Question 1

The question of how a tax change might impact U.S. economic output is most closely associated with the study of

Accepted Answer

A) microeconomics. 
B) managerial economics. 
C) macroeconomics. 
D) consumer economics. 
A) microeconomics. 
B) managerial economics. 
C) macroeconomics. 
D) consumer economics.

Question 2

The slope of a (nonlinear) curve varies from one point to another.

Accepted Answer

A) True 
 B)False

Question 3

Which statement uses the term ceteris paribus correctly?

Accepted Answer

A) If you exercise regularly, you will be healthier, ceteris paribus. 
B) Blue is to green, ceteris paribus, as red is to purple. 
C) Most people consider Sunday to be the first day of the week, ceteris paribus. 
D) Interest rates usually rise in October, ceteris paribus. 
E) a and d 
A) If you exercise regularly, you will be healthier, ceteris paribus. 
B) Blue is to green, ceteris paribus, as red is to purple. 
C) Most people consider Sunday to be the first day of the week, ceteris paribus. 
D) Interest rates usually rise in October, ceteris paribus. 
E) a and d

Question 4

If someone gives you a free ticket to the movies, then there is no opportunity cost involved with going to the movies.

Accepted Answer

A) True 
 B)False

Question 5

The physical and mental talents people bring to production processes comprise the resource called

Accepted Answer

A) entrepreneurship. 
B) natural resources. 
C) capital. 
D) labor. 
A) entrepreneurship. 
B) natural resources. 
C) capital. 
D) labor.

Question 6

Exhibit 1-2
   ​
-Refer to Exhibit 1-2. Based on the data provided in this table, what type of relationship exists between variables X and Y?

Accepted Answer

A) inverse 
B) direct 
C) independent 
D) There is no relationship between variables X and Y. 
A) inverse 
B) direct 
C) independent 
D) There is no relationship between variables X and Y.

Question 7

When economists speak of scarcity, they are referring to the

Accepted Answer

A) condition in which society is not employing all its resources in an efficient way. 
B) condition in which people's wants outstrip the limited resources available to satisfy those wants. 
C) economic condition that exists in only very poor countries of the world. 
D) condition in which society produces too many frivolous goods and not enough socially desirable goods. 
A) condition in which society is not employing all its resources in an efficient way. 
B) condition in which people's wants outstrip the limited resources available to satisfy those wants. 
C) economic condition that exists in only very poor countries of the world. 
D) condition in which society produces too many frivolous goods and not enough socially desirable goods.

Question 8

The coordinates of point A are 30 units of X and 26 units of Y. The coordinates of point B are 22 units of X and 30 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is

Accepted Answer

A) + 2.00 
B) + 0.50 
C) + 0.33 
D) - 2.00 
E) - 0.50 
A) + 2.00 
B) + 0.50 
C) + 0.33 
D) - 2.00 
E) - 0.50

Question 9

What does it mean if a person makes a "decision at the margin"?

Accepted Answer

A) The person compares additional benefits and additional costs when deciding what to do. 
B) The person weighs the good against the bad and then decides what to do. 
C) The person is more likely to say yes than to say no. 
D) The person compares marginal benefits and total costs and then decides what to do. 
E) The person makes a decision based on a condition. 
A) The person compares additional benefits and additional costs when deciding what to do. 
B) The person weighs the good against the bad and then decides what to do. 
C) The person is more likely to say yes than to say no. 
D) The person compares marginal benefits and total costs and then decides what to do. 
E) The person makes a decision based on a condition.

Question 10

Economists use the terms resource and input as synonyms.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not one of the four broad categories of resources?

Accepted Answer

A) labor 
B) money 
C) capital 
D) entrepreneurship 
E) land 
A) labor 
B) money 
C) capital 
D) entrepreneurship 
E) land

Question 12

The need to make choices is most closely related to the economic concept of

Accepted Answer

A) opportunity cost. 
B) efficiency. 
C) inefficiency. 
D) utility. 
E) disutility. 
A) opportunity cost. 
B) efficiency. 
C) inefficiency. 
D) utility. 
E) disutility.

Question 13

Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

Accepted Answer

Economists view the world using a number

Question 14

If variable X falls as a result of variable Y falling, then X and Y are

Accepted Answer

A) directly related. 
B) negatively related. 
C) inversely related. 
D) independent. 
A) directly related. 
B) negatively related. 
C) inversely related. 
D) independent.

Question 15

Exhibit 1-2
   ​
-Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line between points C and D, if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Accepted Answer

A) -3.00 
B) -0.33 
C) 3.00 
D) 0.33 
E) none of the above 
A) -3.00 
B) -0.33 
C) 3.00 
D) 0.33 
E) none of the above

Question 16

Which of the following is a positive economic statement?

Accepted Answer

A) We should raise the minimum wage in order to provide a decent wage for more people. 
B) Consumers bought fewer cars when the relative price of cars increased. 
C) The budget deficit has been rising in recent years. 
D) Federal government spending ought to be curtailed. 
E) b and c 
A) We should raise the minimum wage in order to provide a decent wage for more people. 
B) Consumers bought fewer cars when the relative price of cars increased. 
C) The budget deficit has been rising in recent years. 
D) Federal government spending ought to be curtailed. 
E) b and c

Question 17

Explain what an economist means by the phrase "decisions made at the margin." Cite an example to support your answer.

Accepted Answer

When making a decision at the margin an

Question 18

Making a decision at the margin is __________ an all-or-nothing decision.

Accepted Answer

A) consistent with 
B) inconsistent with 
C) the same as making 
D) conditioned upon making 
A) consistent with 
B) inconsistent with 
C) the same as making 
D) conditioned upon making

Question 19

Which of the following statements is false?

Accepted Answer

A) Capital consists of produced goods that can be used as inputs for further production. 
B) The terms resources, inputs, and factors of production are synonyms. 
C) Labor consists of the physical, but not mental, talents of people who contribute to the production process. 
D) Entrepreneurship is one of the four categories of resources. 
E) The resource category land includes natural resources, such as minerals, forests, water, and unimproved land. 
A) Capital consists of produced goods that can be used as inputs for further production. 
B) The terms resources, inputs, and factors of production are synonyms. 
C) Labor consists of the physical, but not mental, talents of people who contribute to the production process. 
D) Entrepreneurship is one of the four categories of resources. 
E) The resource category land includes natural resources, such as minerals, forests, water, and unimproved land.

Question 20

In all cases, positive economics deals with

Accepted Answer

A) what is. 
B) what should be. 
C) relatively small units in the economy. 
D) aggregates or the entire economy. 
A) what is. 
B) what should be. 
C) relatively small units in the economy. 
D) aggregates or the entire economy.

Exam 1: What Economics Is About

The question of how a tax change might impact U.S. economic output is most closely associated with the study of

The slope of a (nonlinear) curve varies from one point to another.

Which statement uses the term ceteris paribus correctly?

If someone gives you a free ticket to the movies, then there is no opportunity cost involved with going to the movies.

The physical and mental talents people bring to production processes comprise the resource called

Exhibit 1-2 ​ -Refer to Exhibit 1-2. Based on the data provided in this table, what type of relationship exists between variables X and Y?

When economists speak of scarcity, they are referring to the

The coordinates of point A are 30 units of X and 26 units of Y. The coordinates of point B are 22 units of X and 30 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is

What does it mean if a person makes a "decision at the margin"?

Economists use the terms resource and input as synonyms.

Which of the following is not one of the four broad categories of resources?

The need to make choices is most closely related to the economic concept of

Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

If variable X falls as a result of variable Y falling, then X and Y are

Exhibit 1-2 ​ -Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line between points C and D, if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Which of the following is a positive economic statement?

Explain what an economist means by the phrase "decisions made at the margin." Cite an example to support your answer.

Making a decision at the margin is __________ an all-or-nothing decision.

Which of the following statements is false?

In all cases, positive economics deals with

Production Possibilities Frontier Framework

Supply and Demand Theory

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part I Prices and Unemployment

Macroeconomic Measurements Part II Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

Exhibit 1-2 -Refer to Exhibit 1-2. Based on the data provided in this table, what type of relationship exists between variables X and Y?

Exhibit 1-2 -Refer to Exhibit 1-2. According to the data provided in this table, what is the slope of the line between points C and D, if these data were graphed with X on the horizontal axis and Y on the vertical axis?