Question 1

The latest Taylor Swift album is available to be downloaded for $18.99.Is this price a rationing device?

Accepted Answer

A) No,the album will be sold to anyone having the required number of dollars. 
B) Yes,because the album will only be purchased by people who are willing and able to pay $18.99. 
C) No,for price to be a rationing device,it must be so high that only one unit of the item is sold. 
D) Yes,since that is a reasonable price. 
A) No,the album will be sold to anyone having the required number of dollars. 
B) Yes,because the album will only be purchased by people who are willing and able to pay $18.99. 
C) No,for price to be a rationing device,it must be so high that only one unit of the item is sold. 
D) Yes,since that is a reasonable price.

Question 2

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

Accepted Answer

A) Yes,if the number of accidents increases by a greater percentage than the number of deaths per accident decreases. 
B) No,because wearing seatbelts decreases the number of deaths per accident. 
C) No,because wearing seatbelts decreases the number of accidents. 
D) There is not enough information to answer the question. 
A) Yes,if the number of accidents increases by a greater percentage than the number of deaths per accident decreases. 
B) No,because wearing seatbelts decreases the number of deaths per accident. 
C) No,because wearing seatbelts decreases the number of accidents. 
D) There is not enough information to answer the question.

Question 3

How is scarcity related to competition?

Accepted Answer

A) Competition is an effect of scarcity. 
B) Scarcity is an effect of competition. 
C) Both scarcity and competition are effects of a rationing device. 
D) Both scarcity and competition are effects of opportunity cost. 
E) Scarcity produces disutility and competition produces utility. 
A) Competition is an effect of scarcity. 
B) Scarcity is an effect of competition. 
C) Both scarcity and competition are effects of a rationing device. 
D) Both scarcity and competition are effects of opportunity cost. 
E) Scarcity produces disutility and competition produces utility.

Question 4

Prior to attending college,Marvin is offered a lucrative four-year contract as an actor in a daytime soap opera.Assuming that acting and attending college are Marvin's preferred alternatives and that he must choose between the two,his opportunity cost of attending college after receiving the offer ________________,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 5

Which of the following is a normative macroeconomics statement?

Accepted Answer

A) The central bank should increase the nation's money supply. 
B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. 
C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. 
D) The local government ought to spend more on recreational facilities. 
A) The central bank should increase the nation's money supply. 
B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. 
C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. 
D) The local government ought to spend more on recreational facilities.

Question 6

Some years ago,chemists at 3M Corporation were trying to create a super-strong glue.Somehow they got their molecules twisted and came up with one of the weakest glues ever made.But,rather than pouring it down the drain,they tried coating some paper with it,and the "Post-It Note" was born.In this case,3M was acting as a(n)

Accepted Answer

A) utility. 
B) rationer. 
C) entrepreneur. 
D) abstraction. 
A) utility. 
B) rationer. 
C) entrepreneur. 
D) abstraction.

Question 7

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 8

A theory is

Accepted Answer

A) built on the major factors or variables that the theorist believes explain some event. 
B) a simplified abstract representation of the real world. 
C) used to understand the real world. 
D) a and b 
E) a,b,and c 
A) built on the major factors or variables that the theorist believes explain some event. 
B) a simplified abstract representation of the real world. 
C) used to understand the real world. 
D) a and b 
E) a,b,and c

Question 9

Minerals,animals,water and forests are all considered to be part of the resource category known as

Accepted Answer

A) capital 
B) entrepreneurship 
C) labor 
D) land 
E) none of the above 
A) capital 
B) entrepreneurship 
C) labor 
D) land 
E) none of the above

Question 10

A characteristic of a 45-degree line is that

Accepted Answer

A) any point on the line is equidistant from the two axes. 
B) it bisects a right angle. 
C) its slope is 1. 
D) a and c 
E) a,b,and c 
A) any point on the line is equidistant from the two axes. 
B) it bisects a right angle. 
C) its slope is 1. 
D) a and c 
E) a,b,and c

Question 11

Positive economics is concerned with

Accepted Answer

A) value judgments. 
B) cause-effect relationships. 
C) observations that cannot be proved. 
D) both b and c 
A) value judgments. 
B) cause-effect relationships. 
C) observations that cannot be proved. 
D) both b and c

Question 12

Explain why the ceteris paribus assumption is essential when assessing an economic theory.Give an example to help support your answer.

Accepted Answer

Economists use the ceteris paribus assum

Question 13

Exhibit 1-1  
-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 14

In the textbook,economics is defined as the science of scarcity.

Accepted Answer

A) True 
 B)False

Question 15

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.12 to 0.08 while raising the number of accidents per period from 400,000 to any more than

Accepted Answer

A) 480,000. 
B) 600,000. 
C) 660,000. 
D) 770,000. 
A) 480,000. 
B) 600,000. 
C) 660,000. 
D) 770,000.

Question 16

Opportunity cost is the value of

Accepted Answer

A) the best (or most highly valued)forfeited alternative. 
B) the chosen alternative. 
C) a free good. 
D) all forfeited alternatives. 
A) the best (or most highly valued)forfeited alternative. 
B) the chosen alternative. 
C) a free good. 
D) all forfeited alternatives.

Question 17

Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

Accepted Answer

Economists view the world using a number

Question 18

Making a decision at the margin is __________ an all-or-nothing decision.

Accepted Answer

A) consistent with 
B) inconsistent with 
C) the same as making 
D) conditioned upon making 
A) consistent with 
B) inconsistent with 
C) the same as making 
D) conditioned upon making

Question 19

The headline in the newspaper reads "County Supervisors Debate Building New Schools." The headline relates closest to which economic concept?

Accepted Answer

A) goods and bads 
B) utility 
C) choice 
D) efficiency 
A) goods and bads 
B) utility 
C) choice 
D) efficiency

Exam 1: What Economics Is About

The latest Taylor Swift album is available to be downloaded for $18.99.Is this price a rationing device?

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

How is scarcity related to competition?

Which of the following is a normative macroeconomics statement?

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

A theory is

Minerals,animals,water and forests are all considered to be part of the resource category known as

A characteristic of a 45-degree line is that

Positive economics is concerned with

Explain why the ceteris paribus assumption is essential when assessing an economic theory.Give an example to help support your answer.

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

In the textbook,economics is defined as the science of scarcity.

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.12 to 0.08 while raising the number of accidents per period from 400,000 to any more than

Opportunity cost is the value of

Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world.

Making a decision at the margin is __________ an all-or-nothing decision.

The headline in the newspaper reads "County Supervisors Debate Building New Schools." The headline relates closest to which economic concept?

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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