Question 1

A tractor is an example of which of the following factors of production?

Accepted Answer

A) land 
B) entrepreneurship 
C) energy 
D) capital 
E) labour 
A) land 
B) entrepreneurship 
C) energy 
D) capital 
E) labour

Question 2

If you take an additional class this term, you can graduate earlier.This is an example of

Accepted Answer

A) total cost. 
B) opportunity cost. 
C) the pursuit of social interest. 
D) marginal benefit. 
E) social cost. 
A) total cost. 
B) opportunity cost. 
C) the pursuit of social interest. 
D) marginal benefit. 
E) social cost.

Question 3

Use the figure below to answer the following questions.
   Figure 1A.1.2
-In Figure 1A.1.2, the value of y is 5 when x is

Accepted Answer

A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8. 
A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8.

Question 4

The determination of prices in individual markets is primarily a concern of

Accepted Answer

A) macroeconomics. 
B) positive economics. 
C) negative economics. 
D) descriptive economics. 
E) microeconomics. 
A) macroeconomics. 
B) positive economics. 
C) negative economics. 
D) descriptive economics. 
E) microeconomics.

Question 5

Which of the following relates factors of production to the sources of income correctly?

Accepted Answer

A) Labour earns rent. 
B) Land earns interest. 
C) Capital earns profit. 
D) Entrepreneurship earns rent. 
E) Land earns rent. 
A) Labour earns rent. 
B) Land earns interest. 
C) Capital earns profit. 
D) Entrepreneurship earns rent. 
E) Land earns rent.

Question 6

"The rich should face higher income tax rates than the poor." This is an example of

Accepted Answer

A) economic reasoning. 
B) a negative statement. 
C) a positive statement. 
D) a normative statement. 
E) neither a normative nor a positive statement. 
A) economic reasoning. 
B) a negative statement. 
C) a positive statement. 
D) a normative statement. 
E) neither a normative nor a positive statement.

Question 7

Which of the following statements are true regarding "positive" statements? I.They describe what "ought to be."
II.They describe what is believed about how the world appears.
III.They can be tested as to their truthfulness.

Accepted Answer

A) I, II and III 
B) I and III 
C) I and II 
D) II and III 
E) None of the statements are true. 
A) I, II and III 
B) I and III 
C) I and II 
D) II and III 
E) None of the statements are true.

Question 8

Statements about "what ought to be" are called

Accepted Answer

A) economic statements. 
B) hypotheses. 
C) normative statements. 
D) positive statements. 
E) scientific statements. 
A) economic statements. 
B) hypotheses. 
C) normative statements. 
D) positive statements. 
E) scientific statements.

Question 9

An outcome is considered efficient if

Accepted Answer

A) it is not possible to make someone better off without making anyone else worse off. 
B) as many people as possible are happy about the outcome. 
C) there is the smallest difference possible between the highest income earned and the lowest income earned. 
D) it is the best available choice for an individual. 
E) everyone makes the same income. 
A) it is not possible to make someone better off without making anyone else worse off. 
B) as many people as possible are happy about the outcome. 
C) there is the smallest difference possible between the highest income earned and the lowest income earned. 
D) it is the best available choice for an individual. 
E) everyone makes the same income.

Question 10

In a world characterized by scarcity

Accepted Answer

A) individuals need not work to obtain goods. 
B) all goods are free. 
C) we are not limited by time. 
D) opportunity cost is zero. 
E) people must make choices among alternatives. 
A) individuals need not work to obtain goods. 
B) all goods are free. 
C) we are not limited by time. 
D) opportunity cost is zero. 
E) people must make choices among alternatives.

Question 11

Complete the following sentence.Economic models

Accepted Answer

A) were first developed in the 1970s. 
B) describe some aspect of the economic world, but include only those features needed for the purpose at hand. 
C) answer questions that arise from normative statements. 
D) do not answer questions about the economic world. 
E) include most of the details of the economic world. 
A) were first developed in the 1970s. 
B) describe some aspect of the economic world, but include only those features needed for the purpose at hand. 
C) answer questions that arise from normative statements. 
D) do not answer questions about the economic world. 
E) include most of the details of the economic world.

Question 12

The fact that human wants cannot be fully satisfied with available resources is called the problem of

Accepted Answer

A) marginal cost. 
B) opportunity cost. 
C) scarcity. 
D) the big tradeoff. 
E) normative economics. 
A) marginal cost. 
B) opportunity cost. 
C) scarcity. 
D) the big tradeoff. 
E) normative economics.

Question 13

The night before a history test, you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff and the opportunity cost of your evening at the movies was .

Accepted Answer

A) did not face; zero 
B) faced; the 75 percent that you normally score 
C) faced; the 15 percent fall in your grade 
D) did not face; the 15 percent fall in your grade 
E) faced; the mark of 60 percent on your test 
A) did not face; zero 
B) faced; the 75 percent that you normally score 
C) faced; the 15 percent fall in your grade 
D) did not face; the 15 percent fall in your grade 
E) faced; the mark of 60 percent on your test

Question 14

The equation of a line is y = 4 + 2x.What is the y- axis intercept of this line?

Accepted Answer

A) - 2 
B) 0 
C) - 1/2 
D) 1/4 
E) 4 
A) - 2 
B) 0 
C) - 1/2 
D) 1/4 
E) 4

Question 15

The two big economic questions include all of the following except

Accepted Answer

A) for whom to produce. 
B) how to produce. 
C) what to produce. 
D) why to produce. 
E) a determination of whether the pursuit of self- interest also promotes the social interest. 
A) for whom to produce. 
B) how to produce. 
C) what to produce. 
D) why to produce. 
E) a determination of whether the pursuit of self- interest also promotes the social interest.

Question 16

-Consider the data in Table 1A.4.1.Suppose z increases from 4 to 5.What will happen to the graph of the relationship between x and y?

Accepted Answer

A) It will shift to the right. 
B) It will become positively sloped. 
C) It will shift to the left. 
D) both A and C 
E) both B and C 
A) It will shift to the right. 
B) It will become positively sloped. 
C) It will shift to the left. 
D) both A and C 
E) both B and C

Question 17

Which one of the following is labour?

Accepted Answer

A) money 
B) a carpenter's hammer 
C) a singer's voice 
D) a bread- slicing machine 
E) a shoe factory 
A) money 
B) a carpenter's hammer 
C) a singer's voice 
D) a bread- slicing machine 
E) a shoe factory

Question 18

The problem of scarcity applies

Accepted Answer

A) only in countries that are over- populated 
B) to all countries, regardless of their level of development. 
C) only in developing countries because resources are scarce in these countries 
D) only in industrially developed countries because resources are scarce in these countries. 
E) only in countries that use natural resources in most of their production processes 
A) only in countries that are over- populated 
B) to all countries, regardless of their level of development. 
C) only in developing countries because resources are scarce in these countries 
D) only in industrially developed countries because resources are scarce in these countries. 
E) only in countries that use natural resources in most of their production processes

Question 19

Which of the following equations describes a straight line with a y- axis intercept of - 2 and a slope of - 5?

Accepted Answer

A) y = - 5x 
B) y = - 5 - 2x 
C) y = - 2 
D) y = - 2 - 5x 
E) x = - 2 - 5y 
A) y = - 5x 
B) y = - 5 - 2x 
C) y = - 2 
D) y = - 2 - 5x 
E) x = - 2 - 5y

Question 20

Statements about "what is" are called

Accepted Answer

A) scientific statements. 
B) normative statements. 
C) hypotheses. 
D) economic statements. 
E) positive statements. 
A) scientific statements. 
B) normative statements. 
C) hypotheses. 
D) economic statements. 
E) positive statements.

A tractor is an example of which of the following factors of production?

If you take an additional class this term, you can graduate earlier.This is an example of

Use the figure below to answer the following questions. Figure 1A.1.2 -In Figure 1A.1.2, the value of y is 5 when x is

The determination of prices in individual markets is primarily a concern of

Which of the following relates factors of production to the sources of income correctly?

"The rich should face higher income tax rates than the poor." This is an example of

Which of the following statements are true regarding "positive" statements? I.They describe what "ought to be." II.They describe what is believed about how the world appears. III.They can be tested as to their truthfulness.

Statements about "what ought to be" are called

An outcome is considered efficient if

In a world characterized by scarcity

Complete the following sentence.Economic models

The fact that human wants cannot be fully satisfied with available resources is called the problem of

The night before a history test, you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff and the opportunity cost of your evening at the movies was .

The equation of a line is y = 4 + 2x.What is the y- axis intercept of this line?

The two big economic questions include all of the following except

-Consider the data in Table 1A.4.1.Suppose z increases from 4 to 5.What will happen to the graph of the relationship between x and y?

Which one of the following is labour?

The problem of scarcity applies

Which of the following equations describes a straight line with a y- axis intercept of - 2 and a slope of - 5?

Statements about "what is" are called

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

A tractor is an example of which of the following factors of production?

If you take an additional class this term, you can graduate earlier.This is an example of

Use the figure below to answer the following questions. Figure 1A.1.2 -In Figure 1A.1.2, the value of y is 5 when x is

The determination of prices in individual markets is primarily a concern of

Which of the following relates factors of production to the sources of income correctly?

"The rich should face higher income tax rates than the poor." This is an example of

Which of the following statements are true regarding "positive" statements? I.They describe what "ought to be." II.They describe what is believed about how the world appears. III.They can be tested as to their truthfulness.

Statements about "what ought to be" are called

An outcome is considered efficient if

In a world characterized by scarcity

Complete the following sentence.Economic models

The fact that human wants cannot be fully satisfied with available resources is called the problem of

The night before a history test, you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff and the opportunity cost of your evening at the movies was .

The equation of a line is y = 4 + 2x.What is the y- axis intercept of this line?

The two big economic questions include all of the following except

-Consider the data in Table 1A.4.1.Suppose z increases from 4 to 5.What will happen to the graph of the relationship between x and y?

Which one of the following is labour?

The problem of scarcity applies

Which of the following equations describes a straight line with a y- axis intercept of - 2 and a slope of - 5?

Statements about "what is" are called

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