Question 1

-Refer to Exhibit 1-1.If the student whose study habits are illustrated here is currently studying for the 8th hour,she should

Accepted Answer

A)  cut back on the number of hours she is studying because the marginal benefit of studying for the 8th hour is less than the marginal cost of doing so. 
B)  cut back on the number of hours she is studying because the marginal benefit of studying for the 8th is greater than the marginal cost of doing so. 
C)  increase the number of hours she is studying because the marginal benefit of studying for the 8th hour is less than the marginal cost of doing so. 
D)  increase the number of hours she is studying because the marginal benefit of studying for the 8th hour is greater than the marginal cost of doing so. 
A)  cut back on the number of hours she is studying because the marginal benefit of studying for the 8th hour is less than the marginal cost of doing so. 
B)  cut back on the number of hours she is studying because the marginal benefit of studying for the 8th is greater than the marginal cost of doing so. 
C)  increase the number of hours she is studying because the marginal benefit of studying for the 8th hour is less than the marginal cost of doing so. 
D)  increase the number of hours she is studying because the marginal benefit of studying for the 8th hour is greater than the marginal cost of doing so.

Question 2

In general,there is a ______________ relationship between the number of hours spent studying for a test and the grade earned on the test.

Accepted Answer

A)  independent 
B)  direct 
C)  inverse 
D)  smooth 
A)  independent 
B)  direct 
C)  inverse 
D)  smooth

Question 3

Normative economics is concerned with

Accepted Answer

A)  value judgments. 
B)  opinions. 
C)  cause-effect relationships. 
D)  observations that can be proved. 
E)  both a and b 
A)  value judgments. 
B)  opinions. 
C)  cause-effect relationships. 
D)  observations that can be proved. 
E)  both a and b

Question 4

The absence of value judgments is the essence of

Accepted Answer

A)  normative economics. 
B)  positive economics. 
C)  microeconomics. 
D)  macroeconomics. 
A)  normative economics. 
B)  positive economics. 
C)  microeconomics. 
D)  macroeconomics.

Question 5

The resource termed labor consists of the physical,but not the mental,talents that people contribute to the production process.

Accepted Answer

A) True 
 B)False

Question 6

Which statement uses the term ceteris paribus correctly?

Accepted Answer

A)  If you exercise regularly,you will be healthier,ceteris paribus. 
B)  Blue is to green,ceteris paribus,as red is to purple. 
C)  Most people consider Sunday to be the first day of the week,ceteris paribus. 
D)  Interest rates usually rise in October,ceteris paribus. 
E)  a and d 
A)  If you exercise regularly,you will be healthier,ceteris paribus. 
B)  Blue is to green,ceteris paribus,as red is to purple. 
C)  Most people consider Sunday to be the first day of the week,ceteris paribus. 
D)  Interest rates usually rise in October,ceteris paribus. 
E)  a and d

Question 7

Which of the following statements is false?

Accepted Answer

A)  Capital consists of produced goods that can be used as inputs for further production. 
B)  The terms resources,inputs,and factors of production are synonyms. 
C)  Labor consists of the physical,but not mental,talents of people who contribute to the production process. 
D)  Entrepreneurship is one of the four categories of resources. 
E)  The resource category land includes natural resources,such as minerals,forests,water,and unimproved land. 
A)  Capital consists of produced goods that can be used as inputs for further production. 
B)  The terms resources,inputs,and factors of production are synonyms. 
C)  Labor consists of the physical,but not mental,talents of people who contribute to the production process. 
D)  Entrepreneurship is one of the four categories of resources. 
E)  The resource category land includes natural resources,such as minerals,forests,water,and unimproved land.

Question 8

-Refer to Exhibit 1-2.Based on the data provided in this table,if these data were plotted in a two-variable diagram the result would be ______________ sloping ____________________.

Accepted Answer

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

Question 9

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Accepted Answer

A)  watching television is the opportunity cost of having dinner with your friends. 
B)  the price of having dinner with your friends is more than the price you would have had to pay to watch television. 
C)  the opportunity cost of having dinner with your friends is lower than the opportunity cost of watching television. 
D)  it is less costly to watch television than to have dinner with your friends. 
A)  watching television is the opportunity cost of having dinner with your friends. 
B)  the price of having dinner with your friends is more than the price you would have had to pay to watch television. 
C)  the opportunity cost of having dinner with your friends is lower than the opportunity cost of watching television. 
D)  it is less costly to watch television than to have dinner with your friends.

Question 10

The slope of a (nonlinear)curve varies from one point to another.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a possible rationing device?

Accepted Answer

A)  dollar price 
B)  first-come-first-served 
C)  brute force 
D)  a and b 
E)  a,b,and c 
A)  dollar price 
B)  first-come-first-served 
C)  brute force 
D)  a and b 
E)  a,b,and c

Question 12

-Refer to Exhibit 1-1.The efficient length of time for the student to study in the situation portrayed in this diagram is

Accepted Answer

A)  2 hours. 
B)  4 hours. 
C)  6 hours. 
D)  8 hours. 
E)  There is not enough information provided to answer the question. 
A)  2 hours. 
B)  4 hours. 
C)  6 hours. 
D)  8 hours. 
E)  There is not enough information provided to answer the question.

Question 13

Prior to attending college,Marvin is offered a lucrative four-year contract as an actor on a daytime soap opera.Assuming that acting and attending college are Marvin's preferred alternatives and that he must choose between these two options,his opportunity cost of attending college after receiving the offer on the soap opera ________________,making him ____________ likely to attend college than before he received the offer.

Accepted Answer

A)  increases; less 
B)  decreases; more 
C)  stays the same; equally likely 
D)  increases; more 
E)  decreases; less 
A)  increases; less 
B)  decreases; more 
C)  stays the same; equally likely 
D)  increases; more 
E)  decreases; less

Question 14

Scarcity is defined as the condition in which

Accepted Answer

A)  both wants and resources are limited. 
B)  wants are finite and resources infinite. 
C)  both wants and resources are infinite. 
D)  wants are infinite and resources finite. 
A)  both wants and resources are limited. 
B)  wants are finite and resources infinite. 
C)  both wants and resources are infinite. 
D)  wants are infinite and resources finite.

-Refer to Exhibit 1-1.If the student whose study habits are illustrated here is currently studying for the 8th hour,she should

In general,there is a ______________ relationship between the number of hours spent studying for a test and the grade earned on the test.

Normative economics is concerned with

The absence of value judgments is the essence of

The resource termed labor consists of the physical,but not the mental,talents that people contribute to the production process.

Which statement uses the term ceteris paribus correctly?

Which of the following statements is false?

-Refer to Exhibit 1-2.Based on the data provided in this table,if these data were plotted in a two-variable diagram the result would be sloping ______.

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

The slope of a (nonlinear)curve varies from one point to another.

Which of the following is a possible rationing device?

-Refer to Exhibit 1-1.The efficient length of time for the student to study in the situation portrayed in this diagram is

Scarcity is defined as the condition in which

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

Exam 1: What Economics Is About

-Refer to Exhibit 1-1.If the student whose study habits are illustrated here is currently studying for the 8th hour,she should

In general,there is a ______________ relationship between the number of hours spent studying for a test and the grade earned on the test.

Normative economics is concerned with

The absence of value judgments is the essence of

The resource termed labor consists of the physical,but not the mental,talents that people contribute to the production process.

Which statement uses the term ceteris paribus correctly?

Which of the following statements is false?

-Refer to Exhibit 1-2.Based on the data provided in this table,if these data were plotted in a two-variable diagram the result would be ______________ sloping ____________________.

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

The slope of a (nonlinear)curve varies from one point to another.

Which of the following is a possible rationing device?

-Refer to Exhibit 1-1.The efficient length of time for the student to study in the situation portrayed in this diagram is

Scarcity is defined as the condition in which

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 1-2.Based on the data provided in this table,if these data were plotted in a two-variable diagram the result would be sloping ______.