Question 1

Evidence indicates that seat belt laws have led to

Accepted Answer

A)  fewer pedestrian deaths.
B)  fewer automobile accidents.
C)  fewer deaths per automobile accident.
D)  All of the above are correct.E) A) and D)
F) B) and C)

Question 2

Market failure is the ability of a single person to have a substantial influence on market prices.

Accepted Answer

A) True 
 B)False

Question 3

Olivia was accepted to Notre Dame and another college. She is trying to decide where to go. Which of the following should she include in making her decision?

Accepted Answer

A)  how much she spent applying to Notre Dame, and the difference between living expenses at Notre Dame and the other college
B)  how much she spent applying to Notre Dame, but not the difference between living expenses at Notre Dame and the other college
C)  the difference between living expenses at Notre Dame and her second choice, but not how much she spent applying to Notre Dame
D)  neither how much she spent applying to Notre Dame nor the difference between living expenses at Notre Dame and her second choiceE) B) and C)
F) None of the above

Question 4

Government policies resulting in reduced efficiency include (i) 
The welfare system
(ii) 
Unemployment insurance
(iii) 
Progressive income tax

Accepted Answer

A)  (i)  only
B)  (ii)  only
C)  (i)  and (ii)  only
D)  (i) , (ii) , and (iii) E) All of the above
F) None of the above

Question 5

Economists study how people make decisions.

Accepted Answer

A) True 
 B)False

Question 6

The income of a typical worker in a country is most closely linked to which of the following?

Accepted Answer

A)  population
B)  productivity
C)  market power
D)  government policiesE) All of the above
F) A) and D)

Question 7

In most societies, resources are allocated by

Accepted Answer

A)  a single central planner.
B)  a small number of central planners.
C)  those firms that use resources to provide goods and services.
D)  the combined actions of millions of households and firms.E) All of the above
F) A) and B)

Question 8

To say that government intervenes in the economy to promote efficiency is to say that government is attempting to

Accepted Answer

A)  create a more fair distribution of income.
B)  change the way in which the economic pie is divided.
C)  enlarge the economic pie.
D)  All of the above are correct.E) B) and D)
F) A) and B)

Question 9

In the short run, which of the following is not correct?

Accepted Answer

A)  Increasing the money supply increases the demand for goods and services.
B)  Increasing the money supply encourages firms to hire more workers.
C)  Lowering the money supply leads to a higher level of unemployment.
D)  Policies that encourage higher employment will also induce a lower rate of inflation.E) C) and D)
F) B) and D)

Question 10

Max and Maddy charge people to park on their lawn while attending a nearby craft fair. At the current price of $10, seven people park on their lawn. If they raise the price to $15, they know that only five people will want to park on their lawn. Whether they have seven or five cars parked on their lawn does not affect their costs. From this information it follows that

Accepted Answer

A)  they should leave the price at $10.
B)  it does not matter if they charge $10 or $15.
C)  they would do better charging $15 than $10.
D)  they should raise the price even more.E) B) and C)
F) All of the above

Question 11

The U.S. president who referred to inflation as "public enemy number one" was

Accepted Answer

A)  Richard Nixon.
B)  Gerald Ford.
C)  Jimmy Carter.
D)  Ronald Reagan.E) B) and C)
F) A) and B)

Question 12

Trade between the United States and India

Accepted Answer

A)  benefits both the United States and India.
B)  is a losing proposition for the United States because India has cheaper labor.
C)  is a losing proposition for India because capital is much more abundant in the U.S. than in India.
D)  is a losing proposition for India because U.S. workers are more productive.E) A) and B)
F) C) and D)

Question 13

Benefits from trade would not include

Accepted Answer

A)  the ability of people and nations to specialize.
B)  a greater variety of goods and services becoming available.
C)  less competition.
D)  lower prices.E) None of the above
F) B) and C)

Question 14

To improve living standards, policymakers should

Accepted Answer

A)  impose restrictions on foreign competition.
B)  formulate policies designed to increase productivity.
C)  impose tougher immigration policies.
D)  provide tax breaks for the middle class.E) A) and B)
F) None of the above

Question 15

Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal

Accepted Answer

A)  cost of teaching increased.
B)  benefit of teaching increased.
C)  cost of a corporate job increased.
D)  benefit of a corporate job decreased.E) None of the above
F) A) and D)

Question 16

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Accepted Answer

A) True 
 B)False

Question 17

In the early 1980s, U.S. economic policy was directed toward reducing inflation. What would you have expected to observe during this short period of time?

Accepted Answer

A)  Inflation fell and unemployment fell.
B)  Inflation and unemployment were both unaffected.
C)  Inflation fell and unemployment increased.
D)  Inflation fell and unemployment was unchanged.E) All of the above
F) B) and D)

Question 18

US citizens have better nutrition, better healthcare, and a longer life expectancy than citizens of Ghana. Which of the following conclusions can be drawn from this statement?

Accepted Answer

A)  Average income in the US is higher than the average income in Ghana.
B)  The US has a higher standard of living than Ghana.
C)  Productivity in the US is higher than productivity in Ghana.
D)  All of the above are correct.E) A) and D)
F) C) and D)

Question 19

Most economists believe that an increase in the quantity of money results in

Accepted Answer

A)  an increase in the demand for goods and services.
B)  lower unemployment in the short run.
C)  higher inflation in the long run.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 20

Central planning refers to

Accepted Answer

A)  markets guiding economic activity. Today many countries that had this system have abandoned it.
B)  markets guiding economic activity. Today many countries that did not have this system have implemented it.
C)  government guiding economic activity. Today many countries that had this system have abandoned it.
D)  government guiding economic activity. Today many countries that did not have this system have implemented it.E) B) and D)
F) B) and C)

Exam 1: Ten Principles of Economics

Government policies resulting in reduced efficiency include (i) The welfare system (ii) Unemployment insurance (iii) Progressive income tax

Correct Answer
verified

The U.S. president who referred to inflation as "public enemy number one" was

Correct Answer
verified

Central planning refers to

Correct Answer
verified

US citizens have better nutrition, better healthcare, and a longer life expectancy than citizens of Ghana. Which of the following conclusions can be drawn from this statement?

Correct Answer
verified

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Correct Answer
verified

Olivia was accepted to Notre Dame and another college. She is trying to decide where to go. Which of the following should she include in making her decision?

Correct Answer
verified

Correct Answer
verified

To improve living standards, policymakers should

Correct Answer
verified

In most societies, resources are allocated by

Correct Answer
verified

Evidence indicates that seat belt laws have led to

Correct Answer
verified

Most economists believe that an increase in the quantity of money results in

Correct Answer
verified

Trade between the United States and India

Correct Answer
verified

Benefits from trade would not include

Correct Answer
verified

Economists study how people make decisions.

Correct Answer
verified

The income of a typical worker in a country is most closely linked to which of the following?

Correct Answer
verified

In the short run, which of the following is not correct?

Correct Answer
verified

Market failure is the ability of a single person to have a substantial influence on market prices.

Correct Answer
verified

Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal

Correct Answer
verified

To say that government intervenes in the economy to promote efficiency is to say that government is attempting to

Correct Answer
verified

In the early 1980s, U.S. economic policy was directed toward reducing inflation. What would you have expected to observe during this short period of time?

Correct Answer
verified

Exam 1: Ten Principles of Economics

Government policies resulting in reduced efficiency include (i) The welfare system (ii) Unemployment insurance (iii) Progressive income tax

Correct AnswerverifiedShow Answer

The U.S. president who referred to inflation as "public enemy number one" was

Correct AnswerverifiedShow Answer

Central planning refers to

Correct AnswerverifiedShow Answer

US citizens have better nutrition, better healthcare, and a longer life expectancy than citizens of Ghana. Which of the following conclusions can be drawn from this statement?

Correct AnswerverifiedShow Answer

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Correct AnswerverifiedShow Answer

Olivia was accepted to Notre Dame and another college. She is trying to decide where to go. Which of the following should she include in making her decision?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To improve living standards, policymakers should

Correct AnswerverifiedShow Answer

In most societies, resources are allocated by

Correct AnswerverifiedShow Answer

Evidence indicates that seat belt laws have led to

Correct AnswerverifiedShow Answer

Most economists believe that an increase in the quantity of money results in

Correct AnswerverifiedShow Answer

Trade between the United States and India

Correct AnswerverifiedShow Answer

Benefits from trade would not include

Correct AnswerverifiedShow Answer

Economists study how people make decisions.

Correct AnswerverifiedShow Answer

The income of a typical worker in a country is most closely linked to which of the following?

Correct AnswerverifiedShow Answer

In the short run, which of the following is not correct?

Correct AnswerverifiedShow Answer

Market failure is the ability of a single person to have a substantial influence on market prices.

Correct AnswerverifiedShow Answer

Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal

Correct AnswerverifiedShow Answer

To say that government intervenes in the economy to promote efficiency is to say that government is attempting to

Correct AnswerverifiedShow Answer

In the early 1980s, U.S. economic policy was directed toward reducing inflation. What would you have expected to observe during this short period of time?

Correct AnswerverifiedShow Answer

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