Question 1

Economic analysis and policy are made more difficult by

Accepted Answer

A)  having so much data to work with. 
B)  inadequate and imperfect information. 
C)  an incomplete consensus on the basic goals of social policy. 
D)  the lack of public interest and opinion on economic questions. 
E)  the major economic problems society faces. 
A)  having so much data to work with. 
B)  inadequate and imperfect information. 
C)  an incomplete consensus on the basic goals of social policy. 
D)  the lack of public interest and opinion on economic questions. 
E)  the major economic problems society faces.

Question 2

A theory can best be defined as

Accepted Answer

A)  an untested assertion of untested fact. 
B)  a set of assumptions that simplify the real world. 
C)  the opinion of a reliable person who studies a subject or discipline. 
D)  a deliberate simplification of factual relationships that attempts to explain how those relationships work. 
E)  the accumulation of knowledge that has been verified by the scientific community. 
A)  an untested assertion of untested fact. 
B)  a set of assumptions that simplify the real world. 
C)  the opinion of a reliable person who studies a subject or discipline. 
D)  a deliberate simplification of factual relationships that attempts to explain how those relationships work. 
E)  the accumulation of knowledge that has been verified by the scientific community.

Question 3

Opportunity cost can best be defined as the

Accepted Answer

A)  value of what must be given up in order to acquire an item. 
B)  money cost to the buyer to acquire a good or service. 
C)  total value of all the other items that otherwise could be acquired. 
D)  cost to the seller to produce an item. 
E)  time cost to obtain the money to buy an item. 
A)  value of what must be given up in order to acquire an item. 
B)  money cost to the buyer to acquire a good or service. 
C)  total value of all the other items that otherwise could be acquired. 
D)  cost to the seller to produce an item. 
E)  time cost to obtain the money to buy an item.

Question 4

In both the 1970s and the 1990s, extreme economic events caused unemployment to move in the same direction as inflation.

Accepted Answer

A) True 
 B)False

Question 5

In the United States the distribution of income is relatively unequal, and output is relatively high, while in the former Soviet Union the distribution of income was more equal and output per worker was much lower. Give one possible explanation for this phenomenon.

Accepted Answer

This problem illustrates the trade-off b

Question 6

Slope will vary along a curve (as opposed to a straight line).

Accepted Answer

A) True 
 B)False

Question 7

Jack buys a computer from Sam, knowing fully well that the technology used in it is obsolete. In this case, the trade is

Accepted Answer

A)  beneficial to both parties. 
B)  beneficial only to Sam. 
C)  beneficial only to Jack. 
D)  not beneficial to either of them. 
A)  beneficial to both parties. 
B)  beneficial only to Sam. 
C)  beneficial only to Jack. 
D)  not beneficial to either of them.

Question 8

There are possible policies that could significantly reduce income inequality but opponents argue that such policies would be likely to lead to

Accepted Answer

A)  higher inflation. 
B)  a reduction in unemployment. 
C)  no impact on inequality. 
D)  higher levels of economic growth. 
E)  higher unemployment. 
A)  higher inflation. 
B)  a reduction in unemployment. 
C)  no impact on inequality. 
D)  higher levels of economic growth. 
E)  higher unemployment.

Question 9

Economic theory

Accepted Answer

A)  is a deliberate simplification of factual relationships. 
B)  seeks to disprove a hypothesis. 
C)  is based mainly on assumptions. 
D)  seeks to prove political ideals. 
A)  is a deliberate simplification of factual relationships. 
B)  seeks to disprove a hypothesis. 
C)  is based mainly on assumptions. 
D)  seeks to prove political ideals.

Question 10

How would you interpret (1) an upward sloping curve and (2) a zero slope curve in a two variable diagram?

Accepted Answer

(1) Positive slope, where vari

Question 11

To an economist, theory can be thought of as

Accepted Answer

A)  abstraction for the sake of argument. 
B)  one person's opinion, which is just as good as another's. 
C)  another term for the description of a situation. 
D)  beliefs that cannot necessarily be verified. 
E)  explanation of mechanisms behind observed phenomena. 
A)  abstraction for the sake of argument. 
B)  one person's opinion, which is just as good as another's. 
C)  another term for the description of a situation. 
D)  beliefs that cannot necessarily be verified. 
E)  explanation of mechanisms behind observed phenomena.

Question 12

Economists often say that trade is a win-win situation. How do you justify this?

Accepted Answer

One of the fundamental ideas of economic

Question 13

Rational choice requires that opportunity cost be

Accepted Answer

A)  ignored in making a decision. 
B)  considered for individual choices but not for societal choices. 
C)  computed but not actually used in making a decision. 
D)  considered as part of making a decision. 
E)  used as the sole decision criterion. 
A)  ignored in making a decision. 
B)  considered for individual choices but not for societal choices. 
C)  computed but not actually used in making a decision. 
D)  considered as part of making a decision. 
E)  used as the sole decision criterion.

Question 14

One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie."

Accepted Answer

A) True 
 B)False

Question 15

It has been said that "economics is the science of common sense." Is economics synonymous with common sense?

Accepted Answer

A large portion of economics will agree

Question 16

An economist is unlikely to be hired to do research about the following?

Accepted Answer

A)  Oil prices. 
B)  Election outcomes 
C)  Interest rate 
D)  Inflation rates 
E)  Unemployment 
A)  Oil prices. 
B)  Election outcomes 
C)  Interest rate 
D)  Inflation rates 
E)  Unemployment

Question 17

In the calculation of the cost of going to college, an economist would always include the cost of room and board.

Accepted Answer

A) True 
 B)False

Question 18

All economic transactions involve only buyers and sellers; no third parties are involved.

Accepted Answer

A) True 
 B)False

Question 19

Dryden Press can produce 10,000 textbooks using 10 machines and 100 workers or using 5 machines and 300 workers. It can produce 20,000 textbooks using 10 machines and 300 workers or 5 machines and 600 workers. Construct a two-dimensional contour-type graph to show the relationship between the output of textbooks and the labor and machinery inputs.

Accepted Answer

Figure 1-4 
 @#IMG-DLM& 
The labor and capital inp

Question 20

The United States has chosen to balance the competing claims of efficiency versus equality by emphasizing greater efficiency over greater equality.

Accepted Answer

A) True 
 B)False

Economic analysis and policy are made more difficult by

A theory can best be defined as

Opportunity cost can best be defined as the

In both the 1970s and the 1990s, extreme economic events caused unemployment to move in the same direction as inflation.

In the United States the distribution of income is relatively unequal, and output is relatively high, while in the former Soviet Union the distribution of income was more equal and output per worker was much lower. Give one possible explanation for this phenomenon.

Slope will vary along a curve (as opposed to a straight line).

Jack buys a computer from Sam, knowing fully well that the technology used in it is obsolete. In this case, the trade is

There are possible policies that could significantly reduce income inequality but opponents argue that such policies would be likely to lead to

Economic theory

How would you interpret (1) an upward sloping curve and (2) a zero slope curve in a two variable diagram?

To an economist, theory can be thought of as

Economists often say that trade is a win-win situation. How do you justify this?

Rational choice requires that opportunity cost be

One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie."

It has been said that "economics is the science of common sense." Is economics synonymous with common sense?

An economist is unlikely to be hired to do research about the following?

In the calculation of the cost of going to college, an economist would always include the cost of room and board.

All economic transactions involve only buyers and sellers; no third parties are involved.

The United States has chosen to balance the competing claims of efficiency versus equality by emphasizing greater efficiency over greater equality.

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

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

Contemporary Issues in the Us Economy

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Exam 1: What Is Economics

Economic analysis and policy are made more difficult by

A theory can best be defined as

Opportunity cost can best be defined as the

In both the 1970s and the 1990s, extreme economic events caused unemployment to move in the same direction as inflation.

In the United States the distribution of income is relatively unequal, and output is relatively high, while in the former Soviet Union the distribution of income was more equal and output per worker was much lower. Give one possible explanation for this phenomenon.

Slope will vary along a curve (as opposed to a straight line).

Jack buys a computer from Sam, knowing fully well that the technology used in it is obsolete. In this case, the trade is

There are possible policies that could significantly reduce income inequality but opponents argue that such policies would be likely to lead to

Economic theory

How would you interpret (1) an upward sloping curve and (2) a zero slope curve in a two variable diagram?

To an economist, theory can be thought of as

Economists often say that trade is a win-win situation. How do you justify this?

Rational choice requires that opportunity cost be

One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie."

It has been said that "economics is the science of common sense." Is economics synonymous with common sense?

An economist is unlikely to be hired to do research about the following?

In the calculation of the cost of going to college, an economist would always include the cost of room and board.

All economic transactions involve only buyers and sellers; no third parties are involved.

The United States has chosen to balance the competing claims of efficiency versus equality by emphasizing greater efficiency over greater equality.

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

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

Contemporary Issues in the Us Economy

Filters