Question 1

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Accepted Answer

A) True 
 B)False

Question 2

Figure 1A.1
-Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

Accepted Answer

A)   0.2.
B)   5.
C)   10.
D)   50.E) A) and B)
F) B) and D)

Question 3

The effort used to coordinate the factors of production is a description of

Accepted Answer

A)   physical capital.
B)   human capital.
C)   labor.
D)   entrepreneurship.E) C) and D)
F) None of the above

Question 4

To increase income by $120 when the slope of the curve showing the relationship between your income and work hours is 8, how many extra hours will you need to work?

Accepted Answer

A)   8
B)   15
C)   112
D)   960E) A) and B)
F) A) and D)

Question 5

Recent housing reforms in Cuba should give homeowners ________ incentives to repair their homes and therefore ________ construction of new homes.

Accepted Answer

A)   more; decrease
B)   more; increase
C)   fewer; decrease
D)   fewer; increaseE) A) and B)
F) B) and D)

Question 6

Describe the field of economics known as microeconomics.

Accepted Answer

Microeconomics is the study of...

Question 7

Figure 1A.2
-Refer to Figure 1A.2. The slope of the curve

Accepted Answer

A)   is negative.
B)   is positive.
C)   is zero.
D)   changes along the curve.E) A) and B)
F) A) and C)

Question 8

The origin of a graph is the intersection of the two axes, where the value of both variables is zero.

Accepted Answer

A) True 
 B)False

Question 9

Congestion taxes tend to cause an increase in traffic volume during rush hours.

Accepted Answer

A) True 
 B)False

Question 10

List and briefly describe the five factors of production.

Accepted Answer

Natural resources-those resources provid...

Question 11

Figure 1A.1
-Refer to Figure 1A.1. If the hours worked per week are 20, the income per week is

Accepted Answer

A)   50.
B)   100.
C)   150.
D)   200.E) All of the above
F) A) and B)

Question 12

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Accepted Answer

A) True 
 B)False

Question 13

Positive economic analysis answers what question?

Accepted Answer

Positive economic an...

Question 14

The slope of a nonlinear curve

Accepted Answer

A)   is constant.
B)   is negative.
C)   is zero.
D)   changes along the curve.E) B) and C)
F) B) and D)

Question 15

One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"

Accepted Answer

A) True 
 B)False

Question 16

Recall the Application about housing prices in Cuba to answer the following question(s) .
-According to the Application, in 1960 the Cuban government

Accepted Answer

A)   confiscated most housing in the country.
B)   did not allow people to sell or rent their homes.
C)   caused a large shortage of housing as a result of its policies.
D)   all of the aboveE) A) and B)
F) B) and C)

Question 17

Scarcity can best be defined as a situation in which

Accepted Answer

A)   there are no buyers willing to purchase what sellers have produced.
B)   there are not enough goods to satisfy all of the buyers' demand.
C)   the resources we use to produce goods and services are limited.
D)   there is more than enough money to satisfy consumers' wants.E) B) and C)
F) A) and D)

Question 18

When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine

Accepted Answer

A)   if the tax would be allocated equitably.
B)   what tax amount should be charged.
C)   who should be exempt from the tax.
D)   how much revenue will the tax generate.E) B) and C)
F) All of the above

Question 19

We can use macroeconomic analysis to

Accepted Answer

A)   learn how to balance a checkbook.
B)   study the choices made by households.
C)   understand marginal changes in the macroeconomy.
D)   understand why economies grow.E) A) and B)
F) A) and C)

Question 20

Adam Smith

Accepted Answer

A)   is considered the founder of economics.
B)   introduced the concept of ceteris paribus to the discussion of supply and demand.
C)   is responsible for refining the model of supply and demand.
D)   is the author of this text.E) All of the above
F) A) and B)

Exam 1: Introduction: What Is Economics

Recall the Application about housing prices in Cuba to answer the following question(s) . -According to the Application, in 1960 the Cuban government

Correct AnswerverifiedShow Answer

Figure 1A.1 -Refer to Figure 1A.1. If the hours worked per week are 20, the income per week is

Correct AnswerverifiedShow Answer

Congestion taxes tend to cause an increase in traffic volume during rush hours.

Correct AnswerverifiedShow Answer

The slope of a nonlinear curve

Correct AnswerverifiedShow Answer

The effort used to coordinate the factors of production is a description of

Correct AnswerverifiedShow Answer

To increase income by $120 when the slope of the curve showing the relationship between your income and work hours is 8, how many extra hours will you need to work?

Correct AnswerverifiedShow Answer

Recent housing reforms in Cuba should give homeowners ________ incentives to repair their homes and therefore ________ construction of new homes.

Correct AnswerverifiedShow Answer

Figure 1A.1 -Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

Correct AnswerverifiedShow Answer

We can use macroeconomic analysis to

Correct AnswerverifiedShow Answer

Figure 1A.2 -Refer to Figure 1A.2. The slope of the curve

Correct AnswerverifiedShow Answer

Describe the field of economics known as microeconomics.

Correct AnswerverifiedMicroeconomics is the study of...View AnswerShow Answer

One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"

Correct AnswerverifiedShow Answer

List and briefly describe the five factors of production.

Correct AnswerverifiedNatural resources-those resources provid...View AnswerShow Answer

Most modern economic analysis is normative in nature, but involves questions with positive aspects.

Correct AnswerverifiedShow Answer

Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.

Correct AnswerverifiedShow Answer

Adam Smith

Correct AnswerverifiedShow Answer

When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine

Correct AnswerverifiedShow Answer

Scarcity can best be defined as a situation in which

Correct AnswerverifiedShow Answer

Positive economic analysis answers what question?

Correct AnswerverifiedPositive economic an...View AnswerShow Answer

The origin of a graph is the intersection of the two axes, where the value of both variables is zero.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Recent housing reforms in Cuba should give homeowners incentives to repair their homes and therefore construction of new homes.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Microeconomics is the study of...
View Answer

Correct Answer
verified

Correct Answer
verified
Natural resources-those resources provid...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Positive economic an...
View Answer

Correct Answer
verified