Question 1

One explanation of the trade-off between inflation and unemployment is that:

Accepted Answer

A) prices are flexible 
B) prices are sticky 
C) prices always tend to rise 
D) unemployment increases demand 
A) prices are flexible 
B) prices are sticky 
C) prices always tend to rise 
D) unemployment increases demand

Question 2

Which of the following is the best statement about markets?

Accepted Answer

A) markets are usually a good way to organise economic activity 
B) markets are usually inferior to central planning as a way to organise economic activity 
C) markets are flawed and are therefore not an acceptable way to organise economic activity 
D) markets are a good way to organise economic activity in developed nations, but not in less-developed nations 
A) markets are usually a good way to organise economic activity 
B) markets are usually inferior to central planning as a way to organise economic activity 
C) markets are flawed and are therefore not an acceptable way to organise economic activity 
D) markets are a good way to organise economic activity in developed nations, but not in less-developed nations

Question 3

The study of economics is concerned with:

Accepted Answer

A) keeping private businesses from losing money 
B) demonstrating that capitalistic economies are superior to socialistic economies 
C) how society manages its scarce resources 
D) determining the most equitable distribution of society's output 
A) keeping private businesses from losing money 
B) demonstrating that capitalistic economies are superior to socialistic economies 
C) how society manages its scarce resources 
D) determining the most equitable distribution of society's output

Question 4

What benefits can a family realise by choosing to trade instead of being self-sufficient?

Accepted Answer

Trade allows each person to sp

Question 5

Lead used to be added to petrol to make the engine operate smoothly.Lead is also an atmospheric pollutant and it has been banned as an additive.Was there an economic justification for this ban by the government?

Accepted Answer

Leaded petrol produced an exte

Question 6

Which of these consumption activities is most likely to cause an external cost?

Accepted Answer

A) an executive plays a vigorous game of golf 
B) a student in a flat plays her CDs at 120 decibels late at night 
C) a young mother exercises to an aerobics video 
D) a construction worker eats a sandwich during the lunch break 
A) an executive plays a vigorous game of golf 
B) a student in a flat plays her CDs at 120 decibels late at night 
C) a young mother exercises to an aerobics video 
D) a construction worker eats a sandwich during the lunch break

Exam 1: Ten Lessons From Economics

One explanation of the trade-off between inflation and unemployment is that:

Which of the following is the best statement about markets?

The study of economics is concerned with:

What benefits can a family realise by choosing to trade instead of being self-sufficient?

Lead used to be added to petrol to make the engine operate smoothly.Lead is also an atmospheric pollutant and it has been banned as an additive.Was there an economic justification for this ban by the government?

Which of these consumption activities is most likely to cause an external cost?

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand and Government Policies

Consumers, Producers and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Business Strategy and Oligopoly

Competition Policy

The Markets for the Factors of Production

Earnings, Unions and Discrimination

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Global Financial Crisis of 2008 and Beyond

Five Debates Over Macroeconomic Policy

Filters