Question 1

Economics is a social science in the sense that it

Accepted Answer

A)  rigorously examines human behavior. 
B)  is not as scientific as physics. 
C)  relies on historical data instead of mathematical data. 
D)  relies on statistics instead of mathematics. 
E)  All of the above are correct. 
A)  rigorously examines human behavior. 
B)  is not as scientific as physics. 
C)  relies on historical data instead of mathematical data. 
D)  relies on statistics instead of mathematics. 
E)  All of the above are correct.

Question 2

A ray through the origin always has a slope of one.

Accepted Answer

A) True 
 B)False

Question 3

To analyze policy options,economists are forced to deal with:

Accepted Answer

A)  politicians 
B)  business people 
C)  rotating statistical values 
D)  things that have not occurred 
E)  None of these is correct. 
A)  politicians 
B)  business people 
C)  rotating statistical values 
D)  things that have not occurred 
E)  None of these is correct.

Question 4

Over the past century,the main factor responsible for rising living standards in the United States has been productivity growth.

Accepted Answer

A) True 
 B)False

Question 5

Consider the following information regarding a person's decision to go to college: college tuition is $20,000 per year,room and board is $10,000 per year,and books and materials are $2,000 per year.Suppose that instead of going to college this person could have earned $18,000 working in a store.An economist would calculate the cost of going to college as

Accepted Answer

A)  $20,000. 
B)  $30,000. 
C)  $32,000. 
D)  $50,000. 
E)  $18,000. 
A)  $20,000. 
B)  $30,000. 
C)  $32,000. 
D)  $50,000. 
E)  $18,000.

Question 6

During one winter quarter at Frozen U.,snow falls every Friday night.Students assume that,on their campus,Fridays cause snow.This hypothesis

Accepted Answer

A)  should more properly be considered a theory. 
B)  assumes that correlation implies causation. 
C)  assumes that causation implies correlation. 
D)  reflects the fallacy of composition. 
A)  should more properly be considered a theory. 
B)  assumes that correlation implies causation. 
C)  assumes that causation implies correlation. 
D)  reflects the fallacy of composition.

Question 7

​Abstract economic theory can be used by academicians,but not by politicians or business people.

Accepted Answer

A) True 
 B)False

Question 8

Economic theory is a necessity,not a luxury.This statement is true because theory

Accepted Answer

A)  always leads to practical and useful policy. 
B)  can prevent depressions in the economy. 
C)  substitutes for vast amounts of data. 
D)  provides a structure for organizing and analyzing data. 
E)  always leads to accurate predictions. 
A)  always leads to practical and useful policy. 
B)  can prevent depressions in the economy. 
C)  substitutes for vast amounts of data. 
D)  provides a structure for organizing and analyzing data. 
E)  always leads to accurate predictions.

Question 9

In the early 1800s,there was a smallpox outbreak in a remote part of Russia.The government sent in a large group of army doctors,but they were too late to stop the epidemic.Thirty years later,there was another smallpox scare.A local statistician cautioned the government against a similar response,noting the increased mortality and high number of army doctors during the earlier epidemic.Was the statistician providing good advice?

Accepted Answer

The statistician confused correlation wi

Question 10

Lower inflation rates are usually correlated with lower unemployment rates.

Accepted Answer

A) True 
 B)False

Question 11

A large airline calculates that the additional cost of a having a passenger on a flight to the Bahamas as the cost of a bag of peanuts and a soft drink,which totals $1.50,but the airline's price is $600 for potential customers who want to buy vacant seats on the day of the flight.Which economic principle is this airline failing to utilize?

Accepted Answer

The airline is failing to think at the m

Question 12

To an economist,the cost of a college education

Accepted Answer

A)  includes the income that the student could have earned during the time spent in college. 
B)  can be measured solely by the dollar cost of tuition,books,and other fees. 
C)  includes only the cost of schooling,not the cost of housing and food. 
D)  excludes financial aid in computation of the cost of schooling. 
E)  All of the above are correct. 
A)  includes the income that the student could have earned during the time spent in college. 
B)  can be measured solely by the dollar cost of tuition,books,and other fees. 
C)  includes only the cost of schooling,not the cost of housing and food. 
D)  excludes financial aid in computation of the cost of schooling. 
E)  All of the above are correct.

Question 13

Two advisors to the president have given their policy recommendations,and they are in disagreement.Why do these economists disagree?

Accepted Answer

A)  because they do not have all relevant information about the problem 
B)  because they disagree on the nature of some cause-effect relationship 
C)  because they have different values and opinions 
D)  All of the above are reasons for disagreements among economists. 
A)  because they do not have all relevant information about the problem 
B)  because they disagree on the nature of some cause-effect relationship 
C)  because they have different values and opinions 
D)  All of the above are reasons for disagreements among economists.

Question 14

Probably the most important factor affecting material well-being is

Accepted Answer

A)  inflation rates. 
B)  unemployment rates. 
C)  budget deficits. 
D)  growth in productivity. 
E)  monopoly power. 
A)  inflation rates. 
B)  unemployment rates. 
C)  budget deficits. 
D)  growth in productivity. 
E)  monopoly power.

Question 15

Opportunity cost is the value of the next best alternative to a given choice.

Accepted Answer

A) True 
 B)False

Question 16

Only economists and other "social" scientists have areas of dispute within their disciplines.

Accepted Answer

A) True 
 B)False

Question 17

All economic transactions involve only buyers and sellers; no third parties are involved.

Accepted Answer

A) True 
 B)False

Question 18

Why do economists abstract,and is it appropriate?

Accepted Answer

Economists (and other scientists)abstrac

Question 19

An economic model is a realistic depiction of the operation of the economy.

Accepted Answer

A) True 
 B)False

Question 20

A theory can best be defined as

Accepted Answer

A)  an untested assertion of untested fact. 
B)  a collection of assumptions that simplify the real world. 
C)  an opinion of a reliable person who studies a subject or discipline. 
D)  a deliberate simplification of factual relationships that attempts to explain how those relationships work. 
E)  the body of knowledge that has been scientifically verified by the scientific community. 
A)  an untested assertion of untested fact. 
B)  a collection of assumptions that simplify the real world. 
C)  an opinion of a reliable person who studies a subject or discipline. 
D)  a deliberate simplification of factual relationships that attempts to explain how those relationships work. 
E)  the body of knowledge that has been scientifically verified by the scientific community.

Economics is a social science in the sense that it

A ray through the origin always has a slope of one.

To analyze policy options,economists are forced to deal with:

Over the past century,the main factor responsible for rising living standards in the United States has been productivity growth.

During one winter quarter at Frozen U.,snow falls every Friday night.Students assume that,on their campus,Fridays cause snow.This hypothesis

Abstract economic theory can be used by academicians,but not by politicians or business people.

Economic theory is a necessity,not a luxury.This statement is true because theory

Lower inflation rates are usually correlated with lower unemployment rates.

To an economist,the cost of a college education

Two advisors to the president have given their policy recommendations,and they are in disagreement.Why do these economists disagree?

Probably the most important factor affecting material well-being is

Opportunity cost is the value of the next best alternative to a given choice.

Only economists and other "social" scientists have areas of dispute within their disciplines.

All economic transactions involve only buyers and sellers; no third parties are involved.

Why do economists abstract,and is it appropriate?

An economic model is a realistic depiction of the operation of the economy.

A theory can best be defined as

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 1: What Is Economics

Economics is a social science in the sense that it

A ray through the origin always has a slope of one.

To analyze policy options,economists are forced to deal with:

Over the past century,the main factor responsible for rising living standards in the United States has been productivity growth.

During one winter quarter at Frozen U.,snow falls every Friday night.Students assume that,on their campus,Fridays cause snow.This hypothesis

​Abstract economic theory can be used by academicians,but not by politicians or business people.

Economic theory is a necessity,not a luxury.This statement is true because theory

Lower inflation rates are usually correlated with lower unemployment rates.

To an economist,the cost of a college education

Two advisors to the president have given their policy recommendations,and they are in disagreement.Why do these economists disagree?

Probably the most important factor affecting material well-being is

Opportunity cost is the value of the next best alternative to a given choice.

Only economists and other "social" scientists have areas of dispute within their disciplines.

All economic transactions involve only buyers and sellers; no third parties are involved.

Why do economists abstract,and is it appropriate?

An economic model is a realistic depiction of the operation of the economy.

A theory can best be defined as

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Abstract economic theory can be used by academicians,but not by politicians or business people.