Question 1

Which of the following is not a macroeconomic question?

Accepted Answer

A)  Do employers discriminate against women by paying them lower wages? 
B)  How does a political candidate's economic reform package affect the inflation rate? 
C)  Should we have a constitutional amendment to balance the federal budget? 
D)  All of the above are macroeconomic questions. 
A)  Do employers discriminate against women by paying them lower wages? 
B)  How does a political candidate's economic reform package affect the inflation rate? 
C)  Should we have a constitutional amendment to balance the federal budget? 
D)  All of the above are macroeconomic questions.

Question 2

Which of the following is a question that needs to be answered with normative economic reasoning?

Accepted Answer

A)  Should the college reduce tuition to stimulate enrollment? 
B)  If the college increases tuition, would class size decline? 
C)  If the college offers free parking for students, will more students drive to campus? 
D)  If the college provided more financial aid assistance, would more students benefit? 
A)  Should the college reduce tuition to stimulate enrollment? 
B)  If the college increases tuition, would class size decline? 
C)  If the college offers free parking for students, will more students drive to campus? 
D)  If the college provided more financial aid assistance, would more students benefit?

Question 3

Economists employ economic models:

Accepted Answer

A)  to make reality more complex. 
B)  because economic theory is too easy without them. 
C)  because reality is complex. 
D)  to make the field more scientific. 
A)  to make reality more complex. 
B)  because economic theory is too easy without them. 
C)  because reality is complex. 
D)  to make the field more scientific.

Question 4

Which of the following is not a market?

Accepted Answer

A)  a cattle auction 
B)  a group of children trading Pokemon cards 
C)  your college bookstore 
D)  All of the above are markets. 
A)  a cattle auction 
B)  a group of children trading Pokemon cards 
C)  your college bookstore 
D)  All of the above are markets.

Question 5

How are percentage changes calculated?

Accepted Answer

Percentage change is (New Value - Initia

Question 6

Resources are all of the following except:

Accepted Answer

A)  the things we use to produce goods and services. 
B)  scarce and therefore requiring choices to be made. 
C)  unlimited and in abundance. 
D)  limited in quantity and can be used in different ways. 
A)  the things we use to produce goods and services. 
B)  scarce and therefore requiring choices to be made. 
C)  unlimited and in abundance. 
D)  limited in quantity and can be used in different ways.

Question 7

Which of the following is not a key economic question?

Accepted Answer

A)  Who gets the produced products? 
B)  How to produce the products? 
C)  What products to produce? 
D)  Who produces the products? 
A)  Who gets the produced products? 
B)  How to produce the products? 
C)  What products to produce? 
D)  Who produces the products?

Question 8

Normative economic analysis:

Accepted Answer

A)  answers the question "What ought to be?" 
B)  is the focus of most modern economic reasoning. 
C)  predicts the consequences of alternative actions. 
D)  All of the above are correct. 
A)  answers the question "What ought to be?" 
B)  is the focus of most modern economic reasoning. 
C)  predicts the consequences of alternative actions. 
D)  All of the above are correct.

Question 9

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

Accepted Answer

A)  A business owner can use macroeconomics to predict whether the Fed will increase or decrease the interest rates in the future in order to determine whether to borrow money now or later. 
B)  A business owner can use macroeconomics to predict it should sell more red t- shirts as opposed to white t- shirts. 
C)  A business owner can use macroeconomics to determine whether college graduates are better employees than non- college graduates. 
D)  A business owner can use macroeconomics to predict whether television prices will be higher today or in the future. 
A)  A business owner can use macroeconomics to predict whether the Fed will increase or decrease the interest rates in the future in order to determine whether to borrow money now or later. 
B)  A business owner can use macroeconomics to predict it should sell more red t- shirts as opposed to white t- shirts. 
C)  A business owner can use macroeconomics to determine whether college graduates are better employees than non- college graduates. 
D)  A business owner can use macroeconomics to predict whether television prices will be higher today or in the future.

Question 10

Distinguish between movement along a curve and shifting a curve.

Accepted Answer

When depicted in a line graph with varia

Question 11

Ceteris paribus means "Let the buyer beware."

Accepted Answer

A) True 
 B)False

Question 12

Explain three ways we can use macroeconomic analysis.

Accepted Answer

Macroeconomics explains why some resourc

Question 13

Which of the following is a macroeconomic question?

Accepted Answer

A)  Why do prices tend to increase over time? 
B)  Should a country adopt policies to encourage personal savings? 
C)  Why do some countries grow faster than others? 
D)  All of the above are macroeconomic questions. 
A)  Why do prices tend to increase over time? 
B)  Should a country adopt policies to encourage personal savings? 
C)  Why do some countries grow faster than others? 
D)  All of the above are macroeconomic questions.

Question 14

The slope of a straight line is calculated as

Accepted Answer

A)  the variable on the vertical axis divided by the variable on the horizontal axis. 
B)  the rise over the run. 
C)  the run over the rise. 
D)  the variable on the horizontal axis divided by the variable on the vertical axis. 
A)  the variable on the vertical axis divided by the variable on the horizontal axis. 
B)  the rise over the run. 
C)  the run over the rise. 
D)  the variable on the horizontal axis divided by the variable on the vertical axis.

Question 15

Positive economics:

Accepted Answer

A)  predicts the consequences of alternative actions. 
B)  concerns the forces that affect economic activity. 
C)  is the focus of most modern economic reasoning. 
D)  All of the above are correct. 
A)  predicts the consequences of alternative actions. 
B)  concerns the forces that affect economic activity. 
C)  is the focus of most modern economic reasoning. 
D)  All of the above are correct.

Question 16

The effort used to coordinate the factors of production and produce goods and services is called:

Accepted Answer

A)  capital accumulation. 
B)  land. 
C)  entrepreneurship. 
D)  land ownership. 
A)  capital accumulation. 
B)  land. 
C)  entrepreneurship. 
D)  land ownership.

Question 17

London reduced its road congestion by

Accepted Answer

A)  imposing a daytime driving tax. 
B)  making city buses free. 
C)  raising the fare for the London subway system, the Underground. 
D)  banning cars in the inner city during the daytime. 
A)  imposing a daytime driving tax. 
B)  making city buses free. 
C)  raising the fare for the London subway system, the Underground. 
D)  banning cars in the inner city during the daytime.

Question 18

Economics tells us what to choose given the tradeoffs.

Accepted Answer

A) True 
 B)False

Question 19

Economic analysis includes commuting time as part of the cost of traffic congestion.

Accepted Answer

A) True 
 B)False

Question 20

An example of people acting in their own self- interest would include:

Accepted Answer

A)  a teenager earns an A grade average in school in order to use his or her parent's car. 
B)  individuals joining a car pool to work when tolls are imposed on congested highways. 
C)  an adult, returning to college to pursue a degree to qualify for a promotion at work. 
D)  All of the above are examples of people acting in their own self- interest. 
A)  a teenager earns an A grade average in school in order to use his or her parent's car. 
B)  individuals joining a car pool to work when tolls are imposed on congested highways. 
C)  an adult, returning to college to pursue a degree to qualify for a promotion at work. 
D)  All of the above are examples of people acting in their own self- interest.

Which of the following is not a macroeconomic question?

Which of the following is a question that needs to be answered with normative economic reasoning?

Economists employ economic models:

Which of the following is not a market?

How are percentage changes calculated?

Resources are all of the following except:

Which of the following is not a key economic question?

Normative economic analysis:

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

Distinguish between movement along a curve and shifting a curve.

Ceteris paribus means "Let the buyer beware."

Explain three ways we can use macroeconomic analysis.

Which of the following is a macroeconomic question?

The slope of a straight line is calculated as

Positive economics:

The effort used to coordinate the factors of production and produce goods and services is called:

London reduced its road congestion by

Economics tells us what to choose given the tradeoffs.

Economic analysis includes commuting time as part of the cost of traffic congestion.

An example of people acting in their own self- interest would include:

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 1: Introduction: What Is Economics

Which of the following is not a macroeconomic question?

Which of the following is a question that needs to be answered with normative economic reasoning?

Economists employ economic models:

Which of the following is not a market?

How are percentage changes calculated?

Resources are all of the following except:

Which of the following is not a key economic question?

Normative economic analysis:

Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?

Distinguish between movement along a curve and shifting a curve.

Ceteris paribus means "Let the buyer beware."

Explain three ways we can use macroeconomic analysis.

Which of the following is a macroeconomic question?

The slope of a straight line is calculated as

Positive economics:

The effort used to coordinate the factors of production and produce goods and services is called:

London reduced its road congestion by

Economics tells us what to choose given the tradeoffs.

Economic analysis includes commuting time as part of the cost of traffic congestion.

An example of people acting in their own self- interest would include:

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters