Question 1

List and describe the four broad categories of resources. Cite an example of each to help support your answer.

Accepted Answer

Economists divide resources into four ca...

Question 2

To an economist, the terms factor and output are synonyms.

Accepted Answer

A) True 
 B)False

Question 3

Economists sometimes refer to the resource category land as natural resources.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is false?

Accepted Answer

A)  There are always opportunity costs to making choices.
B)  Because of scarcity, choices must be made.
C)  Elementary education at public schools is free.
D)  When government builds a new highway, taxpayers end up with less of some of the things they would otherwise have.E) All of the above
F) A) and D)

Question 5

Define the term scarcity and discuss two of its consequences.

Accepted Answer

Scarcity is the condition in which our w...

Question 6

In economics, a synonym for utility is

Accepted Answer

A)  usefulness.
B)  satisfaction.
C)  sacrifice.
D)  a service.E) None of the above
F) A) and D)

Question 7

In economics, a synonym for satisfaction is

Accepted Answer

A)  utility.
B)  marginal.
C)  sacrifice.
D)  normative.E) B) and D)
F) C) and D)

Question 8

Entrepreneurship is

Accepted Answer

A)  the talent for organizing the use of land, labor and capital, among other things.
B)  skill in influencing government regulators and legislators.
C)  accumulated technical knowledge in using labor and capital.
D)  knowledge of the particular natural resources to be found in a given area.E) A) and D)
F) A) and C)

Question 9

The coordinates of point A are 400 units of X and 40 units of Y. The coordinates of point B are 480 units of X and 60 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)  + 0.25
B)  + 4.00
C)  + 0.33
D)  - 4.00
E)  - 0.25F) B) and E)
G) C) and D)

Question 10

Describe the difference between positive and normative economics. Cite an example of each.

Accepted Answer

Positive economics deals with "what is."...

Question 11

In every economy people vie for the economy's rationing device, a process called

Accepted Answer

A)  competition.
B)  entrepreneurship.
C)  marginal benefit.
D)  positive economics.E) B) and C)
F) A) and D)

Question 12

Which of the following is a positive macroeconomics statement?

Accepted Answer

A)  The central bank should increase the nation's money supply.
B)  The increase in the nation's money supply helped push the nation's unemployment rate down in the short run.
C)  Ford Motor Company's new advertising campaign ended up hurting General Motors' sales.
D)  The local government ought to spend more on recreational facilities.E) B) and C)
F) A) and B)

Question 13

The cost of building a new interstate highway system is reported to be high at $25 billion. Does it necessarily follow that the interstate highway is not worth building?

Accepted Answer

A)  Yes, because it is better to spend $25 billion on ending poverty than on building another interstate highway system.
B)  No, because building a new interstate highway system promotes economic growth, which helps everyone.
C)  No, because the benefits of building a new interstate highway system may be greater than $25 billion.
D)  Yes, because the benefits of building a new interstate highway system may be greater than $25 billion.E) None of the above
F) C) and D)

Question 14

The higher the opportunity cost of attending college,

Accepted Answer

A)  the more likely an individual will go to college.
B)  the more economics classes an individual will take at college.
C)  the fewer economics classes an individual will take at college.
D)  the less likely an individual will go to college.E) B) and D)
F) B) and C)

Question 15

Exhibit 1-2
  ​
-Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be ______________ sloping ____________________.

Accepted Answer

A)  a downward; (nonlinear)  curve
B)  a downward; (straight)  line
C)  an upward; (nonlinear)  curve
D)  an upward; (straight)  line
E)  none of the aboveF) A) and B)
G) A) and E)

Question 16

​Exhibit 1-4
 
-Refer to Exhibit 1-4. If the student whose marginal benefits and costs of good health are noted in this table, how many units of good health should the student obtain in order to maximize her net benefits of good health?

Accepted Answer

A)  2 units
B)  3 units
C)  4 units
D)  5 units
E)  ​6 unitsF) A) and C)
G) None of the above

Question 17

Variables X and Y are independent of each other. If we plot X on the horizontal axis and Y on the vertical axis, the line that connects combinations of X and Y plotted in a two-variable diagram would be

Accepted Answer

A)  parallel to the horizontal axis.
B)  downward-sloping.
C)  parallel to the vertical axis.
D)  upward-sloping.
E)  a or cF) A) and D)
G) A) and E)

Question 18

Which of the following pairs of variables is most likely to be directly related?

Accepted Answer

A)  sales of toothpaste and sales of running shoes
B)  the price of ice cream and the price of airline tickets
C)  the number of children in a family and the number of toys the family owns
D)  the price of ice cream and sales of ice cream
E)  the outdoor temperature and sales of residential heating systemsF) A) and C)
G) None of the above

Question 19

Microeconomics is the branch of economics that deals with

Accepted Answer

A)  highly aggregated markets or the entire economy.
B)  the production side of the economy, exclusively.
C)  the buying side of the economy, exclusively.
D)  human behavior and choices as they relate to relatively small units --- an individual, a firm, an industry.E) B) and D)
F) B) and C)

Question 20

Exhibit 1-1
 
-Refer to Exhibit 1-1. The efficient length of time for the student to study in the situation portrayed in this diagram is

Accepted Answer

A)  2 hours.
B)  4 hours.
C)  6 hours.
D)  8 hours.
E)  There is not enough information provided to answer the question.F) All of the above
G) D) and E)

Exam 1: What Economics Is About

The coordinates of point A are 400 units of X and 40 units of Y. The coordinates of point B are 480 units of X and 60 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

Correct AnswerverifiedShow Answer

Microeconomics is the branch of economics that deals with

Correct AnswerverifiedShow Answer

To an economist, the terms factor and output are synonyms.

Correct AnswerverifiedShow Answer

Which of the following pairs of variables is most likely to be directly related?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

In economics, a synonym for utility is

Correct AnswerverifiedShow Answer

Entrepreneurship is

Correct AnswerverifiedShow Answer

The higher the opportunity cost of attending college,

Correct AnswerverifiedShow Answer

Variables X and Y are independent of each other. If we plot X on the horizontal axis and Y on the vertical axis, the line that connects combinations of X and Y plotted in a two-variable diagram would be

Correct AnswerverifiedShow Answer

In every economy people vie for the economy's rationing device, a process called

Correct AnswerverifiedShow Answer

In economics, a synonym for satisfaction is

Correct AnswerverifiedShow Answer

Which of the following is a positive macroeconomics statement?

Correct AnswerverifiedShow Answer

​Exhibit 1-4 -Refer to Exhibit 1-4. If the student whose marginal benefits and costs of good health are noted in this table, how many units of good health should the student obtain in order to maximize her net benefits of good health?

Correct AnswerverifiedShow Answer

Exhibit 1-2 ​ -Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be ______________ sloping ____________________.

Correct AnswerverifiedShow Answer

List and describe the four broad categories of resources. Cite an example of each to help support your answer.

Correct AnswerverifiedEconomists divide resources into four ca...View AnswerShow Answer

Economists sometimes refer to the resource category land as natural resources.

Correct AnswerverifiedShow Answer

Exhibit 1-1 -Refer to Exhibit 1-1. The efficient length of time for the student to study in the situation portrayed in this diagram is

Correct AnswerverifiedShow Answer

The cost of building a new interstate highway system is reported to be high at $25 billion. Does it necessarily follow that the interstate highway is not worth building?

Correct AnswerverifiedShow Answer

Define the term scarcity and discuss two of its consequences.

Correct AnswerverifiedScarcity is the condition in which our w...View AnswerShow Answer

Describe the difference between positive and normative economics. Cite an example of each.

Correct AnswerverifiedPositive economics deals with "what is."...View AnswerShow Answer

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Exhibit 1-4 -Refer to Exhibit 1-4. If the student whose marginal benefits and costs of good health are noted in this table, how many units of good health should the student obtain in order to maximize her net benefits of good health?

Correct Answer
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Exhibit 1-2 -Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be sloping ______.

Correct Answer
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Economists divide resources into four ca...
View Answer

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Scarcity is the condition in which our w...
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Correct Answer
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Positive economics deals with "what is."...
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