Question 1

A statement that "a hair stylist should not have to obtain a cosmetology license" is an example of what kind of statement?

Accepted Answer

A)   Uninformed
B)   Biased
C)   Positive
D)   NormativeE) B) and C)
F) None of the above

Question 2

Models should:

Accepted Answer

A)   attempt to include every detail of the situation being studied.
B)   attempt to describe a situation with perfect accuracy.
C)   not be applied to microeconomics.
D)   describe a real life situation accurately.E) B) and C)
F) A) and B)

Question 3

The two flows,or things being exchanged,in the circular flow model are:

Accepted Answer

A)   inputs and outputs.
B)   imports and exports.
C)   inputs/outputs and money.
D)   land and labor.E) B) and C)
F) A) and B)

Question 4

Which of the following is considered a macroeconomic topic?

Accepted Answer

A)   iTunes raises the price of all its music.
B)   iTunes raises the price of its pop artists' music only.
C)   Jay-Z decides to sell his Brooklyn Nets minority ownership.
D)   The labor force participation rate in the US fell by 1 percent in 2010.E) A) and D)
F) A) and C)

Question 5

Disney World decides to charge local residents a lower price than other park visitors.This would fall under which field of economics?

Accepted Answer

A)   Macroeconomics
B)   Public policy
C)   Customer service
D)   MicroeconomicsE) C) and D)
F) All of the above

Question 6

Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials.The government's decision to offer low tax rates to entrepreneurs is:

Accepted Answer

A)   providing room for an economic expansion.
B)   providing an incentive, in the hopes that more entrepreneurs will take risk and create economic growth.
C)   providing a disincentive, in the hopes that more entrepreneurs will avoid risk and not grow.
D)   providing a disincentive, in the hopes that entrepreneurs will not get into tax default after assuming too much risk.E) A) and C)
F) None of the above

Question 7

Which of the following describes a problem created by scarcity?

Accepted Answer

A)   The course you need to take in the fall is offered at times that conflict with your work schedule.
B)   The White House eliminates tours due to budget constraints.
C)   Your cell phone battery is low and you screen a phone call from afriend in case your significant other calls later.
D)   All of these.E) A) and C)
F) A) and D)

Question 8

Which of the following describes when government alter normal market activity?

Accepted Answer

A)   Innovation
B)   Intervention
C)   Market failure
D)   Unprofitable outcomeE) B) and C)
F) All of the above

Question 9

If people have never implemented an idea that you believe offers substantial opportunity:

Accepted Answer

A)   you should seek a low interest loan immediately in order to launch your product.
B)   you should conclude people are irrational.
C)   your evaluation might be missing something and you should carefully revisit the first three economists' questions.
D)   you should conclude that you are being irrational.E) A) and B)
F) A) and C)

Question 10

"Late registration will result in an additional $30 fee." This is an example of:

Accepted Answer

A)   trade-off.
B)   a disincentive.
C)   marginal cost.
D)   group responsibility.E) A) and D)
F) B) and C)

Question 11

Which of the following is a topic studied in macroeconomics?

Accepted Answer

A)   Gasoline price changes
B)   Unemployment rates over time
C)   Taxation strategies of major corporations
D)   Consumer participation in FacebookE) A) and D)
F) None of the above

Question 12

Which actor in the simplified circular flow model is on the supply side of the goods market?

Accepted Answer

A)   Firms
B)   Households
C)   Markets for factors of production
D)   GovernmentE) A) and D)
F) A) and C)

Question 13

Which of the following is an example of positive statement?

Accepted Answer

A)   The state government should allocate more funds toward education.
B)   Teachers should be paid higher salaries.
C)   Individuals with a bachelor's degree earn higher average incomes than those with only a high school diploma.
D)   The consumption of marijuana is unacceptable and should never be legally allowed in a society.E) A) and B)
F) A) and C)

Question 14

An economic model:

Accepted Answer

A)   exactly explains what happens in the real economy.
B)   discards unnecessary details to clearly demonstrate the central principles of the economic activity.
C)   approximates all facets of what happens in the real economy.
D)   does not make clear assumptions about the economic activity.E) None of the above
F) A) and B)

Question 15

A college student decides to spend the afternoon watching three movies rented from Red Box.The cost of each movie is $1.The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie.What was the marginal benefit received by the student when renting the 1st movie?

Accepted Answer

A)   $1
B)   $8
C)   $4
D)   $2E) None of the above
F) All of the above

Question 16

Something is valuable if:

Accepted Answer

A)   it does not involve a trade-off.
B)   it is a good or a service.
C)   someone wants it.
D)   it was made using resources.E) None of the above
F) All of the above

Question 17

Which of the following is an example of a disincentive?

Accepted Answer

A)   Law enforcement creates a "Mug Shots" section online in order to discourage potential law breakers.
B)   You offer workers a bonus if they sell 100 widgets per month.
C)   A local gym offers a weight loss competition and the winner earns a free trip to Bermuda.
D)   Your professor offers to edit your paper before it's graded if you turn it in early.E) C) and D)
F) All of the above

Question 18

As corn prices rise,salsa sales tend to fall.This an example of:

Accepted Answer

A)   a positive correlation.
B)   inferior goods.
C)   two uncorrelated events.
D)   a negative correlation.E) None of the above
F) C) and D)

Question 19

When we assume that consumers want to pay the lowest price possible,we assume that consumers are:

Accepted Answer

A)   cheap.
B)   deceitful.
C)   rational.
D)   informed.E) A) and B)
F) A) and C)

Question 20

"Which came first,the chicken or the egg?" This question seeks to address the common fallacy of __________ in the context of correlation and causation.

Accepted Answer

A)   reverse causality
B)   omitted variables
C)   linear relationships
D)   comparative analysisE) A) and D)
F) B) and C)

Exam 1: Economics and Life

Which of the following is an example of a disincentive?

Correct Answer
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A statement that "a hair stylist should not have to obtain a cosmetology license" is an example of what kind of statement?

Correct Answer
verified

Correct Answer
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If people have never implemented an idea that you believe offers substantial opportunity:

Correct Answer
verified

An economic model:

Correct Answer
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Models should:

Correct Answer
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Which actor in the simplified circular flow model is on the supply side of the goods market?

Correct Answer
verified

"Which came first,the chicken or the egg?" This question seeks to address the common fallacy of __________ in the context of correlation and causation.

Correct Answer
verified

Which of the following is a topic studied in macroeconomics?

Correct Answer
verified

Disney World decides to charge local residents a lower price than other park visitors.This would fall under which field of economics?

Correct Answer
verified

As corn prices rise,salsa sales tend to fall.This an example of:

Correct Answer
verified

Which of the following is an example of positive statement?

Correct Answer
verified

When we assume that consumers want to pay the lowest price possible,we assume that consumers are:

Correct Answer
verified

Which of the following describes a problem created by scarcity?

Correct Answer
verified

Which of the following is considered a macroeconomic topic?

Correct Answer
verified

"Late registration will result in an additional $30 fee." This is an example of:

Correct Answer
verified

Which of the following describes when government alter normal market activity?

Correct Answer
verified

Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials.The government's decision to offer low tax rates to entrepreneurs is:

Correct Answer
verified

Something is valuable if:

Correct Answer
verified

The two flows,or things being exchanged,in the circular flow model are:

Correct Answer
verified

Exam 1: Economics and Life

Which of the following is an example of a disincentive?

Correct AnswerverifiedShow Answer

A statement that "a hair stylist should not have to obtain a cosmetology license" is an example of what kind of statement?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If people have never implemented an idea that you believe offers substantial opportunity:

Correct AnswerverifiedShow Answer

An economic model:

Correct AnswerverifiedShow Answer

Models should:

Correct AnswerverifiedShow Answer

Which actor in the simplified circular flow model is on the supply side of the goods market?

Correct AnswerverifiedShow Answer

"Which came first,the chicken or the egg?" This question seeks to address the common fallacy of __________ in the context of correlation and causation.

Correct AnswerverifiedShow Answer

Which of the following is a topic studied in macroeconomics?

Correct AnswerverifiedShow Answer

Disney World decides to charge local residents a lower price than other park visitors.This would fall under which field of economics?

Correct AnswerverifiedShow Answer

As corn prices rise,salsa sales tend to fall.This an example of:

Correct AnswerverifiedShow Answer

Which of the following is an example of positive statement?

Correct AnswerverifiedShow Answer

When we assume that consumers want to pay the lowest price possible,we assume that consumers are:

Correct AnswerverifiedShow Answer

Which of the following describes a problem created by scarcity?

Correct AnswerverifiedShow Answer

Which of the following is considered a macroeconomic topic?

Correct AnswerverifiedShow Answer

"Late registration will result in an additional $30 fee." This is an example of:

Correct AnswerverifiedShow Answer

Which of the following describes when government alter normal market activity?

Correct AnswerverifiedShow Answer

Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials.The government's decision to offer low tax rates to entrepreneurs is:

Correct AnswerverifiedShow Answer

Something is valuable if:

Correct AnswerverifiedShow Answer

The two flows,or things being exchanged,in the circular flow model are:

Correct AnswerverifiedShow Answer

Correct Answer
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