ECON 300 EXAM 1 QUESTIONS AND ANSWERS
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Terms in this set (144)
In most microeconomic models, a A
decision maker
A. maximizes an objective subject
to a constraint.
B. faces no constraints.
C. has no clearly defined objective.
D. Both B and C.
Economic models are most useful A
in
A. predicting changes in one
variable due to a change in one or
more other variables.
B. generating untestable
hypotheses.
C. predicting the direction of the
stock market.
D. explaining the future with the
past.
,A market D
A. always takes place at a physical
location.
B. has no influence on prices.
C. always involves the personal
exchange of goods for money.
D. allows interactions between
consumers and firms.
Billy developed an economic B
model to describe the behavior of a
stock market index. His model
predicts that the index increases on
Mondays and declines on the other
days of the week. What can be said
about Billy's model?
A. The model's predictions are not
ambiguous and cannot be tested.
B. The model's predictions are not
ambiguous and can be tested.
C. The model's predictions are
ambiguous and cannot be tested.
D. The model's predictions are
ambiguous and can be tested.
,Most microeconomic models C
assume that decision makers wish to
A. make others as well off as
possible.
B. act selfishly.
C. make themselves as well off as
possible.
D. None of the above.
Economic models are only useful in B
analyzing government policy.
A. False, economic models are not
even useful in analyzing
government policy.
B. False, economic models can be
used to predict individual and firm
behavior.
C. True, individuals are irrational
and therefore economic models are
useless.
D. True, economists only model
those questions for which they are
hired.
, Which of the following is an D
example of a normative statement?
A. A higher price for a good causes
people to want to buy less of that
good.
B. A lower price for a good causes
people to want to buy more of that
good.
C. If you consume this good, you
will be better off.
D. To make the good available to
more people, a lower price should
be set.
Which of the following is a A
fundamental topic addressed by
microeconomics?
A. determining how many new
iPhones the Apple company should
produce
B. the impact of interest rates on
savings in the economy
C. the level of inflation in the
country
D. whether to extend
unemployment insurance
What links the decisions of D
consumers and firms in a market?
A. the government
B. microeconomics
C. coordination officials
D. prices
100% CORRECT | NEW UPDATE 2026
Save
Terms in this set (144)
In most microeconomic models, a A
decision maker
A. maximizes an objective subject
to a constraint.
B. faces no constraints.
C. has no clearly defined objective.
D. Both B and C.
Economic models are most useful A
in
A. predicting changes in one
variable due to a change in one or
more other variables.
B. generating untestable
hypotheses.
C. predicting the direction of the
stock market.
D. explaining the future with the
past.
,A market D
A. always takes place at a physical
location.
B. has no influence on prices.
C. always involves the personal
exchange of goods for money.
D. allows interactions between
consumers and firms.
Billy developed an economic B
model to describe the behavior of a
stock market index. His model
predicts that the index increases on
Mondays and declines on the other
days of the week. What can be said
about Billy's model?
A. The model's predictions are not
ambiguous and cannot be tested.
B. The model's predictions are not
ambiguous and can be tested.
C. The model's predictions are
ambiguous and cannot be tested.
D. The model's predictions are
ambiguous and can be tested.
,Most microeconomic models C
assume that decision makers wish to
A. make others as well off as
possible.
B. act selfishly.
C. make themselves as well off as
possible.
D. None of the above.
Economic models are only useful in B
analyzing government policy.
A. False, economic models are not
even useful in analyzing
government policy.
B. False, economic models can be
used to predict individual and firm
behavior.
C. True, individuals are irrational
and therefore economic models are
useless.
D. True, economists only model
those questions for which they are
hired.
, Which of the following is an D
example of a normative statement?
A. A higher price for a good causes
people to want to buy less of that
good.
B. A lower price for a good causes
people to want to buy more of that
good.
C. If you consume this good, you
will be better off.
D. To make the good available to
more people, a lower price should
be set.
Which of the following is a A
fundamental topic addressed by
microeconomics?
A. determining how many new
iPhones the Apple company should
produce
B. the impact of interest rates on
savings in the economy
C. the level of inflation in the
country
D. whether to extend
unemployment insurance
What links the decisions of D
consumers and firms in a market?
A. the government
B. microeconomics
C. coordination officials
D. prices
