Question 1

The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade.

Accepted Answer

A)  collective 
B)  cooperative 
C)  market 
D)  trade-off 
A)  collective 
B)  cooperative 
C)  market 
D)  trade-off C

Question 2

Economic models do all of the following except

Accepted Answer

A)  answer economic questions. 
B)  portray reality in all its minute details. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  simplify some aspect of economic life. 
A)  answer economic questions. 
B)  portray reality in all its minute details. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  simplify some aspect of economic life. B

Question 3

DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service. For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. Should DeShawn continue to offer the engine detailing service?

Accepted Answer

A)  Yes, he still makes a profit by selling the engine detailing service with the basic detailing package. 
B)  Yes, but only if he raises the price of the basic detailing package. 
C)  No, his marginal benefit is less than his marginal cost. 
D)  More information is needed for DeShawn to make this decision. 
A)  Yes, he still makes a profit by selling the engine detailing service with the basic detailing package. 
B)  Yes, but only if he raises the price of the basic detailing package. 
C)  No, his marginal benefit is less than his marginal cost. 
D)  More information is needed for DeShawn to make this decision. C

Question 4

Which of the following questions or statements regarding medical school is normative?

Accepted Answer

A)  How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? 
B)  Medical students who enter specialised fields make a larger contribution to society than do student who enter primary care. 
C)  What role does tuition play in a student's decision about whether to attend medical school? 
D)  Have tuition increases had a large effect or a small effect on the number of applications to medical school? 
A)  How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? 
B)  Medical students who enter specialised fields make a larger contribution to society than do student who enter primary care. 
C)  What role does tuition play in a student's decision about whether to attend medical school? 
D)  Have tuition increases had a large effect or a small effect on the number of applications to medical school?

Question 5

The decision about what goods and services will be produced in a market economy is made by

Accepted Answer

A)  lawmakers in the government voting on what will be produced. 
B)  workers deciding to produce only what the boss says must be produced. 
C)  producers deciding what society wants most. 
D)  consumers and firms choosing which goods and services to buy or produce. 
A)  lawmakers in the government voting on what will be produced. 
B)  workers deciding to produce only what the boss says must be produced. 
C)  producers deciding what society wants most. 
D)  consumers and firms choosing which goods and services to buy or produce.

Question 6

Microeconomics is the study of

Accepted Answer

A)  how households and firms make choices. 
B)  the economy as a whole. 
C)  the global economy. 
D)  topics such as unemployment, inflation, and economic growth. 
A)  how households and firms make choices. 
B)  the economy as a whole. 
C)  the global economy. 
D)  topics such as unemployment, inflation, and economic growth.

Question 7

The relationship between consumer spending and disposable personal income is

Accepted Answer

A)  an inverse relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  independent. 
A)  an inverse relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  independent.

Question 8

-Refer to Figure 1-3. Calculate the area of the trapezoid X.

Accepted Answer

A)  $270 
B)  $720 
C)  $810 
D)  $2520 
A)  $270 
B)  $720 
C)  $810 
D)  $2520

Question 9

Which of the following is a problem inherent in centrally planned economies?

Accepted Answer

A)  Households and firms make poor decisions in choosing how resources are allocated. 
B)  There is too little production of low-cost, high-quality goods and services. 
C)  Production managers are more concerned with satisfying consumer wants than with satisfying government's orders. 
D)  Exports tend to exceed imports. 
A)  Households and firms make poor decisions in choosing how resources are allocated. 
B)  There is too little production of low-cost, high-quality goods and services. 
C)  Production managers are more concerned with satisfying consumer wants than with satisfying government's orders. 
D)  Exports tend to exceed imports.

Question 10

'An increase in the price of petrol will increase the demand for hybrid vehicles.' This statement is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a normative economic statement?

Accepted Answer

A)  The price of wheat is too low. 
B)  The current low price of wheat is the result of increased worldwide supply. 
C)  When the price of wheat falls, the quantity of wheat purchased rises. 
D)  When the price of wheat falls, the cost of wheat-based products falls. 
A)  The price of wheat is too low. 
B)  The current low price of wheat is the result of increased worldwide supply. 
C)  When the price of wheat falls, the quantity of wheat purchased rises. 
D)  When the price of wheat falls, the cost of wheat-based products falls.

Question 12

A university must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of 'what to produce.'

Accepted Answer

A) True 
 B)False

Question 13

'The distribution of income should be left to the market' is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 14

What is a mixed economy?

Accepted Answer

A mixed economy is an economy in which m

Question 15

What is an economic model?

Accepted Answer

An economic model is a simplif

Question 16

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200. Then, the doctor should stay open for the extra hour if he can generate additional revenue of $200 for that hour.

Accepted Answer

A) True 
 B)False

Question 17

-Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2008 and 2011.

Accepted Answer

A)  23.1% 
B)  23.8% 
C)  30% 
D)  42.9% 
A)  23.1% 
B)  23.8% 
C)  30% 
D)  42.9%

Question 18

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces, then $50 is the marginal cost of producing the 5th necklace.

Accepted Answer

A) True 
 B)False

Question 19

Define microeconomics.

Accepted Answer

Microeconomics is the study of

Question 20

Who receives the most of what is produced in a market economy?

Accepted Answer

A)  lawmakers and other politically favoured groups 
B)  those who are willing and able to buy them 
C)  people who earn the highest incomes 
D)  Everyone receives an equal amount. 
A)  lawmakers and other politically favoured groups 
B)  those who are willing and able to buy them 
C)  people who earn the highest incomes 
D)  Everyone receives an equal amount.

The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade.

Economic models do all of the following except

Which of the following questions or statements regarding medical school is normative?

The decision about what goods and services will be produced in a market economy is made by

Microeconomics is the study of

The relationship between consumer spending and disposable personal income is

-Refer to Figure 1-3. Calculate the area of the trapezoid X.

Which of the following is a problem inherent in centrally planned economies?

'An increase in the price of petrol will increase the demand for hybrid vehicles.' This statement is an example of a positive economic statement.

Which of the following is a normative economic statement?

A university must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of 'what to produce.'

'The distribution of income should be left to the market' is an example of a positive economic statement.

What is a mixed economy?

What is an economic model?

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200. Then, the doctor should stay open for the extra hour if he can generate additional revenue of $200 for that hour.

-Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2008 and 2011.

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces, then $50 is the marginal cost of producing the 5th necklace.

Define microeconomics.

Who receives the most of what is produced in a market economy?

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 1: Economics Foundations and Models

The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade.

Economic models do all of the following except

Which of the following questions or statements regarding medical school is normative?

The decision about what goods and services will be produced in a market economy is made by

Microeconomics is the study of

The relationship between consumer spending and disposable personal income is

-Refer to Figure 1-3. Calculate the area of the trapezoid X.

Which of the following is a problem inherent in centrally planned economies?

'An increase in the price of petrol will increase the demand for hybrid vehicles.' This statement is an example of a positive economic statement.

Which of the following is a normative economic statement?

A university must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of 'what to produce.'

'The distribution of income should be left to the market' is an example of a positive economic statement.

What is a mixed economy?

What is an economic model?

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200. Then, the doctor should stay open for the extra hour if he can generate additional revenue of $200 for that hour.

-Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2008 and 2011.

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces, then $50 is the marginal cost of producing the 5th necklace.

Define microeconomics.

Who receives the most of what is produced in a market economy?

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters