Question 1

If the equation y = 5 + 6x was graphed, the:

Accepted Answer

A)  slope would be -5.
B)  slope would be +5.
C)  slope would be +6.
D)  vertical intercept would be +.6.E) All of the above
F) A) and D)

Question 2

Microeconomics is concerned with:

Accepted Answer

A)  the aggregate or total levels of income, employment, and output.
B)  a detailed examination of specific economic units which comprise the economic system.
C)  the concealing of detailed information about specific segments of the economy.
D)  the establishing of an overall view of the operation of the economic system.E) None of the above
F) All of the above

Question 3

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that:

Accepted Answer

A)  it is impossible to produce more consumer goods.
B)  resources cannot be reallocated between the two goods.
C)  it is impossible to produce more capital goods.
D)  more consumer goods can only be produced at the cost of fewer capital goods.E) B) and D)
F) C) and D)

Question 4

Although sleeping in on a work day or school day has an opportunity cost, sleeping late on the weekend does not.

Accepted Answer

A) True 
 B)False

Question 5

Production possibilities tables for two countries, North Cantina and South Cantina: North Cantina
Production possibilities (alternatives) 
1/4 of a unit of capital goods. C) 8 units of capital goods. D) 1/8 of a unit of capital goods." class="answers-bank-image d-inline" rel="preload" > South Cantina
Production possibilities (alternatives) 
1/4 of a unit of capital goods. C) 8 units of capital goods. D) 1/8 of a unit of capital goods." class="answers-bank-image d-inline" rel="preload" > Refer to the above tables.If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be:

Accepted Answer

A)  10 units of capital goods.
B)  1/4 of a unit of capital goods.
C)  8 units of capital goods.
D)  1/8 of a unit of capital goods.E) A) and B)
F) A) and D)

Question 6

The linear equation for line (3)  on the above graph is:

Accepted Answer

A)  y = 24 - 1.5x.
B)  y = 16 - .5x.
C)  y = 24 - .66x.
D)  y = 24 - .75x.E) All of the above
F) A) and B)

Question 7

Suppose an economist says that "Other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that:

Accepted Answer

A)  the quantity of bananas purchased determines the price of bananas.
B)  all factors other than the price of bananas (for example, consumer tastes and incomes)  are assumed to be constant.
C)  economists can conduct controlled laboratory experiments.
D)  one cannot generalize about the relationship between the price of bananas and the quantity purchased.E) B) and C)
F) None of the above

Question 8

Refer to the above diagram.The slope of curve ZZ at point B is:

Accepted Answer

A)  infinity.
B)  zero.
C)  one.
D)  none of the above.E) A) and B)
F) A) and C)

Question 9

When a provincial government chooses to build more roads, the required resources are no longer available for spending on public education.This dilemma illustrates the concept of:

Accepted Answer

A)  marginal analysis.
B)  full employment.
C)  full production.
D)  opportunity cost.E) None of the above
F) B) and C)

Question 10

From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:

Accepted Answer

A)  marginal cost of waiting is less than the marginal benefit of being served.
B)  marginal cost of waiting is greater than the marginal benefit of being served.
C)  management is exhibiting irrational behaviour by not maximizing profits.
D)  management is making an assumption that other things are equal.E) A) and D)
F) None of the above

Question 11

Economics may best be defined as:

Accepted Answer

A)  the interaction between macro and micro considerations.
B)  the study of the behaviour of people and institutions in the production, distribution, and consumption of scarce goods.
C)  the empirical testing of value judgments through the use of induction and deduction.
D)  the use of policy to refute facts and hypotheses.E) A) and B)
F) B) and D)

Question 12

A positive statement is one which is:

Accepted Answer

A)  derived by an abstract generalization.
B)  suggestive of what should be done.
C)  subjective and is based on a value judgment.
D)  objective and is also based on facts.E) B) and C)
F) A) and B)

Question 13

A nation's production possibilities curve is "bowed out" from the origin because:

Accepted Answer

A)  resources are not equally efficient in producing every good.
B)  the originator of the idea drew it this way and modern economists follow this convention.
C)  resources are scarce.
D)  wants are virtually unlimited.E) None of the above
F) B) and C)

Question 14

Production possibilities (alternatives)   Refer to the above table.As compared to production alternative D, the choice of alternative C would:

Accepted Answer

A)  tend to generate a more rapid growth rate.
B)  be unattainable.
C)  entail unemployment.
D)  tend to generate a slower growth rate.E) A) and B)
F) A) and D)

Question 15

Normative statements are concerned with:

Accepted Answer

A)  facts and theories.
B)  what ought to be.
C)  what is.
D)  rational choice involving costs and benefits.E) A) and C)
F) A) and B)

Question 16

A "hypothesis" is:

Accepted Answer

A)  a fundamental truth which all economists accept.
B)  a tentative, untested principle.
C)  the same as a normative statement.
D)  always the result of induction.E) A) and B)
F) A) and C)

Question 17

Which of the following is assumed in constructing a typical production possibilities curve?

Accepted Answer

A)  the economy is using its resources inefficiently.
B)  resources are perfectly shiftable among alternative uses.
C)  production technology is fixed.
D)  the economy is engaging in international trade.E) A) and B)
F) All of the above

Question 18

The slope of a line parallel to the horizontal axis is:

Accepted Answer

A)  zero.
B)  one.
C)  infinite.
D)  one-half.E) A) and B)
F) None of the above

Question 19

The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

Accepted Answer

A) True 
 B)False

Question 20

Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Accepted Answer

A)  both 2 and 4.
B)  3 only.
C)  2 only.
D)  1E) A) and B)
F) B) and D)

Exam 1: B: Limits, Alternatives, and Choices

When a provincial government chooses to build more roads, the required resources are no longer available for spending on public education.This dilemma illustrates the concept of:

Correct Answer
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Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Correct Answer
verified

The linear equation for line (3) on the above graph is:

Correct Answer
verified

Correct Answer
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If the equation y = 5 + 6x was graphed, the:

Correct Answer
verified

Which of the following is assumed in constructing a typical production possibilities curve?

Correct Answer
verified

A "hypothesis" is:

Correct Answer
verified

Microeconomics is concerned with:

Correct Answer
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Although sleeping in on a work day or school day has an opportunity cost, sleeping late on the weekend does not.

Correct Answer
verified

Normative statements are concerned with:

Correct Answer
verified

From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:

Correct Answer
verified

Economics may best be defined as:

Correct Answer
verified

Suppose an economist says that "Other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that:

Correct Answer
verified

A positive statement is one which is:

Correct Answer
verified

A nation's production possibilities curve is "bowed out" from the origin because:

Correct Answer
verified

The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

Correct Answer
verified

Production possibilities (alternatives) Refer to the above table.As compared to production alternative D, the choice of alternative C would:

Correct Answer
verified

The slope of a line parallel to the horizontal axis is:

Correct Answer
verified

Refer to the above diagram.The slope of curve ZZ at point B is:

Correct Answer
verified

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that:

Correct Answer
verified

Exam 1: B: Limits, Alternatives, and Choices

When a provincial government chooses to build more roads, the required resources are no longer available for spending on public education.This dilemma illustrates the concept of:

Correct AnswerverifiedShow Answer

Answer on the basis of the relationships shown in the above four figures.The amount of Y is unrelated to the amount of X in:

Correct AnswerverifiedShow Answer

The linear equation for line (3) on the above graph is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the equation y = 5 + 6x was graphed, the:

Correct AnswerverifiedShow Answer

Which of the following is assumed in constructing a typical production possibilities curve?

Correct AnswerverifiedShow Answer

A "hypothesis" is:

Correct AnswerverifiedShow Answer

Microeconomics is concerned with:

Correct AnswerverifiedShow Answer

Although sleeping in on a work day or school day has an opportunity cost, sleeping late on the weekend does not.

Correct AnswerverifiedShow Answer

Normative statements are concerned with:

Correct AnswerverifiedShow Answer

From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:

Correct AnswerverifiedShow Answer

Economics may best be defined as:

Correct AnswerverifiedShow Answer

Suppose an economist says that "Other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that:

Correct AnswerverifiedShow Answer

A positive statement is one which is:

Correct AnswerverifiedShow Answer

A nation's production possibilities curve is "bowed out" from the origin because:

Correct AnswerverifiedShow Answer

The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

Correct AnswerverifiedShow Answer

Production possibilities (alternatives) Refer to the above table.As compared to production alternative D, the choice of alternative C would:

Correct AnswerverifiedShow Answer

The slope of a line parallel to the horizontal axis is:

Correct AnswerverifiedShow Answer

Refer to the above diagram.The slope of curve ZZ at point B is:

Correct AnswerverifiedShow Answer

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that:

Correct AnswerverifiedShow Answer

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