Question 1

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

Accepted Answer

A)   an increase in the price of automobiles,further reducing fatalities.
B)   an increase in driving speed,reducing the number of accidents.
C)   a decrease in driving speed,further reducing fatalities.
D)   an increase in risky driving behavior,increasing fatalities.

Question 2

In all cases,positive economics deals with

Accepted Answer

A)   what is.
B)   what should be.
C)   relatively small units in the economy.
D)   aggregates or the entire economy.

Question 3

A line is parallel to the horizontal axis.The slope of the line is

Accepted Answer

A)   infinite.
B)   indicative of an inverse relationship between two variables.
C)   indicative of a direct relationship between two variables.
D)   zero.
E)   b and d

Question 4

Every time you make a __________,you incur a (an) __________.

Accepted Answer

A)   decision;unintended effect
B)   choice;opportunity cost
C)   competitive move;price
D)   decision;mistake
E)   none of the above

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The slope of a straight line is always equal to either 1.0 or -1.0.

Accepted Answer

A) True 
 B)False

Question 7

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.10 to 0.07 while raising the number of accidents per period from 35,000 to any more than

Accepted Answer

A)   35,000.
B)   38,500.
C)   37,450.
D)   50,000.

Question 8

In an interview an economist states,"This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

Accepted Answer

A)   microeconomics.
B)   macroeconomics.
C)   positive economics.
D)   normative economics.

Question 9

In all cases,macroeconomics deals with

Accepted Answer

A)   what is.
B)   what should be.
C)   relatively small units in the economy.
D)   the entire economy.

Question 10

Which of the following statements is false?

Accepted Answer

A)   Microeconomics is the branch of economics that deals with human behavior and choices as they relate to relatively small units-an individual,a firm,an industry,and a single market.
B)   Macroeconomics is the branch of economics that deals with human behavior and choices as they relate to highly aggregate markets.
C)   Positive economics attempts to determine what is.
D)   Normative economics addresses what should be.
E)   Positive and normative economics both address what should be.

Question 11

The synonym economists commonly use for additional is

Accepted Answer

A)   capital.
B)   rational.
C)   marginal.
D)   economic.

Question 12

Which of the following is a microeconomics topic?

Accepted Answer

A)   the study of how prices are determined in the computer industry
B)   the study of unemployment in the economy
C)   the study of how changes in the nation's money supply affect the nation's output
D)   a and c
E)   b and c

Question 13

Describe at least three of the key concepts in economics introduced in Chapter 1 of the text that define how an economist views the world.

Accepted Answer

Economists view the world using a number...

Question 14

The coordinates of point A are 50 units of X and 70 units of Y.The coordinates of point B are 46 units of X and 76 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)   + 1.50
B)   + 0.67
C)   + 0.33
D)   - 1.50
E)   - 0.67

Question 15

The latest Lady Gaga album is available to be downloaded for $12.99.Is this price a rationing device?

Accepted Answer

A)   No,the album will be sold to anyone having the required number of dollars.
B)   Yes,because the album will only be purchased by people who are willing and able to pay $12.99.
C)   No,for price to be a rationing device,it must be so high that only one unit of the item is sold.
D)   Yes,since that is a reasonable price.

Question 16

The opportunity cost of attending college is

Accepted Answer

A)   the money one spends on college tuition,books,and so forth.
B)   the highest valued alternative one forfeits to attend college.
C)   the least valued alternative one forfeits to attend college.
D)   equal to the salary one will earn when one graduates from college.

Question 17

The opportunity cost of attending college

Accepted Answer

A)   consists of the tuition costs only.
B)   consists of the tuition costs plus the costs of room and board and other expenses.
C)   is zero,if the student receives a scholarship that covers the costs of tuition,room and board,and other expenses.
D)   varies from person to person.
E)   both b and c

Question 18

Saying "the marginal costs are greater than the marginal benefits" is the same as saying

Accepted Answer

A)   the average costs are greater than the average benefits.
B)   the total costs are greater than the average benefits.
C)   the benefits are greater than the costs.
D)   the additional costs are greater than the additional benefits.
E)   the costs minus the benefits equal the net costs.

Question 19

Economists believe that people's wants are

Accepted Answer

A)   finite.
B)   infinite.
C)   irrational.
D)   unimportant because needs are more important than wants.

Question 20

According to economists,competition exists because of

Accepted Answer

A)   scarcity.
B)   capitalism.
C)   money.
D)   unintended effects.

Exam 1: What Economics Is About

Describe at least three of the key concepts in economics introduced in Chapter 1 of the text that define how an economist views the world.

Correct AnswerverifiedEconomists view the world using a number...View AnswerShow Answer

The coordinates of point A are 50 units of X and 70 units of Y.The coordinates of point B are 46 units of X and 76 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

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

Correct AnswerverifiedShow Answer

According to economists,competition exists because of

Correct AnswerverifiedShow Answer

In all cases,positive economics deals with

Correct AnswerverifiedShow Answer

The latest Lady Gaga album is available to be downloaded for $12.99.Is this price a rationing device?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

The slope of a straight line is always equal to either 1.0 or -1.0.

Correct AnswerverifiedShow Answer

A line is parallel to the horizontal axis.The slope of the line is

Correct AnswerverifiedShow Answer

The synonym economists commonly use for additional is

Correct AnswerverifiedShow Answer

In an interview an economist states,"This problem should be of greater concern to the federal government." We can explicitly put this statement in the category of

Correct AnswerverifiedShow Answer

Which of the following is a microeconomics topic?

Correct AnswerverifiedShow Answer

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.10 to 0.07 while raising the number of accidents per period from 35,000 to any more than

Correct AnswerverifiedShow Answer

The opportunity cost of attending college is

Correct AnswerverifiedShow Answer

Every time you make a __________,you incur a (an) __________.

Correct AnswerverifiedShow Answer

Economists believe that people's wants are

Correct AnswerverifiedShow Answer

In all cases,macroeconomics deals with

Correct AnswerverifiedShow Answer

Saying "the marginal costs are greater than the marginal benefits" is the same as saying

Correct AnswerverifiedShow Answer

The opportunity cost of attending college

Correct AnswerverifiedShow Answer

Most states have instituted mandatory seatbelt laws to reduce traffic fatalities.An economist may point out that an unintended effect of these laws is

Correct AnswerverifiedShow Answer

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Economists view the world using a number...
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Every time you make a ,you incur a (an) .

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