Question 1

The branch of economics that studies the decisions made by individuals and firms is called macroeconomics.

Accepted Answer

A) True 
 B)False

Question 2

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) A) and B)

Question 3

Elite colleges and universities use standardized test scores (such as SAT and ACT scores) and high school grades as

Accepted Answer

A)  a means to raise student utility.
B)  a means to turn a university education from a "good" to a "bad."
C)  rationing devices.
D)  none of the aboveE) B) and C)
F) A) and D)

Question 4

Scarcity affects everyone,even billionaires.

Accepted Answer

A) True 
 B)False

Question 5

To an economist,utility means:

Accepted Answer

A)  additional.
B)  usefulness.
C)  satisfaction.
D)  marginal.E) B) and D)
F) C) and D)

Question 6

According to economists,competition exists because of

Accepted Answer

A)  scarcity.
B)  capitalism.
C)  money.
D)  unintended effects.E) A) and B)
F) A) and C)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Decision making "at the margin" means making a choice based on __________ of a decision.

Accepted Answer

A)  the total benefits
B)  the total costs
C)  comparing the total benefits and costs
D)  comparing the additional benefits and costsE) A) and C)
F) B) and C)

Question 9

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

Accepted Answer

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

Question 10

The author of the textbook defines economics as the

Accepted Answer

A)  science of efficiency.
B)  science of scarcity.
C)  study of markets.
D)  study of human activity.E) A) and B)
F) C) and D)

Question 11

According to economists,money is a resource.

Accepted Answer

A) True 
 B)False

Question 12

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) A) and D)
F) All of the above

Question 13

Which statement uses the term ceteris paribus correctly?

Accepted Answer

A)  If you exercise regularly,you will be healthier,ceteris paribus.
B)  Blue is to green,ceteris paribus,as red is to purple.
C)  Most people consider Sunday to be the first day of the week,ceteris paribus.
D)  Interest rates usually rise in October,ceteris paribus.
E)  a and dF) C) and D)
G) A) and C)

Question 14

Define the term rationing device and give an example of each of three possible rationing devices.Explain how scarcity implies the need for a rationing device.

Accepted Answer

A rationing device is a mechanism used t...

Question 15

The coordinates of point A are 30 units of X and 70 units of Y.The coordinates of point B are 28 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)  + 3.00
B)  + 0.67
C)  + 0.33
D)  - 3.00
E)  - 0.33F) B) and E)
G) A) and C)

Question 16

When a person is making a decision at the margin he or she is comparing the additional benefit of that activity to the additional cost of the proposed action.

Accepted Answer

A) True 
 B)False

Question 17

The synonym economists commonly use for additional is

Accepted Answer

A)  capital.
B)  rational.
C)  marginal.
D)  economic.E) C) and D)
F) A) and B)

Question 18

The condition often used in economics to isolate the relationship between two variables is

Accepted Answer

A)  causation.
B)  abstraction.
C)  ceteris paribus.
D)  efficiency.E) All of the above
F) A) and C)

Question 19

What is the difference between macroeconomics and microeconomics? Give an example of a question that a macroeconomist might be interested in answering,then do the same for a microeconomist.

Accepted Answer

Macroeconomics is the branch of economic...

Question 20

Ceteris paribus means

Accepted Answer

A)  one variable too many.
B)  the correct relationship specified.
C)  assuming economic motives.
D)  all other things held constant or nothing else changes.E) B) and D)
F) A) and B)

Exam 1: What Economics Is About

According to economists,money is a resource.

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Elite colleges and universities use standardized test scores (such as SAT and ACT scores) and high school grades as

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To an economist,utility means:

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The synonym economists commonly use for additional is

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The author of the textbook defines economics as the

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Define the term rationing device and give an example of each of three possible rationing devices.Explain how scarcity implies the need for a rationing device.

Correct AnswerverifiedA rationing device is a mechanism used t...View AnswerShow Answer

The condition often used in economics to isolate the relationship between two variables is

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

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What is the difference between macroeconomics and microeconomics? Give an example of a question that a macroeconomist might be interested in answering,then do the same for a microeconomist.

Correct AnswerverifiedMacroeconomics is the branch of economic...View AnswerShow Answer

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

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The coordinates of point A are 30 units of X and 70 units of Y.The coordinates of point B are 28 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

Ceteris paribus means

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When a person is making a decision at the margin he or she is comparing the additional benefit of that activity to the additional cost of the proposed action.

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Scarcity affects everyone,even billionaires.

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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

According to economists,competition exists because of

Correct AnswerverifiedShow Answer

Decision making "at the margin" means making a choice based on __________ of a decision.

Correct AnswerverifiedShow Answer

Which statement uses the term ceteris paribus correctly?

Correct AnswerverifiedShow Answer

The higher the opportunity cost of attending college,

Correct AnswerverifiedShow Answer

The branch of economics that studies the decisions made by individuals and firms is called macroeconomics.

Correct AnswerverifiedShow Answer

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A rationing device is a mechanism used t...
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Macroeconomics is the branch of economic...
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