Question 1

Suppose an economist advises the government to disallow a proposed merger between Wendy's and McDonald's because she thinks the fast-food industry ought to be as competitive as possible. This advice is an example of

Accepted Answer

A)   positive economics
B)   normative economics
C)   market discrimination
D)   econometric analysis
E)   macroeconomic analysisF) A) and B)
G) A) and C)

Question 2

Economics is considered to be part of the field of

Accepted Answer

A)   management science
B)   mathematical sciences
C)   actuarial science
D)   social sciences
E)   natural sciencesF) None of the above
G) A) and E)

Question 3

Of the following items, which is least likely to be discussed by a teacher of macroeconomics?

Accepted Answer

A)   the national employment
B)   the business cycles
C)   our unemployment policy
D)   national income accounting
E)   a firm's profitF) A) and E)
G) C) and D)

Question 4

A front-page story in the New York Times carries the headline "War on Drugs Continues:200 More Arrested." On the editorial page, an opinion piece on the subject is titled "Do We Really Need the War on Drugs?" The opinion piece is more likely than the front-page story to

Accepted Answer

A)   have macroeconomic content
B)   be fact-finding
C)   contain normative statements
D)   contain positive statements
E)   be less a matter of debateF) A) and C)
G) A) and E)

Question 5

A simple model used in your textbook to show how an economy works is the

Accepted Answer

A)   renewable resources model
B)   normative economic model
C)   insatiable wants model
D)   econometric model
E)   circular flow modelF) B) and D)
G) A) and B)

Question 6

The four sources of income for the household are

Accepted Answer

A)   taxes, subsidies, imports, interest
B)   taxes, interest, rent, rebates
C)   interest, rebates, rent, taxes
D)   wages, taxes, imports, interest
E)   wages, rent, interest, profitsF) None of the above
G) C) and D)

Question 7

In the circular flow model, firms purchase in the

Accepted Answer

A)   money market and sell in the product market
B)   product market and sell in the resource market
C)   resource market and sell in the money market
D)   product market and sell in the product market
E)   resource market and sell in the product marketF) A) and B)
G) B) and D)

Question 8

Finite resources can be

Accepted Answer

A)   renewable or nonrenewable
B)   only nonrenewable
C)   only renewable
D)   neither renewable nor nonrenewable
E)   insatiableF) C) and E)
G) None of the above

Question 9

The one thing that all economic models have in common is the

Accepted Answer

A)   emphasis on macroeconomics
B)   attempt to explain market prices
C)   analysis of what ought to be
D)   use of abstraction
E)   ability to describe economic realities exactlyF) C) and D)
G) A) and C)

Question 10

The circular flow model ignores a host of major economic institutions and activities .Focusing on only one basic fact about how the economy works is the model's

Accepted Answer

A)   way of getting around the ceteris paribus assumption
B)   disadvantage because it distorts reality
C)   flaw because there is no one single fact about an economy
D)   strength in providing some understanding about how the economy works
E)   effectiveness in creating policy recommendationsF) C) and E)
G) C) and D)

Exam 1: Introduction

A simple model used in your textbook to show how an economy works is the

Correct Answer
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A front-page story in the New York Times carries the headline "War on Drugs Continues:200 More Arrested." On the editorial page, an opinion piece on the subject is titled "Do We Really Need the War on Drugs?" The opinion piece is more likely than the front-page story to

Correct Answer
verified

The four sources of income for the household are

Correct Answer
verified

Finite resources can be

Correct Answer
verified

In the circular flow model, firms purchase in the

Correct Answer
verified

The circular flow model ignores a host of major economic institutions and activities .Focusing on only one basic fact about how the economy works is the model's

Correct Answer
verified

Economics is considered to be part of the field of

Correct Answer
verified

Suppose an economist advises the government to disallow a proposed merger between Wendy's and McDonald's because she thinks the fast-food industry ought to be as competitive as possible. This advice is an example of

Correct Answer
verified

Of the following items, which is least likely to be discussed by a teacher of macroeconomics?

Correct Answer
verified

The one thing that all economic models have in common is the

Correct Answer
verified

Exam 1: Introduction

A simple model used in your textbook to show how an economy works is the

Correct AnswerverifiedShow Answer

A front-page story in the New York Times carries the headline "War on Drugs Continues:200 More Arrested." On the editorial page, an opinion piece on the subject is titled "Do We Really Need the War on Drugs?" The opinion piece is more likely than the front-page story to

Correct AnswerverifiedShow Answer

The four sources of income for the household are

Correct AnswerverifiedShow Answer

Finite resources can be

Correct AnswerverifiedShow Answer

In the circular flow model, firms purchase in the

Correct AnswerverifiedShow Answer

The circular flow model ignores a host of major economic institutions and activities .Focusing on only one basic fact about how the economy works is the model's

Correct AnswerverifiedShow Answer

Economics is considered to be part of the field of

Correct AnswerverifiedShow Answer

Suppose an economist advises the government to disallow a proposed merger between Wendy's and McDonald's because she thinks the fast-food industry ought to be as competitive as possible. This advice is an example of

Correct AnswerverifiedShow Answer

Of the following items, which is least likely to be discussed by a teacher of macroeconomics?

Correct AnswerverifiedShow Answer

The one thing that all economic models have in common is the

Correct AnswerverifiedShow Answer

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