Question 1

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 D

Question 2

The branch of economics that studies the decisions of individuals and firms is called

Accepted Answer

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

Question 3

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

Accepted Answer

A) resource. 
B) good. 
C) rationing device. 
D) capital instrument. 
E) factor of production. 
A) resource. 
B) good. 
C) rationing device. 
D) capital instrument. 
E) factor of production. C

Question 4

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 5

In all cases,normative economics 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

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 7

A three-word synonym for the term ceteris paribus is

Accepted Answer

A) "nothing else changes." 
B) "in my opinion." 
C) "it is proved." 
D) "under this assumption." 
A) "nothing else changes." 
B) "in my opinion." 
C) "it is proved." 
D) "under this assumption."

Question 8

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 9

Variables A and B are inversely related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

Accepted Answer

A) parallel to the horizontal axis. 
B) downward-sloping (left to right). 
C) parallel to the vertical axis. 
D) upward-sloping (left to right). 
E) a or c 
A) parallel to the horizontal axis. 
B) downward-sloping (left to right). 
C) parallel to the vertical axis. 
D) upward-sloping (left to right). 
E) a or c

Question 10

The study of an economy's price level is explicitly a part of

Accepted Answer

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

Question 11

In all cases,positive economics deals with

Accepted Answer

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

Question 12

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 13

If someone gives you a free ticket to the movies,then there is no opportunity cost involved with going to the movies.

Accepted Answer

A) True 
 B)False

Question 14

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.

Question 15

Which of the following statements is true?

Accepted Answer

A) Oil is classified as part of the resource category land. 
B) A person working for a company is classified as part of the resource category capital. 
C) A machine in a factory is classified as part of the resource category land. 
D) A person with the particular talent for organizing the resources of land,labor,and capital to produce goods,seek new business opportunities,and develop new ways of doing things is classified as part of the resource category labor. 
E) a and d 
A) Oil is classified as part of the resource category land. 
B) A person working for a company is classified as part of the resource category capital. 
C) A machine in a factory is classified as part of the resource category land. 
D) A person with the particular talent for organizing the resources of land,labor,and capital to produce goods,seek new business opportunities,and develop new ways of doing things is classified as part of the resource category labor. 
E) a and d

Question 16

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 17

Exhibit 1-1  
-Refer to Exhibit 1-1.The student whose study habits are illustrated here will maximize the net benefits of studying when she has studied

Accepted Answer

A) 2 hours 
B) 4 hours 
C) 6 hours 
D) 8 hours 
A) 2 hours 
B) 4 hours 
C) 6 hours 
D) 8 hours

Question 18

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 19

Saying "the marginal costs are greater than the marginal benefits" is the same as saying

Accepted Answer

A) the average costs are greater than the average benefits. 
B) the total costs are greater than the average benefits. 
C) the benefits are greater than the costs. 
D) the additional costs are greater than the additional benefits. 
E) the costs minus the benefits equal the net costs. 
A) the average costs are greater than the average benefits. 
B) the total costs are greater than the average benefits. 
C) the benefits are greater than the costs. 
D) the additional costs are greater than the additional benefits. 
E) the costs minus the benefits equal the net costs.

Question 20

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.

Exam 1: What Economics Is About

Something that provides disutility is called a

The branch of economics that studies the decisions of individuals and firms is called

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

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

In all cases,normative economics deals with

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

A three-word synonym for the term ceteris paribus is

Entrepreneurship is

Variables A and B are inversely related.If we plot A on the horizontal axis and B on the vertical axis,the line that connects combinations of A and B in a two-variable diagram is

The study of an economy's price level is explicitly a part of

In all cases,positive economics deals with

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

If someone gives you a free ticket to the movies,then there is no opportunity cost involved with going to the movies.

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

Which of the following statements is true?

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

Exhibit 1-1 -Refer to Exhibit 1-1.The student whose study habits are illustrated here will maximize the net benefits of studying when she has studied

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

Saying "the marginal costs are greater than the marginal benefits" is the same as saying

Which of the following is a positive economic statement?

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part I: Prices and Unemployment

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

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

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

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