Question 1

Macroeconomics is most likely to be concerned with the:

Accepted Answer

A)  amount of unemployment in a specific industry. 
B)  economic behavior of a particular household. 
C)  economic behavior of specific parts or units of the economy. 
D)  aggregates in the economy. 
A)  amount of unemployment in a specific industry. 
B)  economic behavior of a particular household. 
C)  economic behavior of specific parts or units of the economy. 
D)  aggregates in the economy.

Question 2

Economists pay special attention to making choices at the margin.

Accepted Answer

A) True 
 B)False

Question 3

Statements that make value judgments are:

Accepted Answer

A)  pecuniary. 
B)  positive. 
C)  nominal. 
D)  normative. 
A)  pecuniary. 
B)  positive. 
C)  nominal. 
D)  normative.

Question 4

A scarce resource is one that:

Accepted Answer

A)  is free. 
B)  is abundant. 
C)  has alternative uses. 
D)  has no alternative uses. 
A)  is free. 
B)  is abundant. 
C)  has alternative uses. 
D)  has no alternative uses.

Question 5

The current rate of unemployment of 5 percent is too high.This is a _______ statement.

Accepted Answer

A)  normative 
B)  ceteris paribus 
C)  positive 
D)  fallacy of false cause 
A)  normative 
B)  ceteris paribus 
C)  positive 
D)  fallacy of false cause

Question 6

All choices have monetary costs.

Accepted Answer

A) True 
 B)False

Question 7

A variable that induces a change in another variable is a(n):

Accepted Answer

A)  dependent variable. 
B)  independent variable. 
C)  codependent variable. 
D)  constant variable. 
A)  dependent variable. 
B)  independent variable. 
C)  codependent variable. 
D)  constant variable.

Question 8

Scarcity in economics means:

Accepted Answer

A)  not having sufficient resources to produce all the goods and services we want. 
B)  the wants of people are limited. 
C)  there must be poor people in rich countries. 
D)  economists are clearly not doing their jobs. 
A)  not having sufficient resources to produce all the goods and services we want. 
B)  the wants of people are limited. 
C)  there must be poor people in rich countries. 
D)  economists are clearly not doing their jobs.

Question 9

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel.This was primarily a response to the economic question of:

Accepted Answer

A)  When will each good be produced? 
B)  For whom shall the goods be produced? 
C)  What goods and services should a society produce? 
D)  How should goods and services be produced? 
A)  When will each good be produced? 
B)  For whom shall the goods be produced? 
C)  What goods and services should a society produce? 
D)  How should goods and services be produced?

Question 10

A variable that responds to a change in another variable is called a(n) _______ variable.

Accepted Answer

A)  independent 
B)  dependent 
C)  theoretical 
D)  all of the above are true 
A)  independent 
B)  dependent 
C)  theoretical 
D)  all of the above are true

Question 11

A scarce resource is one that:

Accepted Answer

A)  has two or more alternative uses. 
B)  exhibits the basic properties of a free good. 
C)  is confronted only under socialist conditions. 
D)  has an unlimited supply. 
A)  has two or more alternative uses. 
B)  exhibits the basic properties of a free good. 
C)  is confronted only under socialist conditions. 
D)  has an unlimited supply.

Question 12

In economics, the function of theories, laws, and hypotheses is to:

Accepted Answer

A)  prevent any misunderstanding of economic behavior. 
B)  divide topics between microeconomics and macroeconomics. 
C)  generate a complete and unchanging description of economic behavior. 
D)  discover relationships between events that are important to economic behavior. 
A)  prevent any misunderstanding of economic behavior. 
B)  divide topics between microeconomics and macroeconomics. 
C)  generate a complete and unchanging description of economic behavior. 
D)  discover relationships between events that are important to economic behavior.

Question 13

Which of the following would be a part of macroeconomics? A study of:

Accepted Answer

A)  the change in automobile sales due to a change in the price of automobiles. 
B)  a tax reduction impact on the profits of a business. 
C)  inflation. 
D)  the unemployment of workers displaced by technological change in the typesetting industry. 
A)  the change in automobile sales due to a change in the price of automobiles. 
B)  a tax reduction impact on the profits of a business. 
C)  inflation. 
D)  the unemployment of workers displaced by technological change in the typesetting industry.

Question 14

Something whose value does not change is a:

Accepted Answer

A)  variable. 
B)  constant. 
C)  hypothesis. 
D)  all of the above. 
A)  variable. 
B)  constant. 
C)  hypothesis. 
D)  all of the above.

Question 15

Define positive and normative statements and give four examples of each.

Accepted Answer

Positive statements are statements that

Question 16

The problem of determining what goods and services society should produce exists because:

Accepted Answer

A)  resources are plentiful. 
B)  resources are scarce. 
C)  most of our resources are privately rather than socially owned. 
D)  most of our resources are socially rather than privately owned. 
A)  resources are plentiful. 
B)  resources are scarce. 
C)  most of our resources are privately rather than socially owned. 
D)  most of our resources are socially rather than privately owned.

Question 17

The statement that the minimum wage needs to be increased is a:

Accepted Answer

A)  positive statement. 
B)  normative statement. 
C)  condition contained in the fallacy of false cause. 
D)  scientific conclusion based on marginal analysis. 
A)  positive statement. 
B)  normative statement. 
C)  condition contained in the fallacy of false cause. 
D)  scientific conclusion based on marginal analysis.

Question 18

The fallacy of false cause is committed when a person mistakenly assumes that one event causes another because the first event precedes the second.

Accepted Answer

A) True 
 B)False

Question 19

Most economists' disagreements are a result of:

Accepted Answer

A)  factual considerations. 
B)  positive economics. 
C)  the scientific method. 
D)  normative considerations. 
A)  factual considerations. 
B)  positive economics. 
C)  the scientific method. 
D)  normative considerations.

Question 20

Scarcity exists when:

Accepted Answer

A)  a choice must be made among two or more alternatives. 
B)  we face the notion of "all other things unchanged." 
C)  countries and people find themselves facing poverty. 
D)  the notions of normative economics come into play. 
A)  a choice must be made among two or more alternatives. 
B)  we face the notion of "all other things unchanged." 
C)  countries and people find themselves facing poverty. 
D)  the notions of normative economics come into play.

Macroeconomics is most likely to be concerned with the:

Economists pay special attention to making choices at the margin.

Statements that make value judgments are:

A scarce resource is one that:

The current rate of unemployment of 5 percent is too high.This is a _______ statement.

All choices have monetary costs.

A variable that induces a change in another variable is a(n):

Scarcity in economics means:

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel.This was primarily a response to the economic question of:

A variable that responds to a change in another variable is called a(n) _______ variable.

A scarce resource is one that:

In economics, the function of theories, laws, and hypotheses is to:

Which of the following would be a part of macroeconomics? A study of:

Something whose value does not change is a:

Define positive and normative statements and give four examples of each.

The problem of determining what goods and services society should produce exists because:

The statement that the minimum wage needs to be increased is a:

The fallacy of false cause is committed when a person mistakenly assumes that one event causes another because the first event precedes the second.

Most economists' disagreements are a result of:

Scarcity exists when:

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 1: Economics: The Study of Choice

Macroeconomics is most likely to be concerned with the:

Economists pay special attention to making choices at the margin.

Statements that make value judgments are:

A scarce resource is one that:

The current rate of unemployment of 5 percent is too high.This is a _______ statement.

All choices have monetary costs.

A variable that induces a change in another variable is a(n):

Scarcity in economics means:

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel.This was primarily a response to the economic question of:

A variable that responds to a change in another variable is called a(n) _______ variable.

A scarce resource is one that:

In economics, the function of theories, laws, and hypotheses is to:

Which of the following would be a part of macroeconomics? A study of:

Something whose value does not change is a:

Define positive and normative statements and give four examples of each.

The problem of determining what goods and services society should produce exists because:

The statement that the minimum wage needs to be increased is a:

The fallacy of false cause is committed when a person mistakenly assumes that one event causes another because the first event precedes the second.

Most economists' disagreements are a result of:

Scarcity exists when:

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters