Question 1

The need to make choices is most closely related to the economic concept of

Accepted Answer

A)  opportunity cost. 
B)  efficiency. 
C)  inefficiency. 
D)  utility. 
E)  disutility. 
A)  opportunity cost. 
B)  efficiency. 
C)  inefficiency. 
D)  utility. 
E)  disutility.

Question 2

According to economists,one of the four broad categories of resources is money.

Accepted Answer

A) True 
 B)False

Question 3

The coordinates of point A are 400 units of X and 40 units of Y.The coordinates of point B are 480 units of X and 60 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)  + 0.25 
B)  + 4.00 
C)  + 0.33 
D)  - 4.00 
E)  - 0.25 
A)  + 0.25 
B)  + 4.00 
C)  + 0.33 
D)  - 4.00 
E)  - 0.25

Question 4

Economists believe that people's wants are

Accepted Answer

A)  finite. 
B)  infinite. 
C)  irrational. 
D)  unimportant because needs are more important than wants. 
A)  finite. 
B)  infinite. 
C)  irrational. 
D)  unimportant because needs are more important than wants.

Question 5

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Accepted Answer

A)  relative relationships. 
B)  absolute relationships. 
C)  the slope of a line. 
D)  the slope of a curve. 
E)  none of the above 
A)  relative relationships. 
B)  absolute relationships. 
C)  the slope of a line. 
D)  the slope of a curve. 
E)  none of the above

Question 6

The slope of a straight line is always equal to either 1.0 or -1.0.

Accepted Answer

A) True 
 B)False

Question 7

Economists use the ceteris paribus assumption primarily in order to

Accepted Answer

A)  make their analyses easier for them to conduct. 
B)  designate what they believe is the correct relationship between two variables. 
C)  explain why people sometimes consume more of a good when its price rises. 
D)  explain why those things that come first do not necessarily cause those things that come later. 
E)  designate the difference between normative and positive economics. 
A)  make their analyses easier for them to conduct. 
B)  designate what they believe is the correct relationship between two variables. 
C)  explain why people sometimes consume more of a good when its price rises. 
D)  explain why those things that come first do not necessarily cause those things that come later. 
E)  designate the difference between normative and positive economics.

Question 8

Which of the following is a positive economic statement?

Accepted Answer

A)  The temperature is too high today. 
B)  The temperature is 105 degrees today. 
C)  It is too hot to jog today. 
D)  I enjoy summer evenings when it cools off. 
A)  The temperature is too high today. 
B)  The temperature is 105 degrees today. 
C)  It is too hot to jog today. 
D)  I enjoy summer evenings when it cools off.

Question 9

The condition often used in economics to isolate the relationship between two variables is

Accepted Answer

A)  causation. 
B)  abstraction. 
C)  ceteris paribus. 
D)  efficiency. 
A)  causation. 
B)  abstraction. 
C)  ceteris paribus. 
D)  efficiency.

Question 10

Opportunity cost is the value of __________________ when a choice is made.

Accepted Answer

A)  the most highly valued forfeited alternative 
B)  the alternative chosen 
C)  a free good 
D)  the sum of all forfeited alternatives 
A)  the most highly valued forfeited alternative 
B)  the alternative chosen 
C)  a free good 
D)  the sum of all forfeited alternatives

Question 11

Microeconomics is the branch of economics that deals with

Accepted Answer

A)  highly aggregated markets or the entire economy. 
B)  the production side of the economy,exclusively. 
C)  the buying side of the economy,exclusively. 
D)  human behavior and choices as they relate to relatively small units --- an individual,a firm,an industry. 
A)  highly aggregated markets or the entire economy. 
B)  the production side of the economy,exclusively. 
C)  the buying side of the economy,exclusively. 
D)  human behavior and choices as they relate to relatively small units --- an individual,a firm,an industry.

Question 12

List and describe the four broad categories of resources.Cite an example of each to help support your answer.

Accepted Answer

Economists divide resources into four ca

Question 13

Price is the only rationing device that can be used in a modern economy.

Accepted Answer

A) True 
 B)False

Question 14

To an economist,the terms factor and output are synonyms.

Accepted Answer

A) True 
 B)False

Question 15

Something that motivates or encourages people to take an action is referred to as a(n)

Accepted Answer

A)  utility. 
B)  abstract. 
C)  market. 
D)  incentive. 
A)  utility. 
B)  abstract. 
C)  market. 
D)  incentive.

Question 16

All sellers may be tempted to raise the price of what they sell,but a negative unintended effect for the seller of raising the price could be __________ in units sold that is large enough to __________ the seller's total revenue earned.

Accepted Answer

A)  an increase; raise 
B)  an increase; lower 
C)  a decrease; raise 
D)  a decrease; lower 
A)  an increase; raise 
B)  an increase; lower 
C)  a decrease; raise 
D)  a decrease; lower

Question 17

Which of the following statements is false?

Accepted Answer

A)  To an economist,the resource land includes natural resources such as minerals,forests,water and unimproved land. 
B)  To an economist,the resource capital consists of unproduced goods that can be turned into produced goods. 
C)  To an economist,the resource labor consists of the physical and mental talents people contribute to the production process. 
D)  To an economist,the resource entrepreneurship refers to a particular talent that some people have for organizing the resources of land,labor,and capital to produce goods,seek new business opportunities,and develop new ways of doing things. 
A)  To an economist,the resource land includes natural resources such as minerals,forests,water and unimproved land. 
B)  To an economist,the resource capital consists of unproduced goods that can be turned into produced goods. 
C)  To an economist,the resource labor consists of the physical and mental talents people contribute to the production process. 
D)  To an economist,the resource entrepreneurship refers to a particular talent that some people have for organizing the resources of land,labor,and capital to produce goods,seek new business opportunities,and develop new ways of doing things.

Question 18

The higher the opportunity cost of doing something,the more likely it will be done.

Accepted Answer

A) True 
 B)False

Question 19

The condition in an economy that makes a "rationing device" a necessity is:

Accepted Answer

A)  the economy is organized around free markets. 
B)  the economy is centrally planned by the government. 
C)  scarcity exists. 
D)  there are fewer types of goods than there are people in the economy. 
A)  the economy is organized around free markets. 
B)  the economy is centrally planned by the government. 
C)  scarcity exists. 
D)  there are fewer types of goods than there are people in the economy.

Question 20

Several years ago,a bookstore chain extended its closing time from 9 p.m.to 10 p.m.Now it is considering a further extension to 11 p.m.In making this marginal decision,the results of having gone from 9 p.m.to 10 p.m.are

Accepted Answer

A)  no longer relevant to the current decision. 
B)  relevant if the marginal costs and benefits were unequal. 
C)  relevant since they are part of the calculation of total costs and benefits. 
D)  relevant if the marginal costs and benefits were equal. 
A)  no longer relevant to the current decision. 
B)  relevant if the marginal costs and benefits were unequal. 
C)  relevant since they are part of the calculation of total costs and benefits. 
D)  relevant if the marginal costs and benefits were equal.

Exam 1: What Economics Is About

The need to make choices is most closely related to the economic concept of

According to economists,one of the four broad categories of resources is money.

The coordinates of point A are 400 units of X and 40 units of Y.The coordinates of point B are 480 units of X and 60 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

Economists believe that people's wants are

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

The slope of a straight line is always equal to either 1.0 or -1.0.

Economists use the ceteris paribus assumption primarily in order to

Which of the following is a positive economic statement?

The condition often used in economics to isolate the relationship between two variables is

Opportunity cost is the value of __________________ when a choice is made.

Microeconomics is the branch of economics that deals with

List and describe the four broad categories of resources.Cite an example of each to help support your answer.

Price is the only rationing device that can be used in a modern economy.

To an economist,the terms factor and output are synonyms.

Something that motivates or encourages people to take an action is referred to as a(n)

All sellers may be tempted to raise the price of what they sell,but a negative unintended effect for the seller of raising the price could be __________ in units sold that is large enough to __________ the seller's total revenue earned.

Which of the following statements is false?

The higher the opportunity cost of doing something,the more likely it will be done.

The condition in an economy that makes a "rationing device" a necessity is:

Several years ago,a bookstore chain extended its closing time from 9 p.m.to 10 p.m.Now it is considering a further extension to 11 p.m.In making this marginal decision,the results of having gone from 9 p.m.to 10 p.m.are

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

All sellers may be tempted to raise the price of what they sell,but a negative unintended effect for the seller of raising the price could be in units sold that is large enough to the seller's total revenue earned.