Question 1

In scientific language,a theory is an untested assertion of alleged fact.

Accepted Answer

A) True 
 B)False

Question 2

An article in a recent economics periodical asks the question: "Is low inflation worth it?" By "it," the article probably means

Accepted Answer

A)  the loss of comparative advantage. 
B)  enduring externalities. 
C)  unemployment. 
D)  repealing the law of supply and demand. 
E)  the opportunity cost of higher interest rates. 
A)  the loss of comparative advantage. 
B)  enduring externalities. 
C)  unemployment. 
D)  repealing the law of supply and demand. 
E)  the opportunity cost of higher interest rates.

Question 3

Both parties gain in a voluntary exchange.

Accepted Answer

A) True 
 B)False

Question 4

Economics

Accepted Answer

A)  is a narrowly focused discipline. 
B)  is a broad-ranging discipline. 
C)  concerns itself only with the U.S. economy. 
D)  says little about "everyday life." 
E)  deals with minor problems. 
A)  is a narrowly focused discipline. 
B)  is a broad-ranging discipline. 
C)  concerns itself only with the U.S. economy. 
D)  says little about "everyday life." 
E)  deals with minor problems.

Question 5

Carefully distinguish between an economic theory and economic model.

Accepted Answer

An economic theory is a deliberate simpl

Question 6

Externalities are social costs that affect parties external to a particular economic transaction.

Accepted Answer

A) True 
 B)False

Question 7

An economic model can be defined as

Accepted Answer

A)  a testable claim which can be evaluated with proper data. 
B)  a representation of a theory or a part of a theory. 
C)  another word for theory. 
D)  a method to distinguish correlation from causation. 
E)  All of the above are correct. 
A)  a testable claim which can be evaluated with proper data. 
B)  a representation of a theory or a part of a theory. 
C)  another word for theory. 
D)  a method to distinguish correlation from causation. 
E)  All of the above are correct.

Question 8

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 variab

Question 9

A theory is an explanation of the causal mechanism behind observed phenomena.

Accepted Answer

A) True 
 B)False

Question 10

How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?

Accepted Answer

The United States has chosen greater eff

Question 11

Explain why an airline may decide to sell an air ticket to a stand-by passenger at less than the full-fare if there are empty seats on the airplane?

Accepted Answer

The decision depends on the marginal,or

Question 12

An economic model is a realistic depiction of the operation of the economy.

Accepted Answer

A) True 
 B)False

Question 13

Models are simplifications that are used to observe the workings of a system.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that one can read a graph that shows information about price and quantity of some product.Relying solely on the graph,is it possible to explain the relationship between the two variables?

Accepted Answer

No.The graph does not,by itsel

Question 15

In contrast to the United States,the European Union has chosen

Accepted Answer

A)  greater wage inequality for lower unemployment. 
B)  less wage inequality and lower unemployment. 
C)  greater wage inequality and higher unemployment. 
D)  similar wage inequality but more unemployment. 
E)  less wage inequality for higher unemployment. 
A)  greater wage inequality for lower unemployment. 
B)  less wage inequality and lower unemployment. 
C)  greater wage inequality and higher unemployment. 
D)  similar wage inequality but more unemployment. 
E)  less wage inequality for higher unemployment.

Question 16

A line that rises at a 45 degree angle has a slope of

Accepted Answer

A) 0.45. 
B) 1. 
C) 45. 
D)  1/45. 
A) 0.45. 
B) 1. 
C) 45. 
D)  1/45.

Question 17

Economists disagree on most economic issues facing an economy.

Accepted Answer

A) True 
 B)False

Question 18

Economists and others use economic theory

Accepted Answer

A)  only to analyze situations in which money changes hands. 
B)  as a partial basis for public policy recommendations. 
C)  to confuse their enemies. 
D)  to replace value judgments about important policy issues. 
A)  only to analyze situations in which money changes hands. 
B)  as a partial basis for public policy recommendations. 
C)  to confuse their enemies. 
D)  to replace value judgments about important policy issues.

Question 19

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 20

If Taiwanese workers can produce all goods at lower wages than American workers,then

Accepted Answer

A)  Americans can still gain by trading with Taiwan. 
B)  Americans can only lose if they import from Taiwan. 
C)  Taiwan can only lose if it trades with America. 
D)  there are no gains from trade that are possible in this case. 
E)  Americans should be self-sufficient. 
A)  Americans can still gain by trading with Taiwan. 
B)  Americans can only lose if they import from Taiwan. 
C)  Taiwan can only lose if it trades with America. 
D)  there are no gains from trade that are possible in this case. 
E)  Americans should be self-sufficient.

In scientific language,a theory is an untested assertion of alleged fact.

An article in a recent economics periodical asks the question: "Is low inflation worth it?" By "it," the article probably means

Both parties gain in a voluntary exchange.

Economics

Carefully distinguish between an economic theory and economic model.

Externalities are social costs that affect parties external to a particular economic transaction.

An economic model can be defined as

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

A theory is an explanation of the causal mechanism behind observed phenomena.

How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?

Explain why an airline may decide to sell an air ticket to a stand-by passenger at less than the full-fare if there are empty seats on the airplane?

An economic model is a realistic depiction of the operation of the economy.

Models are simplifications that are used to observe the workings of a system.

Suppose that one can read a graph that shows information about price and quantity of some product.Relying solely on the graph,is it possible to explain the relationship between the two variables?

In contrast to the United States,the European Union has chosen

A line that rises at a 45 degree angle has a slope of

Economists disagree on most economic issues facing an economy.

Economists and others use economic theory

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

If Taiwanese workers can produce all goods at lower wages than American workers,then

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?

In scientific language,a theory is an untested assertion of alleged fact.

An article in a recent economics periodical asks the question: "Is low inflation worth it?" By "it," the article probably means

Both parties gain in a voluntary exchange.

Economics

Carefully distinguish between an economic theory and economic model.

Externalities are social costs that affect parties external to a particular economic transaction.

An economic model can be defined as

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

A theory is an explanation of the causal mechanism behind observed phenomena.

How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?

Explain why an airline may decide to sell an air ticket to a stand-by passenger at less than the full-fare if there are empty seats on the airplane?

An economic model is a realistic depiction of the operation of the economy.

Models are simplifications that are used to observe the workings of a system.

Suppose that one can read a graph that shows information about price and quantity of some product.Relying solely on the graph,is it possible to explain the relationship between the two variables?

In contrast to the United States,the European Union has chosen

A line that rises at a 45 degree angle has a slope of

Economists disagree on most economic issues facing an economy.

Economists and others use economic theory

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

If Taiwanese workers can produce all goods at lower wages than American workers,then

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