Question 1

In an interview an economist states, "This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

Accepted Answer

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

Question 2

A good provides __________ and a bad provides __________.

Accepted Answer

A) utility; satisfaction 
B) disutility; utility 
C) dissatisfaction; satisfaction 
D) utility; disutility 
E) satisfaction; utility

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The condition in an economy that makes a "rationing device" a necessity is:

Accepted Answer

A) the economy is organized around free markets. 
B) the economy is centrally planned by the government. 
C) scarcity exists. 
D) there are fewer types of goods than there are people in the economy.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) labor 
B) government 
C) capital 
D) entrepreneurship 
E) land

Question 7

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.

Question 8

The primary reason why people cannot 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

Question 9

The author of the textbook defines economics as the

Accepted Answer

A) science of efficiency. 
B) science of scarcity. 
C) study of markets. 
D) study of human activity.

Question 10

In most societies, dollar price acts as the main rationing device. If dollar price weren't the main rationing device, would there still be a need for some rationing device to take its place?

Accepted Answer

A) No, because with dollar price there would be no scarcity, although shortages would still exist. 
B) Yes, because there is a need for a rationing device as long as scarcity exists. 
C) Yes, because there is a need for a rationing device as long as the world's population is so large. 
D) No, because dollar price creates scarcity and without money price scarcity wouldn't exist. 
E) none of the above

Question 11

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.

Question 12

The coordinates of point A are 30 units of X and 70 units of Y. The coordinates of point B are 28 units of X and 76 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is

Accepted Answer

A) + 3.00 
B) + 0.67 
C) + 0.33 
D) - 3.00 
E) - 0.33

Question 13

The answer is, "This is principally used to exhibit changes in data over time." The question is,

Accepted Answer

A) What is a pie chart? 
B) What is a 45-degree line? 
C) What is a tangent line? 
D) What is a line graph? 
E) b and d

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.

Question 15

Opportunity cost is the __________ alternative forfeited when a choice is made.

Accepted Answer

A) least-valued 
B) most highly-valued 
C) most convenient 
D) most recently considered

Question 16

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) the slope of the line is 1. 
D) a and c 
E) a, b, and c

Question 17

Exhibit 1-3
  ​
-Refer to Exhibit 1-3. Based on the data provided in this table, what type of relationship exists between variables X and Y?

Accepted Answer

A) inverse 
B) direct 
C) independent 
D) There is no relationship between variables X and Y.

Question 18

The __________ the opportunity cost of doing something, the __________ likely a person will do that something.

Accepted Answer

A) lower; less 
B) lower; more 
C) higher; more 
D) higher; less 
E) b and d

Question 19

Harry is trying to take one more class this semester. He is weighing the marginal benefit of taking one more class to the marginal cost of taking one more class. Which economic concept is most closely related to Harry's decision-making process?

Accepted Answer

A) macroeconomics 
B) exchange 
C) rationing devices 
D) decisions made at the margin

Question 20

In all cases, microeconomics deals with

Accepted Answer

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

Exam 1: What Economics Is About

In an interview an economist states, "This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

A good provides and a bad provides .

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

The condition in an economy that makes a "rationing device" a necessity is:

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

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

In the textbook, economics is defined as the science of

The primary reason why people cannot have everything they want is because

The author of the textbook defines economics as the

In most societies, dollar price acts as the main rationing device. If dollar price weren't the main rationing device, would there still be a need for some rationing device to take its place?

Scarcity is defined as the condition in which

The coordinates of point A are 30 units of X and 70 units of Y. The coordinates of point B are 28 units of X and 76 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is

The answer is, "This is principally used to exhibit changes in data over time." The question is,

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

Opportunity cost is the __________ alternative forfeited when a choice is made.

A characteristic of a 45-degree line is that

Exhibit 1-3 -Refer to Exhibit 1-3. Based on the data provided in this table, what type of relationship exists between variables X and Y?

The the opportunity cost of doing something, the likely a person will do that something.

Harry is trying to take one more class this semester. He is weighing the marginal benefit of taking one more class to the marginal cost of taking one more class. Which economic concept is most closely related to Harry's decision-making process?

In all cases, microeconomics deals with

Exam 1: What Economics Is About

In an interview an economist states, "This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

A good provides __________ and a bad provides __________.

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

The condition in an economy that makes a "rationing device" a necessity is:

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

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

In the textbook, economics is defined as the science of

The primary reason why people cannot have everything they want is because

The author of the textbook defines economics as the

In most societies, dollar price acts as the main rationing device. If dollar price weren't the main rationing device, would there still be a need for some rationing device to take its place?

Scarcity is defined as the condition in which

The coordinates of point A are 30 units of X and 70 units of Y. The coordinates of point B are 28 units of X and 76 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is

The answer is, "This is principally used to exhibit changes in data over time." The question is,

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

Opportunity cost is the __________ alternative forfeited when a choice is made.

A characteristic of a 45-degree line is that

Exhibit 1-3 ​ -Refer to Exhibit 1-3. Based on the data provided in this table, what type of relationship exists between variables X and Y?

The __________ the opportunity cost of doing something, the __________ likely a person will do that something.

Harry is trying to take one more class this semester. He is weighing the marginal benefit of taking one more class to the marginal cost of taking one more class. Which economic concept is most closely related to Harry's decision-making process?

In all cases, microeconomics deals with

A good provides and a bad provides .

Exhibit 1-3 -Refer to Exhibit 1-3. Based on the data provided in this table, what type of relationship exists between variables X and Y?

The the opportunity cost of doing something, the likely a person will do that something.