Question 1

An economist might be hired to answer which of the following questions?

Accepted Answer

A)  What will the price of oil be next year? 
B)  Why is the median income of women about half the median income of men? 
C)  How much will interest rates change as the federal deficit decreases? 
D)  How much will inflation change if import restrictions are imposed? 
E)  All of the above are correct. 
A)  What will the price of oil be next year? 
B)  Why is the median income of women about half the median income of men? 
C)  How much will interest rates change as the federal deficit decreases? 
D)  How much will inflation change if import restrictions are imposed? 
E)  All of the above are correct.

Question 2

A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well.

Accepted Answer

A) True 
 B)False

Question 3

One of the consequences of preventing wages from falling in the European Union has been growing unemployment.

Accepted Answer

A) True 
 B)False

Question 4

Many believe that fairness calls for higher income taxes on the wealthy.Using one of the "Ideas for Beyond the Final Exam," explain how higher taxes on the wealthy will affect output.

Accepted Answer

Greater equality comes at the expense of

Question 5

The process of focusing on only the most important factors to explain a phenomenon is called

Accepted Answer

A)  abstraction. 
B)  marginal analysis. 
C)  rational choice. 
D)  controlled experimentation. 
E)  the trade-off between efficiency and equality. 
A)  abstraction. 
B)  marginal analysis. 
C)  rational choice. 
D)  controlled experimentation. 
E)  the trade-off between efficiency and equality.

Question 6

The achievement of greater efficiency in the United States has been at the expense of growing inequality.

Accepted Answer

A) True 
 B)False

Question 7

Why might well-educated economists disagree on appropriate public policy in some situations?

Accepted Answer

Economists might disagree beca

Question 8

In economics,abstraction from reality is necessary because of the complexity of the real world.

Accepted Answer

A) True 
 B)False

Question 9

The tangent at point A on a curve has a positive slope.Therefore,the curve has a

Accepted Answer

A)  positive slope at all points. 
B)  positive slope at point A. 
C)  negative slope at all points. 
D)  negative slope at point A. 
A)  positive slope at all points. 
B)  positive slope at point A. 
C)  negative slope at all points. 
D)  negative slope at point A.

Question 10

Abstraction ignores many details in order to focus on the most important elements of a problem.

Accepted Answer

A) True 
 B)False

Question 11

The 1981 tax reform act reduced taxes on high-income individuals.Many economists believed that high tax rates would deter high-income individuals from working and investing,thus slowing the growth of income.This illustrates the issue of

Accepted Answer

A)  the equality-efficiency trade-off. 
B)  usury. 
C)  the effects of budget deficits on future generations. 
D)  the cost disease of the public sector. 
E)  the importance of externalities. 
A)  the equality-efficiency trade-off. 
B)  usury. 
C)  the effects of budget deficits on future generations. 
D)  the cost disease of the public sector. 
E)  the importance of externalities.

Question 12

A large factory pours its toxic wastewater into a nearby river,and as a result,the residents of a downstream community experience high rates of illness and birth defects.The economic problem illustrated by this example is

Accepted Answer

A)  marginal thinking. 
B)  comparative advantage. 
C)  repealing the laws of supply and demand. 
D)  externalities. 
E)  productivity growth. 
A)  marginal thinking. 
B)  comparative advantage. 
C)  repealing the laws of supply and demand. 
D)  externalities. 
E)  productivity growth.

Question 13

It is possible to represent three dimensions on a two-dimensional graph by using

Accepted Answer

A)  a contour map. 
B)  a razor blade. 
C)  curved lines. 
D)  all of the above. 
A)  a contour map. 
B)  a razor blade. 
C)  curved lines. 
D)  all of the above.

Question 14

The growth rate of productivity is the most important determinant of material well-being in the short run.

Accepted Answer

A) True 
 B)False

Question 15

People generally purchase less of a commodity as its price increases.This implies that the relationship between quantity purchased and the price of the commodity must have a

Accepted Answer

A)  slope always equal to one. 
B)  positive slope. 
C)  zero slope. 
D)  negative slope. 
A)  slope always equal to one. 
B)  positive slope. 
C)  zero slope. 
D)  negative slope.

Question 16

If trade between two countries is voluntary,one can expect that

Accepted Answer

A)  one country's gain is necessarily the other's loss. 
B)  one country will exploit the other one. 
C)  neither country really gains from trade. 
D)  the larger country will always gain at the expense of the smaller. 
E)  both countries expect to gain something. 
A)  one country's gain is necessarily the other's loss. 
B)  one country will exploit the other one. 
C)  neither country really gains from trade. 
D)  the larger country will always gain at the expense of the smaller. 
E)  both countries expect to gain something.

Question 17

When variable A rises by 10 units,variable B rises by 15 units.The slope of the line describing this relationship is

Accepted Answer

A)  always 2/3. 
B)  either 2/3 or 1.5, depending on which variable goes on which axis of the graph. 
C)  either 1.5 or −1.5, depending on which variable goes on which axis.− 
D)  always −1.5. 
A)  always 2/3. 
B)  either 2/3 or 1.5, depending on which variable goes on which axis of the graph. 
C)  either 1.5 or −1.5, depending on which variable goes on which axis.− 
D)  always −1.5.

Question 18

"The hotter it gets,the more water people drink." This statement implies that the relationship between temperature and water consumption must have a

Accepted Answer

A)  negative slope. 
B)  positive slope. 
C)  slope always equal to one. 
D)  slope always equal to 45 degrees. 
A)  negative slope. 
B)  positive slope. 
C)  slope always equal to one. 
D)  slope always equal to 45 degrees.

Question 19

Probably the most important factor affecting material well-being is

Accepted Answer

A)  inflation rates. 
B)  unemployment rates. 
C)  budget deficits. 
D)  growth in productivity. 
E)  monopoly power. 
A)  inflation rates. 
B)  unemployment rates. 
C)  budget deficits. 
D)  growth in productivity. 
E)  monopoly power.

Question 20

A ray through the origin always has a slope of one.

Accepted Answer

A) True 
 B)False

An economist might be hired to answer which of the following questions?

A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well.

One of the consequences of preventing wages from falling in the European Union has been growing unemployment.

Many believe that fairness calls for higher income taxes on the wealthy.Using one of the "Ideas for Beyond the Final Exam," explain how higher taxes on the wealthy will affect output.

The process of focusing on only the most important factors to explain a phenomenon is called

The achievement of greater efficiency in the United States has been at the expense of growing inequality.

Why might well-educated economists disagree on appropriate public policy in some situations?

In economics,abstraction from reality is necessary because of the complexity of the real world.

The tangent at point A on a curve has a positive slope.Therefore,the curve has a

Abstraction ignores many details in order to focus on the most important elements of a problem.

The 1981 tax reform act reduced taxes on high-income individuals.Many economists believed that high tax rates would deter high-income individuals from working and investing,thus slowing the growth of income.This illustrates the issue of

A large factory pours its toxic wastewater into a nearby river,and as a result,the residents of a downstream community experience high rates of illness and birth defects.The economic problem illustrated by this example is

It is possible to represent three dimensions on a two-dimensional graph by using

The growth rate of productivity is the most important determinant of material well-being in the short run.

People generally purchase less of a commodity as its price increases.This implies that the relationship between quantity purchased and the price of the commodity must have a

If trade between two countries is voluntary,one can expect that

When variable A rises by 10 units,variable B rises by 15 units.The slope of the line describing this relationship is

"The hotter it gets,the more water people drink." This statement implies that the relationship between temperature and water consumption must have a

Probably the most important factor affecting material well-being is

A ray through the origin always has a slope of one.

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

Filters

Exam 1: What Is Economics?

An economist might be hired to answer which of the following questions?

A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well.

One of the consequences of preventing wages from falling in the European Union has been growing unemployment.

Many believe that fairness calls for higher income taxes on the wealthy.Using one of the "Ideas for Beyond the Final Exam," explain how higher taxes on the wealthy will affect output.

The process of focusing on only the most important factors to explain a phenomenon is called

The achievement of greater efficiency in the United States has been at the expense of growing inequality.

Why might well-educated economists disagree on appropriate public policy in some situations?

In economics,abstraction from reality is necessary because of the complexity of the real world.

The tangent at point A on a curve has a positive slope.Therefore,the curve has a

Abstraction ignores many details in order to focus on the most important elements of a problem.

The 1981 tax reform act reduced taxes on high-income individuals.Many economists believed that high tax rates would deter high-income individuals from working and investing,thus slowing the growth of income.This illustrates the issue of

A large factory pours its toxic wastewater into a nearby river,and as a result,the residents of a downstream community experience high rates of illness and birth defects.The economic problem illustrated by this example is

It is possible to represent three dimensions on a two-dimensional graph by using

The growth rate of productivity is the most important determinant of material well-being in the short run.

People generally purchase less of a commodity as its price increases.This implies that the relationship between quantity purchased and the price of the commodity must have a

If trade between two countries is voluntary,one can expect that

When variable A rises by 10 units,variable B rises by 15 units.The slope of the line describing this relationship is

"The hotter it gets,the more water people drink." This statement implies that the relationship between temperature and water consumption must have a

Probably the most important factor affecting material well-being is

A ray through the origin always has a slope of one.

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

Filters