Question 1

Your school offers college seniors one "free" college course.Is this course also free to society?

Accepted Answer

A)   Yes, because the seniors live in society.
B)   Yes, because the school has satisfied the assumption of making a rational choice.
C)   No, because if a college-senior takes the last seat in the class, t then a paying student will not have the opportunity to take it.
D)   No, because some students will not take a free class seriously and will ultimately become less productive workers.E) B) and D)
F) A) and B)

Question 2

The Bureau of Economic Analysis releases last quarter's growth rate in real GDP.This release would most likely have been written by what kind of an economist?

Accepted Answer

A)   A monetary economist
B)   A macroeconomist
C)   A microeconomist
D)   A labor economistE) A) and D)
F) B) and D)

Question 3

Which of the following is considered a microeconomic issue?

Accepted Answer

A)   Chinese economic growth has declined.
B)   The Federal Reserve cuts key interest rates in order to stimulate lending.
C)   Walmart decides to add more self-checkout machines as the cost of labor rises.
D)   India experiences a reduction in unemployment after opening its borders to trade.E) C) and D)
F) All of the above

Question 4

Which of the following is one of the basic questions used by economists to break down problems?

Accepted Answer

A)   What are the wants and constraints of those involved?
B)   How will individuals feel about the change?
C)   Why has the market failed?
D)   Economists don't ask any of these questions.E) None of the above
F) All of the above

Question 5

A simplified representation of a complicated situation is:

Accepted Answer

A)   cutting corners.
B)   a model.
C)   useless without adding fine details.
D)   econometrics.E) B) and C)
F) B) and D)

Question 6

Which of the following is considered a microeconomic topic?

Accepted Answer

A)   The review of quarterly national income accounting data
B)   A firm's decision to purchase pay-per-click online advertising
C)   The Federal Reserve decides to increase the discount rate
D)   The CPI reports a rise in inflation during JulyE) B) and C)
F) B) and D)

Question 7

Which of the following is considered a microeconomic issue?

Accepted Answer

A)   The unemployment rate in the US from 1980-2014.
B)   Apple releases a new version of the iPhone.
C)   France's growth rate in the last year.
D)   All of these are examples of microeconomic issues.E) A) and B)
F) None of the above

Question 8

Which of the following could be an example of a question that would be studied in microeconomics?

Accepted Answer

A)   Why did our economic growth rate slow down during the 2000s?
B)   How did the recession end in 2009 if unemployment continued to rise?
C)   How will the legalization of marijuana in Colorado affect the market for cigarettes?
D)   When should Congress raise taxes in order to tackle the debt crisis?E) All of the above
F) B) and D)

Question 9

Which of the following could be considered a macroeconomic issue?

Accepted Answer

A)   T-Mobile and MetroPCS finalize a merger.
B)   Twinkies goes bankrupt, and the entire snack industry experiences losses.
C)   The unemployment rate in the US falls to 7.5 percent from 7.7 percent during the month of June.
D)   The decision of Microsoft to offer a free upgrade to Windows 10.E) A) and C)
F) C) and D)

Question 10

If you generate a new idea that has not been implemented yet by anyone else,and the idea offers a more profitable use of some resource,it is likely an example of:

Accepted Answer

A)   innovation.
B)   market failure.
C)   intervention.
D)   a goal other than profit.E) A) and B)
F) All of the above

Question 11

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 3rd movie?

Accepted Answer

A)   $1
B)   $8
C)   $4
D)   $2E) A) and C)
F) A) and B)

Question 12

A movie costs you and your friend $15 each.After one hour of watching the movie,you have struggled to stay awake while your friend has been on Facebook and is also bored with the movie.You suggest that you and your friend leave the movie and go to the park.Your friend responds by stating that he is not going to waste his $15 that was previously spent on the movie.Your friend is considering:

Accepted Answer

A)   an opportunity cost of the movie.
B)   the sunk cost.
C)   the marginal benefit.
D)   Total costsE) B) and C)
F) None of the above

Question 13

When two variables have been observed to have a tendency to occur at the same time,we can say there is ____________ but not necessarily ____________.

Accepted Answer

A)   causation; correlation
B)   correlation; causation
C)   positivity; causation
D)   normality; correlationE) A) and B)
F) A) and C)

Question 14

Jimmy is very excited about the costume party with a 1990s theme.He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch.His opportunity cost of arriving dressed like MC Hammer is:

Accepted Answer

A)   the cost of parachute pants that MC Hammer would wear.
B)   the savings from not purchasing red swimming trunks.
C)   giving up the alternative of dressing like a lifeguard.
D)   there is no opportunity cost because he attended the party either way.E) B) and C)
F) B) and D)

Question 15

You may incorrectly conclude that an idea no other person has implemented is highly profitable because:

Accepted Answer

A)   you misjudged people's wants and constraints.
B)   you miscalculated the trade-offs people face.
C)   you misunderstood how people would respond to incentives.
D)   All of these.E) None of the above
F) C) and D)

Question 16

The problem of having unlimited wants under the constraint of limited resources can describe the problem of:

Accepted Answer

A)   opportunity cost.
B)   sunk costs.
C)   scarcity.
D)   the marginal principle.E) A) and C)
F) A) and B)

Question 17

The assumption of rational behavior:

Accepted Answer

A)   offers a perfect framework for how people actually behave.
B)   helps economists explain about how people behave in a way that will best achieve their goals.
C)   explains why people voluntarily engage in decisions for which costs exceed benefits.
D)   is best applied to psychology and should not be used in the science of economics.E) None of the above
F) C) and D)

Question 18

The two most important actors of the economy are:

Accepted Answer

A)   land and capital.
B)   households and firms.
C)   firms and capital.
D)   exports and imports.E) B) and C)
F) A) and C)

Question 19

When speed boat sales rise,the city of Las Vegas takes in more revenue.The omitted common variable between these outcomes is likely to be:

Accepted Answer

A)   life jacket sales.
B)   prices of Las Vegas flights.
C)   childhood obesity.
D)   increased disposable income.E) B) and C)
F) A) and B)

Question 20

The use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society is called:

Accepted Answer

A)   innovation.
B)   efficiency.
C)   sustainability.
D)   economic quantity.E) A) and C)
F) B) and D)

Exam 1: Economics and Life

If you generate a new idea that has not been implemented yet by anyone else,and the idea offers a more profitable use of some resource,it is likely an example of:

Correct Answer
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Correct Answer
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The Bureau of Economic Analysis releases last quarter's growth rate in real GDP.This release would most likely have been written by what kind of an economist?

Correct Answer
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Jimmy is very excited about the costume party with a 1990s theme.He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch.His opportunity cost of arriving dressed like MC Hammer is:

Correct Answer
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Which of the following could be considered a macroeconomic issue?

Correct Answer
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The two most important actors of the economy are:

Correct Answer
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The use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society is called:

Correct Answer
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Which of the following is considered a microeconomic topic?

Correct Answer
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Which of the following could be an example of a question that would be studied in microeconomics?

Correct Answer
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When speed boat sales rise,the city of Las Vegas takes in more revenue.The omitted common variable between these outcomes is likely to be:

Correct Answer
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The assumption of rational behavior:

Correct Answer
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When two variables have been observed to have a tendency to occur at the same time,we can say there is but not necessarily .

Correct Answer
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A simplified representation of a complicated situation is:

Correct Answer
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You may incorrectly conclude that an idea no other person has implemented is highly profitable because:

Correct Answer
verified

Correct Answer
verified

The problem of having unlimited wants under the constraint of limited resources can describe the problem of:

Correct Answer
verified

Which of the following is considered a microeconomic issue?

Correct Answer
verified

Your school offers college seniors one "free" college course.Is this course also free to society?

Correct Answer
verified

Which of the following is one of the basic questions used by economists to break down problems?

Correct Answer
verified

Which of the following is considered a microeconomic issue?

Correct Answer
verified

Exam 1: Economics and Life

If you generate a new idea that has not been implemented yet by anyone else,and the idea offers a more profitable use of some resource,it is likely an example of:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Bureau of Economic Analysis releases last quarter's growth rate in real GDP.This release would most likely have been written by what kind of an economist?

Correct AnswerverifiedShow Answer

Jimmy is very excited about the costume party with a 1990s theme.He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch.His opportunity cost of arriving dressed like MC Hammer is:

Correct AnswerverifiedShow Answer

Which of the following could be considered a macroeconomic issue?

Correct AnswerverifiedShow Answer

The two most important actors of the economy are:

Correct AnswerverifiedShow Answer

The use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society is called:

Correct AnswerverifiedShow Answer

Which of the following is considered a microeconomic topic?

Correct AnswerverifiedShow Answer

Which of the following could be an example of a question that would be studied in microeconomics?

Correct AnswerverifiedShow Answer

When speed boat sales rise,the city of Las Vegas takes in more revenue.The omitted common variable between these outcomes is likely to be:

Correct AnswerverifiedShow Answer

The assumption of rational behavior:

Correct AnswerverifiedShow Answer

When two variables have been observed to have a tendency to occur at the same time,we can say there is ____________ but not necessarily ____________.

Correct AnswerverifiedShow Answer

A simplified representation of a complicated situation is:

Correct AnswerverifiedShow Answer

You may incorrectly conclude that an idea no other person has implemented is highly profitable because:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The problem of having unlimited wants under the constraint of limited resources can describe the problem of:

Correct AnswerverifiedShow Answer

Which of the following is considered a microeconomic issue?

Correct AnswerverifiedShow Answer

Your school offers college seniors one "free" college course.Is this course also free to society?

Correct AnswerverifiedShow Answer

Which of the following is one of the basic questions used by economists to break down problems?

Correct AnswerverifiedShow Answer

Which of the following is considered a microeconomic issue?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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When two variables have been observed to have a tendency to occur at the same time,we can say there is but not necessarily .

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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