Question 1

The ceteris paribus assumption is employed in economic analysis, in order to:

Accepted Answer

A)   State economic goals
B)   Simplify the complex world
C)   Evaluate an economic system
D)   Approximate real-world conditionsE) A) and C)
F) A) and D)

Question 2

Refer to the above graph. The slope of the line tangent to the curve at point A is:

Accepted Answer

A)   0
B)   .5
C)   2
D)   4E) C) and D)
F) A) and B)

Question 3

The resource category called "land" includes forests, animals, and water resources.

Accepted Answer

A) True 
 B)False

Question 4

Refer to the above graph. The slope of the tangent line at various points on the curve as the value of X increases (i.e., as we move to the right along the curve)  is: (confusing)

Accepted Answer

A)   Increasing in algebraic value
B)   Decreasing in algebraic value
C)   Becoming more positive
D)   Becoming less negativeE) A) and B)
F) B) and C)

Question 5

Refer to the above graph. Which of the following movements would indicate economic growth?

Accepted Answer

A)   From point A to point C
B)   From point B to point C
C)   From point A to point E
D)   From point C to point DE) C) and D)
F) All of the above

Question 6

A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outwards.

Accepted Answer

A) True 
 B)False

Question 7

Rational behavior implies that different people faced with similar choices will make the same decisions.

Accepted Answer

A) True 
 B)False

Question 8

Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. If the consumer spent all of her budget on just apples or just bananas, how many apples or bananas maximum would she be able to buy?

Accepted Answer

A)   12 apples or 8 bananas
B)   8 apples or 12 bananas
C)   16 apples or 12 bananas
D)   8 apples or 16 bananasE) C) and D)
F) All of the above

Question 9

Marginal analysis is the valuation of insignificant or small benefits from doing things.

Accepted Answer

A) True 
 B)False

Question 10

Entrepreneurship refers to a new college graduate who is looking for a job with a large company.

Accepted Answer

A) True 
 B)False

Question 11

The "other things equal" assumption is employed when:

Accepted Answer

A)   The graph of a given relationship is shifting up or down
B)   Economists draw a two-dimensional (or two-axes)  graph
C)   The relationship in direct, but not when it is inverse
D)   The relationship in inverse, but not when it is directE) B) and D)
F) A) and B)

Question 12

Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college."

Accepted Answer

A)   Both Matt's and Jean's statements are positive
B)   Both Matt's and Jean's statements are normative
C)   Matt's statement is normative while Jean's statement is positive
D)   Matt's statement is positive while Jean's statement is normativeE) A) and C)
F) A) and B)

Exam 1: Limits, Alternatives, and Choices

The "other things equal" assumption is employed when:

Correct Answer
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Refer to the above graph. The slope of the tangent line at various points on the curve as the value of X increases (i.e., as we move to the right along the curve) is: (confusing)

Correct Answer
verified

The ceteris paribus assumption is employed in economic analysis, in order to:

Correct Answer
verified

A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outwards.

Correct Answer
verified

Entrepreneurship refers to a new college graduate who is looking for a job with a large company.

Correct Answer
verified

The resource category called "land" includes forests, animals, and water resources.

Correct Answer
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Correct Answer
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Refer to the above graph. Which of the following movements would indicate economic growth?

Correct Answer
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Rational behavior implies that different people faced with similar choices will make the same decisions.

Correct Answer
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Marginal analysis is the valuation of insignificant or small benefits from doing things.

Correct Answer
verified

Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college."

Correct Answer
verified

Refer to the above graph. The slope of the line tangent to the curve at point A is:

Correct Answer
verified

Exam 1: Limits, Alternatives, and Choices

The "other things equal" assumption is employed when:

Correct AnswerverifiedShow Answer

Refer to the above graph. The slope of the tangent line at various points on the curve as the value of X increases (i.e., as we move to the right along the curve) is: (confusing)

Correct AnswerverifiedShow Answer

The ceteris paribus assumption is employed in economic analysis, in order to:

Correct AnswerverifiedShow Answer

A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outwards.

Correct AnswerverifiedShow Answer

Entrepreneurship refers to a new college graduate who is looking for a job with a large company.

Correct AnswerverifiedShow Answer

The resource category called "land" includes forests, animals, and water resources.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to the above graph. Which of the following movements would indicate economic growth?

Correct AnswerverifiedShow Answer

Rational behavior implies that different people faced with similar choices will make the same decisions.

Correct AnswerverifiedShow Answer

Marginal analysis is the valuation of insignificant or small benefits from doing things.

Correct AnswerverifiedShow Answer

Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college."

Correct AnswerverifiedShow Answer

Refer to the above graph. The slope of the line tangent to the curve at point A is:

Correct AnswerverifiedShow Answer

Correct Answer
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