Question 1

Suppose that a curve has a slope equal to zero at some point A.To the right of A,the curve may

Accepted Answer

A)  have a positive slope. 
B)  have a negative slope. 
C)  be a straight line. 
D)  All of the above are correct. 
A)  have a positive slope. 
B)  have a negative slope. 
C)  be a straight line. 
D)  All of the above are correct.

Question 2

The market mechanism provides a financial incentive for firms to minimize the pollution they create.

Accepted Answer

A) True 
 B)False

Question 3

One of the consequences of allowing wages to fall in the United States has been growing wage inequality.

Accepted Answer

A) True 
 B)False

Question 4

Comparative advantage explains how two nations can benefit from trade.

Accepted Answer

A) True 
 B)False

Question 5

Greater economic efficiency often leads to greater economic inequality.

Accepted Answer

A) True 
 B)False

Question 6

What is the appropriate degree of abstraction?

Accepted Answer

A)  The more detail there is, the better. 
B)  The detail should be minimized in order to avoid all complexity. 
C)  Abstraction is unnecessary, and should be avoided. 
D)  Abstraction is the essence of analysis, and is pursued for its own sake. 
E)  It depends on the objective of the analysis. 
A)  The more detail there is, the better. 
B)  The detail should be minimized in order to avoid all complexity. 
C)  Abstraction is unnecessary, and should be avoided. 
D)  Abstraction is the essence of analysis, and is pursued for its own sake. 
E)  It depends on the objective of the analysis.

Question 7

Individuals will have different value judgments about the appropriate rate of unemployment and the appropriate rate of inflation.

Accepted Answer

A) True 
 B)False

Question 8

In Egypt,in 1970,the Aswan Dam was completed.By preventing the annual flood of the Nile (thereby providing millions of acres of arable land)and by providing electricity,the dam was expected to raise the living standard of the Egyptian people-and it has.However,it has also led to a rise in the water table which causes Egypt's limestone structures,including the pyramids,to absorb more salt water and to suffer serious erosion from crystallized salts.Combined with air pollution and traffic vibration,this erosion is turning the pyramids to dust.Economists analyze this type of problem with the concept of

Accepted Answer

A)  an externality. 
B)  the antiquity problem. 
C)  a free-rider problem. 
D)  the public good problem. 
E)  the trade-off between equity and output. 
A)  an externality. 
B)  the antiquity problem. 
C)  a free-rider problem. 
D)  the public good problem. 
E)  the trade-off between equity and output.

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

The dramatic increase in the standard of living since the Industrial Revolution

Accepted Answer

A)  means that societies and individuals face no constraints. 
B)  has not meant unlimited abundance for societies or persons. 
C)  means that "opportunity cost" is a meaningless concept. 
D)  has reduced the choices open to persons. 
E)  has made economics less useful to persons. 
A)  means that societies and individuals face no constraints. 
B)  has not meant unlimited abundance for societies or persons. 
C)  means that "opportunity cost" is a meaningless concept. 
D)  has reduced the choices open to persons. 
E)  has made economics less useful to persons.

Question 11

Inaccurate prediction generally invalidates the use of theory in economics.

Accepted Answer

A) True 
 B)False

Question 12

If an economic curve has a negative slope,then one variable

Accepted Answer

A)  falls as the other rises. 
B)  changes at a slower rate than another. 
C)  has a smaller value than another. 
D)  changes after another variable. 
A)  falls as the other rises. 
B)  changes at a slower rate than another. 
C)  has a smaller value than another. 
D)  changes after another variable.

Question 13

A horizontal line always has a slope of one.

Accepted Answer

A) True 
 B)False

Question 14

Economists may disagree about how to solve an economic problem because they

Accepted Answer

A)  use different models to analyze the problem and its solutions. 
B)  have different political and moral beliefs. 
C)  disagree about the facts of the situation. 
D)  All of the above are correct. 
A)  use different models to analyze the problem and its solutions. 
B)  have different political and moral beliefs. 
C)  disagree about the facts of the situation. 
D)  All of the above are correct.

Question 15

Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?

Accepted Answer

A)  Y = a + X 
B)  X = bY 
C)  X = a 
D)  Y = a 
A)  Y = a + X 
B)  X = bY 
C)  X = a 
D)  Y = a

Question 16

A graph conveys information about a cause-and-effect relationship.

Accepted Answer

A) True 
 B)False

Question 17

Economists probably agree more often than they disagree.

Accepted Answer

A) True 
 B)False

Question 18

Tools used by economists include

Accepted Answer

A)  historical study. 
B)  mathematical reasoning. 
C)  statistical inference. 
D)  All of the above are correct. 
A)  historical study. 
B)  mathematical reasoning. 
C)  statistical inference. 
D)  All of the above are correct.

Question 19

Slope is measured as run/rise.

Accepted Answer

A) True 
 B)False

Question 20

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States,Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

Accepted Answer

A) True 
 B)False

Suppose that a curve has a slope equal to zero at some point A.To the right of A,the curve may

The market mechanism provides a financial incentive for firms to minimize the pollution they create.

One of the consequences of allowing wages to fall in the United States has been growing wage inequality.

Comparative advantage explains how two nations can benefit from trade.

Greater economic efficiency often leads to greater economic inequality.

What is the appropriate degree of abstraction?

Individuals will have different value judgments about the appropriate rate of unemployment and the appropriate rate of inflation.

Economic theory

The dramatic increase in the standard of living since the Industrial Revolution

Inaccurate prediction generally invalidates the use of theory in economics.

If an economic curve has a negative slope,then one variable

A horizontal line always has a slope of one.

Economists may disagree about how to solve an economic problem because they

Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?

A graph conveys information about a cause-and-effect relationship.

Economists probably agree more often than they disagree.

Tools used by economists include

Slope is measured as run/rise.

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States,Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

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

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Exam 1: What Is Economics?

Suppose that a curve has a slope equal to zero at some point A.To the right of A,the curve may

The market mechanism provides a financial incentive for firms to minimize the pollution they create.

One of the consequences of allowing wages to fall in the United States has been growing wage inequality.

Comparative advantage explains how two nations can benefit from trade.

Greater economic efficiency often leads to greater economic inequality.

What is the appropriate degree of abstraction?

Individuals will have different value judgments about the appropriate rate of unemployment and the appropriate rate of inflation.

Economic theory

The dramatic increase in the standard of living since the Industrial Revolution

Inaccurate prediction generally invalidates the use of theory in economics.

If an economic curve has a negative slope,then one variable

A horizontal line always has a slope of one.

Economists may disagree about how to solve an economic problem because they

Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?

A graph conveys information about a cause-and-effect relationship.

Economists probably agree more often than they disagree.

Tools used by economists include

Slope is measured as run/rise.

If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States,Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.

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