Question 1

Which of the following statements is correct?

Accepted Answer

A)  Theory and hypothesis are interchangeable terms for the same thing. 
B)  A hypothesis may result from a tested and confirmed theory. 
C)  A theory may result from a tested and confirmed hypothesis. 
D)  A hypothesis is a theory whose formulation relies on mathematics. 
A)  Theory and hypothesis are interchangeable terms for the same thing. 
B)  A hypothesis may result from a tested and confirmed theory. 
C)  A theory may result from a tested and confirmed hypothesis. 
D)  A hypothesis is a theory whose formulation relies on mathematics.

Question 2

Figure 1-2
  
-Identify the slope of the two curves A and B in Figure 1-2.

Accepted Answer

A)  A - zero, B - one. 
B)  A - one, B - zero. 
C)  A - one, B - different at different points. 
D)  A - different at different points, B - zero. 
A)  A - zero, B - one. 
B)  A - one, B - zero. 
C)  A - one, B - different at different points. 
D)  A - different at different points, B - zero.

Question 3

The high unemployment of 2008-2010 caused a substantial decrease in inflation which created fears of deflation.

Accepted Answer

A) True 
 B)False

Question 4

In the short run,efforts to reduce the unemployment rate are likely to cause

Accepted Answer

A)  a decrease in the inflation rate. 
B)  an increase in the inflation rate. 
C)  no change in the inflation rate. 
D)  Uncertain-economists have found no relationship between the two variables. 
A)  a decrease in the inflation rate. 
B)  an increase in the inflation rate. 
C)  no change in the inflation rate. 
D)  Uncertain-economists have found no relationship between the two variables.

Question 5

A vertical line has a slope of

Accepted Answer

A)  infinity. 
B)  zero. 
C)  undefined. 
D)  1,000. 
A)  infinity. 
B)  zero. 
C)  undefined. 
D)  1,000.

Question 6

The opportunity cost of any good or service is the

Accepted Answer

A)  actual dollar cost of doing or making it. 
B)  highest price that a seller can get for the item. 
C)  value of the next best alternative. 
D)  cost associated with a value judgment. 
E)  cost of producing the good or service. 
A)  actual dollar cost of doing or making it. 
B)  highest price that a seller can get for the item. 
C)  value of the next best alternative. 
D)  cost associated with a value judgment. 
E)  cost of producing the good or service.

Question 7

In terms of the competing claims of equality and efficiency,in the United States we have

Accepted Answer

A)  chosen greater wage inequality for lower unemployment. 
B)  chosen higher unemployment for less wage inequality. 
C)  both greater wage inequality and higher unemployment. 
D)  not faced a trade-off between wage inequality and unemployment. 
E)  been able to choose both less wage inequality and lower unemployment. 
A)  chosen greater wage inequality for lower unemployment. 
B)  chosen higher unemployment for less wage inequality. 
C)  both greater wage inequality and higher unemployment. 
D)  not faced a trade-off between wage inequality and unemployment. 
E)  been able to choose both less wage inequality and lower unemployment.

Question 8

Opportunity cost is the value of the next best alternative to a given choice.

Accepted Answer

A) True 
 B)False

Question 9

Opportunity cost is the

Accepted Answer

A)  cost incurred when one fails to take advantage of an opportunity. 
B)  cost incurred in order to increase the availability of attractive opportunities. 
C)  cost of the best option forgone as a result of choosing an alternative. 
D)  drudgery of the undesirable aspects of an option. 
A)  cost incurred when one fails to take advantage of an opportunity. 
B)  cost incurred in order to increase the availability of attractive opportunities. 
C)  cost of the best option forgone as a result of choosing an alternative. 
D)  drudgery of the undesirable aspects of an option.

Question 10

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

Question 11

The slope of a line with rise of five and run of two is positive.

Accepted Answer

A) True 
 B)False

Question 12

Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?

Accepted Answer

A)  Bill, who is unemployed. 
B)  Jane, who is an unwed mother and earns $15,000 a year. 
C)  Larry, who is a technician in the Navy earning $18,000 a year with free food and housing. 
D)  Mary, who has a job earning $60,000 a year as a computer programmer. 
E)  Unable to determine from the data given. 
A)  Bill, who is unemployed. 
B)  Jane, who is an unwed mother and earns $15,000 a year. 
C)  Larry, who is a technician in the Navy earning $18,000 a year with free food and housing. 
D)  Mary, who has a job earning $60,000 a year as a computer programmer. 
E)  Unable to determine from the data given.

Question 13

A diagram is a good example of a(n)

Accepted Answer

A)  hypothesis. 
B)  abstraction. 
C)  theory. 
D)  concept. 
E)  instrumentation. 
A)  hypothesis. 
B)  abstraction. 
C)  theory. 
D)  concept. 
E)  instrumentation.

Question 14

The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed.

Accepted Answer

A) True 
 B)False

Question 15

Figure 1-1
  
-The slope of the line in Figure 1-1 is

Accepted Answer

A) 0.5. 
B) 2.0. 
C) −0.5. 
D) −2.0. 
A) 0.5. 
B) 2.0. 
C) −0.5. 
D) −2.0.

Question 16

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

Accepted Answer

Attempts to repeal the laws of supply an

Question 17

Economic problems are made manageable by stripping away some of the unnecessary details.

Accepted Answer

A) True 
 B)False

Question 18

The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a "normal" economic situation.

Accepted Answer

A) True 
 B)False

Question 19

Economic efficiency and income equality are often conflicting goals in an economy.

Accepted Answer

A) True 
 B)False

Question 20

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

Which of the following statements is correct?

Figure 1-2 -Identify the slope of the two curves A and B in Figure 1-2.

The high unemployment of 2008-2010 caused a substantial decrease in inflation which created fears of deflation.

In the short run,efforts to reduce the unemployment rate are likely to cause

A vertical line has a slope of

The opportunity cost of any good or service is the

In terms of the competing claims of equality and efficiency,in the United States we have

Opportunity cost is the value of the next best alternative to a given choice.

Opportunity cost is the

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

The slope of a line with rise of five and run of two is positive.

Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?

A diagram is a good example of a(n)

The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed.

Figure 1-1 -The slope of the line in Figure 1-1 is

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

Economic problems are made manageable by stripping away some of the unnecessary details.

The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a "normal" economic situation.

Economic efficiency and income equality are often conflicting goals in an economy.

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

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?

Which of the following statements is correct?

Figure 1-2 -Identify the slope of the two curves A and B in Figure 1-2.

The high unemployment of 2008-2010 caused a substantial decrease in inflation which created fears of deflation.

In the short run,efforts to reduce the unemployment rate are likely to cause

A vertical line has a slope of

The opportunity cost of any good or service is the

In terms of the competing claims of equality and efficiency,in the United States we have

Opportunity cost is the value of the next best alternative to a given choice.

Opportunity cost is the

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

The slope of a line with rise of five and run of two is positive.

Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?

A diagram is a good example of a(n)

The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed.

Figure 1-1 -The slope of the line in Figure 1-1 is

How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?

Economic problems are made manageable by stripping away some of the unnecessary details.

The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a "normal" economic situation.

Economic efficiency and income equality are often conflicting goals in an economy.

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

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