Question 1

Carefully distinguish between an economic theory and economic model.

Accepted Answer

An economic theory is a deliberate simpl

Question 2

In 1971,a bank worker could process 265 checks in 1 hour.Currently,computers with built-in reader-sorter processing capacity have pushed that number above 100,000 checks per hour.Economists describe this type of activity as

Accepted Answer

A)  exploitation of labor. 
B)  an increase in labor productivity. 
C)  speed-up. 
D)  comparative advantage. 
E)  mutual gains from voluntary trade. 
A)  exploitation of labor. 
B)  an increase in labor productivity. 
C)  speed-up. 
D)  comparative advantage. 
E)  mutual gains from voluntary trade.

Question 3

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

Accepted Answer

Attempts to repeal the laws of supply an

Question 4

A graph with a positive slope indicates that the variables depicted on the axes move in the same directions.

Accepted Answer

A) True 
 B)False

Question 5

The growth rate of productivity is the most important determinant of material well-being in the short run.

Accepted Answer

A) True 
 B)False

Question 6

Value judgments are based on people's tastes,preferences,and ethical opinions.

Accepted Answer

A) True 
 B)False

Question 7

An "opportunity cost" may be described as: ​

Accepted Answer

A)  ​the value of what must be gtiven up 
B)  ​the opporrtunity foregone 
C)  ​the value of the next best alternative 
D)  ​the correct measure of cost 
E)  ​all of these are correct 
A)  ​the value of what must be gtiven up 
B)  ​the opporrtunity foregone 
C)  ​the value of the next best alternative 
D)  ​the correct measure of cost 
E)  ​all of these are correct

Question 8

Throughout the 1980s,accounting departments in U.S.universities were unable to fill many available faculty positions.This fact suggests that the salaries offered by these departments

Accepted Answer

A)  suffered from the cost disease of the service sector. 
B)  were below the market price for qualified accountants. 
C)  created externalities. 
D)  failed to reflect productivity growth in teaching. 
A)  suffered from the cost disease of the service sector. 
B)  were below the market price for qualified accountants. 
C)  created externalities. 
D)  failed to reflect productivity growth in teaching.

Question 9

Harry Truman is credited with the statement,"Give me a one-armed economist," because economists are likely to say,"On the one hand,...on the other hand." Why do economists "waffle" more than physicists or chemists?

Accepted Answer

Economists describe human behavior,which

Question 10

Statistical correlation always implies causation.​

Accepted Answer

A) True 
 B)False

Question 11

Economists often say that trade is a win-win situation.How do you justify this?

Accepted Answer

One of the fundamental ideas of economic

Question 12

In international trade,one country's gain is another country's loss.

Accepted Answer

A) True 
 B)False

Question 13

Both parties gain in a voluntary exchange.

Accepted Answer

A) True 
 B)False

Question 14

The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth.This layer protects humans from ultraviolet radiation,which causes skin cancer.Industry has been prohibited from using these substances in aerosol cans,but the government has been reluctant to ban their use altogether because of the serious economic consequences.Economists analyze such problems and refer to them as

Accepted Answer

A)  issues of unfairness. 
B)  examples of excess abstraction. 
C)  externalities. 
D)  comparative advantage issues. 
E)  examples of trade-offs between output and equality. 
A)  issues of unfairness. 
B)  examples of excess abstraction. 
C)  externalities. 
D)  comparative advantage issues. 
E)  examples of trade-offs between output and equality.

Question 15

Suppose Tammy grew up on a farm and is very good at plowing.In addition suppose she is a popular country singer who earns $4,000 per performance.If her husband Bob can plow (but not as well as Tammy)but he can't carry a tune,then it would be most efficient if

Accepted Answer

A)  Tammy did both the plowing and the singing. 
B)  Tammy specialized in plowing and Bob in singing. 
C)  Bob did both the plowing and singing. 
D)  Tammy specialized in singing and Bob in plowing. 
E)  They both plowed and sang. 
A)  Tammy did both the plowing and the singing. 
B)  Tammy specialized in plowing and Bob in singing. 
C)  Bob did both the plowing and singing. 
D)  Tammy specialized in singing and Bob in plowing. 
E)  They both plowed and sang.

Question 16

Suppose that a curve has a slope equal to zero at some point A.To the right of A,the curve may

Accepted Answer

A)  have a positive slope. 
B)  have a negative slope. 
C)  be a straight line. 
D)  All of the above are correct. 
A)  have a positive slope. 
B)  have a negative slope. 
C)  be a straight line. 
D)  All of the above are correct.

Question 17

In the short run,efforts to reduce the unemployment rate are likely to cause

Accepted Answer

A)  a decrease in the inflation rate. 
B)  an increase in the inflation rate. 
C)  no change in the inflation rate. 
D)  Uncertain-economists have found no relationship between the two variables. 
A)  a decrease in the inflation rate. 
B)  an increase in the inflation rate. 
C)  no change in the inflation rate. 
D)  Uncertain-economists have found no relationship between the two variables.

Question 18

Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?

Accepted Answer

A)  Bill,who is unemployed. 
B)  Jane,who is an unwed mother and earns $15,000 a year. 
C)  Larry,who is a technician in the Navy earning $18,000 a year with free food and housing. 
D)  Mary,who has a job earning $60,000 a year as a computer programmer. 
E)  Unable to determine from the data given. 
A)  Bill,who is unemployed. 
B)  Jane,who is an unwed mother and earns $15,000 a year. 
C)  Larry,who is a technician in the Navy earning $18,000 a year with free food and housing. 
D)  Mary,who has a job earning $60,000 a year as a computer programmer. 
E)  Unable to determine from the data given.

Question 19

Slope is measured as run/rise.

Accepted Answer

A) True 
 B)False

Question 20

All two-dimensional graphs must have an origin,a horizontal axis,and a vertical axis.

Accepted Answer

A) True 
 B)False

Carefully distinguish between an economic theory and economic model.

In 1971,a bank worker could process 265 checks in 1 hour.Currently,computers with built-in reader-sorter processing capacity have pushed that number above 100,000 checks per hour.Economists describe this type of activity as

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

A graph with a positive slope indicates that the variables depicted on the axes move in the same directions.

The growth rate of productivity is the most important determinant of material well-being in the short run.

Value judgments are based on people's tastes,preferences,and ethical opinions.

An "opportunity cost" may be described as:

Throughout the 1980s,accounting departments in U.S.universities were unable to fill many available faculty positions.This fact suggests that the salaries offered by these departments

Harry Truman is credited with the statement,"Give me a one-armed economist," because economists are likely to say,"On the one hand,...on the other hand." Why do economists "waffle" more than physicists or chemists?

Statistical correlation always implies causation.

Economists often say that trade is a win-win situation.How do you justify this?

In international trade,one country's gain is another country's loss.

Both parties gain in a voluntary exchange.

Suppose Tammy grew up on a farm and is very good at plowing.In addition suppose she is a popular country singer who earns $4,000 per performance.If her husband Bob can plow (but not as well as Tammy)but he can't carry a tune,then it would be most efficient if

Suppose that a curve has a slope equal to zero at some point A.To the right of A,the curve may

In the short run,efforts to reduce the unemployment rate are likely to cause

Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?

Slope is measured as run/rise.

All two-dimensional graphs must have an origin,a horizontal axis,and a vertical axis.

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

Carefully distinguish between an economic theory and economic model.

In 1971,a bank worker could process 265 checks in 1 hour.Currently,computers with built-in reader-sorter processing capacity have pushed that number above 100,000 checks per hour.Economists describe this type of activity as

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

A graph with a positive slope indicates that the variables depicted on the axes move in the same directions.

The growth rate of productivity is the most important determinant of material well-being in the short run.

Value judgments are based on people's tastes,preferences,and ethical opinions.

An "opportunity cost" may be described as: ​

Throughout the 1980s,accounting departments in U.S.universities were unable to fill many available faculty positions.This fact suggests that the salaries offered by these departments

Harry Truman is credited with the statement,"Give me a one-armed economist," because economists are likely to say,"On the one hand,...on the other hand." Why do economists "waffle" more than physicists or chemists?

Statistical correlation always implies causation.​

Economists often say that trade is a win-win situation.How do you justify this?

In international trade,one country's gain is another country's loss.

Both parties gain in a voluntary exchange.

Suppose Tammy grew up on a farm and is very good at plowing.In addition suppose she is a popular country singer who earns $4,000 per performance.If her husband Bob can plow (but not as well as Tammy)but he can't carry a tune,then it would be most efficient if

Suppose that a curve has a slope equal to zero at some point A.To the right of A,the curve may

In the short run,efforts to reduce the unemployment rate are likely to cause

Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?

Slope is measured as run/rise.

All two-dimensional graphs must have an origin,a horizontal axis,and a vertical axis.

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

An "opportunity cost" may be described as:

Statistical correlation always implies causation.