Question 1

What is an economic variable?

Accepted Answer

The answer of What is an economic variable?...

Question 2

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics?
a. gasoline prices
b. unemployment
c. inflation
d. health care costs
e. air pollution
f. economic growth

Accepted Answer

The answer of Which of the following are primarily macroeconomic...

Question 3

Describe what has happened to state obesity rates in the United States since 1994.

Accepted Answer

The answer of Describe what has happened to state obesity...

Question 4

One example of human capital is the amount of savings that you have.

Accepted Answer

A) True 
 B)False

Question 5

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces, then $50 is the marginal cost of producing the 5th necklace.

Accepted Answer

A) True 
 B)False

Question 6

Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production.

Accepted Answer

A)  marginal benefit; marginal cost 
B)  marginal benefit; marginal benefit 
C)  marginal cost; marginal cost 
D)  marginal cost; marginal benefit

Question 7

Making "how much" decisions involves

Accepted Answer

A)  calculating the total benefits of the activity and determining if you are satisfied with that amount. 
B)  calculating the total costs of the activity and determining if you can afford to incur that expenditure. 
C)  calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity. 
D)  determining the additional benefits and the additional costs of that activity.

Question 8

Which of the following is a macroeconomics question?

Accepted Answer

A)  What determines the inflation rate? 
B)  What determines the production of DVDs? 
C)  What factors determine the price of carrots? 
D)  What determines the wage of auto workers?

Question 9

Table 1-2
  Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should extend her hours of operation. Thuy Anh figures that her sales revenue will depend on the number of hours the flower shop is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $16 per hour.
-Refer to Table 1-2. Using marginal analysis, how many hours should Thuy Anh extend her flower shop's hours of operations?

Accepted Answer

A)  2 hours 
B)  3 hours 
C)  4 hours 
D)  5 hours 
E)  6 hours

Question 10

Scenario 1-2
Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of $5,000 per week. The plant owner observes, "Although the last 300 hats we produced and sold increased our revenue by $1,000 and our costs by $1,100, we are still making an overall profit of $5,000 per week so I think we're on the right track. We are producing the optimal number of hats."
-Refer to Scenario 1-2. Had the firm not produced and sold the last 300 hats, would its profit be higher or lower, and if so by how much?

Accepted Answer

A)  Its profit will be $1,100 higher. 
B)  Its profit will be $100 higher. 
C)  Its profit will be $100 lower. 
D)  Its profit will be $1,000 lower.

Question 11

In economics, the term ________ means "additional" or "extra."

Accepted Answer

A)  allocative 
B)  marginal 
C)  equity 
D)  optimal

Question 12

Scarcity refers to the situation in which

Accepted Answer

A)  unlimited wants exceed limited resources. 
B)  unlimited resources exceed limited wants. 
C)  a country's population is larger than its resource base. 
D)  a nation's poverty level increases faster than its population.

Question 13

Which of the following statements is true?

Accepted Answer

A)  An inverse relationship has a positive slope value. 
B)  A direct relationship has a negative slope value. 
C)  A curved line has slope values that change at every point. 
D)  A straight line has a slope of one.

Question 14

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal cost.

Accepted Answer

A) True 
 B)False

Question 15

Figure 1-6 
-Refer to Figure 1-6. Calculate the area of the trapezoid X.

Accepted Answer

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

Question 16

The economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a minimum wage: a. The minimum wage law causes unemployment.
B. Unemployment would be lower without a minimum wage law.
C. Minimum wage laws benefit some workers and harm others.
D. The minimum wage should be more than $7.25 per hour.
Which of the consequences above are positive statements and which are normative statements?

Accepted Answer

A)  a, b, and c are positive statements; d is a normative statement. 
B)  a and b are positive statements; c and d are normative statements. 
C)  Only a is a positive statement; b, c and d are normative statements. 
D)  a and c are positive statements; b and d are normative statements.

Question 17

Which of the following are positive economic statements and which are normative economic statements?
a. An increase in the minimum wage causes unemployment.
b. The government should raise the minimum wage above $7.25 per hour.
c. The prolonged recession has caused the unemployment rate to reach a 30-year high.
d. Interest rates need to be lower for the economy to emerge from the recession.
e. Inflation has decreased since the onset of the recession.
f. Once the recession has ended, interest rates should increase to assure that inflation does not go up.

Accepted Answer

The answer of Which of the following are positive economic...

Question 18

Which of the following is a microeconomics question?

Accepted Answer

A)  When will the government better secure the borders? 
B)  Why hasn't the federal government raised the minimum wage? 
C)  How does Fiat decide on the price of the 500 Pop model? 
D)  What determines the level of U.S. imports and exports?

Question 19

Which of the following is part of an economic model?

Accepted Answer

A)  norms 
B)  hypotheses 
C)  opinions 
D)  preferences of economic agents

Question 20

Table 1-8
 
-Refer to Table 1-8. The table above shows the sales of flat-panel television sets in Central America. Present the information using a bar graph.

Accepted Answer

The answer of Table 1-8
 
-Refer to Table 1-8. The...

Exam 1: Economics: Foundations and Models

What is an economic variable?

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a. gasoline prices b. unemployment c. inflation d. health care costs e. air pollution f. economic growth

Describe what has happened to state obesity rates in the United States since 1994.

One example of human capital is the amount of savings that you have.

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces, then $50 is the marginal cost of producing the 5th necklace.

Competition forces firms to produce and sell products as long as the to consumers exceeds the of production.

Making "how much" decisions involves

Which of the following is a macroeconomics question?

In economics, the term ________ means "additional" or "extra."

Scarcity refers to the situation in which

Which of the following statements is true?

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal cost.

Figure 1-6 -Refer to Figure 1-6. Calculate the area of the trapezoid X.

Which of the following is a microeconomics question?

Which of the following is part of an economic model?

Table 1-8 -Refer to Table 1-8. The table above shows the sales of flat-panel television sets in Central America. Present the information using a bar graph.