Question 1

According to economists,competition exists because of

Accepted Answer

A)  scarcity. 
B)  capitalism. 
C)  money. 
D)  unintended effects. 
A)  scarcity. 
B)  capitalism. 
C)  money. 
D)  unintended effects.

Question 2

The opportunity cost of attending college

Accepted Answer

A)  consists of the tuition costs only. 
B)  consists of the tuition costs plus the costs of room and board and other expenses. 
C)  is zero, if the student receives a scholarship that covers the costs of tuition, room and board, and other expenses. 
D)  varies from person to person. 
E)  both b and c 
A)  consists of the tuition costs only. 
B)  consists of the tuition costs plus the costs of room and board and other expenses. 
C)  is zero, if the student receives a scholarship that covers the costs of tuition, room and board, and other expenses. 
D)  varies from person to person. 
E)  both b and c

Question 3

A theory is an abstract representation of reality.This means a theory

Accepted Answer

A)  is descriptive of the way the world is. 
B)  is an unrealistic representation of reality. 
C)  omits certain factors when trying to explain something. 
D)  is usually expressed in professional jargon. 
E)  none of the above 
A)  is descriptive of the way the world is. 
B)  is an unrealistic representation of reality. 
C)  omits certain factors when trying to explain something. 
D)  is usually expressed in professional jargon. 
E)  none of the above

Question 4

Which of the following is a possible rationing device?

Accepted Answer

A)  dollar price 
B)  first-come-first-served 
C)  brute force 
D)  a and b 
E)  a, b, and c 
A)  dollar price 
B)  first-come-first-served 
C)  brute force 
D)  a and b 
E)  a, b, and c

Question 5

Exhibit 1-2
  
-Refer to Exhibit 1-2. According to the data provided in this table,what is the slope of the line between points A and B,if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Accepted Answer

A)  -1.50 
B)  -0.67 
C)  1.50 
D)  0.67 
A)  -1.50 
B)  -0.67 
C)  1.50 
D)  0.67

Question 6

Here are three things you could do if you choose not to go to class one day next week: sleep later (you value this at $15),hang out with friends (you value this at $14),or go in to work (you could earn $12 during class).The opportunity cost of going to class is

Accepted Answer

A)  $12, because this is the only alternative of the three where you actually receive a monetary payment. 
B)  $12, because this is the lowest valued alternative forfeited. 
C)  $15, because this is the highest valued alternative forfeited. 
D)  $41, because this is the total dollar sum of the alternatives forfeited. 
A)  $12, because this is the only alternative of the three where you actually receive a monetary payment. 
B)  $12, because this is the lowest valued alternative forfeited. 
C)  $15, because this is the highest valued alternative forfeited. 
D)  $41, because this is the total dollar sum of the alternatives forfeited.

Question 7

The branch of economics that studies the decisions of individuals and firms is called

Accepted Answer

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

Question 8

The answer is,"This is principally used to exhibit changes in data over time." The question is,

Accepted Answer

A)  What is a pie chart? 
B)  What is a 45-degree line? 
C)  What is a tangent line? 
D)  What is a line graph? 
E)  b and d 
A)  What is a pie chart? 
B)  What is a 45-degree line? 
C)  What is a tangent line? 
D)  What is a line graph? 
E)  b and d

Question 9

The opportunity cost of attending college is

Accepted Answer

A)  the money one spends on college tuition, books, and so forth. 
B)  the highest valued alternative one forfeits to attend college. 
C)  the least valued alternative one forfeits to attend college. 
D)  equal to the salary one will earn when one graduates from college. 
A)  the money one spends on college tuition, books, and so forth. 
B)  the highest valued alternative one forfeits to attend college. 
C)  the least valued alternative one forfeits to attend college. 
D)  equal to the salary one will earn when one graduates from college.

Question 10

The slope of a straight line is always equal to either 1.0 or -1.0.

Accepted Answer

A) True 
 B)False

Question 11

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

Accepted Answer

A)  an increase in the price of automobiles, further reducing fatalities. 
B)  an increase in driving speed, reducing the number of accidents. 
C)  a decrease in driving speed, further reducing fatalities. 
D)  an increase in risky driving behavior, increasing fatalities. 
A)  an increase in the price of automobiles, further reducing fatalities. 
B)  an increase in driving speed, reducing the number of accidents. 
C)  a decrease in driving speed, further reducing fatalities. 
D)  an increase in risky driving behavior, increasing fatalities.

Question 12

A good provides __________ and a bad provides __________.

Accepted Answer

A)  utility; satisfaction 
B)  disutility; utility 
C)  dissatisfaction; satisfaction 
D)  utility; disutility 
E)  satisfaction; utility 
A)  utility; satisfaction 
B)  disutility; utility 
C)  dissatisfaction; satisfaction 
D)  utility; disutility 
E)  satisfaction; utility

Question 13

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Accepted Answer

A)  relative relationships. 
B)  absolute relationships. 
C)  the slope of a line. 
D)  the slope of a curve. 
E)  none of the above 
A)  relative relationships. 
B)  absolute relationships. 
C)  the slope of a line. 
D)  the slope of a curve. 
E)  none of the above

Question 14

Why do societies need rationing devices?

Accepted Answer

A)  Because people have too many needs and not enough wants. 
B)  Because price exists. 
C)  Because scarcity exists. 
D)  Because people have opportunity costs. 
A)  Because people have too many needs and not enough wants. 
B)  Because price exists. 
C)  Because scarcity exists. 
D)  Because people have opportunity costs.

Question 15

Which of the following statements is false?

Accepted Answer

A)  To an economist, the resource land includes natural resources such as minerals, forests, water and unimproved land. 
B)  To an economist, the resource capital consists of unproduced goods that can be turned into produced goods. 
C)  To an economist, the resource labor consists of the physical and mental talents people contribute to the production process. 
D)  To an economist, the resource entrepreneurship refers to a particular talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things. 
A)  To an economist, the resource land includes natural resources such as minerals, forests, water and unimproved land. 
B)  To an economist, the resource capital consists of unproduced goods that can be turned into produced goods. 
C)  To an economist, the resource labor consists of the physical and mental talents people contribute to the production process. 
D)  To an economist, the resource entrepreneurship refers to a particular talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things.

Question 16

Which of the following is a microeconomics topic?

Accepted Answer

A)  the study of how prices are determined in the computer industry 
B)  the study of unemployment in the economy 
C)  the study of how changes in the nation's money supply affect the nation's output 
D)  a and c 
E)  b and c 
A)  the study of how prices are determined in the computer industry 
B)  the study of unemployment in the economy 
C)  the study of how changes in the nation's money supply affect the nation's output 
D)  a and c 
E)  b and c

Question 17

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than

Accepted Answer

A)  108,000. 
B)  111,111. 
C)  137,500. 
D)  110,000. 
A)  108,000. 
B)  111,111. 
C)  137,500. 
D)  110,000.

Question 18

Deciding at the margin is __________ an all-or-nothing decision.

Accepted Answer

A)  consistent with 
B)  inconsistent with 
C)  the same as making 
D)  conditioned upon making 
A)  consistent with 
B)  inconsistent with 
C)  the same as making 
D)  conditioned upon making

Question 19

Opportunity cost is the value of

Accepted Answer

A)  the best (or most highly valued) forfeited alternative. 
B)  the chosen alternative. 
C)  a free good. 
D)  all forfeited alternatives. 
A)  the best (or most highly valued) forfeited alternative. 
B)  the chosen alternative. 
C)  a free good. 
D)  all forfeited alternatives.

Question 20

How are changes in opportunity cost predicted to affect behavior?

Accepted Answer

A)  The lower the opportunity cost of doing X, the less likely X will be done. 
B)  The higher the opportunity cost of doing X, the less likely X will be done. 
C)  The lower the opportunity cost of doing X, the more likely X will be done. 
D)  a and c 
E)  b and c 
A)  The lower the opportunity cost of doing X, the less likely X will be done. 
B)  The higher the opportunity cost of doing X, the less likely X will be done. 
C)  The lower the opportunity cost of doing X, the more likely X will be done. 
D)  a and c 
E)  b and c

Exam 1: What Economics Is About

According to economists,competition exists because of

The opportunity cost of attending college

A theory is an abstract representation of reality.This means a theory

Which of the following is a possible rationing device?

Exhibit 1-2 -Refer to Exhibit 1-2. According to the data provided in this table,what is the slope of the line between points A and B,if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Here are three things you could do if you choose not to go to class one day next week: sleep later (you value this at $15),hang out with friends (you value this at $14),or go in to work (you could earn $12 during class).The opportunity cost of going to class is

The branch of economics that studies the decisions of individuals and firms is called

The answer is,"This is principally used to exhibit changes in data over time." The question is,

The opportunity cost of attending college is

The slope of a straight line is always equal to either 1.0 or -1.0.

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

A good provides __________ and a bad provides __________.

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Why do societies need rationing devices?

Which of the following statements is false?

Which of the following is a microeconomics topic?

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than

Deciding at the margin is __________ an all-or-nothing decision.

Opportunity cost is the value of

How are changes in opportunity cost predicted to affect behavior?

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

A good provides and a bad provides .