Question 1
pts
If an economist says, "the higher the price of oranges, the fewer oranges
individuals will buy, ceteris paribus," this means that
as the price of oranges rises, individuals' preferences do not change, nor
does anything else, but individuals buy fewer oranges in response to the
higher price of oranges.
individuals don't like high-priced oranges.
as the price of oranges rises, individuals' preferences change, and they no
longer like oranges as much as they once did.
the higher the price of oranges, the fewer oranges individuals will buy,
assuming that people have economic motives.
Question 2
pts
Every time you make a __________, you incur a(n) __________.
none of these answers
choice; opportunity cost
decision; mistake
decision; efficient effect
competitive move; price
Question 3
pts
Which of the following is a positive economic statement?
It is too hot to jog today.
I enjoy summer evenings when it cools off.
The temperature is too high today.
The temperature is 105 degrees today.
Incorrect Question 4
pts
Opportunity cost is the value of __________________ when a choice is made.
the alternative chosen
the sum of all forfeited alternatives
the most highly valued forfeited alternative
a free good
Incorrect Question 5
pts
Which of the following is a normative macroeconomics statement?
,The increase in the nation's money supply helped push the nation's
unemployment rate down in the short run.
The central bank should increase the nation's money supply.
Ford Motor Company's new advertising campaign ended up hurting General
Motors' sales.
The local government ought to spend more on recreational facilities.
Question 6
pts
In all cases, microeconomics deals with
what is.
relatively small units in the economy.
what should be.
the entire economy.
Question 7
pts
Two variables are independent if as one variable __________, the other
variable __________.
rises; falls
changes; does not change
rises; rises
falls; falls
Incorrect Question 8
pts
Here are three things you could do if you do not attend your economics
class: watch television with some friends (you value this at $25), read a good
book (you value this at $17), or go to work (you could earn $20 during the
economics class). The opportunity cost of going to your economics class is
$25, because this is the highest valued alternative forfeited.
$20, because this is the only alternative of the three where you would
actually receive a monetary payment.
$62, because this is the total dollar sum of the three forfeited alternatives.
$17, because this is the lowest valued alternative forfeited.
Question 9
pts
Saying "the marginal costs are greater than the marginal benefits" is the
same as saying
the additional costs are greater than the additional benefits.
the benefits are greater than the costs.
the total costs are greater than the average benefits.
,the average costs are greater than the average benefits.
the costs minus the benefits equal the net costs
Question 10
pts
A mandatory seatbelt law ends up raising the number of traffic fatalities if it
lowers fatalities per accident from 0.10 to 0.07 while raising the number of
accidents per period from 35,000 to any more than
38,500.
50,000.
37,450.
35,000.
Question 11
pts
Many people buy one newspaper per day, but rarely do they buy two of the
same newspapers on the same day. What is the economic justification for
this behavior?
The marginal benefit of purchasing the second newspaper exceeds the
marginal cost of purchasing that paper.
None of these options are an appropriate economic justification for this
behavior.
The marginal benefit of purchasing the second newspaper equals the
marginal cost of purchasing that paper.
The marginal cost of purchasing the second newspaper exceeds the marginal
benefit of purchasing that paper.
Question 12
pts
"If you hadn't gone to dinner with your friends, you would have stayed home
and watched television." It follows that
the opportunity cost of having dinner with your friends is lower than the
opportunity cost of watching television.
the price of having dinner with your friends is more than the price you would
have had to pay to watch television.
it is less costly to watch television than to have dinner with your friends.
watching television is the opportunity cost of having dinner with your friends.
Question 13
, pts
Refer to Exhibit 2-1. The movement from point A to point B is a movement
from
a point with more guns and less butter to a point with more butter and even
more guns.
a productive efficient point to another productive efficient point.
a productive efficient point to a productive inefficient point.
a productive inefficient point to a productive efficient point.
Question 14
pts
With a constant opportunity cost between goods A and B, the PPF for goods A
and B would
be a bowed-inward line
be a straight line.
not exist.
be a bowed-outward line.
IncorrectQuestion 15
pts
Suppose Andrea is taking just two courses and is at a point inside (or below)
her PPF of grades for those two courses. If Andrea changes, her work habits
then it is impossible for
d. either one of her grades to rise while the other grade remains constant.
both of her grades to rise.
pts
If an economist says, "the higher the price of oranges, the fewer oranges
individuals will buy, ceteris paribus," this means that
as the price of oranges rises, individuals' preferences do not change, nor
does anything else, but individuals buy fewer oranges in response to the
higher price of oranges.
individuals don't like high-priced oranges.
as the price of oranges rises, individuals' preferences change, and they no
longer like oranges as much as they once did.
the higher the price of oranges, the fewer oranges individuals will buy,
assuming that people have economic motives.
Question 2
pts
Every time you make a __________, you incur a(n) __________.
none of these answers
choice; opportunity cost
decision; mistake
decision; efficient effect
competitive move; price
Question 3
pts
Which of the following is a positive economic statement?
It is too hot to jog today.
I enjoy summer evenings when it cools off.
The temperature is too high today.
The temperature is 105 degrees today.
Incorrect Question 4
pts
Opportunity cost is the value of __________________ when a choice is made.
the alternative chosen
the sum of all forfeited alternatives
the most highly valued forfeited alternative
a free good
Incorrect Question 5
pts
Which of the following is a normative macroeconomics statement?
,The increase in the nation's money supply helped push the nation's
unemployment rate down in the short run.
The central bank should increase the nation's money supply.
Ford Motor Company's new advertising campaign ended up hurting General
Motors' sales.
The local government ought to spend more on recreational facilities.
Question 6
pts
In all cases, microeconomics deals with
what is.
relatively small units in the economy.
what should be.
the entire economy.
Question 7
pts
Two variables are independent if as one variable __________, the other
variable __________.
rises; falls
changes; does not change
rises; rises
falls; falls
Incorrect Question 8
pts
Here are three things you could do if you do not attend your economics
class: watch television with some friends (you value this at $25), read a good
book (you value this at $17), or go to work (you could earn $20 during the
economics class). The opportunity cost of going to your economics class is
$25, because this is the highest valued alternative forfeited.
$20, because this is the only alternative of the three where you would
actually receive a monetary payment.
$62, because this is the total dollar sum of the three forfeited alternatives.
$17, because this is the lowest valued alternative forfeited.
Question 9
pts
Saying "the marginal costs are greater than the marginal benefits" is the
same as saying
the additional costs are greater than the additional benefits.
the benefits are greater than the costs.
the total costs are greater than the average benefits.
,the average costs are greater than the average benefits.
the costs minus the benefits equal the net costs
Question 10
pts
A mandatory seatbelt law ends up raising the number of traffic fatalities if it
lowers fatalities per accident from 0.10 to 0.07 while raising the number of
accidents per period from 35,000 to any more than
38,500.
50,000.
37,450.
35,000.
Question 11
pts
Many people buy one newspaper per day, but rarely do they buy two of the
same newspapers on the same day. What is the economic justification for
this behavior?
The marginal benefit of purchasing the second newspaper exceeds the
marginal cost of purchasing that paper.
None of these options are an appropriate economic justification for this
behavior.
The marginal benefit of purchasing the second newspaper equals the
marginal cost of purchasing that paper.
The marginal cost of purchasing the second newspaper exceeds the marginal
benefit of purchasing that paper.
Question 12
pts
"If you hadn't gone to dinner with your friends, you would have stayed home
and watched television." It follows that
the opportunity cost of having dinner with your friends is lower than the
opportunity cost of watching television.
the price of having dinner with your friends is more than the price you would
have had to pay to watch television.
it is less costly to watch television than to have dinner with your friends.
watching television is the opportunity cost of having dinner with your friends.
Question 13
, pts
Refer to Exhibit 2-1. The movement from point A to point B is a movement
from
a point with more guns and less butter to a point with more butter and even
more guns.
a productive efficient point to another productive efficient point.
a productive efficient point to a productive inefficient point.
a productive inefficient point to a productive efficient point.
Question 14
pts
With a constant opportunity cost between goods A and B, the PPF for goods A
and B would
be a bowed-inward line
be a straight line.
not exist.
be a bowed-outward line.
IncorrectQuestion 15
pts
Suppose Andrea is taking just two courses and is at a point inside (or below)
her PPF of grades for those two courses. If Andrea changes, her work habits
then it is impossible for
d. either one of her grades to rise while the other grade remains constant.
both of her grades to rise.
