Question 1

-Refer to Exhibit 1-2.Based on the data provided in this table,what type of relationship exists between variables X and Y?

Accepted Answer

A)   inverse
B)   direct
C)   independent
D)   There is no relationship between variables X and Y.

Question 2

In every economy people vie for the economy's rationing device,a process called

Accepted Answer

A)   competition.
B)   entrepreneurship.
C)   marginal benefit.
D)   positive economics.

Question 3

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.

Question 4

Define the term scarcity and discuss two of its consequences.

Accepted Answer

Scarcity is the condition in which our w...

Question 5

Economists use the terms resource and input as synonyms.

Accepted Answer

A) True 
 B)False

Question 6

Explain why the ceteris paribus assumption is essential when assessing an economic theory.Give an example to help support your answer.

Accepted Answer

Economists use the ceteris paribus assum...

Question 7

What does it mean if a person makes a "decision at the margin"?

Accepted Answer

A)   The person compares additional benefits and additional costs when deciding what to do.
B)   The person weighs the good against the bad and then decides what to do.
C)   The person is more likely to say yes than to say no.
D)   The person compares marginal benefits and total costs and then decides what to do.
E)   The person makes a decision based on a condition.

Question 8

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

Accepted Answer

A)   Yes,if the number of accidents increases by a greater percentage than the number of deaths per accident decreases.
B)   No,because wearing seatbelts decreases the number of deaths per accident.
C)   No,because wearing seatbelts decreases the number of accidents.
D)   There is not enough information to answer the question.

Question 9

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,​ceteris paribus​.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities.

Accepted Answer

A) True 
 B)False

Question 12

Economists use the word utility to describe the satisfaction one receives from a good.

Accepted Answer

A) True 
 B)False

Question 13

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

Accepted Answer

A)   resource.
B)   good.
C)   rationing device.
D)   capital instrument.
E)   factor of production.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Many people buy one newspaper per day,but rarely do they buy two of the same newspapers on the same day.What is the economic justification for this behavior?

Accepted Answer

A)   The marginal benefit of purchasing the second newspaper exceeds the marginal cost of purchasing that paper.
B)   The marginal cost of purchasing the second newspaper exceeds the marginal benefit of purchasing that paper.
C)   The marginal benefit of purchasing the second newspaper equals the marginal cost of purchasing that paper.
D)   none of the above is an appropriate economic justification for this behavior.

Question 16

Explain what an economist means when he says,"You don't find any $10 bills on the sidewalk."

Accepted Answer

What an economist means by this statemen...

Question 17

A rationing device is a method used to resolve who gets what of available goods and resources.

Accepted Answer

A) True 
 B)False

Question 18

Ceteris paribus means

Accepted Answer

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

Question 19

Amy's opportunity cost of going to the movies is

Accepted Answer

A)   the price of the ticket.
B)   zero,if she has a gift card that covers the cost of the movie.
C)   the price of the ticket plus the value to Amy of what she would have chosen to do with her time had she not chosen to go to the movies.
D)   both b and c

Question 20

Harry is trying to take one more class this semester.He is weighing the marginal benefit of taking one more class to the marginal cost of taking one more class.Which economic concept is most closely related to Harry's decision-making process?

Accepted Answer

A)   macroeconomics
B)   exchange
C)   rationing devices
D)   decisions made at the margin

Exam 1: What Economics Is About

Economists use the terms resource and input as synonyms.

Correct AnswerverifiedShow Answer

Explain what an economist means when he says,"You don't find any $10 bills on the sidewalk."

Correct AnswerverifiedWhat an economist means by this statemen...View AnswerShow Answer

Harry is trying to take one more class this semester.He is weighing the marginal benefit of taking one more class to the marginal cost of taking one more class.Which economic concept is most closely related to Harry's decision-making process?

Correct AnswerverifiedShow Answer

Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities.

Correct AnswerverifiedShow Answer

Amy's opportunity cost of going to the movies is

Correct AnswerverifiedShow Answer

In every economy people vie for the economy's rationing device,a process called

Correct AnswerverifiedShow Answer

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

Explain why the ceteris paribus assumption is essential when assessing an economic theory.Give an example to help support your answer.

Correct AnswerverifiedEconomists use the ceteris paribus assum...View AnswerShow Answer

Define the term scarcity and discuss two of its consequences.

Correct AnswerverifiedScarcity is the condition in which our w...View AnswerShow Answer

What does it mean if a person makes a "decision at the margin"?

Correct AnswerverifiedShow Answer

Ceteris paribus means

Correct AnswerverifiedShow Answer

Is it possible for mandatory seatbelt laws to increase vehicle fatalities?

Correct AnswerverifiedShow Answer

Economists use the word utility to describe the satisfaction one receives from a good.

Correct AnswerverifiedShow Answer

A rationing device is a method used to resolve who gets what of available goods and resources.

Correct AnswerverifiedShow Answer

The higher the opportunity cost of attending college,

Correct AnswerverifiedShow Answer

Many people buy one newspaper per day,but rarely do they buy two of the same newspapers on the same day.What is the economic justification for this behavior?

Correct AnswerverifiedShow Answer

-Refer to Exhibit 1-2.Based on the data provided in this table,what type of relationship exists between variables X and Y?

Correct AnswerverifiedShow Answer

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,​ceteris paribus​.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
What an economist means by this statemen...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A rationing device is a mechanism used t...
View Answer

Correct Answer
verified
Economists use the ceteris paribus assum...
View Answer

Correct Answer
verified
Scarcity is the condition in which our w...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The higher the opportunity cost of making a new friend,the more likely one is to make a new friend,ceteris paribus.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified