Question 1

Which of the following is part of an economic model?

Accepted Answer

A)   assumptions
B)   norms
C)   opinions
D)   preferences of economic agentsE) A) and B)
F) C) and D)

Question 2

Which of the following statements is false?

Accepted Answer

A)   Anytime you have to decide which action to take you are facing an economic trade-off.
B)   Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale.
C)   Every individual, no matter how rich or poor, is faced with making trade-offs.
D)   Economics is a social science that studies the trade-offs we are forced to make because of scarcity.E) A) and B)
F) C) and D)

Question 3

All of the following questions or statements regarding medical school are positive except:

Accepted Answer

A)   How do changes in expected future incomes affect the decisions of medical students about which specialty to choose?
B)   Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care.
C)   What role does tuition play in a student's decision about whether to attend medical school?
D)   Have tuition increases had a large effect or a small effect on the number of applications to medical school?E) A) and B)
F) A) and C)

Question 4

"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 5

Dr.Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services.How can Dr.Goldfinger strive to achieve this productive efficiency?

Accepted Answer

A)   by investing in companies that produce goods and services based on consumer preferences
B)   by investing in companies that produce goods and services at the lowest possible cost
C)   by investing in companies that fairly distribute their products and services
D)   by investing in companies that produce up to the point where the marginal benefit of the last unit produced is equal to the marginal cost of producing it.E) All of the above
F) None of the above

Question 6

All ________ economies have been political dictatorships.

Accepted Answer

A)   centrally planned
B)   mixed
C)   market
D)   mixed and marketE) B) and C)
F) A) and D)

Question 7

In a market economy,who decides what goods and services will be produced?

Accepted Answer

A)   only the producers
B)   only consumers
C)   consumers and producers
D)   the governmentE) A) and D)
F) A) and C)

Question 8

When Dr.Goldfinger decides on the companies in which he will invest,a ________ issue is being addressed.

Accepted Answer

A)   microeconomic
B)   macroeconomic
C)   positive economic
D)   normative economicE) A) and B)
F) A) and D)

Question 9

Which of the following is motivated by an efficiency concern?

Accepted Answer

A)   In 2009, the Obama administration increased unemployment benefits.
B)   As part of an economic stimulus package, each taxpayer received a $3,000 tax rebate check.
C)   Following a six-month drought, a city banned homeowners from watering their lawns in an effort to conserve water.
D)   Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need.E) A) and C)
F) All of the above

Question 10

It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish,because failure to do this could ________ the efficiency of the system by producing some goods and services that are ________.

Accepted Answer

A)   reduce; not as highly valued as others
B)   increase; not as highly valued as others
C)   reduce; valued more than others
D)   increase; valued more than othersE) B) and C)
F) A) and D)

Question 11

Which of the following is a normative economic statement?

Accepted Answer

A)   Rising global demand for diesel and heating oil has led to increases in the price of crude oil.
B)   With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased.
C)   The federal government is considering raising the gasoline tax to promote the use of public transportation.
D)   Fashion designers should be allowed to copyright designs to promote innovation.E) All of the above
F) None of the above

Question 12

Economics promotes which of the following as the way to make the best decision?

Accepted Answer

A)   Continue an enjoyable activity as long as you do not have to pay for it.
B)   Continue an enjoyable activity until it is no longer enjoyable.
C)   Continue an enjoyable activity until you cannot afford to pursue it.
D)   Continue an enjoyable activity up to the point where its marginal benefit equals its marginal cost.E) A) and D)
F) A) and C)

Question 13

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it,________ occurs.

Accepted Answer

A)   allocative efficiency
B)   productive efficiency
C)   equity
D)   efficient central planningE) A) and C)
F) B) and D)

Question 14

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Accepted Answer

A)   relationships between two economic variables.
B)   one variable.
C)   a flow chart.
D)   a pie chart.E) None of the above
F) B) and C)

Question 15

Which of the following is a positive economic statement?

Accepted Answer

A)   People should not buy imported fruits and vegetables.
B)   The government should subsidize solar power for homeowners.
C)   The minimum wage law causes unemployment.
D)   The number of work visas should not be limited by the government.E) A) and B)
F) A) and C)

Question 16

Define allocative efficiency.Explain the significance of this concept in economics?

Accepted Answer

Allocative efficiency is an efficiency c...

Question 17

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Accepted Answer

A)   people without health insurance will be less likely to be overweight than people with health insurance.
B)   people without health insurance will be more likely to be overweight than people with health insurance.
C)   people without health insurance will be equally likely to be overweight as people with health insurance.
D)   there is no correlation between not having health insurance and being overweight.E) None of the above
F) C) and D)

Question 18

Which of the following is a microeconomics question?

Accepted Answer

A)   Why do economies experience periods of recession?
B)   Will government intervention lower the unemployment rate?
C)   Why has growth in the economy slowed down over the past decade?
D)   How will Apple decide on a selling price for the iPad?E) A) and B)
F) A) and C)

Question 19

Economists assume that

Accepted Answer

A)   individuals behave in unpredictable ways.
B)   consumer behavior is explained by the existence of unlimited resources.
C)   people put other people's interests ahead of their own.
D)   optimal decisions are made at the margin.E) B) and C)
F) A) and B)

Question 20

Scenario 1-1
Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of $10,000 per week. A manager at the plant observes, "Although the last 400 t-shirts we produced and sold increased our revenue by $4,000 and our costs by $4,800, we are still making an overall profit of $10,000 per week so I think we're on the right track. We are producing the optimal number of t-shirts."
-Refer to Scenario 1-1.Had the firm not produced and sold the last 400 t-shirts,would its profit be higher or lower,and if so by how much?

Accepted Answer

A)   Its profit will be $4,800 higher.
B)   Its profit will be $800 higher.
C)   Its profit will be $800 lower.
D)   Its profit will be $4,000 lower.E) None of the above
F) C) and D)

Exam 1: Economics: Foundations and Models

Correct Answer
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Which of the following is a microeconomics question?

Correct Answer
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Define allocative efficiency.Explain the significance of this concept in economics?

Correct Answer
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Allocative efficiency is an efficiency c...
View Answer

It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish,because failure to do this could the efficiency of the system by producing some goods and services that are .

Correct Answer
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Economists assume that

Correct Answer
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Which of the following is motivated by an efficiency concern?

Correct Answer
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Which of the following is a normative economic statement?

Correct Answer
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"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.

Correct Answer
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Dr.Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services.How can Dr.Goldfinger strive to achieve this productive efficiency?

Correct Answer
verified

When Dr.Goldfinger decides on the companies in which he will invest,a ________ issue is being addressed.

Correct Answer
verified

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Correct Answer
verified

Economics promotes which of the following as the way to make the best decision?

Correct Answer
verified

All of the following questions or statements regarding medical school are positive except:

Correct Answer
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Which of the following is a positive economic statement?

Correct Answer
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When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it,________ occurs.

Correct Answer
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Which of the following statements is false?

Correct Answer
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All ________ economies have been political dictatorships.

Correct Answer
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In a market economy,who decides what goods and services will be produced?

Correct Answer
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Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Correct Answer
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Which of the following is part of an economic model?

Correct Answer
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Exam 1: Economics: Foundations and Models

Correct AnswerverifiedShow Answer

Which of the following is a microeconomics question?

Correct AnswerverifiedShow Answer

Define allocative efficiency.Explain the significance of this concept in economics?

Correct AnswerverifiedAllocative efficiency is an efficiency c...View AnswerShow Answer

It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish,because failure to do this could ________ the efficiency of the system by producing some goods and services that are ________.

Correct AnswerverifiedShow Answer

Economists assume that

Correct AnswerverifiedShow Answer

Which of the following is motivated by an efficiency concern?

Correct AnswerverifiedShow Answer

Which of the following is a normative economic statement?

Correct AnswerverifiedShow Answer

"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.

Correct AnswerverifiedShow Answer

Dr.Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services.How can Dr.Goldfinger strive to achieve this productive efficiency?

Correct AnswerverifiedShow Answer

When Dr.Goldfinger decides on the companies in which he will invest,a ________ issue is being addressed.

Correct AnswerverifiedShow Answer

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Correct AnswerverifiedShow Answer

Economics promotes which of the following as the way to make the best decision?

Correct AnswerverifiedShow Answer

All of the following questions or statements regarding medical school are positive except:

Correct AnswerverifiedShow Answer

Which of the following is a positive economic statement?

Correct AnswerverifiedShow Answer

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it,________ occurs.

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

All ________ economies have been political dictatorships.

Correct AnswerverifiedShow Answer

In a market economy,who decides what goods and services will be produced?

Correct AnswerverifiedShow Answer

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Correct AnswerverifiedShow Answer

Which of the following is part of an economic model?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Allocative efficiency is an efficiency c...
View Answer

It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish,because failure to do this could the efficiency of the system by producing some goods and services that are .

Correct Answer
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Correct Answer
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