Question 1

Which of the following is a macroeconomics question?

Accepted Answer

A)  What determines the inflation rate?
B)  What determines the size of the film industry in Canada?
C)  What factors determine the price of carrots?
D)  What determines the wage of auto workers?E) C) and D)
F) B) and C)

Question 2

The basic economic problem of ________ has always existed and will continue to exist.

Accepted Answer

A)  scarcity
B)  efficiency
C)  inflation
D)  recessionE) C) and D)
F) A) and D)

Question 3

"An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 4

The government makes all economic decisions in a mixed economy.

Accepted Answer

A) True 
 B)False

Question 5

Consider the following economic agents: a.the government
B.consumers
C.producers
Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Accepted Answer

A)  the government
B)  producers
C)  consumers
D)  consumers and producers
E)  the government,consumers and producersF) A) and E)
G) A) and B)

Question 6

Which of the following statements about the economic decisions consumers,firms,and the government have to make is false?

Accepted Answer

A)  Governments face the problem of scarcity in making economic decisions.
B)  Only individuals face scarcity; firms and the government do not.
C)  Both firms and individuals face scarcity.
D)  Each faces the problem of scarcity which necessitates trade-offs in making economic decisions.E) None of the above
F) A) and B)

Question 7

One desirable outcome of a market economy is that it leads to a more equitable distribution of income.

Accepted Answer

A) True 
 B)False

Question 8

Economists assume that rational behavior is useful in explaining choices people make

Accepted Answer

A)  because irrational people do not make economic choices.
B)  even though people may not behave rationally all the time.
C)  because individuals act rationally all the time in all circumstances.
D)  even though people rarely,if ever,behave in a rational manner.E) A) and B)
F) A) and C)

Exam 1: Economics: Foundations and Models

Which of the following statements about the economic decisions consumers,firms,and the government have to make is false?

Correct Answer
verified

Consider the following economic agents: a.the government B.consumers C.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Correct Answer
verified

The government makes all economic decisions in a mixed economy.

Correct Answer
verified

Economists assume that rational behavior is useful in explaining choices people make

Correct Answer
verified

"An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.

Correct Answer
verified

The basic economic problem of ________ has always existed and will continue to exist.

Correct Answer
verified

One desirable outcome of a market economy is that it leads to a more equitable distribution of income.

Correct Answer
verified

Which of the following is a macroeconomics question?

Correct Answer
verified

Exam 1: Economics: Foundations and Models

Which of the following statements about the economic decisions consumers,firms,and the government have to make is false?

Correct AnswerverifiedShow Answer

Consider the following economic agents: a.the government B.consumers C.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Correct AnswerverifiedShow Answer

The government makes all economic decisions in a mixed economy.

Correct AnswerverifiedShow Answer

Economists assume that rational behavior is useful in explaining choices people make

Correct AnswerverifiedShow Answer

"An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.

Correct AnswerverifiedShow Answer

The basic economic problem of ________ has always existed and will continue to exist.

Correct AnswerverifiedShow Answer

One desirable outcome of a market economy is that it leads to a more equitable distribution of income.

Correct AnswerverifiedShow Answer

Which of the following is a macroeconomics question?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified