Question 1

If the government converted the highway from 4 lanes into 6 lanes,then using the regular method of calculating percentages,the percentage increase would have been ________ percent.If the government converted the highway from 6 lanes into 4 lanes,then using the regular method,the percentage increase would have been ________ percent.

Accepted Answer

A)  40;40
B)  50;33
C)  100;50
D)  33;33

Question 2

Which of the following is NOT a macroeconomic question?

Accepted Answer

A)  Should we have a constitutional amendment to balance the federal budget?
B)  Do employers discriminate against women by paying them lower wages?
C)  How does a political candidate's economic reform package affect the inflation rate?
D)  All of the above are macroeconomic questions.

Question 3

Which of the following is NOT an example of a question answered by positive analysis?

Accepted Answer

A)  How will an increase in the price of gasoline affect taxi drivers?
B)  What fraction of an income-tax cut will be spent on consumer goods?
C)  How will an increase in interest rates affect investment in factories?
D)  Should the government increase the minimum wage?

Question 4

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Microeconomics is the study of the choices made by ________ and how these choices affect the markets.

Accepted Answer

A)  households only
B)  the government only
C)  firms only
D)  households,firms and governments

Question 7

Government policies concerning the money supply and the control of inflation are topic of concern in microeconomics.

Accepted Answer

A) True 
 B)False

Question 8

"By how much should the Fed increase the money supply to get the economy out of a recession?" is:

Accepted Answer

A)  a microeconomic question.
B)  both a microeconomic and macroeconomic question.
C)  a macroeconomic question.
D)  neither a microeconomic nor a macroeconomic question.

Question 9

Which of the following is a macroeconomic question?

Accepted Answer

A)  Should a country adopt policies to encourage personal savings?
B)  Why do some countries grow faster than others?
C)  Why do prices tend to increase over time?
D)  All of the above are macroeconomic questions.

Question 10

The slope of a straight line is:

Accepted Answer

A)  constant.
B)  increasing.
C)  increasing if the line is upward sloping.
D)  increasing if the line is downward sloping.

Question 11

If a variable is 100 and then increases to 150,then using the average value approach its percentage growth is:

Accepted Answer

A)  -50 percent.
B)  15 percent.
C)  40 percent.
D)  50 percent.

Question 12

Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s).
-Using the midpoint formula,the percent change of the number of TVs from 1 to 2 should be the same if you instead go from 2 to 1.

Accepted Answer

A) True 
 B)False

Question 13

Economists use assumptions to:

Accepted Answer

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

Question 14

A variable is:

Accepted Answer

A)  something that always has the same value.
B)  something that can take on different values.
C)  something that cannot be measured.
D)  something that varies over time.

Question 15

Topics regarding why an economy is in a recession is in the realm of macroeconomics,while topics concerning long term economic growth is not.

Accepted Answer

A) True 
 B)False

Question 16

Would an economist consider clean air a scarce resource? Explain.

Accepted Answer

Yes,because the air has alternative uses...

Question 17

The example about London's congestion problem illustrates which of the following economic ways of thinking?

Accepted Answer

A)  isolate variables-ceteris paribus
B)  use of assumptions to simplify
C)  thinking at the margin
D)  all of the above

Question 18

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:

Accepted Answer

A)  both are treated as unpredictable.
B)  neither of those two variables is allowed to change.
C)  all other variables are held fixed.
D)  we recognize that some factors are unknown.

Question 19

Which of the following is a country whose economy shrank between the 1960s and 2001?

Accepted Answer

A)  Sierra Leone
B)  the United States
C)  Mexico
D)  Canada

Question 20

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

Accepted Answer

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

Exam 1: Introduction: What Is Economics

Correct Answer
verified

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

Correct Answer
verified

The slope of a straight line is:

Correct Answer
verified

Correct Answer
verified

Topics regarding why an economy is in a recession is in the realm of macroeconomics,while topics concerning long term economic growth is not.

Correct Answer
verified

Microeconomics is the study of the choices made by ________ and how these choices affect the markets.

Correct Answer
verified

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

Correct Answer
verified

If a variable is 100 and then increases to 150,then using the average value approach its percentage growth is:

Correct Answer
verified

Which of the following is a macroeconomic question?

Correct Answer
verified

Economists use assumptions to:

Correct Answer
verified

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

Correct Answer
verified

Government policies concerning the money supply and the control of inflation are topic of concern in microeconomics.

Correct Answer
verified

The example about London's congestion problem illustrates which of the following economic ways of thinking?

Correct Answer
verified

Which of the following is NOT an example of a question answered by positive analysis?

Correct Answer
verified

"By how much should the Fed increase the money supply to get the economy out of a recession?" is:

Correct Answer
verified

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:

Correct Answer
verified

Which of the following is NOT a macroeconomic question?

Correct Answer
verified

A variable is:

Correct Answer
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Which of the following is a country whose economy shrank between the 1960s and 2001?

Correct Answer
verified

Would an economist consider clean air a scarce resource? Explain.

Correct Answer
verified
Yes,because the air has alternative uses...
View Answer

Exam 1: Introduction: What Is Economics

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The slope of a straight line is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Topics regarding why an economy is in a recession is in the realm of macroeconomics,while topics concerning long term economic growth is not.

Correct AnswerverifiedShow Answer

Microeconomics is the study of the choices made by ________ and how these choices affect the markets.

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

If a variable is 100 and then increases to 150,then using the average value approach its percentage growth is:

Correct AnswerverifiedShow Answer

Which of the following is a macroeconomic question?

Correct AnswerverifiedShow Answer

Economists use assumptions to:

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

Government policies concerning the money supply and the control of inflation are topic of concern in microeconomics.

Correct AnswerverifiedShow Answer

The example about London's congestion problem illustrates which of the following economic ways of thinking?

Correct AnswerverifiedShow Answer

Which of the following is NOT an example of a question answered by positive analysis?

Correct AnswerverifiedShow Answer

"By how much should the Fed increase the money supply to get the economy out of a recession?" is:

Correct AnswerverifiedShow Answer

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:

Correct AnswerverifiedShow Answer

Which of the following is NOT a macroeconomic question?

Correct AnswerverifiedShow Answer

A variable is:

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Which of the following is a country whose economy shrank between the 1960s and 2001?

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Would an economist consider clean air a scarce resource? Explain.

Correct AnswerverifiedYes,because the air has alternative uses...View AnswerShow Answer

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Correct Answer
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Yes,because the air has alternative uses...
View Answer