Question 1

If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units, the slope of the function is

Accepted Answer

A)  5. 
B)  -.5. 
C)  -2. 
D)  -72. 
A)  5. 
B)  -.5. 
C)  -2. 
D)  -72.

Question 2

A large airline calculates that the additional cost of a having a passenger on a flight to the Bahamas as the cost of a bag of peanuts and a soft drink, which totals $1.50, but the airline's price is $600 for potential customers who want to buy vacant seats on the day of the flight.Which economic principle is this airline failing to utilize?

Accepted Answer

The airline is failing to think at the m

Question 3

Economic problems are made manageable by stripping away some of the unnecessary details.

Accepted Answer

A) True 
 B)False

Question 4

Policy-oriented economists seek to develop theories to

Accepted Answer

A)  explain how things work so policies can be formulated. 
B)  describe what happened in a particular time period in history. 
C)  describe current economic events. 
D)  find correlations between events. 
E)  change people's values and ethics. 
A)  explain how things work so policies can be formulated. 
B)  describe what happened in a particular time period in history. 
C)  describe current economic events. 
D)  find correlations between events. 
E)  change people's values and ethics.

Question 5

The purpose of economic science is to

Accepted Answer

A)  show people that it is better to want less. 
B)  encourage people to care more about others. 
C)  analyze the problems of market economies only. 
D)  develop principles by which to rank alternative uses of scarce resources. 
E)  reach consensus on economic goals and objectives 
A)  show people that it is better to want less. 
B)  encourage people to care more about others. 
C)  analyze the problems of market economies only. 
D)  develop principles by which to rank alternative uses of scarce resources. 
E)  reach consensus on economic goals and objectives

Question 6

A theory is an abstraction used often by economists to

Accepted Answer

A)  describe a problem. 
B)  keep all assumptions in their proper places. 
C)  explain why things work the way they do. 
D)  describe a hierarchical ordering of facts. 
E)  arrange variables into a graphical format. 
A)  describe a problem. 
B)  keep all assumptions in their proper places. 
C)  explain why things work the way they do. 
D)  describe a hierarchical ordering of facts. 
E)  arrange variables into a graphical format.

Question 7

Economists are often required to make unrealistic assumptions concerning the problems they are investigating.

Accepted Answer

A) True 
 B)False

Exam 1: What Is Economics?

If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units, the slope of the function is

Economic problems are made manageable by stripping away some of the unnecessary details.

Policy-oriented economists seek to develop theories to

The purpose of economic science is to

A theory is an abstraction used often by economists to

Economists are often required to make unrealistic assumptions concerning the problems they are investigating.

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

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

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