficient market is a market

There is a high correlation between the number of automobiles on the road and the amount of carbon emissions in the atmosphere. This statement is best described as

You decide to go to LEGOLAND after you visit Disneyworld in Orlando. The cost of going to LEGOLAND after you visit Disneyworld is the ________ cost of getting from Disneyworld to LEGOLAND.

The common way of expressing the efficient market concept is

Which of the following is not listed in the book as a reason to study 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 Panels shows a curve or line that has a slope that is first positive and then negative?

You always have math problems to work in class whenever you forget to bring your calculator to school. Concluding that forgetting your calculator causes your professor to assign math problems is an example of the

Among the fundamental concepts in economics are

Marginal cost refers to the incremental cost arising from a decision.

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