Question 1

Which of the following is correct? Factors of production are

Accepted Answer

A)  only land and labor. 
B)  the inputs used to produce goods and services. 
C)  land, labor, the price system, and capital. 
D)  the fundamental source of abundance. 
A)  only land and labor. 
B)  the inputs used to produce goods and services. 
C)  land, labor, the price system, and capital. 
D)  the fundamental source of abundance.

Question 2

Scarcity is

Accepted Answer

A)  eliminated by choices. 
B)  a situation that exists during economic recessions but not during economic booms. 
C)  our inability to satisfy all our wants. 
D)  an economic problem only for poor people. 
A)  eliminated by choices. 
B)  a situation that exists during economic recessions but not during economic booms. 
C)  our inability to satisfy all our wants. 
D)  an economic problem only for poor people.

Question 3

Which of the following is a macroeconomic decision or concept?

Accepted Answer

A)  how many television sets to produce 
B)  the unemployment rate for the entire economy 
C)  the price of oil 
D)  the unemployment rate for each firm 
A)  how many television sets to produce 
B)  the unemployment rate for the entire economy 
C)  the price of oil 
D)  the unemployment rate for each firm

Question 4

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Accepted Answer

A) True 
 B)False

Question 5

Samantha goes to college to become an engineer. This is an example of an

Accepted Answer

A)  investment in human capital. 
B)  increase in labor. 
C)  increase in entrepreneurship. 
D)  investment in physical capital. 
A)  investment in human capital. 
B)  increase in labor. 
C)  increase in entrepreneurship. 
D)  investment in physical capital.

Question 6

Keeping in mind economistsʹ definition of factors of production, which of the following is NOT a factor of production?

Accepted Answer

A)  coal 
B)  an engineer 
C)  low-skilled labor 
D)  money 
A)  coal 
B)  an engineer 
C)  low-skilled labor 
D)  money

Question 7

Scarcity exists because

Accepted Answer

A)  of the inefficient choices we make. 
B)  poor people need more food and other goods. 
C)  society and people are greedy and wasteful. 
D)  our wants exceed the resources available to satisfy them. 
A)  of the inefficient choices we make. 
B)  poor people need more food and other goods. 
C)  society and people are greedy and wasteful. 
D)  our wants exceed the resources available to satisfy them.

Question 8

To graph a relationship among several variables, we hold all but variables) constant and use the assumption.

Accepted Answer

A)  three; marginal benefit 
B)  one; ceteris paribus 
C)  one; scarcity 
D)  two; ceteris paribus 
A)  three; marginal benefit 
B)  one; ceteris paribus 
C)  one; scarcity 
D)  two; ceteris paribus

Question 9

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joyʹs .

Accepted Answer

A)  human capital 
B)  entrepreneurship 
C)  physical capital 
D)  None of the above answers are correct. 
A)  human capital 
B)  entrepreneurship 
C)  physical capital 
D)  None of the above answers are correct.

Question 10

Economic models

Accepted Answer

A)  always use graphs. 
B)  are essentially different from those used in other sciences. 
C)  include all relevant facts. 
D)  simplify reality. 
A)  always use graphs. 
B)  are essentially different from those used in other sciences. 
C)  include all relevant facts. 
D)  simplify reality.

Question 11

On the horizontal axis of a graph, generally

Accepted Answer

A)  values increase from left to right. 
B)  values increase from right to left. 
C)  values can be positive and/or negative. 
D)  Both answers A and C are correct. 
A)  values increase from left to right. 
B)  values increase from right to left. 
C)  values can be positive and/or negative. 
D)  Both answers A and C are correct.

Question 12

-In the above figure, a negative relationship between price and quantity is shown in

Accepted Answer

A)  Figure A. 
B)  Figure B. 
C)  Neither Figure A nor Figure B. 
D)  Both Figure A and Figure B. 
A)  Figure A. 
B)  Figure B. 
C)  Neither Figure A nor Figure B. 
D)  Both Figure A and Figure B.

Which of the following is correct? Factors of production are

Scarcity is

Which of the following is a macroeconomic decision or concept?

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Samantha goes to college to become an engineer. This is an example of an

Keeping in mind economistsʹ definition of factors of production, which of the following is NOT a factor of production?

Scarcity exists because

To graph a relationship among several variables, we hold all but variables) constant and use the assumption.

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joyʹs .

Economic models

On the horizontal axis of a graph, generally

-In the above figure, a negative relationship between price and quantity is shown in

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 1: What Is Economics

Which of the following is correct? Factors of production are

Scarcity is

Which of the following is a macroeconomic decision or concept?

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Samantha goes to college to become an engineer. This is an example of an

Keeping in mind economistsʹ definition of factors of production, which of the following is NOT a factor of production?

Scarcity exists because

To graph a relationship among several variables, we hold all but variables) constant and use the assumption.

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joyʹs .

Economic models

On the horizontal axis of a graph, generally

-In the above figure, a negative relationship between price and quantity is shown in

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters