Question 1

The fallacy of composition is the incorrect view that

Accepted Answer

A)  decisions are always made at the margin. 
B)  incentives matter only to those who behave selfishly. 
C)  if something is true for an individual, then it must also be true for the group. 
D)  the value of a good can be objectively measured by its cost of production. 
A)  decisions are always made at the margin. 
B)  incentives matter only to those who behave selfishly. 
C)  if something is true for an individual, then it must also be true for the group. 
D)  the value of a good can be objectively measured by its cost of production.

Question 2

Concerning federal spending, which of the following is true?

Accepted Answer

A)  Real federal spending per person was approximately 50 times higher in 1900 than 1800. 
B)  Real federal spending per person grew more rapidly during the 19th century than during the 20th century. 
C)  Real federal spending per person was approximately 60 times greater in 1990 than in 1916. 
D)  Real federal spending per person has decreased significantly since 1964. 
A)  Real federal spending per person was approximately 50 times higher in 1900 than 1800. 
B)  Real federal spending per person grew more rapidly during the 19th century than during the 20th century. 
C)  Real federal spending per person was approximately 60 times greater in 1990 than in 1916. 
D)  Real federal spending per person has decreased significantly since 1964.

Question 3

Jim enjoys the feeling of wind in his hair enough to ride his motorcycle without a helmet, even though he fully realizes the potential for injury it creates by not wearing one in the unlikely event he is in an accident. To an economist, Jim is

Accepted Answer

A)  making an irrational choice. 
B)  making a rational choice. 
C)  not fully considering the personal costs and benefits of his decision. 
D)  not responding to the incentives he faces. 
A)  making an irrational choice. 
B)  making a rational choice. 
C)  not fully considering the personal costs and benefits of his decision. 
D)  not responding to the incentives he faces.

Question 4

Which of the following is a positive economic statement?

Accepted Answer

A)  Government control of rent is a fair way to help poor people afford housing. 
B)  Government control of rent keeps landlords from charging too much rent. 
C)  Government control of rent decreases the number of new apartments constructed. 
D)  Government control of rent is an injustice. 
A)  Government control of rent is a fair way to help poor people afford housing. 
B)  Government control of rent keeps landlords from charging too much rent. 
C)  Government control of rent decreases the number of new apartments constructed. 
D)  Government control of rent is an injustice.

Question 5

When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing

Accepted Answer

A)  scarcity. 
B)  shortages. 
C)  inefficiencies. 
D)  inequities. 
A)  scarcity. 
B)  shortages. 
C)  inefficiencies. 
D)  inequities.

The fallacy of composition is the incorrect view that

Concerning federal spending, which of the following is true?

Jim enjoys the feeling of wind in his hair enough to ride his motorcycle without a helmet, even though he fully realizes the potential for injury it creates by not wearing one in the unlikely event he is in an accident. To an economist, Jim is

Which of the following is a positive economic statement?

When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

Filters

Exam 1: The Economic Approach

The fallacy of composition is the incorrect view that

Concerning federal spending, which of the following is true?

Jim enjoys the feeling of wind in his hair enough to ride his motorcycle without a helmet, even though he fully realizes the potential for injury it creates by not wearing one in the unlikely event he is in an accident. To an economist, Jim is

Which of the following is a positive economic statement?

When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

Filters