Question 1

In all cases,macroeconomics deals with

Accepted Answer

A)  what is. 
B)  what should be. 
C)  relatively small units in the economy. 
D)  the entire economy. 
A)  what is. 
B)  what should be. 
C)  relatively small units in the economy. 
D)  the entire economy.

Question 2

Exhibit 1-3
  
-Refer to Exhibit 1-3. According to the data provided in this table,what is the slope of the line between points C and D (if these data were graphed with X on the horizontal axis and Y on the vertical axis)?

Accepted Answer

A)  -0.40 
B)  -2.50 
C)  0.40 
D)  2.50 
E)  none of the above 
A)  -0.40 
B)  -2.50 
C)  0.40 
D)  2.50 
E)  none of the above

Question 3

Which of the following would NOT be considered a macroeconomic topic?

Accepted Answer

A)  the reasons for a decline in the price of crude oil 
B)  the cause of a downturn in the economy 
C)  the effect of the government budget deficit on inflation 
D)  the causes of inflation and unemployment 
A)  the reasons for a decline in the price of crude oil 
B)  the cause of a downturn in the economy 
C)  the effect of the government budget deficit on inflation 
D)  the causes of inflation and unemployment

Question 4

Economists believe that people's wants are

Accepted Answer

A)  finite. 
B)  infinite. 
C)  irrational. 
D)  unimportant because needs are more important than wants. 
A)  finite. 
B)  infinite. 
C)  irrational. 
D)  unimportant because needs are more important than wants.

Question 5

A three-word synonym for the term ceteris paribus is

Accepted Answer

A)  "nothing else changes." 
B)  "in my opinion." 
C)  "it is proved." 
D)  "under this assumption." 
A)  "nothing else changes." 
B)  "in my opinion." 
C)  "it is proved." 
D)  "under this assumption."

Question 6

The purpose of the ceteris paribus condition is to allow economists to

Accepted Answer

A)  determine the relationship among several variables. 
B)  determine the impact of several variables on another variable. 
C)  isolate the impact of one variable on several variables. 
D)  isolate the relationship between two variables. 
A)  determine the relationship among several variables. 
B)  determine the impact of several variables on another variable. 
C)  isolate the impact of one variable on several variables. 
D)  isolate the relationship between two variables.

Question 7

The condition often used in economics to isolate the relationship between two variables is

Accepted Answer

A)  causation. 
B)  abstraction. 
C)  ceteris paribus. 
D)  efficiency. 
A)  causation. 
B)  abstraction. 
C)  ceteris paribus. 
D)  efficiency.

Question 8

The coordinates of point A are 20 units of X and 40 units of Y.The coordinates of point B are 22 units of X and 30 units of Y.With X on the horizontal axis and Y on the vertical axis,the slope of the line between points A and B is

Accepted Answer

A)  + 5.00 
B)  + .20 
C)  + 0.33 
D)  - 0.20 
E)  - 5.00 
A)  + 5.00 
B)  + .20 
C)  + 0.33 
D)  - 0.20 
E)  - 5.00

Question 9

A theory is

Accepted Answer

A)  built on the major factors or variables that the theorist believes explain some event. 
B)  a simplified abstract representation of the real world. 
C)  used to understand the real world. 
D)  a and b 
E)  a, b, and c 
A)  built on the major factors or variables that the theorist believes explain some event. 
B)  a simplified abstract representation of the real world. 
C)  used to understand the real world. 
D)  a and b 
E)  a, b, and c

Question 10

A rationing device is a method used to resolve who gets what.

Accepted Answer

A) True 
 B)False

Question 11

According to economists,money is a resource.

Accepted Answer

A) True 
 B)False

Question 12

The study of an economy's price level is explicitly a part of

Accepted Answer

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

Question 13

In economics,capital is defined as a financial asset such as stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 14

What does it mean if a person makes a "decision at the margin"?

Accepted Answer

A)  The person compares additional benefits and additional costs when deciding what to do. 
B)  The person weighs the good against the bad and then decides what to do. 
C)  The person is more likely to say yes than to say no. 
D)  The person compares marginal benefits and total costs and then decides what to do. 
E)  The person makes a decision based on a condition. 
A)  The person compares additional benefits and additional costs when deciding what to do. 
B)  The person weighs the good against the bad and then decides what to do. 
C)  The person is more likely to say yes than to say no. 
D)  The person compares marginal benefits and total costs and then decides what to do. 
E)  The person makes a decision based on a condition.

Question 15

Some years ago,chemists at 3M Corporation were trying to create a super-strong glue.Somehow they got their molecules twisted and came up with one of the weakest glues ever made.But,rather than pouring it down the drain,they tried coating some paper with it,and the "Post-It Note" was born.In this case,3M was acting as a(n)

Accepted Answer

A)  utility. 
B)  rationer. 
C)  entrepreneur. 
D)  abstraction. 
A)  utility. 
B)  rationer. 
C)  entrepreneur. 
D)  abstraction.

Question 16

Which of the following is least likely to be an effect of scarcity?

Accepted Answer

A)  rationing device 
B)  choice 
C)  opportunity cost 
D)  dollar price 
E)  utility 
A)  rationing device 
B)  choice 
C)  opportunity cost 
D)  dollar price 
E)  utility

Question 17

Describe at least three of the key concepts in economics introduced in Chapter 1 of the text that define how an economist views the world.

Accepted Answer

Economists view the world using a number

Question 18

The slope of a horizontal line is always equal to zero.

Accepted Answer

A) True 
 B)False

Question 19

The higher the opportunity cost of doing something,the more likely it will be done.

Accepted Answer

A) True 
 B)False

Question 20

Exhibit 1-2
  
-Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be a ______________ sloping ____________________.

Accepted Answer

A)  downward; (nonlinear) curve. 
B)  downward; (straight) line. 
C)  upward; (nonlinear) curve. 
D)  upward; (straight) line. 
E)  none of the above 
A)  downward; (nonlinear) curve. 
B)  downward; (straight) line. 
C)  upward; (nonlinear) curve. 
D)  upward; (straight) line. 
E)  none of the above

Exam 1: What Economics Is About

In all cases,macroeconomics deals with

Exhibit 1-3 -Refer to Exhibit 1-3. According to the data provided in this table,what is the slope of the line between points C and D (if these data were graphed with X on the horizontal axis and Y on the vertical axis)?

Which of the following would NOT be considered a macroeconomic topic?

Economists believe that people's wants are

A three-word synonym for the term ceteris paribus is

The purpose of the ceteris paribus condition is to allow economists to

The condition often used in economics to isolate the relationship between two variables is

The coordinates of point A are 20 units of X and 40 units of Y.The coordinates of point B are 22 units of X and 30 units of Y.With X on the horizontal axis and Y on the vertical axis,the slope of the line between points A and B is

A theory is

A rationing device is a method used to resolve who gets what.

According to economists,money is a resource.

The study of an economy's price level is explicitly a part of

In economics,capital is defined as a financial asset such as stocks and bonds.

What does it mean if a person makes a "decision at the margin"?

Which of the following is least likely to be an effect of scarcity?

Describe at least three of the key concepts in economics introduced in Chapter 1 of the text that define how an economist views the world.

The slope of a horizontal line is always equal to zero.

The higher the opportunity cost of doing something,the more likely it will be done.

Exhibit 1-2 -Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be a ______________ sloping ____________________.

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

Exhibit 1-2 -Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be a sloping ______.