Question 1

Explain what an economist means when he says,"You don't find any $10 bills on the sidewalk."

Accepted Answer

What an economist meAnswer by this state

Question 2

Exhibit 1-1
  
-Refer to Exhibit 1-1. If the student whose study habits are illustrated here is currently studying for the 2nd hour she should

Accepted Answer

A)  cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. 
B)  cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is greater than the marginal cost of doing so. 
C)  increase the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. 
D)  increase the number of hours she is studying because the marginal benefit of studying for the 2ndhour is greater than the marginal cost of doing so. 
A)  cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. 
B)  cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is greater than the marginal cost of doing so. 
C)  increase the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. 
D)  increase the number of hours she is studying because the marginal benefit of studying for the 2ndhour is greater than the marginal cost of doing so.

Question 3

A line is parallel to the horizontal axis.The slope of the line is

Accepted Answer

A)  infinite. 
B)  indicative of an inverse relationship between two variables. 
C)  indicative of a direct relationship between two variables. 
D)  zero. 
E)  b and d 
A)  infinite. 
B)  indicative of an inverse relationship between two variables. 
C)  indicative of a direct relationship between two variables. 
D)  zero. 
E)  b and d

Question 4

Explain why the ceteris paribus assumption is essential when assessing an economic theory. Give an example to help support your answer.

Accepted Answer

Economists use the ceteris paribus assum

Question 5

Which of the following is not one of the four broad categories of resources?

Accepted Answer

A)  labor 
B)  money 
C)  capital 
D)  entrepreneurship 
E)  land 
A)  labor 
B)  money 
C)  capital 
D)  entrepreneurship 
E)  land

Question 6

Define the term scarcity and discuss two of its consequences.

Accepted Answer

Scarcity is the condition in which our w

Question 7

The latest Lady Gaga album is available to be downloaded for $12.99.Is this price a rationing device?

Accepted Answer

A)  No, the album will be sold to anyone having the required number of dollars. 
B)  Yes, because the album will only be purchased by people who are willing and able to pay $12.99. 
C)  No, for price to be a rationing device, it must be so high that only one unit of the item is sold. 
D)  Yes, since that is a reasonable price. 
A)  No, the album will be sold to anyone having the required number of dollars. 
B)  Yes, because the album will only be purchased by people who are willing and able to pay $12.99. 
C)  No, for price to be a rationing device, it must be so high that only one unit of the item is sold. 
D)  Yes, since that is a reasonable price.

Question 8

Efficiency is consistent with

Accepted Answer

A)  maximizing net benefits. 
B)  equating marginal benefits and marginal costs. 
C)  maximizing total benefits. 
D)  minimizing total costs. 
E)  a and b 
A)  maximizing net benefits. 
B)  equating marginal benefits and marginal costs. 
C)  maximizing total benefits. 
D)  minimizing total costs. 
E)  a and b

Exam 1: What Economics Is About

Explain what an economist means when he says,"You don't find any $10 bills on the sidewalk."

Exhibit 1-1 -Refer to Exhibit 1-1. If the student whose study habits are illustrated here is currently studying for the 2nd hour she should

A line is parallel to the horizontal axis.The slope of the line is

Explain why the ceteris paribus assumption is essential when assessing an economic theory. Give an example to help support your answer.

Which of the following is not one of the four broad categories of resources?

Define the term scarcity and discuss two of its consequences.

The latest Lady Gaga album is available to be downloaded for $12.99.Is this price a rationing device?

Efficiency is consistent with

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

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