Question 1

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Accepted Answer

A) True 
 B)False

Question 2

Economics is best defined as the study of:

Accepted Answer

A)  financial decision-making.
B)  how consumers make purchasing decisions.
C)  choices made by people faced with scarcity.
D)  inflation,unemployment,and economic growth.E) None of the above
F) A) and B)

Question 3

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

Accepted Answer

A)  are positive.
B)  move in opposite directions.
C)  move in the same direction.
D)  are negative.E) B) and D)
F) A) and D)

Question 4

When a student is thinking at the margin,he analyzes how many more points he would get on his economics final exam if he devotes one more hour for studying.

Accepted Answer

A) True 
 B)False

Question 5

If you use the midpoint method to describe the change in the number of lanes from 1 to 2,then the percent change you would calculate is:

Accepted Answer

A)  66 percent.
B)  50 percent.
C)  100 percent.
D)  33 percent.E) None of the above
F) A) and B)

Question 6

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)  a large number of home purchasers who were unable to afford the homes
D)  booming housing prices that ultimately droppedE) C) and D)
F) All of the above

Question 7

A student has a D grade average in her accounting course and a B grade average in her economics course.She decides to study an extra hour for her accounting exam and one less hour for her economics exam hoping to improve her accounting grade while not hurting her economics grade.This is an example of:

Accepted Answer

A)  thinking at the margin.
B)  using assumptions to simplify.
C)  ceteris paribus.
D)  caveat emptor.E) B) and D)
F) A) and B)

Question 8

Economics tells us what to choose given the tradeoffs.

Accepted Answer

A) True 
 B)False

Question 9

Economists will never reach the same conclusions in their positive analyses.

Accepted Answer

A) True 
 B)False

Question 10

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.From the graph,we can conclude that:

Accepted Answer

A)  income and hours worked are negatively related.
B)  income and hours worked per week are positively related.
C)  hours worked are not related.
D)  income and hours worked are equal.E) None of the above
F) A) and B)

Question 11

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) B) and D)
F) A) and B)

Question 12

Figure 1.1
-Refer to Figure 1.1.The relationship between hours worked and income,as shown by the graph in Figure 1.1 is:

Accepted Answer

A)  negative.
B)  positive.
C)  nonlinear.
D)  exponential.E) B) and C)
F) A) and D)

Question 13

According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO2 emissions.

Accepted Answer

A) True 
 B)False

Question 14

To think at the margin means to consider:

Accepted Answer

A)  how nothing remains constant over time.
B)  how a small change in one variable affects another variable.
C)  how people behave in their own self-interest.
D)  how people will decide what to purchase.E) C) and D)
F) A) and B)

Question 15

Microeconomic analysis can be used to:

Accepted Answer

A)  better understand how markets work.
B)  make personal or managerial decisions.
C)  evaluate the merits of public policies.
D)  All of the above are correct.E) B) and C)
F) C) and D)

Question 16

Ceteris paribus is the Latin expression meaning:

Accepted Answer

A)  other variables are held fixed.
B)  let buyer beware.
C)  think at the margin.
D)  for every action there is an equal and opposite reaction.E) B) and D)
F) B) and C)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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) A) and B)
F) A) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Explain three ways we can use microeconomics analysis.

Accepted Answer

One reason for studying microeconomics i...

Exam 1: Introduction: What Is Economics

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

Correct Answer
verified

Economics tells us what to choose given the tradeoffs.

Correct Answer
verified

Explain three ways we can use microeconomics analysis.

Correct Answer
verified
One reason for studying microeconomics i...
View Answer

Correct Answer
verified

Economics is best defined as the study of:

Correct Answer
verified

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

Correct Answer
verified

Figure 1.1 -Refer to Figure 1.1.The relationship between hours worked and income,as shown by the graph in Figure 1.1 is:

Correct Answer
verified

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Correct Answer
verified

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

Correct Answer
verified

Microeconomic analysis can be used to:

Correct Answer
verified

Ceteris paribus is the Latin expression meaning:

Correct Answer
verified

To think at the margin means to consider:

Correct Answer
verified

When a student is thinking at the margin,he analyzes how many more points he would get on his economics final exam if he devotes one more hour for studying.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Scarcity can best be defined as a situation in which:

Correct Answer
verified

According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO2 emissions.

Correct Answer
verified

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.From the graph,we can conclude that:

Correct Answer
verified

If you use the midpoint method to describe the change in the number of lanes from 1 to 2,then the percent change you would calculate is:

Correct Answer
verified

Economists will never reach the same conclusions in their positive analyses.

Correct Answer
verified

Exam 1: Introduction: What Is Economics

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

Correct AnswerverifiedShow Answer

Economics tells us what to choose given the tradeoffs.

Correct AnswerverifiedShow Answer

Explain three ways we can use microeconomics analysis.

Correct AnswerverifiedOne reason for studying microeconomics i...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Economics is best defined as the study of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 1.1 -Refer to Figure 1.1.The relationship between hours worked and income,as shown by the graph in Figure 1.1 is:

Correct AnswerverifiedShow Answer

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Microeconomic analysis can be used to:

Correct AnswerverifiedShow Answer

Ceteris paribus is the Latin expression meaning:

Correct AnswerverifiedShow Answer

To think at the margin means to consider:

Correct AnswerverifiedShow Answer

When a student is thinking at the margin,he analyzes how many more points he would get on his economics final exam if he devotes one more hour for studying.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Scarcity can best be defined as a situation in which:

Correct AnswerverifiedShow Answer

According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO2 emissions.

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.From the graph,we can conclude that:

Correct AnswerverifiedShow Answer

If you use the midpoint method to describe the change in the number of lanes from 1 to 2,then the percent change you would calculate is:

Correct AnswerverifiedShow Answer

Economists will never reach the same conclusions in their positive analyses.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
One reason for studying microeconomics i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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