Question 1

The tuition fee at a given university is a microeconomic issue.

Accepted Answer

A) True 
 B)False  True

Question 2

Investments in physical capital and investments in education helped China to attain high economic growth rates in the recent past.

Accepted Answer

A) True 
 B)False  True

Question 3

-The opportunity cost of moving from point G to point D in Figure 1.1 is equal to:

Accepted Answer

A)   zero units of food output.
B)   5 units of food output.
C)   7.5 units of food output.
D)   zero units of film output. A

Question 4

Macroeconomics differs from microeconomics in that:

Accepted Answer

A)   the concept of scarcity applies to the latter but does not apply to the former.
B)   the latter studies individual markets while the former studies groups of markets, including the whole economy.
C)   rational decisions are relevant to the former but not the latter.D the former is the study of how people make choices under conditions of scarcity while the latter is . concerned with the results of those choices for society.

Question 5

Which of the following would not promote economic growth within a society?

Accepted Answer

A)   Increasing the skill level of the workforce.
B)   An increase in technological expertise.
C)   More people looking for jobs than there are jobs available.
D)   An increase in the stock of machines and productive equipment.

Question 6

In order to properly ignore opportunity costs, the value of the next-best alternative and therefore all alternatives would have to be:

Accepted Answer

A)   large and positive.
B)   negative.
C)   small.
D)   zero.

Question 7

Macroeconomics is described best by which of the following statements?

Accepted Answer

A)   Macroeconomics is the study of the economy as a whole.
B)   Macroeconomics is the study of how firms strive to maximize profits.
C)   Macroeconomics is the study of the demand for labour by firms and the supply of labour by households.
D)   Macroeconomics is the study of why some households have higher income than others.

Question 8

The study of individuals' decision-making about particular commodities is:

Accepted Answer

A)   macroeconomics.
B)   positive economics.
C)   normative economics.
D)   microeconomics.

Question 9

The problem of scarcity is present in some form or another:

Accepted Answer

A)   in all societies.
B)   only in market systems.
C)   only in command economies.
D)   in the industrialized countries only.

Question 10

Class attendance today is nearly 100% but on most other days it is less. The likely explanation for this would be:

Accepted Answer

A)   the opportunity cost of not attending today is much higher than usual.
B)   random chance.
C)   the episode of Jerry Springer was a rerun.
D)   students thought today's class was a review.

Question 11

Economists believe that incentives are the only motivating force in society.

Accepted Answer

A) True 
 B)False

Question 12

Economists believe that incentives form a central part of the modern mixed economy.

Accepted Answer

A) True 
 B)False

Question 13

To say that markets are free means that:

Accepted Answer

A)   the invisible hand operates and there is no government intervention.
B)   consumers are free to purchase all that they want at the price established by the government.
C)   production, distribution, and consumption of goods is free, but government sets minimum wages.
D)   everyone produces according to his ability and receives goods and services according to his needs.

Question 14

The question of how society's output is to be distributed among its citizens must be answered:

Accepted Answer

A)   only by developed economies.
B)   only by developing economies.
C)   only by mixed economies.
D)   by all economies.

Question 15

Any point beyond the production possibilities frontier:

Accepted Answer

A)   is attainable by society, given its current level of resources, production technology, and represents higher outputs of both go.
B)   is less efficient than any point below the frontier.
C)   cannot be attained, given society's current level of resources and production technology.
D)   is less desirable than any point below the curve.

Question 16

All social systems face the problem of economic scarcity, and this problem arises primarily from the fact that:

Accepted Answer

A)   in order to produce more of one good, increasing amounts of other goods must be foregone.
B)   every society can produce along its possibilities frontier.
C)   human wants are essentially unlimited but the means to satisfy these wants are limited.
D)   all resources have alternative uses, and this gives rise to opportunity costs.

Question 17

When an economic system answers the "for whom"
question, it affects the distribution of total output.

Accepted Answer

A) True 
 B)False

Question 18

The study of how society decides what, how, and for whom to produce is the study of:

Accepted Answer

A)   production technology.
B)   consumption decisions.
C)   economics.
D)   the best way to run society.

Question 19

Economic thinking frequently involves a 'marginalist' approach. What does this mean?

Accepted Answer

The answer of Economic thinking frequently involves a 'marginalist' approach....

Question 20

An important idea in the definition of economics is that the economics teaches an individual how to operate efficiently and make money.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Key Ideas

The tuition fee at a given university is a microeconomic issue.

Investments in physical capital and investments in education helped China to attain high economic growth rates in the recent past.

-The opportunity cost of moving from point G to point D in Figure 1.1 is equal to:

Macroeconomics differs from microeconomics in that:

Which of the following would not promote economic growth within a society?

In order to properly ignore opportunity costs, the value of the next-best alternative and therefore all alternatives would have to be:

Macroeconomics is described best by which of the following statements?

The study of individuals' decision-making about particular commodities is:

The problem of scarcity is present in some form or another:

Class attendance today is nearly 100% but on most other days it is less. The likely explanation for this would be:

Economists believe that incentives are the only motivating force in society.

Economists believe that incentives form a central part of the modern mixed economy.

To say that markets are free means that:

The question of how society's output is to be distributed among its citizens must be answered:

Any point beyond the production possibilities frontier:

All social systems face the problem of economic scarcity, and this problem arises primarily from the fact that:

When an economic system answers the "for whom" question, it affects the distribution of total output.

The study of how society decides what, how, and for whom to produce is the study of:

Economic thinking frequently involves a 'marginalist' approach. What does this mean?

An important idea in the definition of economics is that the economics teaches an individual how to operate efficiently and make money.