Question 1

In economics,something that provides disutility is called a

Accepted Answer

A)  good. 
B)  want. 
C)  need. 
D)  bad. 
E)  none of the above 
A)  good. 
B)  want. 
C)  need. 
D)  bad. 
E)  none of the above

Question 2

A theory is

Accepted Answer

A)  built on the major factors or variables that the theorist believes explain some event. 
B)  a simplified abstract representation of the real world. 
C)  used to understand the real world. 
D)  a and b 
E)  a,b,and c 
A)  built on the major factors or variables that the theorist believes explain some event. 
B)  a simplified abstract representation of the real world. 
C)  used to understand the real world. 
D)  a and b 
E)  a,b,and c

Question 3

-Refer to Exhibit 1-2.According to the data provided in this table,what is the slope of the line between points A and B,if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Accepted Answer

A)  -3.00 
B)  -0.33 
C)  3.00 
D)  0.33 
E)  none of the above 
A)  -3.00 
B)  -0.33 
C)  3.00 
D)  0.33 
E)  none of the above

Question 4

Produced goods used as inputs for the production of other goods comprise the resource known as

Accepted Answer

A)  natural resources. 
B)  services. 
C)  capital. 
D)  entrepreneurship. 
A)  natural resources. 
B)  services. 
C)  capital. 
D)  entrepreneurship.

Question 5

In economics,one of the effects of scarcity is

Accepted Answer

A)  disutility. 
B)  utility. 
C)  choice. 
D)  inefficiency. 
E)  a,c,and d 
A)  disutility. 
B)  utility. 
C)  choice. 
D)  inefficiency. 
E)  a,c,and d

Question 6

Scarcity affects everyone,even billionaires.

Accepted Answer

A) True 
 B)False

Question 7

The answer is,"This is principally used to exhibit changes in data over time." The question is,

Accepted Answer

A)  What is a pie chart? 
B)  What is a 45-degree line? 
C)  What is a tangent line? 
D)  What is a line graph? 
E)  b and d 
A)  What is a pie chart? 
B)  What is a 45-degree line? 
C)  What is a tangent line? 
D)  What is a line graph? 
E)  b and d

Question 8

How is scarcity related to competition?

Accepted Answer

A)  Competition is an effect of scarcity. 
B)  Scarcity is an effect of competition. 
C)  Both scarcity and competition are effects of a rationing device. 
D)  Both scarcity and competition are effects of opportunity cost. 
E)  Scarcity produces disutility and competition produces utility. 
A)  Competition is an effect of scarcity. 
B)  Scarcity is an effect of competition. 
C)  Both scarcity and competition are effects of a rationing device. 
D)  Both scarcity and competition are effects of opportunity cost. 
E)  Scarcity produces disutility and competition produces utility.

Question 9

What is the difference between macroeconomics and microeconomics? Give an example of a question that a macroeconomist might be interested in answering,then do the same for a microeconomist.

Accepted Answer

Macroeconomics is the branch of economic

Question 10

The headline in the newspaper reads "County Supervisors Debate Building New Schools." The headline relates closest to which economic concept?

Accepted Answer

A)  goods and bads 
B)  utility 
C)  choice 
D)  efficiency 
A)  goods and bads 
B)  utility 
C)  choice 
D)  efficiency

Question 11

Explain what an economist means by the phrase "decisions made at the margin." Cite an example to support your answer.

Accepted Answer

When making a decision at the margin an

Question 12

To an economist,utility means:

Accepted Answer

A)  additional. 
B)  usefulness. 
C)  satisfaction. 
D)  marginal. 
A)  additional. 
B)  usefulness. 
C)  satisfaction. 
D)  marginal.

Question 13

In the textbook,economics is defined as the "science of scarcity."

Accepted Answer

A) True 
 B)False

Question 14

The latest Taylor Swift album is available to be downloaded for $12.99.Is this price a rationing device?

Accepted Answer

A)  No,the album will be sold to anyone having the required number of dollars. 
B)  Yes,because the album will only be purchased by people who are willing and able to pay $12.99. 
C)  No,for price to be a rationing device,it must be so high that only one unit of the item is sold. 
D)  Yes,since that is a reasonable price. 
A)  No,the album will be sold to anyone having the required number of dollars. 
B)  Yes,because the album will only be purchased by people who are willing and able to pay $12.99. 
C)  No,for price to be a rationing device,it must be so high that only one unit of the item is sold. 
D)  Yes,since that is a reasonable price.

Question 15

Explain how scarcity can exist in a relatively rich country such as the United States.Give examples to help support your answer.

Accepted Answer

Even in a wealthy country,the people liv

Question 16

Why do societies need rationing devices?

Accepted Answer

A)  Because people have too many needs and not enough wants. 
B)  Because price exists. 
C)  Because scarcity exists. 
D)  Because people have opportunity costs. 
A)  Because people have too many needs and not enough wants. 
B)  Because price exists. 
C)  Because scarcity exists. 
D)  Because people have opportunity costs.

Question 17

Scarcity occurs in both wealthy societies and poor societies.

Accepted Answer

A) True 
 B)False

Question 18

A mandatory seat-belt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.05 to 0.03 while raising the number of accidents per period from 30,000 to greater than ___________ accidents per period.

Accepted Answer

A)  48,000 
B)  50,000 
C)  500,000 
D)  45,000 
A)  48,000 
B)  50,000 
C)  500,000 
D)  45,000

Question 19

Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

Accepted Answer

Economists view the world using a number

Question 20

Which of the following is a positive macroeconomics statement?

Accepted Answer

A)  The central bank should increase the nation's money supply. 
B)  The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. 
C)  Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. 
D)  The local government ought to spend more on recreational facilities. 
A)  The central bank should increase the nation's money supply. 
B)  The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. 
C)  Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. 
D)  The local government ought to spend more on recreational facilities.

Exam 1: What Economics Is About

In economics,something that provides disutility is called a

A theory is

-Refer to Exhibit 1-2.According to the data provided in this table,what is the slope of the line between points A and B,if these data were graphed with X on the horizontal axis and Y on the vertical axis?

Produced goods used as inputs for the production of other goods comprise the resource known as

In economics,one of the effects of scarcity is

Scarcity affects everyone,even billionaires.

The answer is,"This is principally used to exhibit changes in data over time." The question is,

How is scarcity related to competition?

What is the difference between macroeconomics and microeconomics? Give an example of a question that a macroeconomist might be interested in answering,then do the same for a microeconomist.

The headline in the newspaper reads "County Supervisors Debate Building New Schools." The headline relates closest to which economic concept?

Explain what an economist means by the phrase "decisions made at the margin." Cite an example to support your answer.

To an economist,utility means:

In the textbook,economics is defined as the "science of scarcity."

The latest Taylor Swift album is available to be downloaded for $12.99.Is this price a rationing device?

Explain how scarcity can exist in a relatively rich country such as the United States.Give examples to help support your answer.

Why do societies need rationing devices?

Scarcity occurs in both wealthy societies and poor societies.

A mandatory seat-belt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.05 to 0.03 while raising the number of accidents per period from 30,000 to greater than ___________ accidents per period.

Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

Which of the following is a positive macroeconomics statement?

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

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