Question 1

The achievement of greater efficiency in the United States has been at the expense of growing inequality.

Accepted Answer

A) True 
 B)False

Question 2

A student was heard to remark,"Even though I am certain to fail this course,I cannot withdraw from it since it is too late to get back my tuition." Use one or more "Ideas for Beyond the Final Exam" to analyze this reasoning.

Accepted Answer

The student is failing to use marginal a

Question 3

The terms "correlation" and "causation" are synonymous.

Accepted Answer

A) True 
 B)False

Question 4

A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well.

Accepted Answer

A) True 
 B)False

Question 5

When a teacher in a private school points out to her high school principal that since there are empty seats in all classrooms,the cost of additional students is really zero,she is using the

Accepted Answer

A)  law of comparative advantage. 
B)  principle of marginal analysis. 
C)  theory of externalities. 
D)  notion of the cost decreases of the service sector. 
E)  concept of opportunity cost. 
A)  law of comparative advantage. 
B)  principle of marginal analysis. 
C)  theory of externalities. 
D)  notion of the cost decreases of the service sector. 
E)  concept of opportunity cost.

Question 6

The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a "normal" economic situation.

Accepted Answer

A) True 
 B)False

Question 7

Although economic science can contribute theoretical and factual knowledge on a particular issue,the final decision on policy questions often depends on:

Accepted Answer

A)  information that is not currently available 
B)  social values 
C)  ethical considerations 
D)  all of these 
A)  information that is not currently available 
B)  social values 
C)  ethical considerations 
D)  all of these

Question 8

As a student,one of the costs of sleeping in rather than going to class is likely to be a lower grade in the class.

Accepted Answer

A) True 
 B)False

Question 9

One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie".

Accepted Answer

A) True 
 B)False

Question 10

Figure 1-1  
-A vertical line has a slope of

Accepted Answer

A)  infinity. 
B)  zero. 
C)  undefined. 
D)  1,000. 
A)  infinity. 
B)  zero. 
C)  undefined. 
D)  1,000.

Question 11

Which of the following is one source of disagreement between economists?

Accepted Answer

A)  Some facts about the economy are unknown. 
B)  Economists differ in their political persuasions. 
C)  Economic theory may not always give an unambiguous answer to a question. 
D)  Solving one problem may make another problem worse. 
E)  All of the above are correct. 
A)  Some facts about the economy are unknown. 
B)  Economists differ in their political persuasions. 
C)  Economic theory may not always give an unambiguous answer to a question. 
D)  Solving one problem may make another problem worse. 
E)  All of the above are correct.

Question 12

What are the tools available to governments to mitigate cycles of boom and bust? Why do these tools fail?

Accepted Answer

Some of the tools available to the gover

Question 13

A contour map illustrates a cause and effect relationship among three variables.

Accepted Answer

A) True 
 B)False

Question 14

If a government enacts a rent control to protect apartment tenants,the result is likely going to be

Accepted Answer

A)  an increase in rents with a surplus of apartments. 
B)  an increase in rents with a shortage of apartments. 
C)  a decrease in rents with a surplus of apartments. 
D)  a decrease in rents with a shortage of apartments. 
A)  an increase in rents with a surplus of apartments. 
B)  an increase in rents with a shortage of apartments. 
C)  a decrease in rents with a surplus of apartments. 
D)  a decrease in rents with a shortage of apartments.

Question 15

Jack buys a computer from Sam,knowing fully well that the technology used in it is obsolete.In this case,the trade is

Accepted Answer

A)  beneficial to both parties. 
B)  beneficial only to Sam. 
C)  beneficial only to Jack. 
D)  not beneficial to either of them. 
A)  beneficial to both parties. 
B)  beneficial only to Sam. 
C)  beneficial only to Jack. 
D)  not beneficial to either of them.

Question 16

Abstraction can be thought of as

Accepted Answer

A)  ignoring reality in order to build theory. 
B)  omitting unimportant details in order to understand complex phenomena. 
C)  creating absurdity in order to explain simplicity. 
D)  assuming complexity when simplicity will do. 
E)  stylizing reality rather than analyzing cause and effect. 
A)  ignoring reality in order to build theory. 
B)  omitting unimportant details in order to understand complex phenomena. 
C)  creating absurdity in order to explain simplicity. 
D)  assuming complexity when simplicity will do. 
E)  stylizing reality rather than analyzing cause and effect.

Question 17

There is no trade-off between efficiency and equality.

Accepted Answer

A) True 
 B)False

Question 18

A theory is an explanation of the causal mechanism behind observed phenomena.

Accepted Answer

A) True 
 B)False

Question 19

An economic model can be defined as

Accepted Answer

A)  a testable claim which can be evaluated with proper data. 
B)  a representation of a theory or a part of a theory. 
C)  another word for theory. 
D)  a method to distinguish correlation from causation. 
E)  All of the above are correct. 
A)  a testable claim which can be evaluated with proper data. 
B)  a representation of a theory or a part of a theory. 
C)  another word for theory. 
D)  a method to distinguish correlation from causation. 
E)  All of the above are correct.

Question 20

Economists disagree on most economic issues facing an economy.

Accepted Answer

A) True 
 B)False

The achievement of greater efficiency in the United States has been at the expense of growing inequality.

A student was heard to remark,"Even though I am certain to fail this course,I cannot withdraw from it since it is too late to get back my tuition." Use one or more "Ideas for Beyond the Final Exam" to analyze this reasoning.

The terms "correlation" and "causation" are synonymous.

A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well.

When a teacher in a private school points out to her high school principal that since there are empty seats in all classrooms,the cost of additional students is really zero,she is using the

The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a "normal" economic situation.

Although economic science can contribute theoretical and factual knowledge on a particular issue,the final decision on policy questions often depends on:

As a student,one of the costs of sleeping in rather than going to class is likely to be a lower grade in the class.

One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie".

Figure 1-1 -A vertical line has a slope of

Which of the following is one source of disagreement between economists?

What are the tools available to governments to mitigate cycles of boom and bust? Why do these tools fail?

A contour map illustrates a cause and effect relationship among three variables.

If a government enacts a rent control to protect apartment tenants,the result is likely going to be

Jack buys a computer from Sam,knowing fully well that the technology used in it is obsolete.In this case,the trade is

Abstraction can be thought of as

There is no trade-off between efficiency and equality.

A theory is an explanation of the causal mechanism behind observed phenomena.

An economic model can be defined as

Economists disagree on most economic issues facing an economy.

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

The achievement of greater efficiency in the United States has been at the expense of growing inequality.

A student was heard to remark,"Even though I am certain to fail this course,I cannot withdraw from it since it is too late to get back my tuition." Use one or more "Ideas for Beyond the Final Exam" to analyze this reasoning.

The terms "correlation" and "causation" are synonymous.

A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well.

When a teacher in a private school points out to her high school principal that since there are empty seats in all classrooms,the cost of additional students is really zero,she is using the

The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a "normal" economic situation.

Although economic science can contribute theoretical and factual knowledge on a particular issue,the final decision on policy questions often depends on:

As a student,one of the costs of sleeping in rather than going to class is likely to be a lower grade in the class.

One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie".

Figure 1-1 -A vertical line has a slope of

Which of the following is one source of disagreement between economists?

What are the tools available to governments to mitigate cycles of boom and bust? Why do these tools fail?

A contour map illustrates a cause and effect relationship among three variables.

If a government enacts a rent control to protect apartment tenants,the result is likely going to be

Jack buys a computer from Sam,knowing fully well that the technology used in it is obsolete.In this case,the trade is

Abstraction can be thought of as

There is no trade-off between efficiency and equality.

A theory is an explanation of the causal mechanism behind observed phenomena.

An economic model can be defined as

Economists disagree on most economic issues facing an economy.

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