Question 1

Which of the following would an economist classify as physical capital?

Accepted Answer

A) 100 shares of Microsoft stock 
B) A $50 bill 
C) A credit card 
D) A lawyer's laptop 
E) A bauxite mine in Jamaica 
A) 100 shares of Microsoft stock 
B) A $50 bill 
C) A credit card 
D) A lawyer's laptop 
E) A bauxite mine in Jamaica

Question 2

Rational economic decision makers will make a change only if:

Accepted Answer

A) the change is free of risk. 
B) there are no costs involved. 
C) their expectations are correct. 
D) there is no uncertainty about the results of the change. 
E) the expected marginal benefit exceeds expected marginal cost. 
A) the change is free of risk. 
B) there are no costs involved. 
C) their expectations are correct. 
D) there is no uncertainty about the results of the change. 
E) the expected marginal benefit exceeds expected marginal cost.

Question 3

The problem of scarce resources:

Accepted Answer

A) means that there are not enough jobs in some cities. 
B) could be solved if the unemployment rate fell. 
C) is that there are not enough resources to satisfy people's unlimited wants. 
D) is that resources are used inefficiently. 
E) can be solved by lowering taxes. 
A) means that there are not enough jobs in some cities. 
B) could be solved if the unemployment rate fell. 
C) is that there are not enough resources to satisfy people's unlimited wants. 
D) is that resources are used inefficiently. 
E) can be solved by lowering taxes.

Question 4

As a scientist,an economist's main professional objective is to:

Accepted Answer

A) become wealthy. 
B) control the government's decision-making processes. 
C) understand how the economy works. 
D) discover which stock prices will decrease. 
E) understand the psychology of participants in markets. 
A) become wealthy. 
B) control the government's decision-making processes. 
C) understand how the economy works. 
D) discover which stock prices will decrease. 
E) understand the psychology of participants in markets.

Question 5

Economists believe that people respond in a predictable way to changes in costs and benefits.The term that best describes this phenomenon is:

Accepted Answer

A) opportunity cost. 
B) scarcity. 
C) innovation. 
D) marginal analysis. 
E) other things equal (or ceteris paribus). 
A) opportunity cost. 
B) scarcity. 
C) innovation. 
D) marginal analysis. 
E) other things equal (or ceteris paribus).

Question 6

A good economic theory brings clarity to chaos.

Accepted Answer

A) True 
 B)False

Question 7

Resources are used only in the production of goods,not services.

Accepted Answer

A) True 
 B)False

Question 8

A good economic theory:

Accepted Answer

A) approaches reality in all its complexity. 
B) involves so much distortion of reality that it is worthless. 
C) focuses on the unique aspects of each situation. 
D) involves some simplification of reality. 
E) bears no relation to reality. 
A) approaches reality in all its complexity. 
B) involves so much distortion of reality that it is worthless. 
C) focuses on the unique aspects of each situation. 
D) involves some simplification of reality. 
E) bears no relation to reality.

Question 9

An entrepreneur is:

Accepted Answer

A) an individual who has an education. 
B) an organizer who seeks profitable opportunities and is willing to accept risks. 
C) a person who is hired by a firm to manage its operations. 
D) a person who earns profit without accepting any risks. 
E) a person who is appointed by the board of directors of a firm for a term of five years. 
A) an individual who has an education. 
B) an organizer who seeks profitable opportunities and is willing to accept risks. 
C) a person who is hired by a firm to manage its operations. 
D) a person who earns profit without accepting any risks. 
E) a person who is appointed by the board of directors of a firm for a term of five years.

Question 10

A good theory seeks to:

Accepted Answer

A) distort reality in order to improve forecasting ability. 
B) predict phenomena without explaining them. 
C) explain phenomena without predicting them. 
D) confront reality in all its complexity by focusing on the unique aspects of each phenomenon. 
E) simplify a complex reality. 
A) distort reality in order to improve forecasting ability. 
B) predict phenomena without explaining them. 
C) explain phenomena without predicting them. 
D) confront reality in all its complexity by focusing on the unique aspects of each phenomenon. 
E) simplify a complex reality.

Which of the following would an economist classify as physical capital?

Rational economic decision makers will make a change only if:

The problem of scarce resources:

As a scientist,an economist's main professional objective is to:

Economists believe that people respond in a predictable way to changes in costs and benefits.The term that best describes this phenomenon is:

A good economic theory brings clarity to chaos.

Resources are used only in the production of goods,not services.

A good economic theory:

An entrepreneur is:

A good theory seeks to:

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 1: The Art and Science of Economic Analysis

Which of the following would an economist classify as physical capital?

Rational economic decision makers will make a change only if:

The problem of scarce resources:

As a scientist,an economist's main professional objective is to:

Economists believe that people respond in a predictable way to changes in costs and benefits.The term that best describes this phenomenon is:

A good economic theory brings clarity to chaos.

Resources are used only in the production of goods,not services.

A good economic theory:

An entrepreneur is:

A good theory seeks to:

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters