Question 1

When goods are produced at the lowest possible cost,an economy is said to have achieved:

Accepted Answer

A)   production efficiency.
B)   allocative efficiency.
C)   cheap production.
D)   inferior quality goods.

Question 2

Economic models must fully reflect reality.

Accepted Answer

A) True 
 B)False

Question 3

_________ people are forced to make tradeoffs.

Accepted Answer

A)   Only wealthy
B)   Only middle-class
C)   Only poor
D)   All

Question 4

Economics is a social science that involves the study of how individuals,firms,and societies:

Accepted Answer

A)   maximum happiness.
B)   maximize incomes.
C)   choose among alternatives to satisfy their unlimited wants.
D)   develop their tastes and preferences.

Question 5

Discuss the difference between efficiency and equity.

Accepted Answer

Efficiency deals with how well resources...

Question 6

In the study of economics,the goals of efficiency and equity are often:

Accepted Answer

A)   compatible.
B)   conflicting with one another.
C)   objectively definable.
D)   given equal emphasis.

Question 7

John is a farmer and thinks he will make a profit next year,if the weather stays the same,if the price of his crop doesn't change,and if the price of fertilizer and seed doesn't change.An economist would say that the farmer thinking he will make a profit is an example of:

Accepted Answer

A)   laissez-faire.
B)   ceteris paribus.
C)   post hoc ergo propter hoc.
D)   e pluribus unum.

Question 8

Which of the following statements about economics is correct?

Accepted Answer

A)   Economists do not believe that criminals behave rationally.
B)   Economics has little to say about social issues.
C)   Economists consider how rational people respond to incentives.
D)   Economists assume that people don't respond to incentives.

Question 9

Which of the following is a case when the government should intervene in the economy?

Accepted Answer

A)   when consumers cannot make up their minds what they want to purchase
B)   when sellers make poor business decisions
C)   when producers use the least-cost methods of production
D)   when the market fails to provide goods efficiently

Question 10

To say that economics is a way of thinking about how people make rational decisions means that people:

Accepted Answer

A)   don't consider the cost of their decisions.
B)   consider only monetary terms in their decisions.
C)   respond to incentives.
D)   are irrational.

Question 11

Macroeconomics studies the outcomes of individual markets in the national economy.

Accepted Answer

A) True 
 B)False

Question 12

The height of the bars in a bar chart may depict the number of data points in each category/class.

Accepted Answer

A) True 
 B)False

Question 13

Another definition of opportunity cost is the value of the next best alternative.

Accepted Answer

A) True 
 B)False

Question 14

There is general agreement as to which economic policies are fair,or equitable.

Accepted Answer

A) True 
 B)False

Question 15

___________________ costs include the time and money that could have been spent on another highly valued activity

Accepted Answer

A)   Opportunity
B)   Marginal
C)   Social
D)   Total

Question 16

The opportunity cost of buying a ticket to a major league baseball game and then going to the game is:

Accepted Answer

A)   the price of the ticket.
B)   the next best alternative activity that could have been undertaken.
C)   the time spent at the game.
D)   all other alternative activities that could have been undertaken.

Question 17

If you plot temperature on the y axis and world carbon emissions on the x axis,then you have created a:

Accepted Answer

A)   time series.
B)   scatter plot.
C)   pie chart.
D)   bar chart.

Question 18

Why is model building considered a process of understanding the economy?

Accepted Answer

Though model building can lead to surpri...

Question 19

A pie chart is useful for business presentations but not for macroeconomic analysis.

Accepted Answer

A) True 
 B)False

Question 20

Time series graphs:

Accepted Answer

A)   show data that can be split into percentage parts that,combined,make up the whole.
B)   show the relative importance of some variable's components as a share of the whole.
C)   include the value of a variable on the horizontal axis and minutes,hours,days,months,quarters,or years on the vertical axis.
D)   include the value of a variable on the vertical axis and minutes,hours,days,months,quarters,or years on the horizontal axis.

Exam 1: Exploring Economics

Time series graphs:

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The opportunity cost of buying a ticket to a major league baseball game and then going to the game is:

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If you plot temperature on the y axis and world carbon emissions on the x axis,then you have created a:

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Which of the following is a case when the government should intervene in the economy?

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The height of the bars in a bar chart may depict the number of data points in each category/class.

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Why is model building considered a process of understanding the economy?

Correct AnswerverifiedThough model building can lead to surpri...View AnswerShow Answer

Which of the following statements about economics is correct?

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Economics is a social science that involves the study of how individuals,firms,and societies:

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John is a farmer and thinks he will make a profit next year,if the weather stays the same,if the price of his crop doesn't change,and if the price of fertilizer and seed doesn't change.An economist would say that the farmer thinking he will make a profit is an example of:

Correct AnswerverifiedShow Answer

A pie chart is useful for business presentations but not for macroeconomic analysis.

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To say that economics is a way of thinking about how people make rational decisions means that people:

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___________________ costs include the time and money that could have been spent on another highly valued activity

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Macroeconomics studies the outcomes of individual markets in the national economy.

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In the study of economics,the goals of efficiency and equity are often:

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Another definition of opportunity cost is the value of the next best alternative.

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_________ people are forced to make tradeoffs.

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Economic models must fully reflect reality.

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When goods are produced at the lowest possible cost,an economy is said to have achieved:

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Discuss the difference between efficiency and equity.

Correct AnswerverifiedEfficiency deals with how well resources...View AnswerShow Answer

There is general agreement as to which economic policies are fair,or equitable.

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Though model building can lead to surpri...
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Efficiency deals with how well resources...
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