Question 1

Which of the following is a microeconomic question?

Accepted Answer

A)  Should we have a constitutional amendment to balance the federal budget?
B)  Why do some countries grow faster than others?
C)  Should the government prevent the merger of two large firms?
D)  All of the above are microeconomic questions.E) B) and C)
F) A) and C)

Question 2

Resources are all of the following EXCEPT:

Accepted Answer

A)  unlimited and in abundance.
B)  the things we use to produce goods and services.
C)  limited in quantity and can be used in different ways.
D)  scarce and therefore requiring choices to be made.E) B) and D)
F) A) and D)

Question 3

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) All of the above

Question 4

Money is an example of a scarce factor of production.

Accepted Answer

A) True 
 B)False

Question 5

An example of people acting in their own self-interest would include:

Accepted Answer

A)  individuals joining a car pool to work when tolls are imposed on congested highways.
B)  an adult,returning to college to pursue a degree to qualify for a promotion at work.
C)  a teenager earns an A grade average in school in order to use his or her parent's car.
D)  All of the above are examples of people acting in their own self-interest.E) B) and D)
F) C) and D)

Question 6

Public policies such as the government subsidies for corn are topics of concern in microeconomics.

Accepted Answer

A) True 
 B)False

Question 7

________ is a simplified representation of an economic environment.

Accepted Answer

A)  An economic model
B)  Microeconomics
C)  Scarcity
D)  Normative analysisE) A) and D)
F) None of the above

Question 8

According to the application,one economic solution to spam is to:

Accepted Answer

A)  subsidize spammers.
B)  charge a $0.01 electronic stamp for each commercial email message.
C)  outlaw the use of the Internet.
D)  require Internet service providers to sue spammers.E) B) and C)
F) A) and B)

Question 9

Deciding if a college uses more PhDs to teach introductory classes answers the economic question of:

Accepted Answer

A)  Who consumes the products produced?
B)  What will be produced?
C)  Where will the products produced be consumed?
D)  How will we produce it?E) None of the above
F) B) and C)

Question 10

The slope of a nonlinear relationship changes as the variables change.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

One example of a microeconomic question is,"Should the inflation rate be lowered?"

Accepted Answer

A) True 
 B)False

Question 13

What is an economic view of traffic congestion?

Accepted Answer

The economic view of traffic congestion ...

Question 14

In the Application,which of the following increased the incentive to buy hybrid vehicles?

Accepted Answer

A)  Purchases of hybrid vehicles qualified for a $3400 subsidy from the federal government.
B)  Oil prices decreased.
C)  Hybrid vehicles were more expensive than regular vehicles.
D)  Hybrid vehicles had similar emissions as the non-hybrid vehicles.E) A) and D)
F) A) and C)

Question 15

The slope of a straight line is calculated as:

Accepted Answer

A)  the variable on the vertical axis divided by the variable on the horizontal axis.
B)  the variable on the horizontal axis divided by the variable on the vertical axis.
C)  the run over the rise.
D)  the rise over the run.E) B) and D)
F) A) and C)

Question 16

Which of the following is a question that needs to be answered with normative economic reasoning?

Accepted Answer

A)  If the college offers free parking for students,will more students drive to campus?
B)  If the college provided more financial aid assistance,would more students benefit?
C)  If the college increases tuition,would class size decline?
D)  Should the college reduce tuition to stimulate enrollment?E) C) and D)
F) All of the above

Question 17

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) A) and C)
F) C) and D)

Question 18

Which of the following is an example of a normative question?

Accepted Answer

A)  How will an increase in the price of gasoline affect taxi drivers?
B)  What fraction of an income-tax cut will be spent on consumer goods?
C)  Should the government provide free prescription drugs to senior citizens?
D)  How will an increase in the minimum wage affect teenaged workers?E) C) and D)
F) B) and C)

Question 19

Which of the following is NOT a market?

Accepted Answer

A)  an online electronic auction
B)  a group of paving contractors bidding for a road construction contract
C)  ticket scalpers selling tickets outside a sold-out sports event
D)  All of the above are markets.E) A) and D)
F) All of the above

Question 20

When economists construct economic models:

Accepted Answer

A)  all but the essential features of the environment are eliminated.
B)  all the essential features of the environment are eliminated.
C)  only mathematical equations are used.
D)  every detail found in reality must be included.E) C) and D)
F) None of the above

Exam 1: Introduction: What Is Economics

Money is an example of a scarce factor of production.

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An example of people acting in their own self-interest would include:

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________ is a simplified representation of an economic environment.

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The slope of a nonlinear relationship changes as the variables change.

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According to the application,one economic solution to spam is to:

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

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One example of a microeconomic question is,"Should the inflation rate be lowered?"

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Resources are all of the following EXCEPT:

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Economics is the study of:

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Public policies such as the government subsidies for corn are topics of concern in microeconomics.

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Because resources are limited:

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Deciding if a college uses more PhDs to teach introductory classes answers the economic question of:

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The slope of a straight line is calculated as:

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What is an economic view of traffic congestion?

Correct AnswerverifiedThe economic view of traffic congestion ...View AnswerShow Answer

Which of the following is an example of a normative question?

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Which of the following is a microeconomic question?

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Which of the following is NOT a market?

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When economists construct economic models:

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Which of the following is a question that needs to be answered with normative economic reasoning?

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In the Application,which of the following increased the incentive to buy hybrid vehicles?

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The economic view of traffic congestion ...
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