Question 1

Suppose that one hour of additional studying would raise a students's score on an exam by an additional 5 points. What can we conclude from this?

Accepted Answer

A)  it's not worth it for this student to study for the exam 
B)  the slope of the study time-grade line is +5 
C)  the study time-grade line has shifted to the right 
D)  the student's exam score is an independent variable 
A)  it's not worth it for this student to study for the exam 
B)  the slope of the study time-grade line is +5 
C)  the study time-grade line has shifted to the right 
D)  the student's exam score is an independent variable

Question 2

The ratio of an industry's production to its capacity is

Accepted Answer

A)  the capacity utilization rate 
B)  always 100 percent 
C)  the economic growth rate 
D)  negative during a recession 
A)  the capacity utilization rate 
B)  always 100 percent 
C)  the economic growth rate 
D)  negative during a recession

Question 3

Entrepreneurship is a special type of labor input.

Accepted Answer

A) True 
 B)False

Question 4

Economic models are built from words, diagrams, and/or mathematical equations.

Accepted Answer

A) True 
 B)False

Question 5

A(n) ______ is a person who organizes, manages, and assembles the other factors of production to produce goods and services.

Accepted Answer

A)  manager 
B)  capitalist 
C)  entrepreneur 
D)  innovator 
A)  manager 
B)  capitalist 
C)  entrepreneur 
D)  innovator

Question 6

In the 1970s, Japanese and European steel companies were able to increase their productivity relative to U.S. steel companies when they

Accepted Answer

A)  brought in more immigrant workers at low wages 
B)  recyled and renovated their older obsolete equipment 
C)  invested in efficient new plant and equipment 
D)  took over companies producing unrelated products such as wool 
A)  brought in more immigrant workers at low wages 
B)  recyled and renovated their older obsolete equipment 
C)  invested in efficient new plant and equipment 
D)  took over companies producing unrelated products such as wool

Question 7

Table 1.1. U.S. Production Possibilities Curve Data
 $$\begin{array} { l r r r r r r } 
& \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \
\text { Capital goods } & 5 & 4 & 3 & 2 & 1 & 0 \
\text { Consumer goods } & 0 & 12 & 22 & 30 & 36 & 40
\end{array}$$
-Refer to Table 1.1. Points A, B, C, D, E and F are

Accepted Answer

A)  unattainable 
B)  positive 
C)  efficient 
D)  normative 
A)  unattainable 
B)  positive 
C)  efficient 
D)  normative

Question 8

FedEx, founded by entrepreneur Frederick Smith, was an overnight success in 1971.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following countries faced U.S. economic sanctions in the 1980's to fight discriminatory laws and practices?

Accepted Answer

A)  India 
B)  South Africa 
C)  Russia 
D)  Iraq 
A)  India 
B)  South Africa 
C)  Russia 
D)  Iraq

Question 10

Assuming that rational people are motivated by incentives, what would occur if the average salary of finance majors rises by 30 percent and the average salary of philosophy majors remains constant?

Accepted Answer

A)  Students will shift majors from philosophy to finance. 
B)  Students will shift majors from finance to philosophy. 
C)  Students will stop majoring in both finance and philosophy. 
D)  Students will drop out of college. 
A)  Students will shift majors from philosophy to finance. 
B)  Students will shift majors from finance to philosophy. 
C)  Students will stop majoring in both finance and philosophy. 
D)  Students will drop out of college.

Question 11

A point located on a production possibilities curve represents

Accepted Answer

A)  an unattainable choice 
B)  efficient use of resources 
C)  inefficient production 
D)  changing technology 
A)  an unattainable choice 
B)  efficient use of resources 
C)  inefficient production 
D)  changing technology

Question 12

In the studying example given in the text, how was the relationship between study time and course grade depicted graphically?

Accepted Answer

A)  by a bowed outward curve 
B)  by a bowed inward curve 
C)  by a positively-sloped straight line 
D)  by a negatively-sloped straight line 
A)  by a bowed outward curve 
B)  by a bowed inward curve 
C)  by a positively-sloped straight line 
D)  by a negatively-sloped straight line

Question 13

Figure 1.1 U.S. Production Possibilities Curve
  
-Refer to Figure 1.1. Which current production alternative would best induce increases in the economy's future production capabilities in the long run?

Accepted Answer

A)  alternative A 
B)  alternative B 
C)  alternative C 
D)  alternative D 
A)  alternative A 
B)  alternative B 
C)  alternative C 
D)  alternative D

Question 14

Which of the following statements about consumer goods is false?

Accepted Answer

A)  They are goods that are available for immediate use by households. 
B)  They include items such as clothing, food, and recreation. 
C)  They do not contribute to the future production of society. 
D)  They are a source of an economy's growth potential. 
A)  They are goods that are available for immediate use by households. 
B)  They include items such as clothing, food, and recreation. 
C)  They do not contribute to the future production of society. 
D)  They are a source of an economy's growth potential.

Question 15

Figure 1.1 U.S. Production Possibilities Curve
  
-Refer to Figure 1.1. If the economy moves from point A to point B, it will produce

Accepted Answer

A)  more capital goods, but fewer consumer goods 
B)  more consumer goods, but fewer capital goods 
C)  more capital goods, and more consumer goods 
D)  fewer capital goods, and fewer consumer goods 
A)  more capital goods, but fewer consumer goods 
B)  more consumer goods, but fewer capital goods 
C)  more capital goods, and more consumer goods 
D)  fewer capital goods, and fewer consumer goods

Question 16

As a factor of production, capital includes money that is used to finance the purchase of plants and equipment.

Accepted Answer

A) True 
 B)False

Question 17

According to the "economic way of thinking," every choice has a cost, people make better choices by thinking at the margin, and people act as if they are motivated by self-interest.

Accepted Answer

A) True 
 B)False

Question 18

The opportunity cost of taking a trip to Disneyland includes the money you

Accepted Answer

A)  save using a discount airfare coupon 
B)  give to your favorite charity each year 
C)  earn when you get back from Disneyland 
D)  could have earned if you stayed at home and worked 
A)  save using a discount airfare coupon 
B)  give to your favorite charity each year 
C)  earn when you get back from Disneyland 
D)  could have earned if you stayed at home and worked

Suppose that one hour of additional studying would raise a students's score on an exam by an additional 5 points. What can we conclude from this?

The ratio of an industry's production to its capacity is

Entrepreneurship is a special type of labor input.

Economic models are built from words, diagrams, and/or mathematical equations.

A(n) ______ is a person who organizes, manages, and assembles the other factors of production to produce goods and services.

In the 1970s, Japanese and European steel companies were able to increase their productivity relative to U.S. steel companies when they

Table 1.1. U.S. Production Possibilities Curve Data A B C D E F Capital goods 5 4 3 2 1 0 Consumer goods 0 12 22 30 36 40 -Refer to Table 1.1. Points A, B, C, D, E and F are

FedEx, founded by entrepreneur Frederick Smith, was an overnight success in 1971.

Which of the following countries faced U.S. economic sanctions in the 1980's to fight discriminatory laws and practices?

Assuming that rational people are motivated by incentives, what would occur if the average salary of finance majors rises by 30 percent and the average salary of philosophy majors remains constant?

A point located on a production possibilities curve represents

In the studying example given in the text, how was the relationship between study time and course grade depicted graphically?

Figure 1.1 U.S. Production Possibilities Curve -Refer to Figure 1.1. Which current production alternative would best induce increases in the economy's future production capabilities in the long run?

Which of the following statements about consumer goods is false?

Figure 1.1 U.S. Production Possibilities Curve -Refer to Figure 1.1. If the economy moves from point A to point B, it will produce

As a factor of production, capital includes money that is used to finance the purchase of plants and equipment.

According to the "economic way of thinking," every choice has a cost, people make better choices by thinking at the margin, and people act as if they are motivated by self-interest.

The opportunity cost of taking a trip to Disneyland includes the money you

Market Transactions: Demand and Supply Analysis

Demand and Supply Applications

Production and the Costs of Production

Competition and Monopoly: Virtues and Vices

Imperfect Competition

Labor Markets

Government and Markets

The Mixed Economy of the United States

Gross Domestic Product and Economic Growth

The Business Cycle, Unemployment, and Inflation

Macroeconomic Instability: Aggregate Demand and Aggregate Supply

Fiscal Policy and the Federal Budget

Money and the Banking System

The Federal Reserve and Monetary Policy

The United States and the Global Economy

International Finance

Economic Systems and Developing Countries

Filters

Exam 1: Scarcity and Choice

Suppose that one hour of additional studying would raise a students's score on an exam by an additional 5 points. What can we conclude from this?

The ratio of an industry's production to its capacity is

Entrepreneurship is a special type of labor input.

Economic models are built from words, diagrams, and/or mathematical equations.

A(n) ______ is a person who organizes, manages, and assembles the other factors of production to produce goods and services.

In the 1970s, Japanese and European steel companies were able to increase their productivity relative to U.S. steel companies when they

Table 1.1. U.S. Production Possibilities Curve Data A B C D E F Capital goods 5 4 3 2 1 0 Consumer goods 0 12 22 30 36 40 -Refer to Table 1.1. Points A, B, C, D, E and F are

FedEx, founded by entrepreneur Frederick Smith, was an overnight success in 1971.

Which of the following countries faced U.S. economic sanctions in the 1980's to fight discriminatory laws and practices?

Assuming that rational people are motivated by incentives, what would occur if the average salary of finance majors rises by 30 percent and the average salary of philosophy majors remains constant?

A point located on a production possibilities curve represents

In the studying example given in the text, how was the relationship between study time and course grade depicted graphically?

Figure 1.1 U.S. Production Possibilities Curve -Refer to Figure 1.1. Which current production alternative would best induce increases in the economy's future production capabilities in the long run?

Which of the following statements about consumer goods is false?

Figure 1.1 U.S. Production Possibilities Curve -Refer to Figure 1.1. If the economy moves from point A to point B, it will produce

As a factor of production, capital includes money that is used to finance the purchase of plants and equipment.

According to the "economic way of thinking," every choice has a cost, people make better choices by thinking at the margin, and people act as if they are motivated by self-interest.

The opportunity cost of taking a trip to Disneyland includes the money you

Market Transactions: Demand and Supply Analysis

Demand and Supply Applications

Production and the Costs of Production

Competition and Monopoly: Virtues and Vices

Imperfect Competition

Labor Markets

Government and Markets

The Mixed Economy of the United States

Gross Domestic Product and Economic Growth

The Business Cycle, Unemployment, and Inflation

Macroeconomic Instability: Aggregate Demand and Aggregate Supply

Fiscal Policy and the Federal Budget

Money and the Banking System

The Federal Reserve and Monetary Policy

The United States and the Global Economy

International Finance

Economic Systems and Developing Countries

Filters