Chapter 1 Quiz(MACRO)
The diagram to the right shows a hypothetical demand curve for apples. The slope of this curve is____
-.88
he diagram to the right is an example of A. a time-series graph. Your answer is correct. B. a bar graph. C. an economic map. D. a pie chart.
A
A primary difference between macroeconomics and microeconomics is A. Microeconomics is concerned with market economies while macroeconomics is concerned with centrally-planned economies. B. There are no true differences between microeconomics and macroeconomics. C. Microeconomics is concerned with present decisions while macroeconomics is concerned with future decisions. D. Microeconomics examines individual markets while macroeconomics examines the economy as a whole.
D
Every society faces trade-offs because we live in a world of scarcity. Suppose a student-athlete has the opportunity to earn $600,000 next year playing for a minor league baseball team, $500,000 next year playing for a European professional football team, or $0 returning to college for another year. The opportunity cost of the student-athlete returning to college next year is $_____
600,000
The pie chart illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is____%
70
Economics assumes people and firms: A. are rational, respond to incentives, and make decisions by comparing marginal benefits with marginal costs. Your answer is correct. B. are rational, respond to incentives, and make all-or-nothing decisions. C. know everything, respond to incentives, and make decisions by comparing marginal benefits with marginal costs. D. use all available information to achieve their goals, respond to incentives, and make decisions by comparing total benefits with total costs. E. use all available information to achieve their goals, respond to incentives, and make decisions by continuing any activity up to the point where the marginal benefit equals zero.
A
Which of the following is a graph of a single variable? A. Graph A B. Graph B C. Graph C D. All of the above
D
Consider the demand curve illustrated in the figure to the right. Suppose at a price of $2 per unit, a firm's corresponding revenue is represented by the green shaded area. What is the firm's revenue? The firm's revenue equals $______
1600
The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). The area of the triangle shown on the diagram is_____(Enter your response as an integer.)
180,500
The relationship between two variables is positive when ________, and the relationship between two variables is negative when ________. A. one variable decreases and the other increases; one variable increases and the other increases B. one variable increases and the other increases; one variable decreases and the other decreases C. one variable increases and the other decreases; one variable decreases and the other increases D. one variable increases and the other increases; one variable increases and the other decreases
D
Refer to the graph. How would you describe the value of the slope of this curve? A. The value of the slope is greater between points g and h than between points i and j. Your answer is correct. B. The value of the slope is greater between points i and j than between points g and h. C. The value of the slope is the same between any two points along the curve. D. We cannot determine whether the slope is greater between g and h or i and j because the relationship between "Points on exam" and "Study time" is not linear.
A
Which of the following steps should you follow when using a formula? A. Make sure the number you calculate using the formula is economically reasonable. B. Make sure you understand the economic concept the formula represents. C. Make sure you are using the correct formula for the problem you are solving. D. All of the above are steps you should follow when using a formula.
D
_______is the study of the choices people make to attain theirgoals, given their scarce resources.
Economics
Alzuria is a developing economy. With trade and liberalization, the country has now seen substantial development in the private sector. However, government intervention in certain markets remains strong. The banking sector has a good mix of both private banks and those called "government undertakings," or public sector banks. Consumers are becoming increasingly aware of the difference in the quality of service provided by the private and the public sector banks. Competition among private banks has ensured that their employees adhere to high standards of customer service. Their public sector counterparts, however, do not appear to be making an effort to improve their customer service. Which of the following, if true, would explain the careless attitude of employees in public sector banks? A. The banks owned by the government operate in remote parts of the country. B. Employees in the public sector have greater job security than those in the private sector. This is the correct answer. C. The public sector banks hire highly qualified people for all positions. D. The government of Alzuria strictly monitors the actions of the central bank. Your answer is not correct. E. Both types of banks are vying for the same target market.
B
Best Goods, one of the leading department store chains, offers goods at low prices. It recently opened many new stores across the country. After successfully setting up stores in most major cities, Best Goods faced substantial opposition in the city of Joberg, where lobbyists for smaller general stores (local businesses) opposed its entry. These lobbyists argued that Best Goods would put many local stores out of business and would also increase income inequality and unemployment in the city. Which of the following can most reasonably be concluded from the information given in the question? A. The purchasing power of the average consumer in Joberg is low. Your answer is not correct. B. Lobbyists believe that those who lose jobs won't find alternative opportunities in the short term. This is the correct answer. C. The government will provide tax benefits to the retail sector to fuel its growth. D. Equity of income is the most important indicator of economic well-being. E. Lobbyists believe that income inequality can be reduced if Best Goods can be prevented from operating in Joberg.
B
Economists use the word marginal to mean an extra or additional benefit or cost of a decision. An optimal decision occurs when A. marginal benefit is maximized. B. marginal cost is zero. C. marginal benefit is greater than marginal cost. D. marginal benefit equals marginal cost.
B
Macroeconomics is the study of A. why the U.S. has spent so much money on wars and government surveillance of its own citizens. B. the economy as a whole, including topics such as inflation, unemployment, and economic growth. Your answer is correct. C. the economy on a state-by-state basis, covering areas affected by the Commerce Clause. D. how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices.
B
Microeconomics is the study of A. how individuals and firms act altruistically to better society. B. how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices. Your answer is correct. C. the economy as a whole, including topics such as inflation, unemployment, and economic growth. D. how individuals make good decisions for themselves but hurt society.
B
The diagram to the right illustrates a common economic relationship. Economists know this relationship as marginal cost (MC). The diagram illustrates the relationship between the change in total cost and quantity produced. There are three lines (A, B, and C) drawn tangent to the MC curve. At line A, the MC curve has a _____ slope. Where lines B and C touch the MC curve, the slope is _____ and _____. A. negative; positive; decreasing B. negative; positive; increasing Your answer is correct. C. positive; negative; decreasing D. positive; negative; increasing
B
When the federal government crafts environmental policies that make it less expensive for firms to follow green initiatives, A. the policies are futile because where the environment is concerned, it has been repeatedly shown that firms do not respond to economic incentives. B. the policies are consistent with economic incentives. This is the correct answer. C. the policies are likely to be more successful than policies that cost firms more, but they do not recognize economic incentives. Your answer is not correct. D. pollution is likely to increase.
B
According to the FBI Bank Crime Statistics, there were more than 3,900 bank robberies in the United States in 2017. The FBI claims that banks have made themselves easy targets by refusing to install clear acrylic partitions, called bandit barriers, that separate bank tellers from the public. According to a special agent with the FBI, "Bandit barriers are a great deterrent. We've talked to guys who rob banks, and as soon as they see a bandit barrier, they go find another bank." Sources: U.S. Department of Justice, Federal Bureau of Investigation, "Bank Crime Statistics 2017"; and Richard Cowen, "FBI: Banks Are to Blame for Rise in Robberies," NorthJersey.com, March 10, 2009. Despite this finding, many banks have been reluctant to install these barriers. Wouldn't banks have a strong incentive to install bandit barriers to deter robberies? Why, then, do so many banks not do so? A. Banks would not receive any benefits from installing the barriers. B. Banks are not interested in the safety of their customers and employees. C. Banks are not rational. D. Banks have no economic incentive to install the barriers.
D
The level of total investment by firms in new machinery and equipment helps to determine how rapidly the economy grows. This is a macroeconomic____issue. However, to understand how much new machinery and equipment firms decide to purchase, one must analyze the incentives individual firms face, which is a _____issue.
Macroeconomic, Microeconomics
