Question 1

Monika will choose to eat a seventh pizza slice if

Accepted Answer

A) the marginal benefit from the seventh slice is greater than its marginal cost. 
B) the marginal benefit from the seventh slice is less than its marginal cost. 
C) the total benefit from all seven slices is less than their total cost. 
D) the total benefit from all seven slices is greater than their total cost. 
E) she has enough money to pay for it. 
A) the marginal benefit from the seventh slice is greater than its marginal cost. 
B) the marginal benefit from the seventh slice is less than its marginal cost. 
C) the total benefit from all seven slices is less than their total cost. 
D) the total benefit from all seven slices is greater than their total cost. 
E) she has enough money to pay for it. A

Question 2

The study of how wages are set for New Brunswick teachers is classified as

Accepted Answer

A) a macroeconomic topic. 
B) a microeconomic topic. 
C) normative economics. 
D) economics of social interest. 
E) economics of private interest. 
A) a macroeconomic topic. 
B) a microeconomic topic. 
C) normative economics. 
D) economics of social interest. 
E) economics of private interest. B

Question 3

Use the figure below to answer the following question.
   Figure 1A.2.3
-In Figure 1A.2.3, the variables x and y

Accepted Answer

A) are positively related. 
B) move in the same direction. 
C) are unrelated 
D) are negatively related. 
E) are always equal. 
A) are positively related. 
B) move in the same direction. 
C) are unrelated 
D) are negatively related. 
E) are always equal. D

Question 4

Use the figure below to answer the following questions.
   Figure 1A.3.3
-What is the slope across the arc between B and C in Figure 1A.3.3?

Accepted Answer

A) 3 
B) 1 
C) 2/3 
D) 1/2. 
E) 2 
A) 3 
B) 1 
C) 2/3 
D) 1/2. 
E) 2

Question 5

Use the figure below to answer the following question.
   Figure 1A.5.2
-If the equation of a straight line is y = 6 + 3x, then the slope is

Accepted Answer

A) 3 and the y- axis intercept is 6. 
B) 3 and the y- axis intercept is - 2. 
C) 3 and the y- axis intercept is - 6. 
D) - 3 and the y- axis intercept is - 2. 
E) - 3 and the y- axis intercept is 6. 
A) 3 and the y- axis intercept is 6. 
B) 3 and the y- axis intercept is - 2. 
C) 3 and the y- axis intercept is - 6. 
D) - 3 and the y- axis intercept is - 2. 
E) - 3 and the y- axis intercept is 6.

Question 6

Which of the following is a positive statement?

Accepted Answer

A) Low rents are better for a city than high rents. 
B) Housing costs too much. 
C) Government should control the rents that apartment owners charge. 
D) Low rents restrict the supply of housing. 
E) Owners of apartment buildings ought to be free to charge whatever rent they want. 
A) Low rents are better for a city than high rents. 
B) Housing costs too much. 
C) Government should control the rents that apartment owners charge. 
D) Low rents restrict the supply of housing. 
E) Owners of apartment buildings ought to be free to charge whatever rent they want.

Question 7

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Accepted Answer

A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the revenue from selling HP's printers as compared to printers from competing companies, such as Lexmark. 
C) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
D) the cost of producing HP's printers as compared to printers from competing companies, such as Lexmark. 
E) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the revenue from selling HP's printers as compared to printers from competing companies, such as Lexmark. 
C) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
D) the cost of producing HP's printers as compared to printers from competing companies, such as Lexmark. 
E) the extra revenue from selling a few additional printers to the average cost of producing the additional printers.

Question 8

Use the table below to answer the following questions.
Table 1A.4.2
    
-Given the data in Table 1A.4.2, holding price constant, the graph of the purchases of strawberries, measured on the x- axis and family income, measured on the y- axis is a

Accepted Answer

A) horizontal line. 
B) vertical line. 
C) positively or negatively sloped line, depending on the price that is held constant. 
D) positively sloped line. 
E) negatively sloped line. 
A) horizontal line. 
B) vertical line. 
C) positively or negatively sloped line, depending on the price that is held constant. 
D) positively sloped line. 
E) negatively sloped line.

Question 9

Which of the following would an economist classify as capital?

Accepted Answer

A) a deposit of silver 
B) a computer 
C) natural resources 
D) entrepreneurship 
E) land 
A) a deposit of silver 
B) a computer 
C) natural resources 
D) entrepreneurship 
E) land

Question 10

The scientific purpose of simplifying assumptions in an economic model is to

Accepted Answer

A) eliminate the possibility of personal bias in the model. 
B) add necessary hypotheses to the problem. 
C) avoid confronting difficult issues. 
D) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
E) eliminate the need for further testing of the implications of the model. 
A) eliminate the possibility of personal bias in the model. 
B) add necessary hypotheses to the problem. 
C) avoid confronting difficult issues. 
D) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
E) eliminate the need for further testing of the implications of the model.

Question 11

The fact that some people can afford to live in beautiful homes while others are homeless is an example of an economy facing the question.

Accepted Answer

A) "when" 
B) "for whom" 
C) "where" 
D) "what" 
E) "how" 
A) "when" 
B) "for whom" 
C) "where" 
D) "what" 
E) "how"

Question 12

What choices are best for the entire society?

Accepted Answer

A) self- interest choices 
B) choices made by majority rule 
C) choices made by well- meaning citizens 
D) social interest choices 
E) choices influenced by lobbyists 
A) self- interest choices 
B) choices made by majority rule 
C) choices made by well- meaning citizens 
D) social interest choices 
E) choices influenced by lobbyists

Question 13

Use the figure below to answer the following questions.
   Figure 1A.3.4
-In Figure 1A.3.4, the slope across arc AB is

Accepted Answer

A) 2/3. 
B) - 9/4. 
C) - 1. 
D) - 3/2. 
E) - 3. 
A) 2/3. 
B) - 9/4. 
C) - 1. 
D) - 3/2. 
E) - 3.

Question 14

Model A is superior to model B if

Accepted Answer

A) it contains fewer unrealistic assumptions than model B. 
B) it contains more real world detail than model B. 
C) its predictions correspond more closely to the facts than the predictions of model B. 
D) it is preferred by a majority of researchers in a public opinion poll. 
E) it is scientifically "elegant." 
A) it contains fewer unrealistic assumptions than model B. 
B) it contains more real world detail than model B. 
C) its predictions correspond more closely to the facts than the predictions of model B. 
D) it is preferred by a majority of researchers in a public opinion poll. 
E) it is scientifically "elegant."

Question 15

To meet increased demand for its good, a firm decides to hire a few high- skilled workers, rather than hire many low- skilled workers.The firm is answering the question.

Accepted Answer

A) "how" 
B) "what" 
C) "who" 
D) "when" 
E) "where" 
A) "how" 
B) "what" 
C) "who" 
D) "when" 
E) "where"

Question 16

Use the figure below to answer the following questions.
   Figure 1A.2.2
-Refer to Figure 1A.2.2.The variables x and y

Accepted Answer

A) are negatively related. 
B) have a negative linear relationship. 
C) are unrelated. 
D) have a nonlinear relationship. 
E) are positively related. 
A) are negatively related. 
B) have a negative linear relationship. 
C) are unrelated. 
D) have a nonlinear relationship. 
E) are positively related.

Question 17

Use the figure below to answer the following questions.
   Figure 1A.3.3
-Figure 1A.3.3 illustrates two variables, x and y, which are

Accepted Answer

A) negatively related, with an increasing slope as x increases. 
B) positively related, with a decreasing slope as x increases. 
C) positively related, with slope first increasing then decreasing. 
D) positively related, with an increasing slope as x increases. 
E) negatively related, with a decreasing slope as x increases. 
A) negatively related, with an increasing slope as x increases. 
B) positively related, with a decreasing slope as x increases. 
C) positively related, with slope first increasing then decreasing. 
D) positively related, with an increasing slope as x increases. 
E) negatively related, with a decreasing slope as x increases.

Question 18

The branch of economics that studies the choices of individuals and businesses is

Accepted Answer

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

Question 19

The inescapable economic fact is that

Accepted Answer

A) capitalists are always exploiting the workers. 
B) there are unlimited resources, and we just have to decide how to allocate them. 
C) unions are always exploiting firms. 
D) there are unlimited wants and limited resources. 
E) capitalists and unions cannot work together. 
A) capitalists are always exploiting the workers. 
B) there are unlimited resources, and we just have to decide how to allocate them. 
C) unions are always exploiting firms. 
D) there are unlimited wants and limited resources. 
E) capitalists and unions cannot work together.

Question 20

To make choices, people must

Accepted Answer

A) be free from government constraint. 
B) evaluate the values of alternative actions. 
C) have unlimited resources. 
D) have unlimited access to information at no cost. 
E) be risk- takers. 
A) be free from government constraint. 
B) evaluate the values of alternative actions. 
C) have unlimited resources. 
D) have unlimited access to information at no cost. 
E) be risk- takers.

Monika will choose to eat a seventh pizza slice if

The study of how wages are set for New Brunswick teachers is classified as

Use the figure below to answer the following question. Figure 1A.2.3 -In Figure 1A.2.3, the variables x and y

Use the figure below to answer the following questions. Figure 1A.3.3 -What is the slope across the arc between B and C in Figure 1A.3.3?

Use the figure below to answer the following question. Figure 1A.5.2 -If the equation of a straight line is y = 6 + 3x, then the slope is

Which of the following is a positive statement?

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Use the table below to answer the following questions. Table 1A.4.2 -Given the data in Table 1A.4.2, holding price constant, the graph of the purchases of strawberries, measured on the x- axis and family income, measured on the y- axis is a

Which of the following would an economist classify as capital?

The scientific purpose of simplifying assumptions in an economic model is to

The fact that some people can afford to live in beautiful homes while others are homeless is an example of an economy facing the question.

What choices are best for the entire society?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4, the slope across arc AB is

Model A is superior to model B if

To meet increased demand for its good, a firm decides to hire a few high- skilled workers, rather than hire many low- skilled workers.The firm is answering the question.

Use the figure below to answer the following questions. Figure 1A.2.2 -Refer to Figure 1A.2.2.The variables x and y

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables, x and y, which are

The branch of economics that studies the choices of individuals and businesses is

The inescapable economic fact is that

To make choices, people must

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics

Monika will choose to eat a seventh pizza slice if

The study of how wages are set for New Brunswick teachers is classified as

Use the figure below to answer the following question. Figure 1A.2.3 -In Figure 1A.2.3, the variables x and y

Use the figure below to answer the following questions. Figure 1A.3.3 -What is the slope across the arc between B and C in Figure 1A.3.3?

Use the figure below to answer the following question. Figure 1A.5.2 -If the equation of a straight line is y = 6 + 3x, then the slope is

Which of the following is a positive statement?

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Use the table below to answer the following questions. Table 1A.4.2 -Given the data in Table 1A.4.2, holding price constant, the graph of the purchases of strawberries, measured on the x- axis and family income, measured on the y- axis is a

Which of the following would an economist classify as capital?

The scientific purpose of simplifying assumptions in an economic model is to

The fact that some people can afford to live in beautiful homes while others are homeless is an example of an economy facing the question.

What choices are best for the entire society?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4, the slope across arc AB is

Model A is superior to model B if

To meet increased demand for its good, a firm decides to hire a few high- skilled workers, rather than hire many low- skilled workers.The firm is answering the question.

Use the figure below to answer the following questions. Figure 1A.2.2 -Refer to Figure 1A.2.2.The variables x and y

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables, x and y, which are

The branch of economics that studies the choices of individuals and businesses is

The inescapable economic fact is that

To make choices, people must

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters