Question 1

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

Accepted Answer

A)  an increase in the price of automobiles,further reducing fatalities. 
B)  an increase in driving speed,reducing the number of accidents. 
C)  a decrease in driving speed,further reducing fatalities. 
D)  an increase in risky driving behavior,increasing fatalities. 
A)  an increase in the price of automobiles,further reducing fatalities. 
B)  an increase in driving speed,reducing the number of accidents. 
C)  a decrease in driving speed,further reducing fatalities. 
D)  an increase in risky driving behavior,increasing fatalities.

Question 2

According to economists,competition exists because of

Accepted Answer

A)  scarcity. 
B)  capitalism. 
C)  money. 
D)  unintended effects. 
A)  scarcity. 
B)  capitalism. 
C)  money. 
D)  unintended effects.

Question 3

The coordinates of point A are 30 units of X and 70 units of Y.The coordinates of point B are 28 units of X and 76 units of Y.With X on the horizontal axis and Y on the vertical axis,the slope of the line between points A and B is

Accepted Answer

A)  + 3.00 
B)  + 0.67 
C)  + 0.33 
D)  - 3.00 
E)  - 0.33 
A)  + 3.00 
B)  + 0.67 
C)  + 0.33 
D)  - 3.00 
E)  - 0.33

Question 4

Entrepreneurship is

Accepted Answer

A)  the talent for organizing the use of land,labor and capital,among other things. 
B)  skill in influencing government regulators and legislators. 
C)  accumulated technical knowledge in using labor and capital. 
D)  knowledge of the particular natural resources to be found in a given area. 
A)  the talent for organizing the use of land,labor and capital,among other things. 
B)  skill in influencing government regulators and legislators. 
C)  accumulated technical knowledge in using labor and capital. 
D)  knowledge of the particular natural resources to be found in a given area.

Question 5

In all cases,microeconomics deals with

Accepted Answer

A)  what is. 
B)  what should be. 
C)  relatively small units in the economy. 
D)  the entire economy. 
A)  what is. 
B)  what should be. 
C)  relatively small units in the economy. 
D)  the entire economy.

Question 6

Which of the following statements is false?

Accepted Answer

A)  There are always opportunity costs to making choices. 
B)  Because of scarcity,choices must be made. 
C)  Elementary education at public schools is free. 
D)  When government builds a new highway,taxpayers end up with less of some of the things they would otherwise have. 
A)  There are always opportunity costs to making choices. 
B)  Because of scarcity,choices must be made. 
C)  Elementary education at public schools is free. 
D)  When government builds a new highway,taxpayers end up with less of some of the things they would otherwise have.

Question 7

The primary reason why people cannot have everything they want is because

Accepted Answer

A)  people are selfish. 
B)  scarcity exists. 
C)  there is not enough economic growth in the world. 
D)  none of the above 
A)  people are selfish. 
B)  scarcity exists. 
C)  there is not enough economic growth in the world. 
D)  none of the above

Question 8

In the textbook,economics is defined as the science of

Accepted Answer

A)  money and business. 
B)  choices. 
C)  scarcity. 
D)  price. 
E)  individuals' actions. 
A)  money and business. 
B)  choices. 
C)  scarcity. 
D)  price. 
E)  individuals' actions.

Question 9

Which of the following pairs of variables is most likely to be inversely related?

Accepted Answer

A)  sales of toothpaste and sales of running shoes 
B)  the price of ice cream and the price of airline tickets 
C)  the number of children in a family and the number of toys the family owns 
D)  the price of ice cream and sales of ice cream 
E)  sales of tortilla chips and sales of salsa 
A)  sales of toothpaste and sales of running shoes 
B)  the price of ice cream and the price of airline tickets 
C)  the number of children in a family and the number of toys the family owns 
D)  the price of ice cream and sales of ice cream 
E)  sales of tortilla chips and sales of salsa

Question 10

Which of the following issues is most unlikely to be addressed by an economist practicing positive economics?

Accepted Answer

A)  the relationship between the minimum wage and the number of unemployed unskilled workers 
B)  the effect of a minimum wage increase on inner-city crime rates 
C)  the desirability of a minimum wage increase 
D)  the consequences of implementing a minimum wage law in China 
A)  the relationship between the minimum wage and the number of unemployed unskilled workers 
B)  the effect of a minimum wage increase on inner-city crime rates 
C)  the desirability of a minimum wage increase 
D)  the consequences of implementing a minimum wage law in China

Question 11

-Refer to Exhibit 1-3.Based on the data provided in this table,if these data were plotted in a two-variable diagram the result would be a ______________ sloping _____________.

Accepted Answer

A)  downward; (nonlinear)curve 
B)  downward; (straight)line 
C)  upward; (nonlinear)curve 
D)  upward; (straight)line 
E)  none of the above 
A)  downward; (nonlinear)curve 
B)  downward; (straight)line 
C)  upward; (nonlinear)curve 
D)  upward; (straight)line 
E)  none of the above

Question 12

-Refer to Exhibit 1-3.Based on the data provided in this table,what type of relationship exists between variables X and Y?

Accepted Answer

A)  inverse 
B)  direct 
C)  independent 
D)  There is no relationship between variables X and Y. 
A)  inverse 
B)  direct 
C)  independent 
D)  There is no relationship between variables X and Y.

Question 13

What is the most prominent rationing device you will likely find at your campus bookstore?

Accepted Answer

A)  dollar price 
B)  brute force 
C)  anti-theft tags on the high-priced items 
D)  none of the above 
A)  dollar price 
B)  brute force 
C)  anti-theft tags on the high-priced items 
D)  none of the above

Question 14

Making a decision at the margin is __________ an all-or-nothing decision.

Accepted Answer

A)  consistent with 
B)  inconsistent with 
C)  the same as making 
D)  conditioned upon making 
A)  consistent with 
B)  inconsistent with 
C)  the same as making 
D)  conditioned upon making

Question 15

Which of the following is an example of a positive economic statement?

Accepted Answer

A)  The U.S.public should devote more resources to education. 
B)  The poor should pay lower taxes and the rich should pay higher taxes. 
C)  Soap operas should be taken off television. 
D)  If you drop a ball from the top of a building,it will fall to the ground. 
A)  The U.S.public should devote more resources to education. 
B)  The poor should pay lower taxes and the rich should pay higher taxes. 
C)  Soap operas should be taken off television. 
D)  If you drop a ball from the top of a building,it will fall to the ground.

Question 16

Which of the following is not one of the four broad categories of resources?

Accepted Answer

A)  labor 
B)  money 
C)  capital 
D)  entrepreneurship 
E)  land 
A)  labor 
B)  money 
C)  capital 
D)  entrepreneurship 
E)  land

Question 17

Which of the following is not one of the four broad categories of resources?

Accepted Answer

A)  labor 
B)  government 
C)  capital 
D)  entrepreneurship 
E)  land 
A)  labor 
B)  government 
C)  capital 
D)  entrepreneurship 
E)  land

Question 18

The purpose of the ceteris paribus assumption is to allow economists to

Accepted Answer

A)  determine the relationship among several variables. 
B)  determine the impact of several variables on another variable. 
C)  isolate the impact of one variable on several variables. 
D)  isolate the relationship between two variables. 
A)  determine the relationship among several variables. 
B)  determine the impact of several variables on another variable. 
C)  isolate the impact of one variable on several variables. 
D)  isolate the relationship between two variables.

Question 19

Which of the following would NOT be considered a macroeconomic topic?

Accepted Answer

A)  the reasons for a decline in the price of crude oil 
B)  the cause of a downturn in the economy 
C)  the effect of the government budget deficit on inflation 
D)  the causes of inflation and unemployment 
A)  the reasons for a decline in the price of crude oil 
B)  the cause of a downturn in the economy 
C)  the effect of the government budget deficit on inflation 
D)  the causes of inflation and unemployment

Question 20

Positive economics is concerned with

Accepted Answer

A)  value judgments. 
B)  cause-effect relationships. 
C)  observations that cannot be proved. 
D)  both b and c 
A)  value judgments. 
B)  cause-effect relationships. 
C)  observations that cannot be proved. 
D)  both b and c

Exam 1: What Economics Is About

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

According to economists,competition exists because of

The coordinates of point A are 30 units of X and 70 units of Y.The coordinates of point B are 28 units of X and 76 units of Y.With X on the horizontal axis and Y on the vertical axis,the slope of the line between points A and B is

Entrepreneurship is

In all cases,microeconomics deals with

Which of the following statements is false?

The primary reason why people cannot have everything they want is because

In the textbook,economics is defined as the science of

Which of the following pairs of variables is most likely to be inversely related?

Which of the following issues is most unlikely to be addressed by an economist practicing positive economics?

-Refer to Exhibit 1-3.Based on the data provided in this table,if these data were plotted in a two-variable diagram the result would be a ______________ sloping _____________.

-Refer to Exhibit 1-3.Based on the data provided in this table,what type of relationship exists between variables X and Y?

What is the most prominent rationing device you will likely find at your campus bookstore?

Making a decision at the margin is __________ an all-or-nothing decision.

Which of the following is an example of a positive economic statement?

Which of the following is not one of the four broad categories of resources?

Which of the following is not one of the four broad categories of resources?

The purpose of the ceteris paribus assumption is to allow economists to

Which of the following would NOT be considered a macroeconomic topic?

Positive economics is concerned with

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

-Refer to Exhibit 1-3.Based on the data provided in this table,if these data were plotted in a two-variable diagram the result would be a __ sloping _.