Ch 1

Question 0

According to economists, economic self interest

Answer 0

Is the reality that underlies economic behavior

Question 1

Suppose an economist says that other things equal the lower the price of bananas the greater the amount of bananas purchased the statement indicates that

Answer 1

All factors other than the price of bananas ( for example, consumer tastes and income ) are soon to be constant.

Question 2

The basic purpose of the other things equal assumption is to

Answer 2

Allow one to reason about the relationship between variables X and Y without the intrusion of variable Z

Question 3

Macro economics approaches the study of economics from the viewpoint of

Answer 3

The entire economy

Question 4

Macroeconomics can best be described as the

Answer 4

Study of the large aggregates of the economy or the economy as a whole

Question 5

Macro economics is the part of economics concerned with individual units such as a person, a household, a firm, or an industry this statement is

Answer 5

Positive, but incorrect

Question 6

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

Answer 6

More consumer goods can only be produced at the cost of fewer capital goods

Question 7

The point on the production possibilities curve that is most desirable can be found by

Answer 7

Comparing marginal benefits and marginal cost

Question 8

The economic perspective used in customer decision-making at fast food restaurants is reflected in the consider this section as

Answer 8

Customer selecting the shortest line

Question 9

Which of the following best illustrates the post hoc, ergo propter hoc fallacy in the last word section

Answer 9

I took the day off work to go to the beach And that is why it rained

Question 10

The post hoc fallacy and the correlation problem both relate to

Answer 10

The issue of determining causation

Question 11

A caller to radio talkshow states that protesters against globalization are a collection of an artist, naïve college students, and trade union radicals this is an example of

Answer 11

Loaded terminology

Question 12

Rational individuals may make different choices because their preferences of circumstances differ. True or false

Answer 12

True

Question 13

True or false products and services are scarce because resources are scarce

Answer 13

True

Question 14

If a positive relationship exists between X and Y

Answer 14

The relationship will graph as an in sloping line

Question 15

According to Emerson want is a growing giant whom the coat of have was never large enough to cover according to economist, most wants exceeds have because

Answer 15

Productive resources are limited

Question 16

A person should consume more of something when it’s marginal

Answer 16

Benefit exceeds marginal cost

Question 17

Purposeful behavior means that

Answer 17

People weigh cost and benefits to make decisions

Question 18

Marginal cost exist because

Answer 18

The decision to engage in one activity means forgoing some other activity

Question 19

Which of the following terms implies the greatest degree of confidence in an economic generalization

Answer 19

A principle

Question 20

A well tested economic theory is often called

Answer 20

A principle

Question 21

Which of the following statements pertains to macro economics

Answer 21

National income grew by 2.7% last year

Question 22

An increase in money income

Answer 22

Shifts the consumers budget line to the right

Question 23

Money is not an economic resource because

Answer 23

Money, as such, does not produce anything

Question 24

When an economy is operating under conditions of full employment, the production of more of commodity a Will mean the production of less of commodity b because

Answer 24

Resources are limited

Question 25

The marginal cost curve is

Answer 25

Upsloping because of increasing marginal opportunity cost

Question 26

A caller to radio talkshow states that oil companies are greedy price gougers this is an example of

Answer 26

Loaded terminology

Question 27

If price and quantity are directly related then this means

Answer 27

If P increases, Q will also increase