Question
1.The most comprehensive measure of the size of
an economy is called
a) GDP.
b) health care.
c) inflation.
d) the overall price level.
e) economic well-being.
Answer
The most comprehensive measure of the size of
an economy is called
a) GDP. (Correct)
b) health care.
c) inflation.
d) the overall price level.
e) economic well-being.
Question
2.Controlled experiments are
a) seldom used in economics because
economists do not like to repeat experiments.
b) often used because controlling other factors
is relatively easy in economics.
c) not used as widely in economics as in other
disciplines.
d) is the method used when comparing the
economic experience of other countries.
e) performed by the government to collect
economic data.
Answer
Controlled experiments are
a) seldom used in economics because
economists do not like to repeat experiments.
b) often used because controlling other factors
is relatively easy in economics.
c) not used as widely in economics as in other
disciplines. (Correct)
d) is the method used when comparing the
economic experience of other countries.
e) performed by the government to collect
economic data.
Question
3.When the price of gasoline is observed to increase
while the oil remains unchanged, then
a) Oil and gasoline prices are positively correlated.
b) Oil and gasoline prices are negatively correlated.
c) Gasoline prices cause the oil prices to increase.
d) Oil prices cause the gasoline prices to increase.
e) Oil prices cannot be the cause of the change in
the price of gasoline during the period examined.
Answer
When the price of gasoline is observed to increase
while the oil remains unchanged, then
a) Oil and gasoline prices are positively correlated.
b) Oil and gasoline prices are negatively correlated.
c) Gasoline prices cause the oil prices to increase.
d) Oil prices cause the gasoline prices to increase.
e) Oil prices cannot be the cause of the change in
the price of gasoline during the period examined.
(Correct)
Question
4.Economic models
a) are not complicated because the behavior
they describe is not complicated.
b) require either algebra or graphs.
c) are complicated because human behavior is
complicated.
d) are simplifications of the phenomena they
attempt to explain.
e) would not be needed if controlled
experiments were used more often.
Answer
Economic models
a) are not complicated because the behavior
they describe is not complicated.
b) require either algebra or graphs.
c) are complicated because human behavior is
complicated.
d) are simplifications of the phenomena they
attempt to explain. (Correct)
e) would not be needed if controlled
experiments were used more often.
Question
5.If the quantity demanded of coffee increases
when the price of coffee declines, then these two
_________ are _________.
a) variables; negatively related
b) constants; positively related
c) variables; positively related
d) constants; negatively related
e) variables; not related
Answer
If the quantity demanded of coffee increases when
the price of coffee declines, then these two
_________ are _________.
a) variables; negatively related (Correct)
b) constants; positively related
c) variables; positively related
d) constants; negatively related
e) variables; not related
Question
6.The “ceretis paribus” assumption is used in
economics
a) because economic theory is an accurate
reflection of the real world.
b) to isolate the important variables when
formulating a theory.
c) primarily to identify unstable equilibrium
situations.
d) to make the theory more complicated.
e) to distinguish economics from other
disciplines.
Answer
The “ceretis paribus” assumption is used in
economics
a) because economic theory is an accurate
reflection of the real world.
b) to isolate the important variables when
formulating a theory. (Correct)
c) primarily to identify unstable equilibrium
situations.
d) to make the theory more complicated.
e) to distinguish economics from other
disciplines.
Question
7.Which of the following is more of a
microeconomic concept than a macroeconomic
concept?
a) Concern over simultaneous high rates of
inflation and unemployment
b) Price determination in a resource
market
c) The rate of economic growth
d) Concern over an entire economy’s balance of
payments
e) How the composition of output is determined
in an economy
Answer
Which of the following is more of a microeconomic
concept than a macroeconomic concept?
a) Concern over simultaneous high rates of
inflation and unemployment
b) Price determination in a resource
market (Correct)
c) The rate of economic growth
d) Concern over an entire economy’s balance of
payments
e) How the composition of output is determined
in an economy
Question
8.Those who support a laissez faire system
a) argue for a French-style economy.
b) argue for a market economy.
c) support government intervention.
d) argue for a command economy.
e) argue for a mixed economy.
Answer
Those who support a laissez faire system
a) argue for a French-style economy.
b) argue for a market economy. (Correct)
c) support government intervention.
d) argue for a command economy.
e) argue for a mixed economy.
Question
9.A newspaper editorial advocating higher income
tax rates as the way to reduce the budget deficit is
an example of
a) ceteris paribus.
b) microeconomics.
c) functional economics.
d) positive economics.
e) normative economics.
Answer
A newspaper editorial advocating higher income
tax rates as the way to reduce the budget deficit is
an example of
a) ceteris paribus.
b) microeconomics.
c) functional economics.
d) positive economics.
e) normative economics. (Correct)
Question
10.Because economists have varying moral beliefs
and different views of the world
a) it is impossible for there to be anything scientific
about economics.
b) they will disagree on abstract issues.
c) there are many different types of economic
theories.
d) they will agree more often than not on principles
when discussed on an abstract level, but will
disagree on whether to apply these principles in
real-world circumstances.
e) economics can never be a science.
Answer
Because economists have varying moral beliefs and
different views of the world
a) it is impossible for there to be anything scientific
about economics.
b) they will disagree on abstract issues.
c) there are many different types of economic
theories. (Correct)
d) they will agree more often than not on principles
when discussed on an abstract level, but will
disagree on whether to apply these principles in
real-world circumstances.
e) economics can never be a science.
Question
11.Which of the following pairs of variables usually
exhibit a positive correlation?
a) Income and spending
b) Weight and caloric intake
c) Fertilizer use and corn yield
d) Years of education and salary
e) All of the above usually exhibit
a positive correlation.
Answer
Which of the following pairs of variables usually
exhibit a positive correlation?
a) Income and spending
b) Weight and caloric intake
c) Fertilizer use and corn yield
d) Years of education and salary
e) All of the above usually exhibit
a positive correlation. (Correct)