ECON 2143 EXAM 1 QUESTIONS AND ANSWERS
100% SOLVED
1) Which of the following best defines economics?
A) Economics teaches how to limit our wants.
B) Economics studies how to choose the best alternative when coping with scarcity.
C) Economics helps you earn as much money as possible.
D) Economics analyzes all aspects of human behavior in general.
E) Economics is concerned with prices and quantities of goods and services, both at the
individual level and at the industry level. - ANSWER B
2) Which of the following BEST describes macroeconomics?
A) It analyzes the aggregate effects on the national economy of the choices made by
individuals, firms, and governments.
B) It studies the choices that individuals and businesses make when coping with scarcity.
C) It examines how the choices that individuals affect governments.
D) It is not a social science because its predictions cannot be tested.
E) Proving causation is never a problem for macroeconomics. - ANSWER A
3) Suppose that, instead of taking this test, you could either have worked and earned income
or partied and had a pleasurable time. Your opportunity cost of taking the test is the
, A) forgone work.
B) forgone party.
C) forgone working and partying.
D) forgone working or partying, depending on which was your next best choice.
E) test because you are taking it. - ANSWER D
4) Which of the following is an example of a positive economic statement?
A) Voter ID laws should be strictly enforced in all states.
B) Illegal immigration is the biggest threat to national security that we face today.
C) Medicare recipients should only be allowed to visit a doctor for non-emergency reasons on
Mondays, Wednesdays, and Fridays.
D) The death penalty is a strong deterrent to violent criminal activity.
E) The Affordable Care Act should be repealed. - ANSWER D
5) What typically happens to benefits as the amount of an activity is increased?
A) Total benefits remain constant.
B) Marginal benefit increases.
C) Marginal benefit remains constant.
D) Marginal benefit decreases.
E) The marginal benefit changes only if the marginal cost changes. - ANSWER D
100% SOLVED
1) Which of the following best defines economics?
A) Economics teaches how to limit our wants.
B) Economics studies how to choose the best alternative when coping with scarcity.
C) Economics helps you earn as much money as possible.
D) Economics analyzes all aspects of human behavior in general.
E) Economics is concerned with prices and quantities of goods and services, both at the
individual level and at the industry level. - ANSWER B
2) Which of the following BEST describes macroeconomics?
A) It analyzes the aggregate effects on the national economy of the choices made by
individuals, firms, and governments.
B) It studies the choices that individuals and businesses make when coping with scarcity.
C) It examines how the choices that individuals affect governments.
D) It is not a social science because its predictions cannot be tested.
E) Proving causation is never a problem for macroeconomics. - ANSWER A
3) Suppose that, instead of taking this test, you could either have worked and earned income
or partied and had a pleasurable time. Your opportunity cost of taking the test is the
, A) forgone work.
B) forgone party.
C) forgone working and partying.
D) forgone working or partying, depending on which was your next best choice.
E) test because you are taking it. - ANSWER D
4) Which of the following is an example of a positive economic statement?
A) Voter ID laws should be strictly enforced in all states.
B) Illegal immigration is the biggest threat to national security that we face today.
C) Medicare recipients should only be allowed to visit a doctor for non-emergency reasons on
Mondays, Wednesdays, and Fridays.
D) The death penalty is a strong deterrent to violent criminal activity.
E) The Affordable Care Act should be repealed. - ANSWER D
5) What typically happens to benefits as the amount of an activity is increased?
A) Total benefits remain constant.
B) Marginal benefit increases.
C) Marginal benefit remains constant.
D) Marginal benefit decreases.
E) The marginal benefit changes only if the marginal cost changes. - ANSWER D
