Question 1

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 2

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 3

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 4

The concept that relates how much one variable changes as another variable changes is

Accepted Answer

A) slope. 
B) line. 
C) curve. 
D) graph. 
A) slope. 
B) line. 
C) curve. 
D) graph.

Question 5

Which of the following is most likely to be an unintended effect of placing safety caps on medicines?

Accepted Answer

A) It is now harder for people to open their medicine containers. 
B) People leave their medicine containers open more often,which ends up making it easier for children to get into the medicine. 
C) Fewer people get sick and need medicine. 
D) Medicine prices fall sharply. 
A) It is now harder for people to open their medicine containers. 
B) People leave their medicine containers open more often,which ends up making it easier for children to get into the medicine. 
C) Fewer people get sick and need medicine. 
D) Medicine prices fall sharply.

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

Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25),read a good novel (you value this at $13),or go in to work (you could earn $20 during the economics class).The opportunity cost of going to your economics class is

Accepted Answer

A) $20,because this is the only alternative of the three where you actually receive a monetary payment. 
B) $13,because this is the lowest valued alternative forfeited. 
C) $25,because this is the highest valued alternative forfeited. 
D) $58,because this is the total dollar sum of the alternatives forfeited. 
A) $20,because this is the only alternative of the three where you actually receive a monetary payment. 
B) $13,because this is the lowest valued alternative forfeited. 
C) $25,because this is the highest valued alternative forfeited. 
D) $58,because this is the total dollar sum of the alternatives forfeited.

Question 8

Efficiency is consistent with

Accepted Answer

A) maximizing net benefits. 
B) equating marginal benefits and marginal costs. 
C) maximizing total benefits. 
D) minimizing total costs. 
E) a and b 
A) maximizing net benefits. 
B) equating marginal benefits and marginal costs. 
C) maximizing total benefits. 
D) minimizing total costs. 
E) a and b

Question 9

The reason people can't have everything they want is because

Accepted Answer

A) people are selfish. 
B) scarcity exists. 
C) there is not enough economic growth in the world. 
D) none of the above 
A) people are selfish. 
B) scarcity exists. 
C) there is not enough economic growth in the world. 
D) none of the above

Question 10

Every time you make a __________,you incur a(n)__________.

Accepted Answer

A) decision;efficient effect 
B) choice;opportunity cost 
C) competitive move;price 
D) decision;mistake 
E) none of the above 
A) decision;efficient effect 
B) choice;opportunity cost 
C) competitive move;price 
D) decision;mistake 
E) none of the above

Question 11

In economics,capital is defined as a financial asset such as stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 12

The physical and mental talents people bring to production processes comprise the resource called

Accepted Answer

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

Question 13

At the optimal or efficient level of an activity,the activity's marginal benefit must

Accepted Answer

A) be zero. 
B) be greater than zero. 
C) equal the marginal cost of the activity. 
D) exceed the marginal cost of the activity. 
A) be zero. 
B) be greater than zero. 
C) equal the marginal cost of the activity. 
D) exceed the marginal cost of the activity.

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.

Question 15

What is the most prominent rationing device you will likely find at your campus bookstore?

Accepted Answer

A) dollar price 
B) brute force 
C) anti-theft tags on the high-priced items 
D) none of the above 
A) dollar price 
B) brute force 
C) anti-theft tags on the high-priced items 
D) none of the above

Question 16

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

Accepted Answer

A) an increase in the price of automobiles,further reducing fatalities. 
B) an increase in driving speed,reducing the number of accidents. 
C) a decrease in driving speed,further reducing fatalities. 
D) an increase in risky driving behavior,increasing fatalities. 
A) an increase in the price of automobiles,further reducing fatalities. 
B) an increase in driving speed,reducing the number of accidents. 
C) a decrease in driving speed,further reducing fatalities. 
D) an increase in risky driving behavior,increasing fatalities.

Question 17

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 18

If variable X rises as a result of variable Y falling,then X and Y have an inverse relationship.

Accepted Answer

A) True 
 B)False

Question 19

Economists use the word utility to describe the satisfaction one receives from a good.

Accepted Answer

A) True 
 B)False

Question 20

In the textbook,economics is defined as the science of

Accepted Answer

A) money and business. 
B) choices. 
C) scarcity. 
D) price. 
E) individuals' actions. 
A) money and business. 
B) choices. 
C) scarcity. 
D) price. 
E) individuals' actions.

Exam 1: What Economics Is About

Economists believe that people's wants are

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

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

The concept that relates how much one variable changes as another variable changes is

Which of the following is most likely to be an unintended effect of placing safety caps on medicines?

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

Efficiency is consistent with

The reason people can't have everything they want is because

Every time you make a __________,you incur a(n)__________.

In economics,capital is defined as a financial asset such as stocks and bonds.

The physical and mental talents people bring to production processes comprise the resource called

At the optimal or efficient level of an activity,the activity's marginal benefit must

Scarcity is defined as the condition in which

What is the most prominent rationing device you will likely find at your campus bookstore?

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

Which of the following is a possible rationing device?

If variable X rises as a result of variable Y falling,then X and Y have an inverse relationship.

Economists use the word utility to describe the satisfaction one receives from a good.

In the textbook,economics is defined as the science of

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

Filters

Every time you make a ,you incur a(n).