Question 1

Tradeoff is

Accepted Answer

A)  allowing the government and other organizations to choose for us.
B)  sacrificing one thing for another.
C)  deciding who consumes the products produced in an economy.
D)  holding other variables fixed.E) B) and C)
F) A) and D)

Question 2

Figure 1A.1
-Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

Accepted Answer

A)  0.2.
B)  5.
C)  10.
D)  50.E) None of the above
F) All of the above

Question 3

In the final two decades of the twentieth century, average per capita global income

Accepted Answer

A)  increased by approximately 35 percent.
B)  remained relatively unchanged.
C)  decreased by approximately 6 percent.
D)  increased by more than 75 percent.E) A) and D)
F) A) and C)

Question 4

If the price of a 8GB memory card decreases from $25 to $20, the percentage change is

Accepted Answer

A)  -20 percent.
B)  -33 percent.
C)  -50 percent.
D)  -60 percent.E) A) and B)
F) A) and C)

Question 5

Normative economics

Accepted Answer

A)  is the focus of most modern economic reasoning.
B)  answers the question ʺWhat ought to be?ʺ
C)  predicts the consequences of alternative actions.
D)  answers the question ʺWhat is?ʺE) B) and D)
F) A) and C)

Question 6

Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economyʹs resources are idle.

Accepted Answer

A) True 
 B)False

Question 7

Normative economics question, ʺWhat ought to be?ʺ Positive economics predicts the consequences of alternative actions, answering the questions, ʺWhat is?ʺ or ʺWhat will be?ʺ

Accepted Answer

A) True 
 B)False

Question 8

An economic model is a

Accepted Answer

A)  realistic version of an economic environment.
B)  detailed version of an economic issue.
C)  fictional representation of an entire economy.
D)  simplified representation of an economic environment.E) B) and C)
F) A) and D)

Question 9

Macroeconomics is best described as the study of

Accepted Answer

A)  very large issues.
B)  the choices made by individual households, firms, and governments.
C)  the nationʹs economy as a whole.
D)  the relationship between inflation and wage inequality.E) A) and B)
F) A) and C)

Question 10

Richard runs a pizza delivery restaurant. List the three basic types of decisions studied in economics and give an example from Richardʹs restaurant.

Accepted Answer

How to produce? With what resources will...

Question 11

The slope of a nonlinear curve

Accepted Answer

A)  is constant.
B)  is negative.
C)  is zero.
D)  changes along the curve.E) B) and C)
F) All of the above

Question 12

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Accepted Answer

A) True 
 B)False

Question 13

The congestion tax implemented in London reduced traffic volume and cut travel time for cars and buses in half.

Accepted Answer

A) True 
 B)False

Question 14

Who is associated with the following summary of the economic way of thinking: ʺThe theory of economics does not furnish a body of settled conclusions immediately acceptable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its processer draw correct conclusions.ʺ

Accepted Answer

A)  John Maynard Keynes
B)  Alfred Marshall
C)  Adam Smith
D)  President Harry TrumanE) A) and D)
F) A) and C)

Question 15

There is a negative relationship between two variables if

Accepted Answer

A)  they move in opposite directions.
B)  they move in the same direction.
C)  one variable changes and the other does not.
D)  neither variable moves.E) A) and C)
F) B) and C)

Question 16

Prior to the financial crisis and recession which began in 2007, credit for mortgages was _______, creating a _______.

Accepted Answer

A)  virtually unavailable; housing bubble
B)  only available to borrowers with high credit scores; shortage of affordable housing
C)  easily obtained; housing boom
D)  unavailable to low-income borrowers; large demand for rental propertiesE) A) and D)
F) A) and C)

Question 17

Economics is the study of

Accepted Answer

A)  how to invest in the stock market.
B)  how society uses limited resources.
C)  the role of money in markets.
D)  how government officials decide which goods and services are produced.E) A) and B)
F) A) and C)

Question 18

What factor of production is the primary focus of this Application?

Accepted Answer

A)  natural resources
B)  physical capital
C)  labor
D)  entrepreneurshipE) A) and B)
F) C) and D)

Question 19

A small change in a 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 20

Figure 1A.1
-Refer to Figure 1A.1. If the hours worked per week is 30, the income per week is

Accepted Answer

A)  50.
B)  100.
C)  150.
D)  200.E) A) and C)
F) B) and D)

Exam 1: Introduction: What Is Economics

Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economyʹs resources are idle.

Correct Answer
verified

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

Correct Answer
verified

Prior to the financial crisis and recession which began in 2007, credit for mortgages was _, creating a _.

Correct Answer
verified

A small change in a variable is

Correct Answer
verified

Normative economics

Correct Answer
verified

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Correct Answer
verified

Tradeoff is

Correct Answer
verified

Macroeconomics is best described as the study of

Correct Answer
verified

Normative economics question, ʺWhat ought to be?ʺ Positive economics predicts the consequences of alternative actions, answering the questions, ʺWhat is?ʺ or ʺWhat will be?ʺ

Correct Answer
verified

What factor of production is the primary focus of this Application?

Correct Answer
verified

The slope of a nonlinear curve

Correct Answer
verified

Economics is the study of

Correct Answer
verified

There is a negative relationship between two variables if

Correct Answer
verified

An economic model is a

Correct Answer
verified

Richard runs a pizza delivery restaurant. List the three basic types of decisions studied in economics and give an example from Richardʹs restaurant.

Correct Answer
verified
How to produce? With what resources will...
View Answer

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week is 30, the income per week is

Correct Answer
verified

In the final two decades of the twentieth century, average per capita global income

Correct Answer
verified

Correct Answer
verified

The congestion tax implemented in London reduced traffic volume and cut travel time for cars and buses in half.

Correct Answer
verified

If the price of a 8GB memory card decreases from $25 to $20, the percentage change is

Correct Answer
verified

Exam 1: Introduction: What Is Economics

Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economyʹs resources are idle.

Correct AnswerverifiedShow Answer

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

Correct AnswerverifiedShow Answer

Prior to the financial crisis and recession which began in 2007, credit for mortgages was _______, creating a _______.

Correct AnswerverifiedShow Answer

A small change in a variable is

Correct AnswerverifiedShow Answer

Normative economics

Correct AnswerverifiedShow Answer

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Correct AnswerverifiedShow Answer

Tradeoff is

Correct AnswerverifiedShow Answer

Macroeconomics is best described as the study of

Correct AnswerverifiedShow Answer

Normative economics question, ʺWhat ought to be?ʺ Positive economics predicts the consequences of alternative actions, answering the questions, ʺWhat is?ʺ or ʺWhat will be?ʺ

Correct AnswerverifiedShow Answer

What factor of production is the primary focus of this Application?

Correct AnswerverifiedShow Answer

The slope of a nonlinear curve

Correct AnswerverifiedShow Answer

Economics is the study of

Correct AnswerverifiedShow Answer

There is a negative relationship between two variables if

Correct AnswerverifiedShow Answer

An economic model is a

Correct AnswerverifiedShow Answer

Richard runs a pizza delivery restaurant. List the three basic types of decisions studied in economics and give an example from Richardʹs restaurant.

Correct AnswerverifiedHow to produce? With what resources will...View AnswerShow Answer

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week is 30, the income per week is

Correct AnswerverifiedShow Answer

In the final two decades of the twentieth century, average per capita global income

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The congestion tax implemented in London reduced traffic volume and cut travel time for cars and buses in half.

Correct AnswerverifiedShow Answer

If the price of a 8GB memory card decreases from $25 to $20, the percentage change is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Prior to the financial crisis and recession which began in 2007, credit for mortgages was _, creating a _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
How to produce? With what resources will...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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