Question 1

The opportunity cost of any good or service is the

Accepted Answer

A)  actual dollar cost of doing or making it. 
B)  highest price that a seller can get for the item. 
C)  value of the next best alternative. 
D)  cost associated with a value judgment. 
E)  cost of producing the good or service. 
A)  actual dollar cost of doing or making it. 
B)  highest price that a seller can get for the item. 
C)  value of the next best alternative. 
D)  cost associated with a value judgment. 
E)  cost of producing the good or service.

Question 2

Which of the following statements is true?

Accepted Answer

A)  Economic theory does not make unrealistic assumptions. 
B)  Economists should not ignore details while focusing on complex problems. 
C)  Abstraction forms an important part of economic analysis. 
D)  The word theory means same for both economists and laymen. 
A)  Economic theory does not make unrealistic assumptions. 
B)  Economists should not ignore details while focusing on complex problems. 
C)  Abstraction forms an important part of economic analysis. 
D)  The word theory means same for both economists and laymen.

Question 3

If a voluntary trade takes place,

Accepted Answer

A)  both parties will benefit from the transaction. 
B)  only one party will benefit from the transaction. 
C)  neither party will benefit from the transaction. 
D)  both parties will benefit only if the government regulates the transaction. 
A)  both parties will benefit from the transaction. 
B)  only one party will benefit from the transaction. 
C)  neither party will benefit from the transaction. 
D)  both parties will benefit only if the government regulates the transaction.

Question 4

How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?

Accepted Answer

The United States has chosen greater eff

Question 5

An article in a recent economics periodical asks the question: "Is low inflation worth it?" By "it," the article probably means

Accepted Answer

A)  the loss of comparative advantage. 
B)  enduring externalities. 
C)  unemployment. 
D)  repealing the law of supply and demand. 
E)  the opportunity cost of higher interest rates. 
A)  the loss of comparative advantage. 
B)  enduring externalities. 
C)  unemployment. 
D)  repealing the law of supply and demand. 
E)  the opportunity cost of higher interest rates.

Question 6

Economics

Accepted Answer

A)  is a narrowly focused discipline. 
B)  is a broad-ranging discipline. 
C)  concerns itself only with the U.S.economy. 
D)  says little about "everyday life." 
E)  deals with minor problems. 
A)  is a narrowly focused discipline. 
B)  is a broad-ranging discipline. 
C)  concerns itself only with the U.S.economy. 
D)  says little about "everyday life." 
E)  deals with minor problems.

Question 7

The slope of a downward-sloping straight line can be calculated as the distance from the

Accepted Answer

A)  horizontal intercept of the line to the origin divided by the distance from the origin to the vertical intercept of the line. 
B)  origin to the horizontal intercept of the line minus the distance from the origin to the vertical intercept of the line. 
C)  vertical intercept of the line to the origin divided by the distance from the origin to the horizontal intercept of the line. 
D)  vertical intercept of the line to the origin minus the distance from the origin to the horizontal intercept of the line. 
A)  horizontal intercept of the line to the origin divided by the distance from the origin to the vertical intercept of the line. 
B)  origin to the horizontal intercept of the line minus the distance from the origin to the vertical intercept of the line. 
C)  vertical intercept of the line to the origin divided by the distance from the origin to the horizontal intercept of the line. 
D)  vertical intercept of the line to the origin minus the distance from the origin to the horizontal intercept of the line.

Question 8

Policy-oriented economists seek to develop theories to

Accepted Answer

A)  explain how things work so policies can be formulated. 
B)  describe what happened in a particular time period in history. 
C)  describe current economic events. 
D)  find correlations between events. 
E)  change people's values and ethics. 
A)  explain how things work so policies can be formulated. 
B)  describe what happened in a particular time period in history. 
C)  describe current economic events. 
D)  find correlations between events. 
E)  change people's values and ethics.

Question 9

A ____ is a graph whose axes show the quantities of two inputs that are used to produce some output.

Accepted Answer

A)  production indifference map 
B)  two-variable diagram 
C)  scalar diagram 
D)  time-series graph 
A)  production indifference map 
B)  two-variable diagram 
C)  scalar diagram 
D)  time-series graph

Question 10

Abstraction can lead to gross distortions of pertinent facts.

Accepted Answer

A) True 
 B)False

Question 11

The slope of a curved line at a particular point is

Accepted Answer

A)  always greater than the slope of a straight line at the same point. 
B)  always smaller than the slope of a straight line at the same point. 
C)  defined as the slope of the straight line representing the average values for the entire curve. 
D)  defined as the slope of the straight line that is tangent to the curve at that point. 
A)  always greater than the slope of a straight line at the same point. 
B)  always smaller than the slope of a straight line at the same point. 
C)  defined as the slope of the straight line representing the average values for the entire curve. 
D)  defined as the slope of the straight line that is tangent to the curve at that point.

Question 12

The United States has chosen to balance the competing claims of efficiency versus equality by emphasizing greater efficiency over greater equality.

Accepted Answer

A) True 
 B)False

Question 13

The lower left-hand corner of a graph where the two axes meet is called the graph's origin.

Accepted Answer

A) True 
 B)False

Question 14

The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed.

Accepted Answer

A) True 
 B)False

Question 15

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States,Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

Accepted Answer

A) True 
 B)False

Question 16

In terms of the competing claims of equality and efficiency,in the United States we have

Accepted Answer

A)  chosen greater wage inequality for lower unemployment. 
B)  chosen higher unemployment for less wage inequality. 
C)  both greater wage inequality and higher unemployment. 
D)  not faced a trade-off between wage inequality and unemployment. 
E)  been able to choose both less wage inequality and lower unemployment. 
A)  chosen greater wage inequality for lower unemployment. 
B)  chosen higher unemployment for less wage inequality. 
C)  both greater wage inequality and higher unemployment. 
D)  not faced a trade-off between wage inequality and unemployment. 
E)  been able to choose both less wage inequality and lower unemployment.

Question 17

Marginal analysis involves looking at the extra costs involved in a decision.

Accepted Answer

A) True 
 B)False

Question 18

Two variables that systematically change together are correlated.

Accepted Answer

A) True 
 B)False

Question 19

Figure 1-1  
-The slope of the line in Figure 1-1 is

Accepted Answer

A)  0.5. 
B)  2.0. 
C)  −0.5. 
D)  −2.0. 
A)  0.5. 
B)  2.0. 
C)  −0.5. 
D)  −2.0.

Question 20

The slope of a line with rise of five and run of two is positive.

Accepted Answer

A) True 
 B)False

The opportunity cost of any good or service is the

Which of the following statements is true?

If a voluntary trade takes place,

How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?

An article in a recent economics periodical asks the question: "Is low inflation worth it?" By "it," the article probably means

Economics

The slope of a downward-sloping straight line can be calculated as the distance from the

Policy-oriented economists seek to develop theories to

A ____ is a graph whose axes show the quantities of two inputs that are used to produce some output.

Abstraction can lead to gross distortions of pertinent facts.

The slope of a curved line at a particular point is

The United States has chosen to balance the competing claims of efficiency versus equality by emphasizing greater efficiency over greater equality.

The lower left-hand corner of a graph where the two axes meet is called the graph's origin.

The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed.

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States,Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

In terms of the competing claims of equality and efficiency,in the United States we have

Marginal analysis involves looking at the extra costs involved in a decision.

Two variables that systematically change together are correlated.

Figure 1-1 -The slope of the line in Figure 1-1 is

The slope of a line with rise of five and run of two is positive.

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

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Exam 1: What Is Economics

The opportunity cost of any good or service is the

Which of the following statements is true?

If a voluntary trade takes place,

How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?

An article in a recent economics periodical asks the question: "Is low inflation worth it?" By "it," the article probably means

Economics

The slope of a downward-sloping straight line can be calculated as the distance from the

Policy-oriented economists seek to develop theories to

A ____ is a graph whose axes show the quantities of two inputs that are used to produce some output.

Abstraction can lead to gross distortions of pertinent facts.

The slope of a curved line at a particular point is

The United States has chosen to balance the competing claims of efficiency versus equality by emphasizing greater efficiency over greater equality.

The lower left-hand corner of a graph where the two axes meet is called the graph's origin.

The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed.

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States,Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

In terms of the competing claims of equality and efficiency,in the United States we have

Marginal analysis involves looking at the extra costs involved in a decision.

Two variables that systematically change together are correlated.

Figure 1-1 -The slope of the line in Figure 1-1 is

The slope of a line with rise of five and run of two is positive.

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