Question 1

Which of the following is a microeconomics question?

Accepted Answer

A) Why do economies experience periods of recession? 
B) Will government intervention lower the unemployment rate? 
C) Why has growth in the economy slowed down over the past decade? 
D) How will Apple decide on a selling price for the iPad? 
A) Why do economies experience periods of recession? 
B) Will government intervention lower the unemployment rate? 
C) Why has growth in the economy slowed down over the past decade? 
D) How will Apple decide on a selling price for the iPad?

Question 2

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it,________ occurs.

Accepted Answer

A) allocative efficiency 
B) productive efficiency 
C) equity 
D) efficient central planning 
A) allocative efficiency 
B) productive efficiency 
C) equity 
D) efficient central planning

Question 3

Which of the following is motivated by an efficiency concern?

Accepted Answer

A) In 2009,the Obama administration increased unemployment benefits. 
B) As part of an economic stimulus package,each taxpayer received a $3,000 tax rebate check. 
C) Following a six-month drought,a city banned homeowners from watering their lawns in an effort to conserve water. 
D) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs,thus harming lower-income students with greater financial need. 
A) In 2009,the Obama administration increased unemployment benefits. 
B) As part of an economic stimulus package,each taxpayer received a $3,000 tax rebate check. 
C) Following a six-month drought,a city banned homeowners from watering their lawns in an effort to conserve water. 
D) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs,thus harming lower-income students with greater financial need.

Question 4

The term "market" refers only to trading arrangements that have been approved by the government.

Accepted Answer

A) True 
 B)False

Question 5

Trade-offs force society to make choices when answering what three fundamental questions?

Accepted Answer

A) What will be the prices of goods and services;how will these goods and services be produced;and who will receive them? 
B) What goods and services to produce;how will these goods and services be produced;and who receives them? 
C) Who gets jobs;what wages do workers earn;and who owns what property? 
D) How much will be saved;what will be produced;and how can these goods and services be fairly distributed? 
A) What will be the prices of goods and services;how will these goods and services be produced;and who will receive them? 
B) What goods and services to produce;how will these goods and services be produced;and who receives them? 
C) Who gets jobs;what wages do workers earn;and who owns what property? 
D) How much will be saved;what will be produced;and how can these goods and services be fairly distributed?

Question 6

Figure 1-3  
-Refer to Figure 1-3.Calculate the area of the trapezoid X.

Accepted Answer

A) $361 
B) $450 
C) $1,020 
D) $1,140 
A) $361 
B) $450 
C) $1,020 
D) $1,140

Question 7

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Accepted Answer

A) there will be a shortage of doctors in the United States. 
B) the number of doctors in the United States will decrease and the number of doctors needed will increase. 
C) the number of doctors in the United States will increase and the number of doctors needed will decrease. 
D) there will be a surplus of doctors in the United States. 
A) there will be a shortage of doctors in the United States. 
B) the number of doctors in the United States will decrease and the number of doctors needed will increase. 
C) the number of doctors in the United States will increase and the number of doctors needed will decrease. 
D) there will be a surplus of doctors in the United States.

Question 8

Which of the following generates allocative efficiency in a market economy?

Accepted Answer

A) national government intervention 
B) voluntary exchange between buyers and sellers 
C) United Nations rules for competition 
D) equity 
A) national government intervention 
B) voluntary exchange between buyers and sellers 
C) United Nations rules for competition 
D) equity

Question 9

Which of the following is an example of an activity undertaken by an entrepreneur?

Accepted Answer

A) choosing the color scheme for your renovated kitchen 
B) being promoted to the position of Chief of Police 
C) being appointed to the U.S.Supreme Court 
D) starting your own snow cone business 
A) choosing the color scheme for your renovated kitchen 
B) being promoted to the position of Chief of Police 
C) being appointed to the U.S.Supreme Court 
D) starting your own snow cone business

Question 10

The basic economic problem of scarcity

Accepted Answer

A) has always existed and will continue to exist. 
B) will eventually disappear as technology continues to advance. 
C) is a problem only in developing economies. 
D) does not apply to the wealthy in society. 
A) has always existed and will continue to exist. 
B) will eventually disappear as technology continues to advance. 
C) is a problem only in developing economies. 
D) does not apply to the wealthy in society.

Question 11

Consider the following statements: a.Consumers rent more kayaks from a vendor that rents kayaks at a lower price than other rival kayak vendors along Waikiki beach.
B.Department stores take steps to increase security since they believe it is more costly to allow shoplifting than to install expensive security monitoring equipment.
C.Farmers produce more cotton when its selling price falls.
Which of the above statements demonstrates that economic agents respond to incentives?

Accepted Answer

A) a only. 
B) b only. 
C) c only. 
D) a and b. 
E) a,b,and c. 
A) a only. 
B) b only. 
C) c only. 
D) a and b. 
E) a,b,and c.

Question 12

Every society faces trade-offs.Explain the concept of trade-offs.

Accepted Answer

Trade-offs refer to the idea t

Question 13

What are the five steps by which economists arrive at a useful economic model?

Accepted Answer

1.Decide on the assumptions to use in de

Question 14

If a straight line passes through the point x = 8 and y = 4 and also through the point x = 12 and y = 6,the slope of this line is

Accepted Answer

A) negative 4 divided by 2. 
B) two. 
C) negative one half. 
D) one half. 
A) negative 4 divided by 2. 
B) two. 
C) negative one half. 
D) one half.

Question 15

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

Accepted Answer

A) True 
 B)False

Question 16

If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps,then the difference of $300 is the marginal cost of producing the 5th lamp.

Accepted Answer

A) True 
 B)False

Question 17

Mrs.Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost.Mrs.Lovejoy is investing in companies that are

Accepted Answer

A) productively efficient. 
B) allocatively efficient. 
C) both productively and allocatively efficient. 
D) always going to be profitable. 
A) productively efficient. 
B) allocatively efficient. 
C) both productively and allocatively efficient. 
D) always going to be profitable.

Question 18

In economics,tangible merchandise is referred to as

Accepted Answer

A) invention. 
B) human capital. 
C) services. 
D) goods. 
A) invention. 
B) human capital. 
C) services. 
D) goods.

Question 19

Which of the following statements about positive economic analysis is true?

Accepted Answer

A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. 
B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. 
C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. 
D) Unlike positive economic analysis,normative economic analysis can be tested. 
A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. 
B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. 
C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. 
D) Unlike positive economic analysis,normative economic analysis can be tested.

Question 20

Figure 1-1  
-Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in sales of alcoholic beverages between 2013 and 2015.

Accepted Answer

A) 23.8% 
B) 40% 
C) 42.9% 
D) 73.3% 
A) 23.8% 
B) 40% 
C) 42.9% 
D) 73.3%

Which of the following is a microeconomics question?

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it,________ occurs.

Which of the following is motivated by an efficiency concern?

The term "market" refers only to trading arrangements that have been approved by the government.

Trade-offs force society to make choices when answering what three fundamental questions?

Figure 1-3 -Refer to Figure 1-3.Calculate the area of the trapezoid X.

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Which of the following generates allocative efficiency in a market economy?

Which of the following is an example of an activity undertaken by an entrepreneur?

The basic economic problem of scarcity

Every society faces trade-offs.Explain the concept of trade-offs.

What are the five steps by which economists arrive at a useful economic model?

If a straight line passes through the point x = 8 and y = 4 and also through the point x = 12 and y = 6,the slope of this line is

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps,then the difference of $300 is the marginal cost of producing the 5th lamp.

Mrs.Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost.Mrs.Lovejoy is investing in companies that are

In economics,tangible merchandise is referred to as

Which of the following statements about positive economic analysis is true?

Figure 1-1 -Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in sales of alcoholic beverages between 2013 and 2015.

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 1: Economics: Foundations and Models

Which of the following is a microeconomics question?

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it,________ occurs.

Which of the following is motivated by an efficiency concern?

The term "market" refers only to trading arrangements that have been approved by the government.

Trade-offs force society to make choices when answering what three fundamental questions?

Figure 1-3 -Refer to Figure 1-3.Calculate the area of the trapezoid X.

The U.S.Health Resources and Services Administration (HRSA)forecasts that in 2020

Which of the following generates allocative efficiency in a market economy?

Which of the following is an example of an activity undertaken by an entrepreneur?

The basic economic problem of scarcity

Every society faces trade-offs.Explain the concept of trade-offs.

What are the five steps by which economists arrive at a useful economic model?

If a straight line passes through the point x = 8 and y = 4 and also through the point x = 12 and y = 6,the slope of this line is

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps,then the difference of $300 is the marginal cost of producing the 5th lamp.

Mrs.Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost.Mrs.Lovejoy is investing in companies that are

In economics,tangible merchandise is referred to as

Which of the following statements about positive economic analysis is true?

Figure 1-1 -Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in sales of alcoholic beverages between 2013 and 2015.

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters