Question 1

The term used to emphasize that making choices in the face of scarcity involves a cost is

Accepted Answer

A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost. 
A)  substitution cost. 
B)  opportunity cost. 
C)  utility cost. 
D)  accounting cost.

Question 2

-Given the information in the above table, the relationship between x and y is

Accepted Answer

A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear. 
A)  positive, and the curve becomes flatter as x increases. 
B)  positive, and the curve becomes steeper as x increases. 
C)  positive and linear. 
D)  negative and linear.

Question 3

Which of the following statements is CORRECT?

Accepted Answer

A)  The United States produces more goods than services. 
B)  The United States produces more services than goods. 
C)  The United States produces more agricultural goods than manufactured goods. 
D)  The United States produces an equal amount of goods and services. 
A)  The United States produces more goods than services. 
B)  The United States produces more services than goods. 
C)  The United States produces more agricultural goods than manufactured goods. 
D)  The United States produces an equal amount of goods and services.

Question 4

When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing

Accepted Answer

A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  scarcity. 
D)  incentives. 
A)  a macroeconomic topic. 
B)  a microeconomic topic. 
C)  scarcity. 
D)  incentives.

Question 5

Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5. Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?

Accepted Answer

Marginal benefit is the benefit that ari

Question 6

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives.

Accepted Answer

Policy makers know that people making ch

Question 7

In the figure above, ceteris paribus, an increase in x is associated with

Accepted Answer

A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct. 
A)  an increase in y. 
B)  a decrease in y. 
C)  a decrease in z. 
D)  None of the above answers is correct.

Question 8

In the above figure, tax revenue is at a maximum when the tax rate is

Accepted Answer

A)  0 percent. 
B)  30 percent. 
C)  50 percent. 
D)  100 percent. 
A)  0 percent. 
B)  30 percent. 
C)  50 percent. 
D)  100 percent.

Question 9

-The slope of the line in the above figure is

Accepted Answer

A)  -1/2. 
B)  -3. 
C)  -4. 
D)  -1/3. 
A)  -1/2. 
B)  -3. 
C)  -4. 
D)  -1/3.

Question 10

Studying the effects choices have on the individual markets within the economy is part of

Accepted Answer

A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives. 
A)  scarcity. 
B)  microeconomics. 
C)  macroeconomics. 
D)  incentives.

Question 11

-In the above figure, the slope across the arc between a and b is

Accepted Answer

A)  2/5. 
B)  1. 
C)  3/2. 
D)  5/2. 
A)  2/5. 
B)  1. 
C)  3/2. 
D)  5/2.

Question 12

Macroeconomic topics include

Accepted Answer

A)  total, nationwide employment. 
B)  studying what factors influence the price and quantity of automobiles. 
C)  studying the determination of wages and production costs in the software industry. 
D)  the impact of government regulation of markets. 
A)  total, nationwide employment. 
B)  studying what factors influence the price and quantity of automobiles. 
C)  studying the determination of wages and production costs in the software industry. 
D)  the impact of government regulation of markets.

Question 13

Scarcity is

Accepted Answer

A)  our inability to satisfy all our wants. 
B)  a situation that exists during economic recessions but not during economic booms. 
C)  eliminated by choices. 
D)  an economic problem only for poor people. 
A)  our inability to satisfy all our wants. 
B)  a situation that exists during economic recessions but not during economic booms. 
C)  eliminated by choices. 
D)  an economic problem only for poor people.

Question 14

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

Accepted Answer

A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct. 
A)  the wages received for the fifth day of work. 
B)  the wages received for 5 days of work. 
C)  the wages received for 4 days of work. 
D)  None of the above answers is correct.

Question 15

Consider the following events:
I.Samsung hires associates to market their HDTV sets to Best Buy.
II.The Dallas Cowboys build a new football stadium.
III.eBay fires 10 percent of its workforce.
IV.Ten million stocks were traded on the New York Stock Exchange in one day.
V.Pennsylvania builds a new state park.
Which of the events describe use of factors of production?

Accepted Answer

A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only 
A)  i, II, III, and v 
B)  II, iv, and v 
C)  i and III only 
D)  iv only

Question 16

An economic model includes

Accepted Answer

A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential. 
A)  only normative statements. 
B)  no use of marginal concepts. 
C)  all known details in order to increase its accuracy. 
D)  only details considered essential.

Question 17

Which of the following are considered factors of production used to produce goods and services?
I.Land
II.Labor
III.Capital
IV.Entrepreneurship

Accepted Answer

A)  I and II only 
B)  I and III only 
C)  I, II and III only 
D)  I, II, III and IV 
A)  I and II only 
B)  I and III only 
C)  I, II and III only 
D)  I, II, III and IV

Question 18

Which of the following questions is NOT a microeconomic question?

Accepted Answer

A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services? 
A)  Can the Federal Reserve keep income growing by cutting interest rates? 
B)  How would a tax on e-commerce affect eBay? 
C)  What is Britney's opportunity cost of having another baby? 
D)  Does the United States have a comparative advantage in information technology services?

Question 19

A positive relationship exists between two variables if

Accepted Answer

A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted. 
A)  one variable has "positively" no effect on the other variable. 
B)  a reduction in one variable is associated with an increase in the other variable. 
C)  a reduction in one variable is associated with a decrease in the other variable. 
D)  both variables are inflation-distorted.

Question 20

If a curve rises and then falls, it shows a

Accepted Answer

A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship. 
A)  maximum. 
B)  minimum. 
C)  linear relationship. 
D)  constant slope relationship.

The term used to emphasize that making choices in the face of scarcity involves a cost is

-Given the information in the above table, the relationship between x and y is

Which of the following statements is CORRECT?

When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives.

In the figure above, ceteris paribus, an increase in x is associated with

In the above figure, tax revenue is at a maximum when the tax rate is

-The slope of the line in the above figure is

Studying the effects choices have on the individual markets within the economy is part of

-In the above figure, the slope across the arc between a and b is

Macroeconomic topics include

Scarcity is

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

An economic model includes

Which of the following are considered factors of production used to produce goods and services? I.Land II.Labor III.Capital IV.Entrepreneurship

Which of the following questions is NOT a microeconomic question?

A positive relationship exists between two variables if

If a curve rises and then falls, it shows a

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics?

The term used to emphasize that making choices in the face of scarcity involves a cost is

-Given the information in the above table, the relationship between x and y is

Which of the following statements is CORRECT?

When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives.

In the figure above, ceteris paribus, an increase in x is associated with

In the above figure, tax revenue is at a maximum when the tax rate is

-The slope of the line in the above figure is

Studying the effects choices have on the individual markets within the economy is part of

-In the above figure, the slope across the arc between a and b is

Macroeconomic topics include

Scarcity is

In terms of dollars, the marginal benefit of working five days a week instead of four days a week is

An economic model includes

Which of the following are considered factors of production used to produce goods and services? I.Land II.Labor III.Capital IV.Entrepreneurship

Which of the following questions is NOT a microeconomic question?

A positive relationship exists between two variables if

If a curve rises and then falls, it shows a

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters