Question 1

-In Figure 1.1, which labeled points are attainable?

Accepted Answer

A) only A 
B) only B and C 
C) only D 
D) A, B and C 
A) only A 
B) only B and C 
C) only D 
D) A, B and C

Question 2

-Using Figure 1.7 we know the production of 10 units of soda and 1 unit of pizza is

Accepted Answer

A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we have the resources but do not have the technology. 
D) impossible because we have the technology but do not have the resources. 
A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we have the resources but do not have the technology. 
D) impossible because we have the technology but do not have the resources.

Question 3

Specialized growth is typically the result of an increase in, or an increase in the ability of resources to

Accepted Answer

A) produce all goods 
B) produce certain goods 
C) produce exported goods 
D) compete with imported goods 
A) produce all goods 
B) produce certain goods 
C) produce exported goods 
D) compete with imported goods

Question 4

Buyers and sellers in the foreign exchange market negotiate an exchange of

Accepted Answer

A) foreign stocks. 
B) foreign banks. 
C) foreign government bonds. 
D) currencies of various countries. 
A) foreign stocks. 
B) foreign banks. 
C) foreign government bonds. 
D) currencies of various countries.

Question 5

When analyzing a problem, if an economist is attempting to understand why something happened without considering whether or not the action was fair or just, the economist is thinking

Accepted Answer

A) positively. 
B) negatively. 
C) normatively. 
D) justifiably. 
A) positively. 
B) negatively. 
C) normatively. 
D) justifiably.

Question 6

-Using Figure 1.4 you can tell that

Accepted Answer

A) there is increasing opportunity cost. 
B) there is unemployment. 
C) there is constant opportunity cost. 
D) the technology does not exist to produce 9 units of soda and 1 unit of pizza. 
A) there is increasing opportunity cost. 
B) there is unemployment. 
C) there is constant opportunity cost. 
D) the technology does not exist to produce 9 units of soda and 1 unit of pizza.

Question 7

Figure 1.10 
-Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in soda when there is increasing opportunity cost.

Accepted Answer

A) Fig. A 
B) Fig. B 
C) Fig. C 
D) Fig. D 
A) Fig. A 
B) Fig. B 
C) Fig. C 
D) Fig. D

Question 8

-Using Figure 1.5 above we know the production of 6 units of soda and 2 units of pizza is

Accepted Answer

A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we either do not have the resources or the technology. 
D) undesirable. 
A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we either do not have the resources or the technology. 
D) undesirable.

Question 9

A mechanism by which buyers and sellers of labor and financial capital negotiate an exchange is a

Accepted Answer

A) stock market. 
B) bond market. 
C) factor market. 
D) brokerage. 
A) stock market. 
B) bond market. 
C) factor market. 
D) brokerage.

Question 10

The fact that when temperature rises snow cone sales rise suggests the two are

Accepted Answer

A) directly correlated. 
B) inversely correlated. 
C) neither directly correlated nor inversely correlated. 
D) both directly correlated and inversely correlated. 
A) directly correlated. 
B) inversely correlated. 
C) neither directly correlated nor inversely correlated. 
D) both directly correlated and inversely correlated.

Question 11

Figure 1.10 
-Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in pizza when there is constant opportunity cost.

Accepted Answer

A) Fig. A 
B) Fig. B 
C) Fig. C 
D) Fig. D 
A) Fig. A 
B) Fig. B 
C) Fig. C 
D) Fig. D

Question 12

-Using Figure 1.5 above we know the production of 6 units of soda and 1 unit of pizza is

Accepted Answer

A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we have the resources but do not have the technology. 
D) impossible because we have the technology but do not have the resources. 
A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we have the resources but do not have the technology. 
D) impossible because we have the technology but do not have the resources.

Question 13

The statement that Congress passed a tax bill and two months later a recession began, so the bill must have been poor policy is an example of

Accepted Answer

A) the fallacy that correlation is the same as causation. 
B) the fallacy of composition. 
C) truth in an obvious form. 
D) both A and B 
A) the fallacy that correlation is the same as causation. 
B) the fallacy of composition. 
C) truth in an obvious form. 
D) both A and B

Question 14

Logging companies are always more profitable if they are able to harvest more (rather than less)lumber in a month. If you concluded from that fact that the logging industry is more profitable if all of the firms in the industry harvest more, then you would be

Accepted Answer

A) right. 
B) wrong because causation and correlation are not the same. 
C) wrong and have fallen victim to the fallacy of composition. 
D) wrong because firms operate on jealousy. 
A) right. 
B) wrong because causation and correlation are not the same. 
C) wrong and have fallen victim to the fallacy of composition. 
D) wrong because firms operate on jealousy.

Question 15

The one word in the definition of economics that focuses on the fact that it is impossible to provide all of the goods and services that everyone wants is

Accepted Answer

A) scarcity. 
B) resources. 
C) study. 
D) allocation. 
A) scarcity. 
B) resources. 
C) study. 
D) allocation.

Question 16

-Referring to Figure 1.5, the opportunity cost of producing the second unit of pizza is

Accepted Answer

A) one unit of soda. 
B) three units of soda. 
C) six units of soda. 
A) one unit of soda. 
B) three units of soda. 
C) six units of soda.

Question 17

If the (steadily decreasing)marginal benefit of another day spent in the hospital is larger than the (steadily increasing)marginal cost of an additional day spent in the hospital, the

Accepted Answer

A) net benefit from the hospital stay must be positive. 
B) net benefit from the hospital stay must be decreasing. 
C) net benefit from the hospital stay must be increasing. 
D) net benefit from the hospital stay is maximized. 
A) net benefit from the hospital stay must be positive. 
B) net benefit from the hospital stay must be decreasing. 
C) net benefit from the hospital stay must be increasing. 
D) net benefit from the hospital stay is maximized.

Question 18

Some suggest that when economists claim to be thinking ________, they are _____.

Accepted Answer

A) normatively; deluding themselves 
B) positively; deluding themselves 
C) normatively; really thinking positively 
D) negatively; deluding themselves 
A) normatively; deluding themselves 
B) positively; deluding themselves 
C) normatively; really thinking positively 
D) negatively; deluding themselves

Question 19

-In Figure 1.1, which labeled point indicates that there are insufficient resources or technology to produce the combination of goods represented by that point?

Accepted Answer

A) only A 
B) only B and C 
C) only D 
D) A, B and C 
A) only A 
B) only B and C 
C) only D 
D) A, B and C

Question 20

-Using Figure 1.4 above we know the production of 4 units of soda and 2 units of pizza is

Accepted Answer

A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we have the resources but do not have the technology. 
D) impossible because we have the technology but do not have the resources. 
A) possible, but there would be unemployed resources. 
B) possible, but only if all resources were fully employed. 
C) impossible because we have the resources but do not have the technology. 
D) impossible because we have the technology but do not have the resources.

Exam 1: Economics: the Study of Opportunity Cost

-In Figure 1.1, which labeled points are attainable?

-Using Figure 1.7 we know the production of 10 units of soda and 1 unit of pizza is

Specialized growth is typically the result of an increase in, or an increase in the ability of resources to

Buyers and sellers in the foreign exchange market negotiate an exchange of

When analyzing a problem, if an economist is attempting to understand why something happened without considering whether or not the action was fair or just, the economist is thinking

-Using Figure 1.4 you can tell that

Figure 1.10 -Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in soda when there is increasing opportunity cost.

-Using Figure 1.5 above we know the production of 6 units of soda and 2 units of pizza is

A mechanism by which buyers and sellers of labor and financial capital negotiate an exchange is a

The fact that when temperature rises snow cone sales rise suggests the two are

Figure 1.10 -Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in pizza when there is constant opportunity cost.

-Using Figure 1.5 above we know the production of 6 units of soda and 1 unit of pizza is

The statement that Congress passed a tax bill and two months later a recession began, so the bill must have been poor policy is an example of

Logging companies are always more profitable if they are able to harvest more (rather than less)lumber in a month. If you concluded from that fact that the logging industry is more profitable if all of the firms in the industry harvest more, then you would be

The one word in the definition of economics that focuses on the fact that it is impossible to provide all of the goods and services that everyone wants is

-Referring to Figure 1.5, the opportunity cost of producing the second unit of pizza is

If the (steadily decreasing)marginal benefit of another day spent in the hospital is larger than the (steadily increasing)marginal cost of an additional day spent in the hospital, the

Some suggest that when economists claim to be thinking ________, they are _____.

-In Figure 1.1, which labeled point indicates that there are insufficient resources or technology to produce the combination of goods represented by that point?

-Using Figure 1.4 above we know the production of 4 units of soda and 2 units of pizza is

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters

Some suggest that when economists claim to be thinking ____, they are _.