Question 1

How are the fundamental economic decisions determined in North Korea?

Accepted Answer

A) Individuals, firms, and the government interact in a market to make these economic decisions. 
B) These decisions are made by the country's elders who have had much experience in answering these questions. 
C) The government decides because North Korea is a centrally planned economy. 
D) The United Nations decides because North Korea is a developing economy. 
A) Individuals, firms, and the government interact in a market to make these economic decisions. 
B) These decisions are made by the country's elders who have had much experience in answering these questions. 
C) The government decides because North Korea is a centrally planned economy. 
D) The United Nations decides because North Korea is a developing economy.

Question 2

What is meant by the statement that "optimal decisions are made at the margin"?

Accepted Answer

In economics, the word "marginal" means

Question 3

Voluntary exchange between buyers and sellers generates ________ in a market economy.

Accepted Answer

A) scarcity 
B) allocative efficiency 
C) productive efficiency 
D) equity 
A) scarcity 
B) allocative efficiency 
C) productive efficiency 
D) equity

Question 4

What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement.

Accepted Answer

Positive economic analysis is concerned

Question 5

Bad weather in Colombia can lead to

Accepted Answer

A) more Canadians drinking coffee. 
B) Canadians having to pay more for coffee. 
C) wage increases for coffee shop employees. 
D) the destruction of the Canadian coffee harvest. 
A) more Canadians drinking coffee. 
B) Canadians having to pay more for coffee. 
C) wage increases for coffee shop employees. 
D) the destruction of the Canadian coffee harvest.

Question 6

At a recent faculty meeting, Lorraine Waverly, president of Skywalker College, announced that enrollment is up by 12 percent over the previous semester.If enrollment the previous semester was 3,250 students, what is the student enrollment this semester?

Accepted Answer

A) 390 
B) 2,860 
C) 3,640 
D) 4,030 
A) 390 
B) 2,860 
C) 3,640 
D) 4,030

Question 7

Figure 1.4
  
-Refer to Figure 1-4.Which of the following statements is false?

Accepted Answer

A) The slope of the tangent at E is positive. 
B) The slope of the tangent at F is negative. 
C) The slope of the tangent at E and the slope of the tangent at F are equal. 
D) Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero. 
A) The slope of the tangent at E is positive. 
B) The slope of the tangent at F is negative. 
C) The slope of the tangent at E and the slope of the tangent at F are equal. 
D) Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero.

Question 8

Where do economic agents such as individuals, firms and nations, interact with each other?

Accepted Answer

A) in public locations monitored by the government 
B) in any arena that brings together buyers and sellers 
C) in any physical location people where people can physically get together for selling goods, such as shopping malls 
D) in any location where transactions can be monitored by consumer groups and taxed by the government 
A) in public locations monitored by the government 
B) in any arena that brings together buyers and sellers 
C) in any physical location people where people can physically get together for selling goods, such as shopping malls 
D) in any location where transactions can be monitored by consumer groups and taxed by the government

Question 9

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics?
a.gasoline prices
b.unemployment
c.inflation
d.health care costs
e.air pollution
f.economic growth

Accepted Answer

b, c, and f are prim

Question 10

Explain the economic assumption that "people are rational."

Accepted Answer

"People are rational" means that economi

Question 11

What is the difference between an invention and an innovation?

Accepted Answer

An invention is the development of a new

Question 12

Making optimal decisions "at the margin" requires

Accepted Answer

A) making decisions according to one's whims and fancies. 
B) making consistently irrational decisions. 
C) weighing the costs and benefits of a decision before deciding if it should be pursued. 
D) making borderline decisions. 
A) making decisions according to one's whims and fancies. 
B) making consistently irrational decisions. 
C) weighing the costs and benefits of a decision before deciding if it should be pursued. 
D) making borderline decisions.

Question 13

Technology is defined as

Accepted Answer

A) the process of developing and revising models. 
B) new innovations and creations. 
C) the processes used to produce goods and services. 
D) the process of recycling products. 
A) the process of developing and revising models. 
B) new innovations and creations. 
C) the processes used to produce goods and services. 
D) the process of recycling products.

Question 14

In economics, choices must be made because we live in a world of

Accepted Answer

A) unemployment. 
B) scarcity. 
C) greed. 
D) unlimited resources. 
A) unemployment. 
B) scarcity. 
C) greed. 
D) unlimited resources.

Question 15

Economists reason that the optimal decision is to continue any activity up to the point where the

Accepted Answer

A) marginal benefit is zero. 
B) marginal benefit is greater than the marginal cost. 
C) marginal cost is zero. 
D) marginal benefit equals the marginal cost. 
A) marginal benefit is zero. 
B) marginal benefit is greater than the marginal cost. 
C) marginal cost is zero. 
D) marginal benefit equals the marginal cost.

Question 16

In the Inside Look article, according to Kraft Canada Inc.the increase in the price of roasted coffee was due to

Accepted Answer

A) an increase in the price of green coffee. 
B) higher wages for workers. 
C) higher demand for roasted coffee. 
D) higher taxes on food processing corporations. 
A) an increase in the price of green coffee. 
B) higher wages for workers. 
C) higher demand for roasted coffee. 
D) higher taxes on food processing corporations.

Question 17

On a two-dimensional graph, ________ allows for the effects of additional variables.

Accepted Answer

A) moving along a curve 
B) shifting curves 
C) eliminating a curve 
D) adding an additional curve 
A) moving along a curve 
B) shifting curves 
C) eliminating a curve 
D) adding an additional curve

Question 18

Suppose when the price of laptops fall, university students buy more laptops.This implies that

Accepted Answer

A) there is a positive relationship between laptop prices and quantities purchased by college students. 
B) there is a negative relationship between laptop prices and quantities purchased by college students. 
C) there is a direct relationship between laptop prices and quantities purchased by college students. 
D) there is a one-to-one relationship between laptop prices and quantities purchased by college students. 
A) there is a positive relationship between laptop prices and quantities purchased by college students. 
B) there is a negative relationship between laptop prices and quantities purchased by college students. 
C) there is a direct relationship between laptop prices and quantities purchased by college students. 
D) there is a one-to-one relationship between laptop prices and quantities purchased by college students.

Question 19

What is opportunity cost?

Accepted Answer

Opportunity cost refers to the highest-v

Question 20

Which of the following statements is true about profit?

Accepted Answer

A) Profit refers to the revenue received from the sale of a quantity of goods. 
B) Profit is calculated by multiplying price and quantity sold. 
C) The terms "accounting profit" and "economic profit" can be used interchangeably. 
D) Profit is the difference between revenue and cost. 
A) Profit refers to the revenue received from the sale of a quantity of goods. 
B) Profit is calculated by multiplying price and quantity sold. 
C) The terms "accounting profit" and "economic profit" can be used interchangeably. 
D) Profit is the difference between revenue and cost.

How are the fundamental economic decisions determined in North Korea?

What is meant by the statement that "optimal decisions are made at the margin"?

Voluntary exchange between buyers and sellers generates ________ in a market economy.

What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement.

Bad weather in Colombia can lead to

At a recent faculty meeting, Lorraine Waverly, president of Skywalker College, announced that enrollment is up by 12 percent over the previous semester.If enrollment the previous semester was 3,250 students, what is the student enrollment this semester?

Figure 1.4 -Refer to Figure 1-4.Which of the following statements is false?

Where do economic agents such as individuals, firms and nations, interact with each other?

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a.gasoline prices b.unemployment c.inflation d.health care costs e.air pollution f.economic growth

Explain the economic assumption that "people are rational."

What is the difference between an invention and an innovation?

Making optimal decisions "at the margin" requires

Technology is defined as

In economics, choices must be made because we live in a world of

Economists reason that the optimal decision is to continue any activity up to the point where the

In the Inside Look article, according to Kraft Canada Inc.the increase in the price of roasted coffee was due to

On a two-dimensional graph, ________ allows for the effects of additional variables.

Suppose when the price of laptops fall, university students buy more laptops.This implies that

What is opportunity cost?

Which of the following statements is true about profit?

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

Filters

Exam 1: Economics: Foundations and Models

How are the fundamental economic decisions determined in North Korea?

What is meant by the statement that "optimal decisions are made at the margin"?

Voluntary exchange between buyers and sellers generates ________ in a market economy.

What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement.

Bad weather in Colombia can lead to

At a recent faculty meeting, Lorraine Waverly, president of Skywalker College, announced that enrollment is up by 12 percent over the previous semester.If enrollment the previous semester was 3,250 students, what is the student enrollment this semester?

Figure 1.4 -Refer to Figure 1-4.Which of the following statements is false?

Where do economic agents such as individuals, firms and nations, interact with each other?

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a.gasoline prices b.unemployment c.inflation d.health care costs e.air pollution f.economic growth

Explain the economic assumption that "people are rational."

What is the difference between an invention and an innovation?

Making optimal decisions "at the margin" requires

Technology is defined as

In economics, choices must be made because we live in a world of

Economists reason that the optimal decision is to continue any activity up to the point where the

In the Inside Look article, according to Kraft Canada Inc.the increase in the price of roasted coffee was due to

On a two-dimensional graph, ________ allows for the effects of additional variables.

Suppose when the price of laptops fall, university students buy more laptops.This implies that

What is opportunity cost?

Which of the following statements is true about profit?

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

Filters