Question 1

Because resources are scarce,if society produces more of one commodity,it has to sacrifice some amount of another commodity.The amount sacrificed is

Accepted Answer

A) a normative problem 
B) the out-of-pocket cost 
C) the opportunity cost 
D) the lost profit 
E) the total factor productivity 
A) a normative problem 
B) the out-of-pocket cost 
C) the opportunity cost 
D) the lost profit 
E) the total factor productivity

Question 2

Economics is

Accepted Answer

A) the narrow study of how to make money in financial markets 
B) the broad study of how to allocate unlimited resources to satisfy limited uses 
C) the broad study of how to allocate limited resources to satisfy unlimited wants 
D) the narrow study of using stocks and bonds to their maximum potential 
E) the narrow study of how to be conservative in financial affairs 
A) the narrow study of how to make money in financial markets 
B) the broad study of how to allocate unlimited resources to satisfy limited uses 
C) the broad study of how to allocate limited resources to satisfy unlimited wants 
D) the narrow study of using stocks and bonds to their maximum potential 
E) the narrow study of how to be conservative in financial affairs

Question 3

The ultimate purpose of building an economic model is to

Accepted Answer

A) challenge college students 
B) constrain economic agents 
C) predict behavior 
D) change behavior 
E) prevent behavior 
A) challenge college students 
B) constrain economic agents 
C) predict behavior 
D) change behavior 
E) prevent behavior

Question 4

Positive economic statements are usually easier to refute with data than normative economic statements are.

Accepted Answer

A) True 
 B)False

Question 5

Economics is the study of

Accepted Answer

A) scarcity under conditions of democracy 
B) choice within a system of free speech 
C) financial markets 
D) the role of government in a market system 
E) choice under conditions of scarcity 
A) scarcity under conditions of democracy 
B) choice within a system of free speech 
C) financial markets 
D) the role of government in a market system 
E) choice under conditions of scarcity

Question 6

Economists disagree about many things.When those disagreements are about which model best explains the economy,these disagreements are primarily over "positive" statements.

Accepted Answer

A) True 
 B)False

Question 7

-Grant has four hours of time to divide between studying for a physics exam and a geology exam.Figure 1-1 shows his estimates of the grades (on a scale of 0 to 100)that he could earn from studying a particular number of hours on each subject.If he plans on spending three hours studying physics,what would be his opportunity cost of an additional hour studying physics?

Accepted Answer

A) 10 points on his geology exam 
B) 20 points on his geology exam 
C) 30 points on his geology exam 
D) 25 points on his physics exam 
E) 85 points on his physics exam 
A) 10 points on his geology exam 
B) 20 points on his geology exam 
C) 30 points on his geology exam 
D) 25 points on his physics exam 
E) 85 points on his physics exam

Question 8

Microeconomic models focus on the behavior of

Accepted Answer

A) all households,businesses,and government sectors at the same time 
B) the household sector as a whole 
C) individual households and business firms 
D) individual households,business firms,and government agencies 
E) the business and government sectors 
A) all households,businesses,and government sectors at the same time 
B) the household sector as a whole 
C) individual households and business firms 
D) individual households,business firms,and government agencies 
E) the business and government sectors

Question 9

If Sally purchases a particular compact disk,it is because the opportunity cost is higher than it would be for any other compact disk.

Accepted Answer

A) True 
 B)False

Question 10

After graduating from high school,Steve had the following three choices for his immediate future,listed in order of preference: (1)attend our campus,(2)work in a printed circuit board factory,or (3)attend a rival college.His opportunity cost of going to college here includes which of the following?

Accepted Answer

A) The cost of books and supplies at the rival college 
B) The income he could have earned at the printed circuit board factory plus the direct cost of attending college here (tuition,textbooks,etc. ) 
C) The benefits he could have received from going to the rival college 
D) Only the tuition and fees paid for taking classes here 
E) Cannot be determined from the information given 
A) The cost of books and supplies at the rival college 
B) The income he could have earned at the printed circuit board factory plus the direct cost of attending college here (tuition,textbooks,etc. ) 
C) The benefits he could have received from going to the rival college 
D) Only the tuition and fees paid for taking classes here 
E) Cannot be determined from the information given

Question 11

Which of the following explains why economists may disagree over positive 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 models and 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 models and statistical techniques when examining data. 
E) Some work only on microeconomic issues,while others focus exclusively on macroeconomic issues.

Question 12

Positive economics deals with

Accepted Answer

A) value judgments 
B) how the economy does work 
C) how the economy should work 
D) how the federal government should operate 
E) what the price level should be 
A) value judgments 
B) how the economy does work 
C) how the economy should work 
D) how the federal government should operate 
E) what the price level should be

Question 13

Suppose a new freshman enters State U with the objective of having lots of fun while getting good grades.Suppose that Friday and Saturday night offer the best/most efficient times for having fun and the day time offers the best time for studying.She should

Accepted Answer

A) study every single waking hour. 
B) party every single waking hour. 
C) assume there is no tradeoff between fun and grades. 
D) assume there is a constant tradeoff between fun and grades. 
E) assume there is a tradeoff between fun and grades that reflects increasing opportunity cost. 
A) study every single waking hour. 
B) party every single waking hour. 
C) assume there is no tradeoff between fun and grades. 
D) assume there is a constant tradeoff between fun and grades. 
E) assume there is a tradeoff between fun and grades that reflects increasing opportunity cost.

Question 14

An economic model is a(n)

Accepted Answer

A) philosophical inquiry 
B) set of numbers that describe a firm (e.g. ,profits and assets) 
C) abstract representation of reality 
D) concrete representation of reality 
E) ideal to which economic entities are compared 
A) philosophical inquiry 
B) set of numbers that describe a firm (e.g. ,profits and assets) 
C) abstract representation of reality 
D) concrete representation of reality 
E) ideal to which economic entities are compared

Question 15

The study of how firms interact in a market is a

Accepted Answer

A) waste of time 
B) normative subject 
C) microeconomic topic 
D) topic in political science 
E) macroeconomic topic 
A) waste of time 
B) normative subject 
C) microeconomic topic 
D) topic in political science 
E) macroeconomic topic

Question 16

If two economists disagree about the magnitude of employment effects of a proposed change in government policy,the difference in opinion

Accepted Answer

A) must be positive in nature 
B) must be normative in nature 
C) is more likely to be normative than positive 
D) is more likely to be positive than normative 
E) would be neither positive nor normative in nature 
A) must be positive in nature 
B) must be normative in nature 
C) is more likely to be normative than positive 
D) is more likely to be positive than normative 
E) would be neither positive nor normative in nature

Question 17

Economic models come in the form of

Accepted Answer

A) three-dimensional objects 
B) all of the following 
C) words 
D) diagrams 
E) mathematical equations 
A) three-dimensional objects 
B) all of the following 
C) words 
D) diagrams 
E) mathematical equations

Question 18

All production involves an opportunity cost because

Accepted Answer

A) to produce costs money 
B) costs of production are sky rocketing 
C) to produce more of one thing,we must produce more of everything 
D) to produce more of one thing,we must produce less of something else 
E) when an individual obtains more of a good,he may not be fully satisfied 
A) to produce costs money 
B) costs of production are sky rocketing 
C) to produce more of one thing,we must produce more of everything 
D) to produce more of one thing,we must produce less of something else 
E) when an individual obtains more of a good,he may not be fully satisfied

Question 19

Macroeconomics is the study of

Accepted Answer

A) how wages are determined in a specific labor market 
B) how to use the fewest natural resources to produce public goods 
C) what is happening in the economy as a whole 
D) how consumers and producers interact in individual markets 
E) the price and the quantity exchanged in a market 
A) how wages are determined in a specific labor market 
B) how to use the fewest natural resources to produce public goods 
C) what is happening in the economy as a whole 
D) how consumers and producers interact in individual markets 
E) the price and the quantity exchanged in a market

Question 20

"Senior citizens deserve an income that will allow them to live in comfort for their remaining years." This is

Accepted Answer

A) neither a normative nor a positive statement 
B) both a positive and a normative statement 
C) strictly a macroeconomic issue 
D) a positive statement 
E) a normative statement 
A) neither a normative nor a positive statement 
B) both a positive and a normative statement 
C) strictly a macroeconomic issue 
D) a positive statement 
E) a normative statement

Because resources are scarce,if society produces more of one commodity,it has to sacrifice some amount of another commodity.The amount sacrificed is

Economics is

The ultimate purpose of building an economic model is to

Positive economic statements are usually easier to refute with data than normative economic statements are.

Economics is the study of

Economists disagree about many things.When those disagreements are about which model best explains the economy,these disagreements are primarily over "positive" statements.

Microeconomic models focus on the behavior of

If Sally purchases a particular compact disk,it is because the opportunity cost is higher than it would be for any other compact disk.

After graduating from high school,Steve had the following three choices for his immediate future,listed in order of preference: (1)attend our campus,(2)work in a printed circuit board factory,or (3)attend a rival college.His opportunity cost of going to college here includes which of the following?

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

Positive economics deals with

Suppose a new freshman enters State U with the objective of having lots of fun while getting good grades.Suppose that Friday and Saturday night offer the best/most efficient times for having fun and the day time offers the best time for studying.She should

An economic model is a(n)

The study of how firms interact in a market is a

If two economists disagree about the magnitude of employment effects of a proposed change in government policy,the difference in opinion

Economic models come in the form of

All production involves an opportunity cost because

Macroeconomics is the study of

"Senior citizens deserve an income that will allow them to live in comfort for their remaining years." This is

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

Because resources are scarce,if society produces more of one commodity,it has to sacrifice some amount of another commodity.The amount sacrificed is

Economics is

The ultimate purpose of building an economic model is to

Positive economic statements are usually easier to refute with data than normative economic statements are.

Economics is the study of

Economists disagree about many things.When those disagreements are about which model best explains the economy,these disagreements are primarily over "positive" statements.

Microeconomic models focus on the behavior of

If Sally purchases a particular compact disk,it is because the opportunity cost is higher than it would be for any other compact disk.

After graduating from high school,Steve had the following three choices for his immediate future,listed in order of preference: (1)attend our campus,(2)work in a printed circuit board factory,or (3)attend a rival college.His opportunity cost of going to college here includes which of the following?

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

Positive economics deals with

Suppose a new freshman enters State U with the objective of having lots of fun while getting good grades.Suppose that Friday and Saturday night offer the best/most efficient times for having fun and the day time offers the best time for studying.She should

An economic model is a(n)

The study of how firms interact in a market is a

If two economists disagree about the magnitude of employment effects of a proposed change in government policy,the difference in opinion

Economic models come in the form of

All production involves an opportunity cost because

Macroeconomics is the study of

"Senior citizens deserve an income that will allow them to live in comfort for their remaining years." This is

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