Question 1

Economists sometimes refer to the resource category land as natural resources.

Accepted Answer

A) True 
 B)False

Question 2

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than

Accepted Answer

A)  108,000.
B)  111,111.
C)  137,500.
D)  110,000.E) C) and D)
F) A) and C)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In the textbook, economics is defined as the "science of scarcity."

Accepted Answer

A) True 
 B)False

Question 5

A three-word synonym for the term ceteris paribus is

Accepted Answer

A)  "nothing else changes."
B)  "in my opinion."
C)  "it is proved."
D)  "under this assumption."E) C) and D)
F) B) and D)

Question 6

​ Exhibit 1-4  Refer to Exhibit 1-4.  If the student whose marginal benefits and costs of good health are noted in this table, how many units of good health should the student obtain in order to maximize her net benefits of good health?

Accepted Answer

A)  2 units
B)  3 units
C)  4 units
D)  5 units
E)  ​6 unitsF) C) and E)
G) A) and E)

Question 7

If someone gives you a free ticket to the movies, then there is no opportunity cost involved with going to the movies.

Accepted Answer

A) True 
 B)False

Question 8

A theory is an abstract representation of reality . This means a theory

Accepted Answer

A)  is descriptive of the way the world is.
B)  is an unrealistic representation of reality.
C)  omits certain factors when trying to explain something.
D)  is usually expressed in professional jargon.E) All of the above
F) C) and D)

Question 9

Scarcity affects everyone, even billionaires.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a positive economic statement?

Accepted Answer

A)  We should raise the minimum wage in order to provide a decent wage for more people.
B)  Consumers will likely purchase fewer cars in the future when the relative price of cars increases.
C)  The budget deficit has been rising in recent years.
D)  Federal government spending ought to be curtailed.E) All of the above
F) A) and D)

Question 11

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) None of the above
F) A) and B)

Question 12

If scarcity didn't exist, neither would

Accepted Answer

A)  rationing devices.
B)  land.
C)  labor.
D)  capital.E) B) and C)
F) C) and D)

Question 13

Exhibit 1-3  Refer to Exhibit 1-3.  According to the data provided in this table, what is the approximate slope of the line between points C and D (if these data were graphed with X on the horizontal axis and Y on the vertical axis) ?

Accepted Answer

A)  -0.17
B)  -6.00
C)  0.17
D)  6.00
E)  -1.00F) A) and B)
G) None of the above

Question 14

Which of the following pairs of variables is  most  likely to be directly related?

Accepted Answer

A)  sales of toothpaste and sales of running shoes
B)  the price of ice cream and the price of airline tickets
C)  the number of children in a family and the number of toys the family owns
D)  the price of ice cream and sales of ice cream
E)  the outdoor temperature and sales of residential heating systemsF) A) and C)
G) None of the above

Question 15

Something that motivates or encourages people to take an action is referred to as a(n)

Accepted Answer

A)  utility.
B)  abstract.
C)  market.
D)  incentive.E) C) and D)
F) A) and C)

Question 16

How is scarcity related to competition?

Accepted Answer

A)  Competition is an effect of scarcity.
B)  Scarcity is an effect of competition.
C)  Both scarcity and competition are effects of a rationing device.
D)  Both scarcity and competition are effects of opportunity cost.
E)  Scarcity produces disutility and competition produces utility.F) A) and B)
G) C) and D)

Question 17

The branch of economics that studies the decisions of individuals and firms is called

Accepted Answer

A)  macroeconomics.
B)  microeconomics.
C)  microeconomics and macroeconomics.
D)  positive economics.
E)  normative economics.F) None of the above
G) A) and E)

Question 18

Exhibit 1-2  Refer to Exhibit 1-2.  Based on the data provided in this table,  if these data were plotted in a two-variable diagram the result would be ______________ sloping ____________________.

Accepted Answer

A)  a downward; (nonlinear) curve
B)  a downward; (straight) line
C)  an upward; (nonlinear) curve
D)  an upward; (straight) lineE) All of the above
F) C) and D)

Question 19

Efficiency is consistent with

Accepted Answer

A)  minimizing net benefits.
B)  equating marginal benefits and marginal costs.
C)  maximizing total benefits.
D)  minimizing total costs.E) A) and B)
F) A) and D)

Question 20

The answer is, "This is principally used to exhibit changes in data over time." The question is,

Accepted Answer

A)  What is a pie chart?
B)  What is a 45-degree line?
C)  What is a tangent line?
D)  What is a line graph?E) B) and D)
F) None of the above

Exam 1: What Economics Is About

Which of the following pairs of variables is most likely to be directly related?

Correct AnswerverifiedShow Answer

Exhibit 1-3 Refer to Exhibit 1-3. According to the data provided in this table, what is the approximate slope of the line between points C and D (if these data were graphed with X on the horizontal axis and Y on the vertical axis) ?

Correct AnswerverifiedShow Answer

Which statement uses the term ceteris paribus correctly?

Correct AnswerverifiedShow Answer

Which of the following is a positive economic statement?

Correct AnswerverifiedShow Answer

How is scarcity related to competition?

Correct AnswerverifiedShow Answer

If someone gives you a free ticket to the movies, then there is no opportunity cost involved with going to the movies.

Correct AnswerverifiedShow Answer

A theory is an abstract representation of reality . This means a theory

Correct AnswerverifiedShow Answer

If scarcity didn't exist, neither would

Correct AnswerverifiedShow Answer

The branch of economics that studies the decisions of individuals and firms is called

Correct AnswerverifiedShow Answer

Efficiency is consistent with

Correct AnswerverifiedShow Answer

​ Exhibit 1-4 Refer to Exhibit 1-4. If the student whose marginal benefits and costs of good health are noted in this table, how many units of good health should the student obtain in order to maximize her net benefits of good health?

Correct AnswerverifiedShow Answer

Economists sometimes refer to the resource category land as natural resources.

Correct AnswerverifiedShow Answer

A three-word synonym for the term ceteris paribus is

Correct AnswerverifiedShow Answer

The answer is, "This is principally used to exhibit changes in data over time." The question is,

Correct AnswerverifiedShow Answer

Something that motivates or encourages people to take an action is referred to as a(n)

Correct AnswerverifiedShow Answer

A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than

Correct AnswerverifiedShow Answer

Scarcity affects everyone, even billionaires.

Correct AnswerverifiedShow Answer

Exhibit 1-2 Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be ______________ sloping ____________________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the textbook, economics is defined as the "science of scarcity."

Correct AnswerverifiedShow Answer

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Exhibit 1-4 Refer to Exhibit 1-4. If the student whose marginal benefits and costs of good health are noted in this table, how many units of good health should the student obtain in order to maximize her net benefits of good health?

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Exhibit 1-2 Refer to Exhibit 1-2. Based on the data provided in this table, if these data were plotted in a two-variable diagram the result would be sloping ______.

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