Question 1

Which of the following is a macroeconomic question?

Accepted Answer

A)   Should the government prevent the merger of two large firms?
B)   Will a constitutional amendment to balance the federal budget lead to good economic policy?
C)   Should a firm decide to enter a particular market?
D)   All of the above are macroeconomic questions.

Question 2

Is money a scarce factor of production? Explain.

Accepted Answer

No. Money is not used to produ...

Question 3

Which of the following did not directly cause the worldwide recession in 2007- 2008?

Accepted Answer

A)   the decision by the government to bailout banks in 2008
B)   easy access to credit in the U.S.
C)   booming housing prices that ultimately dropped
D)   a large number of home purchasers who were unable to afford the homes

Question 4

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Accepted Answer

A) True 
 B)False

Question 5

Most modern economic analysis is positive in nature, but many issues also involve questions with normative economics.

Accepted Answer

A) True 
 B)False

Question 6

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of:

Accepted Answer

A)   Who consumes the products produced?
B)   Where will the products produced be consumed?
C)   What will be produced?
D)   How will we produce it?

Question 7

Deciding if a company will produce automobiles by manual labor or with the use of robots answers the economic question of:

Accepted Answer

A)   Who consumes the products produced?
B)   How will we produce it?
C)   Where will the products produced be consumed?
D)   What will be produced?

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Economists use assumptions to:

Accepted Answer

A)   focus on what really matters.
B)   simplify decision- making.
C)   make things simpler.
D)   all of the above

Question 11

Macroeconomics is best described as the study of:

Accepted Answer

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

Question 12

Which of the following is a question answered with positive economic analysis?

Accepted Answer

A)   If we had more money, should the college offer free parking for students?
B)   If the college increased tuition, by how much will class sizes decline?
C)   As a result of the recession, should the college cut tuition to stimulate enrollments?
D)   If we can afford it, should the college provide more financial aid assistance?

Question 13

If one variable A falls the other variable B falls, then a line generated by putting variable A on the x- axis and variable B on the y- axis should be upward sloping.

Accepted Answer

A) True 
 B)False

Question 14

Markets do not determine the quantity of goods sold, only the price.

Accepted Answer

A) True 
 B)False

Question 15

It takes longer to set up a business in Canada than in Mozambique.

Accepted Answer

A) True 
 B)False

Question 16

If a variable is 100 and then decreases to 60, then using the initial value approach its percentage decline is:

Accepted Answer

A)   160 percent.
B)   - 40 percent.
C)   40 percent.
D)   50 percent.

Question 17

There is a positive relationship between two variables if the two variables:

Accepted Answer

A)   have positive values.
B)   have negative values.
C)   move in the same direction.
D)   move in opposite directions.

Question 18

Studies that look into the effects of state education spending cuts on the poverty rates of minorities use:

Accepted Answer

A)   microeconomics to make managerial and personal decisions.
B)   microeconomics to evaluate the merits of public policies.
C)   microeconomics to understand marginal changes in the macroeconomy.
D)   microeconomics to understand markets and predict changes.

Question 19

What is an economic view of traffic congestion?

Accepted Answer

The economic view of traffic congestion ...

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 1: Introduction: What Is Economics

Most modern economic analysis is positive in nature, but many issues also involve questions with normative economics.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a macroeconomic question?

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

Correct AnswerverifiedShow Answer

It takes longer to set up a business in Canada than in Mozambique.

Correct AnswerverifiedShow Answer

Which of the following is a question answered with positive economic analysis?

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Economists use assumptions to:

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What is an economic view of traffic congestion?

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

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

Correct AnswerverifiedShow Answer

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of:

Correct AnswerverifiedShow Answer

Markets do not determine the quantity of goods sold, only the price.

Correct AnswerverifiedShow Answer

Macroeconomics is best described as the study of:

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Is money a scarce factor of production? Explain.

Correct AnswerverifiedNo. Money is not used to produ...View AnswerShow Answer

Deciding if a company will produce automobiles by manual labor or with the use of robots answers the economic question of:

Correct AnswerverifiedShow Answer

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Correct AnswerverifiedShow Answer

If one variable A falls the other variable B falls, then a line generated by putting variable A on the x- axis and variable B on the y- axis should be upward sloping.

Correct AnswerverifiedShow Answer

Studies that look into the effects of state education spending cuts on the poverty rates of minorities use:

Correct AnswerverifiedShow Answer

If a variable is 100 and then decreases to 60, then using the initial value approach its percentage decline is:

Correct AnswerverifiedShow Answer

There is a positive relationship between two variables if the two variables:

Correct AnswerverifiedShow Answer

Which of the following did not directly cause the worldwide recession in 2007- 2008?

Correct AnswerverifiedShow Answer

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The economic view of traffic congestion ...
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No. Money is not used to produ...
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