Question 1

According to the Centers for Disease Control and Prevention,________ in 2013 in which less than 20 percent of the population was considered obese.

Accepted Answer

A) Colorado was the only state 
B) there were only 5 states 
C) there were more than 25 states 
D) there were no states 
A) Colorado was the only state 
B) there were only 5 states 
C) there were more than 25 states 
D) there were no states

Question 2

Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests.Suppose your classmate,Heidi,purchased two tickets for $40 each.Is this transaction economically efficient?

Accepted Answer

A) No,people should never be allowed to sell items they received for free. 
B) Yes,it was a voluntary exchange that benefited both parties. 
C) No,Heidi paid too much for the tickets. 
D) Yes,it is efficient only from the perspective of the seller and not from the perspective of the buyer. 
A) No,people should never be allowed to sell items they received for free. 
B) Yes,it was a voluntary exchange that benefited both parties. 
C) No,Heidi paid too much for the tickets. 
D) Yes,it is efficient only from the perspective of the seller and not from the perspective of the buyer.

Question 3

In a market economy,those who are willing and able to buy what is produced

Accepted Answer

A) receive what the government allows them to receive. 
B) receive the most of what is produced. 
C) receive no more than everyone else in the market. 
D) solely determine what is produced. 
A) receive what the government allows them to receive. 
B) receive the most of what is produced. 
C) receive no more than everyone else in the market. 
D) solely determine what is produced.

Question 4

Economists assume that rational people

Accepted Answer

A) never use all available information as they act to achieve their goals. 
B) undertake activities that benefit others and hurt themselves. 
C) only weigh the benefits and costs of the most desirable alternative actions. 
D) respond to economic incentives. 
A) never use all available information as they act to achieve their goals. 
B) undertake activities that benefit others and hurt themselves. 
C) only weigh the benefits and costs of the most desirable alternative actions. 
D) respond to economic incentives.

Question 5

Scenario 1-1
Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of $10,000 per week.A manager at the plant observes,"Although the last 400 t-shirts we produced and sold increased our revenue by $4,000 and our costs by $4,800,we are still making an overall profit of $10,000 per week so I think we're on the right track.We are producing the optimal number of t-shirts."
-Refer to Scenario 1-1.Had the firm not produced and sold the last 400 t-shirts,would its profit be higher or lower,and if so by how much?

Accepted Answer

A) Its profit would be $4,800 higher. 
B) Its profit would be $800 higher. 
C) Its profit would be $800 lower. 
D) Its profit would be $4,000 lower. 
A) Its profit would be $4,800 higher. 
B) Its profit would be $800 higher. 
C) Its profit would be $800 lower. 
D) Its profit would be $4,000 lower.

Question 6

The processes used to produce goods and services describes

Accepted Answer

A) innovation. 
B) entrepreneurship. 
C) technology. 
D) capital. 
A) innovation. 
B) entrepreneurship. 
C) technology. 
D) capital.

Question 7

The study of economics arises due to

Accepted Answer

A) money. 
B) scarcity. 
C) greed. 
D) resources. 
A) money. 
B) scarcity. 
C) greed. 
D) resources.

Question 8

Refer to the Article Summary.The article discusses income inequality,and for some people this means a more equitable distribution of income is needed in the economy.Would an equitable distribution of income necessarily be the most efficient distribution of income?

Accepted Answer

A) Yes,equitable and efficient are two different words which have the same definition. 
B) Yes,in order for the distribution to be equitable,it must also be efficient. 
C) No,it is impossible to have an economically efficient distribution which is also an equitable distribution. 
D) No,an economically efficient distribution of income would not necessarily be equitable. 
A) Yes,equitable and efficient are two different words which have the same definition. 
B) Yes,in order for the distribution to be equitable,it must also be efficient. 
C) No,it is impossible to have an economically efficient distribution which is also an equitable distribution. 
D) No,an economically efficient distribution of income would not necessarily be equitable.

Question 9

Suppose the extra cost for a company to advertize for one extra day each week on a local TV station is $1,500.Then,the company should advertize on that additional day if it can generate total revenue of $1,500 each week.

Accepted Answer

A) True 
 B)False

Question 10

If the marginal cost for Big Ed's Used Car Emporium to advertise one additional day each week on a local TV station is $1,500,then Big Ed's should advertize that additional day

Accepted Answer

A) only if the marginal benefit the company receives each week is greater than $1,500 plus an acceptable profit margin. 
B) as long as the marginal benefit the company receives each week is just equal to or greater than $1,500. 
C) as long as the weekly marginal cost does not rise. 
D) until the marginal benefit the company receives reaches zero. 
A) only if the marginal benefit the company receives each week is greater than $1,500 plus an acceptable profit margin. 
B) as long as the marginal benefit the company receives each week is just equal to or greater than $1,500. 
C) as long as the weekly marginal cost does not rise. 
D) until the marginal benefit the company receives reaches zero.

Question 11

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

Accepted Answer

A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit 
A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit

Question 12

Allocative efficiency is achieved when

Accepted Answer

A) goods and services are fairly distributed among consumers in an economy. 
B) firms produce the goods and services that consumers value most. 
C) firms produce goods and services at the lowest cost. 
D) there are no shortages or surpluses in the market. 
A) goods and services are fairly distributed among consumers in an economy. 
B) firms produce the goods and services that consumers value most. 
C) firms produce goods and services at the lowest cost. 
D) there are no shortages or surpluses in the market.

Question 13

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

Accepted Answer

A) True 
 B)False

Question 14

If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon,what is the percentage change in price?

Accepted Answer

A) 7.8 percent 
B) 12.5 percent 
C) 27.7 percent 
D) 57.5 percent 
A) 7.8 percent 
B) 12.5 percent 
C) 27.7 percent 
D) 57.5 percent

Question 15

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Accepted Answer

A) relationships between two economic variables. 
B) one variable. 
C) a flow chart. 
D) a pie chart. 
A) relationships between two economic variables. 
B) one variable. 
C) a flow chart. 
D) a pie chart.

Question 16

In economics,the practical application of an invention is known as

Accepted Answer

A) technology. 
B) entrepreneurship. 
C) physical capital. 
D) innovation. 
A) technology. 
B) entrepreneurship. 
C) physical capital. 
D) innovation.

Question 17

Which of the following is a positive economic statement?

Accepted Answer

A) The inflation rate in the United States is too high. 
B) Unemployment insurance payments increase when the unemployment rate rises. 
C) The government should defund Obamacare. 
D) States should be able to enact their own marijuana legalization laws. 
A) The inflation rate in the United States is too high. 
B) Unemployment insurance payments increase when the unemployment rate rises. 
C) The government should defund Obamacare. 
D) States should be able to enact their own marijuana legalization laws.

Question 18

What is the difference between economic efficiency and equity?

Accepted Answer

Economic efficiency is concerned with ma

Question 19

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Accepted Answer

A) people without health insurance will be less likely to be overweight than people with health insurance. 
B) people without health insurance will be more likely to be overweight than people with health insurance. 
C) people without health insurance will be equally likely to be overweight as people with health insurance. 
D) there is no correlation between not having health insurance and being overweight. 
A) people without health insurance will be less likely to be overweight than people with health insurance. 
B) people without health insurance will be more likely to be overweight than people with health insurance. 
C) people without health insurance will be equally likely to be overweight as people with health insurance. 
D) there is no correlation between not having health insurance and being overweight.

Question 20

Which of the following is an example of a "how much" decision?

Accepted Answer

A) The Pleasantville movie theatre is open only in the evenings.The theatre's manager is debating whether to add daily matinee shows. 
B) The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home. 
C) You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck. 
D) Chelsea has withdrawn from the swim team to take a full-time job. 
A) The Pleasantville movie theatre is open only in the evenings.The theatre's manager is debating whether to add daily matinee shows. 
B) The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home. 
C) You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck. 
D) Chelsea has withdrawn from the swim team to take a full-time job.

According to the Centers for Disease Control and Prevention,________ in 2013 in which less than 20 percent of the population was considered obese.

Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests.Suppose your classmate,Heidi,purchased two tickets for $40 each.Is this transaction economically efficient?

In a market economy,those who are willing and able to buy what is produced

Economists assume that rational people

The processes used to produce goods and services describes

The study of economics arises due to

Refer to the Article Summary.The article discusses income inequality,and for some people this means a more equitable distribution of income is needed in the economy.Would an equitable distribution of income necessarily be the most efficient distribution of income?

Suppose the extra cost for a company to advertize for one extra day each week on a local TV station is $1,500.Then,the company should advertize on that additional day if it can generate total revenue of $1,500 each week.

If the marginal cost for Big Ed's Used Car Emporium to advertise one additional day each week on a local TV station is $1,500,then Big Ed's should advertize that additional day

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

Allocative efficiency is achieved when

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon,what is the percentage change in price?

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

In economics,the practical application of an invention is known as

Which of the following is a positive economic statement?

What is the difference between economic efficiency and equity?

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Which of the following is an example of a "how much" decision?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 1: Economics: Foundations and Models

According to the Centers for Disease Control and Prevention,________ in 2013 in which less than 20 percent of the population was considered obese.

Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests.Suppose your classmate,Heidi,purchased two tickets for $40 each.Is this transaction economically efficient?

In a market economy,those who are willing and able to buy what is produced

Economists assume that rational people

The processes used to produce goods and services describes

The study of economics arises due to

Refer to the Article Summary.The article discusses income inequality,and for some people this means a more equitable distribution of income is needed in the economy.Would an equitable distribution of income necessarily be the most efficient distribution of income?

Suppose the extra cost for a company to advertize for one extra day each week on a local TV station is $1,500.Then,the company should advertize on that additional day if it can generate total revenue of $1,500 each week.

If the marginal cost for Big Ed's Used Car Emporium to advertise one additional day each week on a local TV station is $1,500,then Big Ed's should advertize that additional day

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

Allocative efficiency is achieved when

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon,what is the percentage change in price?

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

In economics,the practical application of an invention is known as

Which of the following is a positive economic statement?

What is the difference between economic efficiency and equity?

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Which of the following is an example of a "how much" decision?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters