Question 1

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 d

Question 2

In most societies,dollar price acts as the main rationing device.If dollar price weren't the main rationing device,would there still be a need for some rationing device to take its place?

Accepted Answer

A)   No,because with dollar price there would be no scarcity,although shortages would still exist.
B)   Yes,because there is a need for a rationing device as long as scarcity exists.
C)   Yes,because there is a need for a rationing device as long as the world's population is so large.
D)   No,because dollar price creates scarcity and without money price scarcity wouldn't exist.
E)   none of the above

Question 3

The cost of building a new interstate highway system is reported to be high at $25 billion.Does it necessarily follow that the interstate highway is not worth building?

Accepted Answer

A)   Yes,because it is better to spend $25 billion on ending poverty than on building another interstate highway system.
B)   No,because building a new interstate highway system promotes economic growth,which helps everyone.
C)   No,because the benefits of building a new interstate highway system may be greater than $25 billion.
D)   Yes,because the benefits of building a new interstate highway system may be greater than $25 billion.

Question 4

Scarcity occurs in both wealthy societies and poor societies.

Accepted Answer

A) True 
 B)False

Question 5

In all cases,normative economics deals with

Accepted Answer

A)   what is.
B)   what should be.
C)   relatively small units in the economy.
D)   the entire economy.

Question 6

Define the term rationing device and give an example 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 7

List and describe the four broad categories of resources.Cite an example of each to help support your answer.

Accepted Answer

Economists divide resources into four ca...

Question 8

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Accepted Answer

A)   relative relationships.
B)   absolute relationships.
C)   the slope of a line.
D)   the slope of a curve.
E)   none of the above

Question 9

In the text,economics is defined as the science of

Accepted Answer

A)   money and business.
B)   choices.
C)   scarcity.
D)   price.
E)   individuals' actions.

Question 10

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 11

Which of the following would NOT be considered a macroeconomic topic?

Accepted Answer

A)   the reasons for a decline in the price of crude oil
B)   the cause of a downturn in the economy
C)   the effect of the government budget deficit on inflation
D)   the causes of inflation and unemployment

Question 12

Opportunity cost is the __________ alternative forfeited when a choice is made.

Accepted Answer

A)   least-valued
B)   most highly-valued
C)   most convenient
D)   most recently considered B

Question 13

Some years ago,chemists at 3M Corporation were trying to create a super-strong glue.Somehow they got their molecules twisted and came up with one of the weakest glues ever made.But,rather than pouring it down the drain,they tried coating some paper with it,and the "Post-It Note" was born.In this case,3M was acting as a(n)

Accepted Answer

A)   utility.
B)   rationer.
C)   entrepreneur.
D)   abstraction.

Question 14

Prior to attending college,Darius is offered a lucrative four-year contract as an actor in a daytime soap opera.Assuming that acting and attending college are Darius' preferred alternatives and that he must choose between the two,his cost of attending college after receiving the offer

Accepted Answer

A)   increases.
B)   decreases.
C)   stays the same.
D)   increases or stays the same depending on whether he accepts the offer.

Question 15

In economics,capital is defined as a financial asset such as stocks and bonds.

Accepted Answer

A) True 
 B)False  False

Question 16

"If you hadn't gone to dinner with your friends,you would have stayed home and surfed the Internet." It follows that

Accepted Answer

A)   surfing the Internet is the opportunity cost of having dinner with your friends.
B)   the price of having dinner with your friends is more than the price you would have had to pay to surf the Internet.
C)   the opportunity cost of having dinner with your friends is lower than the opportunity cost of surfing the Internet.
D)   it is less costly to surf the Internet than to have dinner with your friends.

Question 17

In economics,a synonym for utility is

Accepted Answer

A)   usefulness.
B)   satisfaction.
C)   sacrifice.
D)   a service.

Question 18

Which of the following statements is true?

Accepted Answer

A)   Oil is classified in the resource category land.
B)   A person working for a company is classified in the resource category capital.
C)   A machine in a factory is classified in the resource category land.
D)   A person with the particular talent for organizing the resources of land,labor,and capital to produce goods,seek new business opportunities,and develop new ways of doing things is classified in the resource category labor.
E)   a and d

Question 19

The coordinates of point A are 300 units of X and 40 units of Y.The coordinates of point B are 280 units of X and 30 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)   + 0.50
B)   + 2.00
C)   + 0.33
D)   - 2.00
E)   - 0.50

Question 20

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." A

Exam 1: What Economics Is About

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

Correct Answer
verified

In most societies,dollar price acts as the main rationing device.If dollar price weren't the main rationing device,would there still be a need for some rationing device to take its place?

Correct Answer
verified

The cost of building a new interstate highway system is reported to be high at $25 billion.Does it necessarily follow that the interstate highway is not worth building?

Correct Answer
verified

Scarcity occurs in both wealthy societies and poor societies.

Correct Answer
verified

In all cases,normative economics deals with

Correct Answer
verified

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

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

List and describe the four broad categories of resources.Cite an example of each to help support your answer.

Correct Answer
verified
Economists divide resources into four ca...
View Answer

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Correct Answer
verified

In the text,economics is defined as the science of

Correct Answer
verified

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

Correct Answer
verified

Which of the following would NOT be considered a macroeconomic topic?

Correct Answer
verified

Opportunity cost is the __________ alternative forfeited when a choice is made.

Correct Answer
verified
B

Correct Answer
verified

Prior to attending college,Darius is offered a lucrative four-year contract as an actor in a daytime soap opera.Assuming that acting and attending college are Darius' preferred alternatives and that he must choose between the two,his cost of attending college after receiving the offer

Correct Answer
verified

In economics,capital is defined as a financial asset such as stocks and bonds.

Correct Answer
verified
False

"If you hadn't gone to dinner with your friends,you would have stayed home and surfed the Internet." It follows that

Correct Answer
verified

In economics,a synonym for utility is

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

The coordinates of point A are 300 units of X and 40 units of Y.The coordinates of point B are 280 units of X and 30 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 Answer
verified

A three-word synonym for the term ceteris paribus is

Correct Answer
verified
A

Exam 1: What Economics Is About

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

Correct AnswerverifiedShow Answer

In most societies,dollar price acts as the main rationing device.If dollar price weren't the main rationing device,would there still be a need for some rationing device to take its place?

Correct AnswerverifiedShow Answer

The cost of building a new interstate highway system is reported to be high at $25 billion.Does it necessarily follow that the interstate highway is not worth building?

Correct AnswerverifiedShow Answer

Scarcity occurs in both wealthy societies and poor societies.

Correct AnswerverifiedShow Answer

In all cases,normative economics deals with

Correct AnswerverifiedShow Answer

Define the term rationing device and give an example 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

List and describe the four broad categories of resources.Cite an example of each to help support your answer.

Correct AnswerverifiedEconomists divide resources into four ca...View AnswerShow Answer

By looking at the different slices of a pie chart,and comparing one slice to another,it is possible to quickly estimate

Correct AnswerverifiedShow Answer

In the text,economics is defined as the science of

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

Which of the following would NOT be considered a macroeconomic topic?

Correct AnswerverifiedShow Answer

Opportunity cost is the __________ alternative forfeited when a choice is made.

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

Prior to attending college,Darius is offered a lucrative four-year contract as an actor in a daytime soap opera.Assuming that acting and attending college are Darius' preferred alternatives and that he must choose between the two,his cost of attending college after receiving the offer

Correct AnswerverifiedShow Answer

In economics,capital is defined as a financial asset such as stocks and bonds.

Correct AnswerverifiedFalse

"If you hadn't gone to dinner with your friends,you would have stayed home and surfed the Internet." It follows that

Correct AnswerverifiedShow Answer

In economics,a synonym for utility is

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

The coordinates of point A are 300 units of X and 40 units of Y.The coordinates of point B are 280 units of X and 30 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

A three-word synonym for the term ceteris paribus is

Correct AnswerverifiedA

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

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Economists divide resources into four ca...
View Answer

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B

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False

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A