Question 1

Economists use the ceteris paribus assumption primarily in order to

Accepted Answer

A) make their analyses easier for them to conduct. 
B) designate what they believe is the correct relationship between two variables. 
C) explain why people sometimes consume more of a good when its price rises. 
D) explain why those things that come first do not necessarily cause those things that come later. 
E) designate the difference between normative and positive economics. 
A) make their analyses easier for them to conduct. 
B) designate what they believe is the correct relationship between two variables. 
C) explain why people sometimes consume more of a good when its price rises. 
D) explain why those things that come first do not necessarily cause those things that come later. 
E) designate the difference between normative and positive economics.

Question 2

The condition often used in economics to isolate the relationship between two variables is

Accepted Answer

A) causation. 
B) abstraction. 
C) ceteris paribus. 
D) efficiency. 
A) causation. 
B) abstraction. 
C) ceteris paribus. 
D) efficiency.

Question 3

A three-word synonym for the term ceteris paribus is

Accepted Answer

A) "nothing else changes." 
B) "in my opinion." 
C) "it is proved." 
D) "under this assumption." 
A) "nothing else changes." 
B) "in my opinion." 
C) "it is proved." 
D) "under this assumption."

Question 4

The slope of a horizontal line is always equal to zero.

Accepted Answer

A) True 
 B)False

Question 5

In economics, something that provides disutility is called a

Accepted Answer

A) good. 
B) want. 
C) need. 
D) bad. 
E) none of the above 
A) good. 
B) want. 
C) need. 
D) bad. 
E) none of the above

Question 6

The higher the opportunity cost of making a new friend, the more likely one is to make a new friend, ​ceteris paribus​.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true?

Accepted Answer

A) Oil is classified as part of the resource category land. 
B) A person working for a company is classified as part of the resource category capital. 
C) A machine in a factory is classified as part of the resource category land. 
D) A person with the particular talent for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things is classified as part of the resource category labor. 
E) a and d 
A) Oil is classified as part of the resource category land. 
B) A person working for a company is classified as part of the resource category capital. 
C) A machine in a factory is classified as part of the resource category land. 
D) A person with the particular talent for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things is classified as part of the resource category labor. 
E) a and d

Question 8

Price is the only rationing device that can be used in a modern economy.

Accepted Answer

A) True 
 B)False

Question 9

The concept that relates how much one variable changes as another variable changes is

Accepted Answer

A) slope. 
B) line. 
C) curve. 
D) graph. 
A) slope. 
B) line. 
C) curve. 
D) graph.

Question 10

Elite colleges and universities use standardized test scores (such as SAT and ACT scores) and high school grades as

Accepted Answer

A) a means to raise student utility. 
B) a means to turn a university education from a "good" to a "bad." 
C) rationing devices. 
D) none of the above 
A) a means to raise student utility. 
B) a means to turn a university education from a "good" to a "bad." 
C) rationing devices. 
D) none of the above

Question 11

Exhibit 1-3
   ​
-Refer to Exhibit 1-3. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be a ______________ sloping _____________.

Accepted Answer

A) downward; (nonlinear) curve 
B) downward; (straight) line 
C) upward; (nonlinear) curve 
D) upward; (straight) line 
E) none of the above 
A) downward; (nonlinear) curve 
B) downward; (straight) line 
C) upward; (nonlinear) curve 
D) upward; (straight) line 
E) none of the above

Question 12

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

Accepted Answer

A) Yes, if the number of accidents increases by a greater percentage than the number of deaths per accident decreases. 
B) No, because wearing seatbelts decreases the number of deaths per accident. 
C) No, because wearing seatbelts decreases the number of accidents. 
D) There is not enough information to answer the question. 
A) Yes, if the number of accidents increases by a greater percentage than the number of deaths per accident decreases. 
B) No, because wearing seatbelts decreases the number of deaths per accident. 
C) No, because wearing seatbelts decreases the number of accidents. 
D) There is not enough information to answer the question.

Question 13

Economists believe that people's wants are

Accepted Answer

A) finite. 
B) infinite. 
C) irrational. 
D) unimportant because needs are more important than wants. 
A) finite. 
B) infinite. 
C) irrational. 
D) unimportant because needs are more important than wants.

Question 14

The higher the opportunity cost of doing something, the more likely it will be done.

Accepted Answer

A) True 
 B)False

Question 15

The opportunity cost of attending college

Accepted Answer

A) consists of the tuition costs only. 
B) consists of the tuition costs plus the costs of room and board and other expenses. 
C) is zero, if the student receives a scholarship that covers the costs of tuition, room and board, and other expenses. 
D) varies from person to person. 
E) both b and c 
A) consists of the tuition costs only. 
B) consists of the tuition costs plus the costs of room and board and other expenses. 
C) is zero, if the student receives a scholarship that covers the costs of tuition, room and board, and other expenses. 
D) varies from person to person. 
E) both b and c

Question 16

Explain what an economist means when he says, "You don't find any $10 bills on the sidewalk."

Accepted Answer

What an economist means by this statemen

Question 17

Amy's opportunity cost of going to the movies is

Accepted Answer

A) the price of the ticket. 
B) zero, if she has a gift card that covers the cost of the movie. 
C) the price of the ticket plus the value to Amy of what she would have chosen to do with her time had she not chosen to go to the movies. 
D) both b and c 
A) the price of the ticket. 
B) zero, if she has a gift card that covers the cost of the movie. 
C) the price of the ticket plus the value to Amy of what she would have chosen to do with her time had she not chosen to go to the movies. 
D) both b and c

Question 18

Which of the following statements is false?

Accepted Answer

A) Microeconomics is the branch of economics that deals with human behavior and choices as they relate to relatively small units-an individual, a firm, an industry, and a single market. 
B) Macroeconomics is the branch of economics that deals with human behavior and choices as they relate to highly aggregate markets. 
C) Positive economics attempts to determine what is. 
D) Normative economics addresses what should be. 
E) Positive and normative economics both address what should be. 
A) Microeconomics is the branch of economics that deals with human behavior and choices as they relate to relatively small units-an individual, a firm, an industry, and a single market. 
B) Macroeconomics is the branch of economics that deals with human behavior and choices as they relate to highly aggregate markets. 
C) Positive economics attempts to determine what is. 
D) Normative economics addresses what should be. 
E) Positive and normative economics both address what should be.

Question 19

If scarcity didn't exist, neither would

Accepted Answer

A) rationing devices. 
B) competition. 
C) labor. 
D) capital. 
E) a and b 
A) rationing devices. 
B) competition. 
C) labor. 
D) capital. 
E) a and b

Question 20

Which of the following is a possible rationing device?

Accepted Answer

A) dollar price 
B) first-come-first-served 
C) brute force 
D) a and b 
E) a, b, and c 
A) dollar price 
B) first-come-first-served 
C) brute force 
D) a and b 
E) a, b, and c

Exam 1: What Economics Is About

Economists use the ceteris paribus assumption primarily in order to

The condition often used in economics to isolate the relationship between two variables is

A three-word synonym for the term ceteris paribus is

The slope of a horizontal line is always equal to zero.

In economics, something that provides disutility is called a

The higher the opportunity cost of making a new friend, the more likely one is to make a new friend, ​ceteris paribus​.

Which of the following statements is true?

Price is the only rationing device that can be used in a modern economy.

The concept that relates how much one variable changes as another variable changes is

Elite colleges and universities use standardized test scores (such as SAT and ACT scores) and high school grades as

Exhibit 1-3 ​ -Refer to Exhibit 1-3. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be a ______________ sloping _____________.

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

Economists believe that people's wants are

The higher the opportunity cost of doing something, the more likely it will be done.

The opportunity cost of attending college

Explain what an economist means when he says, "You don't find any $10 bills on the sidewalk."

Amy's opportunity cost of going to the movies is

Which of the following statements is false?

If scarcity didn't exist, neither would

Which of the following is a possible rationing device?

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

The higher the opportunity cost of making a new friend, the more likely one is to make a new friend, ceteris paribus.

Exhibit 1-3 -Refer to Exhibit 1-3. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be a __ sloping _.