Question 1

Which of the following is a normative economic statement?

Accepted Answer

A) If the government increases spending, unemployment will fall. 
B) The government should increase spending during times of economic recession. 
C) If banks create more money, unemployment will decrease. 
D) If the price of gasoline rises, car pooling will increase. 
A) If the government increases spending, unemployment will fall. 
B) The government should increase spending during times of economic recession. 
C) If banks create more money, unemployment will decrease. 
D) If the price of gasoline rises, car pooling will increase.

Question 2

When two variables have an inverse relationship, the slope is

Accepted Answer

A) negative. 
B) positive. 
C) infinity. 
D) zero. 
A) negative. 
B) positive. 
C) infinity. 
D) zero.

Question 3

Distinguish between a command-and-control economic system and a price system.

Accepted Answer

In a command-and-control economic system

Question 4

Wants are

Accepted Answer

A) another term for needs. 
B) the things people would consume if they had unlimited incomes. 
C) the things people consume with their income. 
D) all the things people really need in order to live comfortably. 
A) another term for needs. 
B) the things people would consume if they had unlimited incomes. 
C) the things people consume with their income. 
D) all the things people really need in order to live comfortably.

Question 5

Which of the following ways to recruit soldiers utilizes incentives?

Accepted Answer

A) a draft 
B) universal service 
C) higher salaries 
D) longer lengths of service 
A) a draft 
B) universal service 
C) higher salaries 
D) longer lengths of service

Question 6

The combination of psychology and economics to determine individual decision making is known as

Accepted Answer

A) behavioral economics. 
B) psychonomics. 
C) the rule of thumb. 
D) positive analysis. 
A) behavioral economics. 
B) psychonomics. 
C) the rule of thumb. 
D) positive analysis.

Which of the following is a normative economic statement?

When two variables have an inverse relationship, the slope is

Distinguish between a command-and-control economic system and a price system.

Wants are

Which of the following ways to recruit soldiers utilizes incentives?

The combination of psychology and economics to determine individual decision making is known as

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 1: The Nature of Economics

Which of the following is a normative economic statement?

When two variables have an inverse relationship, the slope is

Distinguish between a command-and-control economic system and a price system.

Wants are

Which of the following ways to recruit soldiers utilizes incentives?

The combination of psychology and economics to determine individual decision making is known as

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters