Question 1

The statement, "All Americans should be entitled to public health care," made by a politician would be considered a:

Accepted Answer

A)  positive statement. 
B)  macroeconomic statement. 
C)  microeconomic statement. 
D)  normative statement. 
E)  model. 
A)  positive statement. 
B)  macroeconomic statement. 
C)  microeconomic statement. 
D)  normative statement. 
E)  model.

Question 2

When a presidential candidate with a Ph.D. in economics makes a statement about what should be done to balance the budget, he or she is making a:

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  microeconomic statement. 
D)  statement that is objective. 
E)  statement of fact. 
A)  normative statement. 
B)  positive statement. 
C)  microeconomic statement. 
D)  statement that is objective. 
E)  statement of fact.

Question 3

Only poor countries have to make choices because of limited resources.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is considered a macroeconomic question?

Accepted Answer

A)  How can one particular firm maximize profits? 
B)  How does a family allocate income among various available goods and services? 
C)  How can economic policy fight inflation? 
D)  What factors determine the wage rate in a certain industry? 
E)  What is the impact of competition on the profits of a business? 
A)  How can one particular firm maximize profits? 
B)  How does a family allocate income among various available goods and services? 
C)  How can economic policy fight inflation? 
D)  What factors determine the wage rate in a certain industry? 
E)  What is the impact of competition on the profits of a business?

Question 5

Which of the following statements is true of resources?

Accepted Answer

A)  Capital resources include unskilled labor. 
B)  Natural resources are produced by nature and are available at a zero price. 
C)  Labor includes the skills and training that people acquire to use in production. 
D)  Technological know-how is an example of a natural resource. 
E)  Stocks and bonds are referred to as capital. 
A)  Capital resources include unskilled labor. 
B)  Natural resources are produced by nature and are available at a zero price. 
C)  Labor includes the skills and training that people acquire to use in production. 
D)  Technological know-how is an example of a natural resource. 
E)  Stocks and bonds are referred to as capital.

Question 6

"If a tax cut is good for me, it must be good for the whole economy." This statement is an example of the pitfall called the fallacy of composition.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a free good?

Accepted Answer

A)  Toll free roads 
B)  Purified water 
C)  Flora and fauna at a national park 
D)  Air 
E)  Congested roads 
A)  Toll free roads 
B)  Purified water 
C)  Flora and fauna at a national park 
D)  Air 
E)  Congested roads

Question 8

The statement "people have unlimited wants," implies that people:

Accepted Answer

A)  always want more goods/services than they can purchase with their incomes. 
B)  always have a desire to hold liquid money. 
C)  always strive to be the best they can be. 
D)  generally desire for goods and services which they can afford out of their income. 
E)  try to earn more and more money as their experience at work increases. 
A)  always want more goods/services than they can purchase with their incomes. 
B)  always have a desire to hold liquid money. 
C)  always strive to be the best they can be. 
D)  generally desire for goods and services which they can afford out of their income. 
E)  try to earn more and more money as their experience at work increases.

Question 9

Economics is probably best defined as the study of unintended consequences.

Accepted Answer

A) True 
 B)False

Question 10

Producers use the money received from selling their goods and services in the market to pay for the resource services.

Accepted Answer

A) True 
 B)False

The statement, "All Americans should be entitled to public health care," made by a politician would be considered a:

When a presidential candidate with a Ph.D. in economics makes a statement about what should be done to balance the budget, he or she is making a:

Only poor countries have to make choices because of limited resources.

Which of the following is considered a macroeconomic question?

Which of the following statements is true of resources?

"If a tax cut is good for me, it must be good for the whole economy." This statement is an example of the pitfall called the fallacy of composition.

Which of the following is a free good?

The statement "people have unlimited wants," implies that people:

Economics is probably best defined as the study of unintended consequences.

Producers use the money received from selling their goods and services in the market to pay for the resource services.

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

National Income Accounting

An Introduction to the Foreign Exchange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

Exam 1: Economics: the World Around You

The statement, "All Americans should be entitled to public health care," made by a politician would be considered a:

When a presidential candidate with a Ph.D. in economics makes a statement about what should be done to balance the budget, he or she is making a:

Only poor countries have to make choices because of limited resources.

Which of the following is considered a macroeconomic question?

Which of the following statements is true of resources?

"If a tax cut is good for me, it must be good for the whole economy." This statement is an example of the pitfall called the fallacy of composition.

Which of the following is a free good?

The statement "people have unlimited wants," implies that people:

Economics is probably best defined as the study of unintended consequences.

Producers use the money received from selling their goods and services in the market to pay for the resource services.

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

National Income Accounting

An Introduction to the Foreign Exchange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters