Question 1

The core problem faced by all economic systems is that

Accepted Answer

A) scarcity forces each of us to make choices 
B) the government must intervene to allocate scarce resources 
C) of matching people's wants with their needs 
D) of allocating unlimited resources 
E) it needs to maximize each household's material standard of living 
A) scarcity forces each of us to make choices 
B) the government must intervene to allocate scarce resources 
C) of matching people's wants with their needs 
D) of allocating unlimited resources 
E) it needs to maximize each household's material standard of living

Question 2

Economics is the study of choice under conditions of

Accepted Answer

A) demand 
B) supply 
C) scarcity 
D) opportunity 
E) abundance 
A) demand 
B) supply 
C) scarcity 
D) opportunity 
E) abundance

Question 3

In one hour,George can fix 4 flat tires or type 200 words.His opportunity cost of fixing a flat tire is

Accepted Answer

A) 200 words 
B) 4 flat tires 
C) 1 word 
D) 50 words 
E) 800 words 
A) 200 words 
B) 4 flat tires 
C) 1 word 
D) 50 words 
E) 800 words

Question 4

All of the following are examples of constraints faced by decision makers,except one.Which is the exception?

Accepted Answer

A) income for a consumer 
B) natural resources for a firm 
C) time for a laborer 
D) consumer wants 
E) wealth for a consumer 
A) income for a consumer 
B) natural resources for a firm 
C) time for a laborer 
D) consumer wants 
E) wealth for a consumer

Question 5

The statement that "at 10 percent,the interest rate is too high for families to buy a home they could have afforded when the interest rate was below 7 percent ," is a(n)

Accepted Answer

A) positive statement 
B) normative statement 
C) morally ambiguous philosophical position 
D) affront to the American dream 
E) value judgment 
A) positive statement 
B) normative statement 
C) morally ambiguous philosophical position 
D) affront to the American dream 
E) value judgment

Question 6

A critical assumption made by all economic models is that

Accepted Answer

A) few economic decision makers face constraints under capitalism 
B) few economic decision makers face constraints under communism 
C) every economic decision maker,except the extremely wealthy,faces constraints 
D) every economic decision maker,except the federal government,faces constraints 
E) every economic decision maker faces constraints under every economic system 
A) few economic decision makers face constraints under capitalism 
B) few economic decision makers face constraints under communism 
C) every economic decision maker,except the extremely wealthy,faces constraints 
D) every economic decision maker,except the federal government,faces constraints 
E) every economic decision maker faces constraints under every economic system

Question 7

When measuring the opportunity cost of taking a vacation to Europe,the money spent on the flight,hotels,and meals is

Accepted Answer

A) generally less than the opportunity cost of the vacation 
B) generally greater than the opportunity cost of the vacation 
C) generally equal to the total opportunity cost of the vacation 
D) equal to the total opportunity cost of the vacation only if the vacation was planned well in advance 
E) equal to the total opportunity cost of the vacation only if there was little advanced planning 
A) generally less than the opportunity cost of the vacation 
B) generally greater than the opportunity cost of the vacation 
C) generally equal to the total opportunity cost of the vacation 
D) equal to the total opportunity cost of the vacation only if the vacation was planned well in advance 
E) equal to the total opportunity cost of the vacation only if there was little advanced planning

Question 8

Entrepreneurship is typically identified with which of the following?

Accepted Answer

A) professionalism and dedication 
B) risk-taking and creativity 
C) impulsiveness and leadership 
D) organization and sense of humor 
E) boring and rich 
A) professionalism and dedication 
B) risk-taking and creativity 
C) impulsiveness and leadership 
D) organization and sense of humor 
E) boring and rich

Question 9

In one year,a weapons plant can manufacture either 1,000 more guns or 50 more tanks.The plant's opportunity cost of an extra tank is approximately

Accepted Answer

A) 20 guns 
B) 50 guns 
C) 50 tanks 
D) 1/50 of a tank 
E) 1/50 of a gun 
A) 20 guns 
B) 50 guns 
C) 50 tanks 
D) 1/50 of a tank 
E) 1/50 of a gun

Question 10

Society's resources include

Accepted Answer

A) land and labor 
B) labor and machinery 
C) land,labor,and capital 
D) land,capital,and money 
E) labor,capital,and money 
A) land and labor 
B) labor and machinery 
C) land,labor,and capital 
D) land,capital,and money 
E) labor,capital,and money

Question 11

Macroeconomics focuses on the behavior of economic agents such as the consumer,a business firm,or a specific market.

Accepted Answer

A) True 
 B)False

Question 12

Because economists have different values,like everyone else,they

Accepted Answer

A) tend to be self centered,so positive economics is impossible 
B) ignore politics 
C) use abstraction to be realistic 
D) may disagree,even though economic theory is based on positive statements 
E) try to be right all the time 
A) tend to be self centered,so positive economics is impossible 
B) ignore politics 
C) use abstraction to be realistic 
D) may disagree,even though economic theory is based on positive statements 
E) try to be right all the time

Question 13

In order to eliminate unnecessary details and highlight the essential features of an economic model,an economist makes

Accepted Answer

A) critical assumptions 
B) macroeconomic assumptions 
C) normative assumptions 
D) positive assumptions 
E) simplifying assumptions 
A) critical assumptions 
B) macroeconomic assumptions 
C) normative assumptions 
D) positive assumptions 
E) simplifying assumptions

Question 14

Suppose two economists disagree about who would be helped or hurt by certain legislation.These disagreements

Accepted Answer

A) are positive in nature 
B) are minor and rarely lead to different policies or conclusions 
C) are normative in nature 
D) occur as the result of a mistake made by an economist 
E) occur because economic models are more complex,and subject to error,than the real world 
A) are positive in nature 
B) are minor and rarely lead to different policies or conclusions 
C) are normative in nature 
D) occur as the result of a mistake made by an economist 
E) occur because economic models are more complex,and subject to error,than the real world

Question 15

For society as a whole,producing more of one good or service has an opportunity cost because

Accepted Answer

A) human wants are limited and resources are unlimited 
B) both human wants and resources are unlimited 
C) resources are limited;human wants are irrelevant 
D) human wants are unlimited and resources are limited 
E) both human wants and resources are limited 
A) human wants are limited and resources are unlimited 
B) both human wants and resources are unlimited 
C) resources are limited;human wants are irrelevant 
D) human wants are unlimited and resources are limited 
E) both human wants and resources are limited

Question 16

A microeconomist might study which of the following?

Accepted Answer

A) how inflation changes over time for several countries 
B) how money supply aggregates are measured 
C) economic growth in less-developed countries in Africa 
D) the relationship between aggregate income and aggregate personal consumption 
E) why wages for females are lower than for males in a particular labor market 
A) how inflation changes over time for several countries 
B) how money supply aggregates are measured 
C) economic growth in less-developed countries in Africa 
D) the relationship between aggregate income and aggregate personal consumption 
E) why wages for females are lower than for males in a particular labor market

Question 17

Which of the following is the study of economic policy recommendations?

Accepted Answer

A) positive economics 
B) law and economics 
C) microeconomics 
D) development economics 
E) normative economics 
A) positive economics 
B) law and economics 
C) microeconomics 
D) development economics 
E) normative economics

Question 18

Which of the following would be studied in macroeconomics?

Accepted Answer

A) a drop in the price of personal computers 
B) an individual household's decision on how to allocate its spending power 
C) a rise in employment in movie theaters across the nation 
D) total output in the nation 
E) a local bank's increase in the interest rate offered on savings deposits 
A) a drop in the price of personal computers 
B) an individual household's decision on how to allocate its spending power 
C) a rise in employment in movie theaters across the nation 
D) total output in the nation 
E) a local bank's increase in the interest rate offered on savings deposits

Question 19

Even though households may have unlimited wants,they have to allocate their spending carefully because they

Accepted Answer

A) do not want their credit card bills to be too high 
B) worry about their taxes 
C) have limited intelligence 
D) have limited incomes 
E) basically want to become wealthy 
A) do not want their credit card bills to be too high 
B) worry about their taxes 
C) have limited intelligence 
D) have limited incomes 
E) basically want to become wealthy

Question 20

Opportunity costs arise in production because

Accepted Answer

A) resources are unlimited 
B) resources must be shifted away from producing one good in order to produce another 
C) wants are limited in society 
D) monetary costs of inputs usually outweigh non-monetary costs 
E) the monetary costs of only a few resources are zero 
A) resources are unlimited 
B) resources must be shifted away from producing one good in order to produce another 
C) wants are limited in society 
D) monetary costs of inputs usually outweigh non-monetary costs 
E) the monetary costs of only a few resources are zero

The core problem faced by all economic systems is that

Economics is the study of choice under conditions of

In one hour,George can fix 4 flat tires or type 200 words.His opportunity cost of fixing a flat tire is

All of the following are examples of constraints faced by decision makers,except one.Which is the exception?

The statement that "at 10 percent,the interest rate is too high for families to buy a home they could have afforded when the interest rate was below 7 percent ," is a(n)

A critical assumption made by all economic models is that

When measuring the opportunity cost of taking a vacation to Europe,the money spent on the flight,hotels,and meals is

Entrepreneurship is typically identified with which of the following?

In one year,a weapons plant can manufacture either 1,000 more guns or 50 more tanks.The plant's opportunity cost of an extra tank is approximately

Society's resources include

Macroeconomics focuses on the behavior of economic agents such as the consumer,a business firm,or a specific market.

Because economists have different values,like everyone else,they

In order to eliminate unnecessary details and highlight the essential features of an economic model,an economist makes

Suppose two economists disagree about who would be helped or hurt by certain legislation.These disagreements

For society as a whole,producing more of one good or service has an opportunity cost because

A microeconomist might study which of the following?

Which of the following is the study of economic policy recommendations?

Which of the following would be studied in macroeconomics?

Even though households may have unlimited wants,they have to allocate their spending carefully because they

Opportunity costs arise in production because

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 1: What Is Economics

The core problem faced by all economic systems is that

Economics is the study of choice under conditions of

In one hour,George can fix 4 flat tires or type 200 words.His opportunity cost of fixing a flat tire is

All of the following are examples of constraints faced by decision makers,except one.Which is the exception?

The statement that "at 10 percent,the interest rate is too high for families to buy a home they could have afforded when the interest rate was below 7 percent ," is a(n)

A critical assumption made by all economic models is that

When measuring the opportunity cost of taking a vacation to Europe,the money spent on the flight,hotels,and meals is

Entrepreneurship is typically identified with which of the following?

In one year,a weapons plant can manufacture either 1,000 more guns or 50 more tanks.The plant's opportunity cost of an extra tank is approximately

Society's resources include

Macroeconomics focuses on the behavior of economic agents such as the consumer,a business firm,or a specific market.

Because economists have different values,like everyone else,they

In order to eliminate unnecessary details and highlight the essential features of an economic model,an economist makes

Suppose two economists disagree about who would be helped or hurt by certain legislation.These disagreements

For society as a whole,producing more of one good or service has an opportunity cost because

A microeconomist might study which of the following?

Which of the following is the study of economic policy recommendations?

Which of the following would be studied in macroeconomics?

Even though households may have unlimited wants,they have to allocate their spending carefully because they

Opportunity costs arise in production because

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters