Question 1

The study of the choices made by individual households,firms,and government is called

Accepted Answer

A)   macroeconomics.
B)   microeconomics.
C)   managerial economics.
D)   market economics.E) A) and B)
F) B) and C)

Question 2

The reason why economists do not need details regarding the topography of a region when determining driving directions is because economics desires unrealistic assumptions.

Accepted Answer

A) True 
 B)False  False

Question 3

An example of analysis that involves variables and how they affect one another would include the relationship of the price of smart phones to the quantity of smart phones purchased.

Accepted Answer

A) True 
 B)False

Question 4

A variable is a measure that can take on different values.

Accepted Answer

A) True 
 B)False  True

Question 5

Economists have found that as a nation's economy grows,

Accepted Answer

A)   the poorest families are left behind.
B)   the poorest families have a decline in income.
C)   the poorest families share in the prosperity.
D)   the poorest families are unaffected.E) A) and D)
F) None of the above

Question 6

A pie chart show the relationship between two variables.

Accepted Answer

A) True 
 B)False

Question 7

Markets perform all of the following functions EXCEPT

Accepted Answer

A)   determining the prices of goods and services.
B)   helping firms decide what to produce.
C)   helping firms decide how to produce.
D)   determining why a firm chooses to produce a certain product.E) A) and C)
F) A) and D)

Question 8

Imagine that an upward-sloping line is depicted in a graph with income per week on the y-axis and hours worked per week on the x-axis.The slope of the line in the graph depicts the

Accepted Answer

A)   minimum wage of the worker.
B)   hourly wage of the worker.
C)   total monthly income of the worker.
D)   increase in income earned by the worker for every year of service.E) B) and C)
F) B) and D)

Question 9

Which of the following is a country whose economy shrank between 1960 and 2001?

Accepted Answer

A)   Sierra Leone
B)   the United States
C)   Mexico
D)   CanadaE) B) and C)
F) A) and D)

Question 10

Which of the following is NOT a factor of production?

Accepted Answer

A)   money
B)   human capital
C)   physical capital
D)   laborE) All of the above
F) None of the above

Question 11

If each extra driver on the road makes every other driver's commute last one minute longer and there are 600 drivers on the road,then one extra driver costs society

Accepted Answer

A)   1 hour extra in commuting time.
B)   10 hours extra in commuting time.
C)   100 hours extra in commuting time.
D)   10 extra minutes in commuting time.E) None of the above
F) A) and C)

Question 12

A small change in a relevant variable is

Accepted Answer

A)   an average change.
B)   a ceteris paribus change.
C)   an efficient change.
D)   a marginal change.E) A) and B)
F) None of the above

Question 13

Because resources are limited,

Accepted Answer

A)   only the very wealthy can get everything they want.
B)   firms will be forced out of business.
C)   the availability of goods will be limited but the availability of services will not.
D)   people must make choices.E) C) and D)
F) B) and C)

Question 14

Economists assume that individuals make informed decisions and act in their own self-interest.

Accepted Answer

A) True 
 B)False

Question 15

Scarcity can best be defined as a situation in which

Accepted Answer

A)   there are no buyers willing to purchase what sellers have produced.
B)   there are not enough goods to satisfy all of the buyers demands.
C)   resources are limited in quantity and can be used in different ways.
D)   there is more than enough money to satisfy consumers wants.E) B) and C)
F) All of the above

Question 16

Recall the Application about housing prices in Cuba to answer the following question(s) .
-According to the Application,from 1960 until 2011,tenants who paid monthly rent for housing for 20 years to the Cuban government

Accepted Answer

A)   were required to then vacate the dwelling and move in with relatives.
B)   were given government jobs at twice their most recent salary.
C)   officially owned the dwelling, and could legally sell it or rent it to others.
D)   officially owned the dwelling, but could not sell it or rent it to others.E) A) and B)
F) None of the above

Question 17

Which of the following is NOT a macroeconomic question?

Accepted Answer

A)   Should we have a constitutional amendment to balance the federal budget?
B)   Do employers discriminate against women by paying them lower wages?
C)   How does a political candidate's economic reform package affect the inflation rate?
D)   All of the above are macroeconomic questions.E) A) and B)
F) A) and C) B

Question 18

Which of the following is a macroeconomic question?

Accepted Answer

A)   Should a country adopt policies to encourage personal savings?
B)   Why do some countries grow faster than others?
C)   Why do prices tend to increase over time?
D)   All of the above are macroeconomic questions.E) B) and C)
F) A) and D)

Question 19

Adam Smith is

Accepted Answer

A)   considered the founder of economics.
B)   responsible for a branch of economics bearing his name.
C)   responsible for refining the model of supply and demand.
D)   the author of this text.E) B) and D)
F) C) and D)

Question 20

Economists use assumptions to

Accepted Answer

A)   make things simpler.
B)   focus on what really matters.
C)   simplify decision-making.
D)   all of the aboveE) None of the above
F) A) and B)

Exam 1: Introduction: What Is Economics

The study of the choices made by individual households,firms,and government is called

Correct AnswerverifiedShow Answer

The reason why economists do not need details regarding the topography of a region when determining driving directions is because economics desires unrealistic assumptions.

Correct AnswerverifiedFalse

An example of analysis that involves variables and how they affect one another would include the relationship of the price of smart phones to the quantity of smart phones purchased.

Correct AnswerverifiedShow Answer

A variable is a measure that can take on different values.

Correct AnswerverifiedTrue

Economists have found that as a nation's economy grows,

Correct AnswerverifiedShow Answer

A pie chart show the relationship between two variables.

Correct AnswerverifiedShow Answer

Markets perform all of the following functions EXCEPT

Correct AnswerverifiedShow Answer

Imagine that an upward-sloping line is depicted in a graph with income per week on the y-axis and hours worked per week on the x-axis.The slope of the line in the graph depicts the

Correct AnswerverifiedShow Answer

Which of the following is a country whose economy shrank between 1960 and 2001?

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor of production?

Correct AnswerverifiedShow Answer

If each extra driver on the road makes every other driver's commute last one minute longer and there are 600 drivers on the road,then one extra driver costs society

Correct AnswerverifiedShow Answer

A small change in a relevant variable is

Correct AnswerverifiedShow Answer

Because resources are limited,

Correct AnswerverifiedShow Answer

Economists assume that individuals make informed decisions and act in their own self-interest.

Correct AnswerverifiedShow Answer

Scarcity can best be defined as a situation in which

Correct AnswerverifiedShow Answer

Recall the Application about housing prices in Cuba to answer the following question(s) . -According to the Application,from 1960 until 2011,tenants who paid monthly rent for housing for 20 years to the Cuban government

Correct AnswerverifiedShow Answer

Which of the following is NOT a macroeconomic question?

Correct AnswerverifiedB

Which of the following is a macroeconomic question?

Correct AnswerverifiedShow Answer

Adam Smith is

Correct AnswerverifiedShow Answer

Economists use assumptions to

Correct AnswerverifiedShow Answer

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False

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True

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B

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