Question 1

A statement of opinion about which policy is best for America is

Accepted Answer

A) an abstraction 
B) a positive statement 
C) a normative statement 
D) a philosophical conundrum 
E) empirically verifiable 
A) an abstraction 
B) a positive statement 
C) a normative statement 
D) a philosophical conundrum 
E) empirically verifiable

Question 2

Consider an economic model designed to analyze the purchasing decisions of households.An assumption that a household chooses between only two goods would be an example of a

Accepted Answer

A) simplifying assumption 
B) critical assumption 
C) macroeconomic assumption 
D) financial assumption 
E) positive assumption 
A) simplifying assumption 
B) critical assumption 
C) macroeconomic assumption 
D) financial assumption 
E) positive assumption

Question 3

Carl is considering attending a concert with a ticket price of $35.He estimates that the cost of driving to the concert and parking there will total an additional $20.In order to attend the concert,Carl will have to take time off from his part-time job.He estimates that he will lose 5 hours at work,at a wage of $6 per hour.Carl's opportunity cost of attending the concert equals

Accepted Answer

A) $35 
B) $55 
C) $30 
D) $65 
E) $85 
A) $35 
B) $55 
C) $30 
D) $65 
E) $85

Question 4

Which of the following explains why economists may disagree over normative issues?

Accepted Answer

A) They have different beliefs and values. 
B) They examine the same data to draw their conclusions. 
C) They need to disagree in order to publish their research findings. 
D) They often employ different statistical techniques when examining data. 
E) Some work only on microeconomic issues,while others focus exclusively on macroeconomic issues. 
A) They have different beliefs and values. 
B) They examine the same data to draw their conclusions. 
C) They need to disagree in order to publish their research findings. 
D) They often employ different statistical techniques when examining data. 
E) Some work only on microeconomic issues,while others focus exclusively on macroeconomic issues.

Question 5

A newspaper headline announces that "more college graduates than ever are in the labor force." This is an example of

Accepted Answer

A) microeconomic analysis 
B) an abstraction 
C) a value judgment 
D) a positive statement 
E) macroeconomic analysis 
A) microeconomic analysis 
B) an abstraction 
C) a value judgment 
D) a positive statement 
E) macroeconomic analysis

Question 6

Economics is

Accepted Answer

A) a discipline in the physical sciences 
B) a field that deals exclusively with normative issues 
C) a field that deals exclusively with positive issues 
D) only useful for examining behavior in capitalist economies 
E) a discipline that focuses on how choices are made in society 
A) a discipline in the physical sciences 
B) a field that deals exclusively with normative issues 
C) a field that deals exclusively with positive issues 
D) only useful for examining behavior in capitalist economies 
E) a discipline that focuses on how choices are made in society

Question 7

Reasons for studying economics include

Accepted Answer

A) all of the following 
B) to better understand world issues by applying the tools of economic analysis 
C) to help design more effective solutions to society's problems 
D) to help prepare for careers in fields such as law and politics 
E) to better understand the impact of world events on an individual's life 
A) all of the following 
B) to better understand world issues by applying the tools of economic analysis 
C) to help design more effective solutions to society's problems 
D) to help prepare for careers in fields such as law and politics 
E) to better understand the impact of world events on an individual's life

Question 8

A good economic model

Accepted Answer

A) is as simple as possible,including only necessary details 
B) is as complex as possible,including many details 
C) represents reality as concretely as possible 
D) tries to be as detailed as the reality it is describing 
E) is very detailed regardless of its purpose 
A) is as simple as possible,including only necessary details 
B) is as complex as possible,including many details 
C) represents reality as concretely as possible 
D) tries to be as detailed as the reality it is describing 
E) is very detailed regardless of its purpose

Question 9

In the United States,individuals are forced to make choices

Accepted Answer

A) because time is scarce,though spending power is not 
B) because spending power is scarce,though time is not 
C) though neither time nor spending power are scarce 
D) because both time and spending power are scarce 
E) because living standards are low 
A) because time is scarce,though spending power is not 
B) because spending power is scarce,though time is not 
C) though neither time nor spending power are scarce 
D) because both time and spending power are scarce 
E) because living standards are low

Question 10

Microeconomics deals with which of the following?

Accepted Answer

A) the total output of an economy 
B) the measurement of a nation's inflation rate 
C) how producers and consumers interact in individual markets 
D) how tax policies influence economic growth 
E) whether wage growth will outpace inflation in the coming year 
A) the total output of an economy 
B) the measurement of a nation's inflation rate 
C) how producers and consumers interact in individual markets 
D) how tax policies influence economic growth 
E) whether wage growth will outpace inflation in the coming year

Question 11

All the problems studied in economics arise from

Accepted Answer

A) the unequal distribution of income 
B) overpopulation 
C) the scarcity of resources 
D) inappropriate government action 
E) war 
A) the unequal distribution of income 
B) overpopulation 
C) the scarcity of resources 
D) inappropriate government action 
E) war

Question 12

The question of scarce resources and unlimited wants is addressed in

Accepted Answer

A) psychology 
B) history 
C) political science 
D) economics 
E) anthropology 
A) psychology 
B) history 
C) political science 
D) economics 
E) anthropology

Question 13

Which of the following is assumed in virtually every economic model?

Accepted Answer

A) Inefficiency exists in the economy. 
B) Decision makers operate in the face of unlimited resources. 
C) All decision makers face constraints. 
D) Normative economic statements are derived from mathematical equations. 
E) Positive statements are derived from normative statements. 
A) Inefficiency exists in the economy. 
B) Decision makers operate in the face of unlimited resources. 
C) All decision makers face constraints. 
D) Normative economic statements are derived from mathematical equations. 
E) Positive statements are derived from normative statements.

Question 14

A physician's knowledge and skills are referred to by economists as

Accepted Answer

A) human capital 
B) labor 
C) physical capital 
D) entrepreneurship 
E) intellectual raw materials 
A) human capital 
B) labor 
C) physical capital 
D) entrepreneurship 
E) intellectual raw materials

Question 15

Microeconomics is the study of

Accepted Answer

A) government decisions 
B) the federal government's budget 
C) the economic behavior of entire nations 
D) the economic behavior of individual decision makers 
E) the overall economy 
A) government decisions 
B) the federal government's budget 
C) the economic behavior of entire nations 
D) the economic behavior of individual decision makers 
E) the overall economy

Question 16

The level of detail in an economic model

Accepted Answer

A) is as close as possible to the level of detail in reality 
B) depends on the purpose of the model 
C) is as complex as possible 
D) is the same regardless of the purpose of the model 
E) is as complex as possible to accomplish its purpose 
A) is as close as possible to the level of detail in reality 
B) depends on the purpose of the model 
C) is as complex as possible 
D) is the same regardless of the purpose of the model 
E) is as complex as possible to accomplish its purpose

Question 17

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 gun is approximately

Accepted Answer

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

Question 18

If an economic model includes an assumption that there are only two nations in the world,this would be an example of

Accepted Answer

A) a critical assumption 
B) an implicit assumption 
C) a simplifying assumption 
D) a concrete assumption 
E) a detail assumption 
A) a critical assumption 
B) an implicit assumption 
C) a simplifying assumption 
D) a concrete assumption 
E) a detail assumption

Question 19

A critical assumption differs from a simplifying assumption in that a critical assumption

Accepted Answer

A) is a means of getting rid of extraneous details in the model 
B) cannot affect the conclusions of the model 
C) can affect the conclusions of the model 
D) is rarely used in economic models 
E) is never a fundamental assumption 
A) is a means of getting rid of extraneous details in the model 
B) cannot affect the conclusions of the model 
C) can affect the conclusions of the model 
D) is rarely used in economic models 
E) is never a fundamental assumption

Question 20

Macroeconomics focuses on the economy as a whole.

Accepted Answer

A) True 
 B)False

A statement of opinion about which policy is best for America is

Consider an economic model designed to analyze the purchasing decisions of households.An assumption that a household chooses between only two goods would be an example of a

Which of the following explains why economists may disagree over normative issues?

A newspaper headline announces that "more college graduates than ever are in the labor force." This is an example of

Economics is

Reasons for studying economics include

A good economic model

In the United States,individuals are forced to make choices

Microeconomics deals with which of the following?

All the problems studied in economics arise from

The question of scarce resources and unlimited wants is addressed in

Which of the following is assumed in virtually every economic model?

A physician's knowledge and skills are referred to by economists as

Microeconomics is the study of

The level of detail in an economic model

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 gun is approximately

If an economic model includes an assumption that there are only two nations in the world,this would be an example of

A critical assumption differs from a simplifying assumption in that a critical assumption

Macroeconomics focuses on the economy as a whole.

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

A statement of opinion about which policy is best for America is

Consider an economic model designed to analyze the purchasing decisions of households.An assumption that a household chooses between only two goods would be an example of a

Which of the following explains why economists may disagree over normative issues?

A newspaper headline announces that "more college graduates than ever are in the labor force." This is an example of

Economics is

Reasons for studying economics include

A good economic model

In the United States,individuals are forced to make choices

Microeconomics deals with which of the following?

All the problems studied in economics arise from

The question of scarce resources and unlimited wants is addressed in

Which of the following is assumed in virtually every economic model?

A physician's knowledge and skills are referred to by economists as

Microeconomics is the study of

The level of detail in an economic model

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 gun is approximately

If an economic model includes an assumption that there are only two nations in the world,this would be an example of

A critical assumption differs from a simplifying assumption in that a critical assumption

Macroeconomics focuses on the economy as a whole.

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