Econ- Chapter 1 – Flashcards
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Which of the following are not a part of microeconomics? -firms -unemployment -households -government
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unemployment
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Which of the following is not a part of microeconomics? -prices going up -low rates of unemployment in California -home building in the US -growing wheat throughout the US
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prices going up
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Which of the following is not a part of macroeconomics? -inflation -unemployment in Nevada -gross domestic product -none of the above
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unemployment in Nevada
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Which of the following is not a part of macroeconomics? -high rates of unemployment in Texas -growing wheat throughout the US -cotton production -all of the above
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all of the above
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Which of the following is not a part of microeconomics? -Recession. -Unemployment. -Total national income. -All of the above.
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all of the above
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Which of the following is not a part of macroeconomics? -Prices going up. -High rates of unemployment in U.S. -Growing sugar throughout the U.S. -Total national income
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growing sugar throughout the US
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Which of the following statements are true? -Macroeconomics deals with individual parts of the economy. -Microeconomics deals with individual parts of the economy. -Microeconomics deals on a national level. - a and c.
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microeconomics deals with individual parts of the economy
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We study economics because we have? -abundant resources and limited wants. -scarce resources and unlimited wants. -abundant resources and unlimited wants. -scarce resources and limited wants.
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scarce resources and unlimited wants
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Which of the following belongs to factor markets (factors of production)? -Labor -Services -Goods -All of the above
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labor
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Which of the following belongs to factor markets (factors of production)? -Goods -Land -Services -None of the above
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land
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Which of the following belong to product markets? Labor. Goods. Land. Both a and c
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goods
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Land, Labor, and Capital are examples of resources goods. services. none of the above.
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resources
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Consumption is a function of income: C = f(I). 'C' is`... a verbal expression of the hypothesis. a dependent variable. an independent variable. none of the above.
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a dependent variable
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Which of the following is an example of a normative statement? We have 40 chairs in the classroom. Our class is on the second floor. There are 21 more students than the number of seats available. This classroom is too small.
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this classroom is too small
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Which of the following is an example of a normative statement? We have 40 students in the class. We have a fairly big class. Our class is on the third floor. The classroom seats 50 students.
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we have a fairly big class
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Which of the following is an example of a positive statement? In this nation, one child in four goes to bed hungry. It is a disgrace that in this nation one child in four goes to bed hungry. There is enough food in the world to feed everyone. All of the above.
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In this nation, one child in four goes to bed hungry
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Which of the following is an example of a positive statement? It is 32 degrees Celsius in that room. The classroom is too hot. More windows in the room would make it a lot cooler. There are too many students in this class.
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it is 32 degrees Celsius in that room
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Which of the following are drawbacks in studying economics? No laboratory experiments. Can generalize from personal experience. Cause and cure - can jump to conclusions. All of the above.
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all of the above
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Which of the following are NOT true? The word "economics" is derived from a Greek word "oikonomikos". The word "oikonomikos" means skilled in household management. The word "economics" is derived from a Latin word "oikonomikos". Modern day economics analyzes how individuals, businesses, and governments produce, exchange, and consume goods and services.
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the word economics is derived from a latin word oikonomikos
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Economics is a... social science that studies how to use abundant resources. social science that studies how to use limited resources. natural science that studies how to use limited resources. social science that studies how to satisfy limited wants. both a and d.
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social science that studies how to use limited resources
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Which of the following are NOT true? Oil deposits are considered to be land in economics. Economic resources used in the production process are called factors of production. Capital, labor, land and entrepreneurial skills are considered as factors of production. In economics money is considered to be capital. Both a and d.
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in economics money is considered to be capital
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An individual who seeks to manage human and other resources for profit is called a(n)... laborer. entrepreneur. capitalist. organizer.
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entrepreneur
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Which of the following is NOT correct? Resources are also called "factors of production". Land refers to land that is available for agriculture and/or mining. Generally, land is a fixed resource. In economics natural deposits are considered to be capital. Resources can be divided into four categories: land, labor, capital, and entrepreneurial skills.
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in economics natural deposits are considered to be capital
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In economics, which of the following is NOT true? People provide their labor to businesses in exchange for wages. People trade their unpaid leisure time to make a living. Businesses use this labor to produce goods and services demanded by consumers. The quantity and quality of labor are not an important factor in determining rate of growth.
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the quantity and quality of labor are not an important factor in determining rate of growth
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In the labor market, which of the following is NOT true? Workers try to find good matches between them and jobs available. Employers search for workers with low productivity for the wages being offered. High unemployment impedes the economy's ability to maintain or expand growth. Employers search for workers with high productivity for the wages being offered.
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employers search for workers with low productivity for the wages being offered
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Which of the following is NOT true? Over the long run, technological change... leads to lower wages for the work force. as a whole enables workers to be more productive. leads to higher wages for the work force. leads to higher productivity of labor.
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leads to lower wages for the work force
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In economics, which of the following is NOT true? Capital is... all manmade goods that can only be used to produce more consumer goods. consumer goods that bring our ideas to fruition. consumer goods that enable us to produce goods and services more efficiently. all manmade goods that can be used to produce more consumer goods and/or more capital goods.
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all manmade goods that can only be used to produce more consumer goods
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In economics, which of the following would NOT be considered as capital? Installation of an irrigation unit for a farm. Oil deposits. Leveling of land. Purchase of a photocopying machine for your office.
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oil deposits
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In economics, which of the following is considered to be capital? $1,000 worth of government bonds. Iron deposits. 1,000 shares of Microsoft. Purchase of a crane for your business.
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purchasing of a crane for your business
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Which country would be better off in the future? A country that cuts its trees to print money. A country that cuts its trees to build plows. A country that gives all its citizens credit cards with a $10,000 credit limit. All of the above.
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a country that cuts its trees to build plows
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An individual who seeks to manage human and other resources for profit is called a(n)... laborer. entrepreneur. capitalist. organizer.
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entreprenuer
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Which of the following is correct? Scarce resources is a problem for... the U.S. the oil producing nations. a, b, and d. the richest person on Earth.
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a, b, and d
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The consumer goods are ....... by ....... to directly satisfy the buyer's wants or needs. ....... goods can be used by ........ to produce more consumer goods and/or more capital goods. bought, firms, households, capital. bought, households, firms, consumer. produced, households, firms, capital. bought, households, capital, firms.
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bought, households, capital, firms
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Which of the following is NOT considered to be a good? A tangible good. A car. A loaf of bread. Dental treatment.
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dental treatment
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Attending college would is considered to be... a service. a good. a tangible good. all of the above.
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a service
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Which resource is NOT correctly related to its reward? Labor and wages Land and rent Capital and money Entrepreneurship and profits
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capital and money
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Which of the following is NOT correct? "Micro" is a Greek word meaning small. How advances in technology affect productivity is part of microeconomics. How government taxes influence consumption is part of microeconomics. How advances in technology affect productivity is part of macroeconomics.
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how advances in technology affect productivity is part of macroeconomics
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Which of the following is NOT a part of microeconomics? How advances in technology affect productivity How government taxes influence consumption of a product Why households prefer to buy one product rather than another How recessions occur
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how recessions occur
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Which of the following is NOT a part of macroeconomics? How to measure productivity How to measure the level of employment in the nation How to measure inflation How to measure the Gross Domestic Product
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how to measure productivity
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Which of the following words does not relate to GDP? Inflation Economic growth Depression Recession
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inflation
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Which of the following words does NOT relate to the average change in prices? Inflation Deflation Depression All of the above
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depression
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Which of the following is NOT a good attribute of a model? It should be a simplification of reality. The model should have all the variables included in it. The model's predictions should be validated. Once built, the model should be able to predict future events precisely.
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the model should have all variables included in it
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Which of the following is NOT true? Independent variables are external to the system. The value of dependent variables is determined by independent variables. Independent variables are also called endogenous variables. Dependent variables are also called endogenous variables.
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independent variables are also called endogenous variables
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With each bag of nitrogen (N) applied, the farmer gets 23 lbs/acre more of wheat. In this example... nitrogen is an independent variable. nitrogen is a dependent variable. output of wheat is an independent variable. none of the above
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nitrogen is an independent variable
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If an increase in the application of nitrogen produces a greater output of wheat, then the nitrogen application and output of wheat... are not related to each other. have a negative relationship. both a and b have a positive relationship.
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have a positive relatioship
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If an increase in the price of solar cells leads to a decrease in the number of solar cells sold (with all other factors being equal), then the price of solar cells and quantity of solar cells sold... are independent of each other. have a negative relationship. both a and b have a positive relationship.
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have a negative relationship
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"Ceteris paribus" means... all other variables remain unchanged. all other variables change. all variables remain unchanged. all of the above.
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all other variables remain unchanged
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Which of the following sequences of steps are followed to develop an economic model? pose a hypothesis; identify the problem; develop a theory; arrive at a law identify the problem; pose a theory; develop a hypothesis; arrive at a law identify the problem; pose a hypothesis; develop a law; arrive at a theory identify the problem; pose a hypothesis; develop a theory; arrive at a law
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identify the problem, pose a hypothesis, develop a theory, arrive at a law
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If the statement "If a farmer applies less water than other farmers then s/he will have lower wheat output" is mad from a casual observation, then it would be an example of... identifying the problem. developing a hypothesis. developing a theory. expressing a law.
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developing a hypothesis
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A statement that is always correct under the same set of circumstances is called... a theory. a law. a hypothesis. all of the above.
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a law
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The "Essay on the Principle of Population" was written by... Thomas Malthus. Adam Smith. John Maynard Keynes. George Washington
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Thomas Malthus
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"Population, if unchecked, tends to increase indefinitely over time at a geometric ratio," is an example of dependent and independent variables being expressed as... a table. a graph. a mathematical equation. a verbal expression.
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a verbal expression
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According to Malthus population tends to increase at...... ratio and food output increases at...... ratio. an arithmetic, a geometric a geometric, a geometric an arithmetic, an arithmetic a geometric, an arithmetic
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a geometric, an arithmetic
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According to Malthus, equation Q = 1+ t represents ...., and equation Q = 2^(t) represents........ output of food , population growth population growth, output of food output of food, output of cars population growth, output of cars
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output of food, population growth
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In equation, Yd= 15 + 11 N, which of the following is NOT true? Yd is a dependent variable. 15 is a constant. N is an independent variable. Yd is an independent variable.
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Yd is an independent variable
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Generalizing from personal experience, is an example of... cause and cure. the post hoc fallacy. fallacy of composition. the difficulty of predicting human behavior.
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fallacy of composition
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If an individual standing up at a ball game to get a better view, and thinking that everyone could get a better view by standing up this is an example of... cause and cure. the post hoc fallacy. fallacy of composition. the difficulty of predicting human behavior.
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fallacy of composition
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If event A precedes event B and we jump to the conclusion that event B must have been caused by event A, then in economics it is an example of... cause and cure. the post hoc fallacy. fallacy of composition. the difficulty of predicting human behavior.
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the post hoc fallacy
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Every year, when there is more rain in New York, there are more divorces in California. This is an example of... cause and cure. the post hoc fallacy. fallacy of composition. the difficulty of predicting human behavior.
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the post hoc fallacy
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Which of the following is true? Economics is derived from a Latin word "oikonomikos." According to economists, oil deposits are considered to be land. According to economists, $1,000 in a bank is considered to be capital. One attribute of a good economic model is that it does not need to predict the future correctly. If an economy grows by 12% per year, then it will double in 12 years.
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according to economists, oil deposits are considered to be land
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Which of the following is an example of a positive statement? There is enough food in this country to feed 3 out of 4 mouths. It is a disgrace that in this nation 1 in 4 children goes to bed hungry. In this nation, 1 in 4 children goes to bed hungry. All of the above
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in this nation, 1 in 4 children goes to bed hungry
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Economics is... a social science that studies how to use abundant resources. a social science that studies how to use limited resources. a social science that studies how to satisfy unlimited wants. both b and c. a natural science that studies how to use limited resources and unlimited wanted.
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both b and c
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Which of the following is true? "Ceteris paribus" means all other things unchanged. Intangible items are defined as services. A college course is considered as a service. All of the above Both a and c
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all of the above
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A theory that is always true is... a hypothesis. a testing. a law. ceteris paribus. all of the above.
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a law
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"I got higher profits because of a good wheat crop this season, so all farmers should get a good wheat crop to improve their profits." This is an example of... a post hoc fallacy. a difficulty in predicting human behavior. a preconceived notion about cause and cure. a fallacy of composition. none of the above.
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a fallacy of composition
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To claim that one event caused another because the first event preceded the second is... a post hoc fallacy. a fallacy of composition. a difficulty in predicting human behavior. a preconceived notion about cause and cure. none of the above.
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a post hoc fallacy
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Of the following, which one is true? when an independent variable increases and the dependent variable also increases, the relationship between the two variables is positive. when an independent variable decreases and the dependent variable increases, the relationship between the two variables is inverse. On a graph the direct relationship is upward sloping and the inverse relationship is downward sloping. All of the above are correct.
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all of the above are correct
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Of the following, which one is true? There is a positive relationship when an independent variable increases and the dependent variable also increases. There is a negative relationship when an independent variable decreases and the dependent variable increases. On a graph the direct relationship is upward sloping and the inverse relationship is downward sloping. All of the above are correct.
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all of the above are correct
