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Question 1.The most comprehensive measure of the size of an economy is called a)GDP. b)health care. c)inflation. d)the overall price level. e)economic.

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Presentation on theme: "Question 1.The most comprehensive measure of the size of an economy is called a)GDP. b)health care. c)inflation. d)the overall price level. e)economic."— Presentation transcript:

1 Question 1.The most comprehensive measure of the size of an economy is called a)GDP. b)health care. c)inflation. d)the overall price level. e)economic well-being.

2 Answer The most comprehensive measure of the size of an economy is called a)GDP. (Correct) b)health care. c)inflation. d)the overall price level. e)economic well-being.

3 Question 2.Controlled experiments are a)seldom used in economics because economists do not like to repeat experiments. b)often used because controlling other factors is relatively easy in economics. c)not used as widely in economics as in other disciplines. d)is the method used when comparing the economic experience of other countries. e)performed by the government to collect economic data.

4 Answer Controlled experiments are a)seldom used in economics because economists do not like to repeat experiments. b)often used because controlling other factors is relatively easy in economics. c)not used as widely in economics as in other disciplines. (Correct) d)is the method used when comparing the economic experience of other countries. e)performed by the government to collect economic data.

5 Question 3.When the price of gasoline is observed to increase while the oil remains unchanged, then a)Oil and gasoline prices are positively correlated. b)Oil and gasoline prices are negatively correlated. c)Gasoline prices cause the oil prices to increase. d)Oil prices cause the gasoline prices to increase. e)Oil prices cannot be the cause of the change in the price of gasoline during the period examined.

6 Answer When the price of gasoline is observed to increase while the oil remains unchanged, then a)Oil and gasoline prices are positively correlated. b)Oil and gasoline prices are negatively correlated. c)Gasoline prices cause the oil prices to increase. d)Oil prices cause the gasoline prices to increase. e)Oil prices cannot be the cause of the change in the price of gasoline during the period examined. (Correct)

7 Question 4.Economic models a)are not complicated because the behavior they describe is not complicated. b)require either algebra or graphs. c)are complicated because human behavior is complicated. d)are simplifications of the phenomena they attempt to explain. e)would not be needed if controlled experiments were used more often.

8 Answer Economic models a)are not complicated because the behavior they describe is not complicated. b)require either algebra or graphs. c)are complicated because human behavior is complicated. d)are simplifications of the phenomena they attempt to explain. (Correct) e)would not be needed if controlled experiments were used more often.

9 Question 5.If the quantity demanded of coffee increases when the price of coffee declines, then these two _________ are _________. a)variables; negatively related b)constants; positively related c)variables; positively related d)constants; negatively related e)variables; not related

10 Answer If the quantity demanded of coffee increases when the price of coffee declines, then these two _________ are _________. a)variables; negatively related (Correct) b)constants; positively related c)variables; positively related d)constants; negatively related e)variables; not related

11 Question 6.The “ceretis paribus” assumption is used in economics a)because economic theory is an accurate reflection of the real world. b)to isolate the important variables when formulating a theory. c)primarily to identify unstable equilibrium situations. d)to make the theory more complicated. e)to distinguish economics from other disciplines.

12 Answer The “ceretis paribus” assumption is used in economics a)because economic theory is an accurate reflection of the real world. b)to isolate the important variables when formulating a theory. (Correct) c)primarily to identify unstable equilibrium situations. d)to make the theory more complicated. e)to distinguish economics from other disciplines.

13 Question 7.Which of the following is more of a microeconomic concept than a macroeconomic concept? a)Concern over simultaneous high rates of inflation and unemployment b)Price determination in a resource market c)The rate of economic growth d)Concern over an entire economy’s balance of payments e)How the composition of output is determined in an economy

14 Answer Which of the following is more of a microeconomic concept than a macroeconomic concept? a)Concern over simultaneous high rates of inflation and unemployment b)Price determination in a resource market (Correct) c)The rate of economic growth d)Concern over an entire economy’s balance of payments e)How the composition of output is determined in an economy

15 Question 8.Those who support a laissez faire system a)argue for a French-style economy. b)argue for a market economy. c)support government intervention. d)argue for a command economy. e)argue for a mixed economy.

16 Answer Those who support a laissez faire system a)argue for a French-style economy. b)argue for a market economy. (Correct) c)support government intervention. d)argue for a command economy. e)argue for a mixed economy.

17 Question 9.A newspaper editorial advocating higher income tax rates as the way to reduce the budget deficit is an example of a)ceteris paribus. b)microeconomics. c)functional economics. d)positive economics. e)normative economics.

18 Answer A newspaper editorial advocating higher income tax rates as the way to reduce the budget deficit is an example of a)ceteris paribus. b)microeconomics. c)functional economics. d)positive economics. e)normative economics. (Correct)

19 Question 10.Because economists have varying moral beliefs and different views of the world a)it is impossible for there to be anything scientific about economics. b)they will disagree on abstract issues. c)there are many different types of economic theories. d)they will agree more often than not on principles when discussed on an abstract level, but will disagree on whether to apply these principles in real-world circumstances. e)economics can never be a science.

20 Answer Because economists have varying moral beliefs and different views of the world a)it is impossible for there to be anything scientific about economics. b)they will disagree on abstract issues. c)there are many different types of economic theories. (Correct) d)they will agree more often than not on principles when discussed on an abstract level, but will disagree on whether to apply these principles in real-world circumstances. e)economics can never be a science.

21 11.Which of the following pairs of variables usually exhibit a positive correlation? a)Income and spending b)Weight and caloric intake c)Fertilizer use and corn yield d)Years of education and salary e)All of the above usually exhibit a positive correlation. Question

22 Which of the following pairs of variables usually exhibit a positive correlation? a)Income and spending b)Weight and caloric intake c)Fertilizer use and corn yield d)Years of education and salary e)All of the above usually exhibit a positive correlation. (Correct) Answer


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