Multiple Choice – Section 00: Introduction 1.Whichofthefollowingisnotcorrect? a.Economistsusesomefamiliarwordsinspecializedways. b.Economicshasitsownlanguageanditsownwayofthinking,butfewotherfieldsofstudydo. c.Supply,demand,elasticity,comparativeadvantage,consumersurplus,anddeadweightlossarealltermsthatarepartoftheeconomist’slanguage. d.Thevalueoftheeconomist’slanguageliesinitsabilitytoprovideyouwithanewandusefulwayofthinkingaboutthe worldinwhichyoulive. 2.Economistsusesomefamiliartermsinspecializedways a.tomakethesubjectsoundmorecomplexthanitis. b.becauseeveryrespectablefieldofstudyhasitsownlanguage. c.toprovideanewandusefulwayofthinkingabouttheworld. d.becauseitwastoodifficulttocomeupwithnewterms. 3.Thelanguageofeconomicsis a.needlesslyarcane. b.valuablebecauseitprovidesanewandusefulwayoflearningabouttheworld. c.easytolearnwithinaday. d.unnecessarytolearnforathoroughunderstandingofeconomics. 1.Economists,likemathematicians,physicists,andbiologists, a.makeuseofthescientificmethod. b.trytoaddresstheirsubjectwithascientist’sobjectivity. c.devisetheories,collectdata,andthenanalyzethesedatainanattempttoverifyorrefutetheirtheories. d.Alloftheabovearecorrect. 2.Theessenceofscienceis a.thelaboratoryexperiment. b.thescientificmethod. c.thestudyofnature,butnotthestudyofsociety. d.Alloftheabovearecorrect. 3.Thescientificmethodis a.theuseofmoderntechnologytounderstandthewaytheworldworks. b.theuseofcontrolledlaboratoryexperimentstounderstandthewaytheworldworks. c.thedispassionatedevelopmentandtestingoftheoriesabouthowtheworldworks. d.thesearchforevidencetosupportpreconceivedtheoriesabouthowtheworldworks. 4.Thescientificmethodisapplicabletostudying a.naturalsciences,butnotsocialsciences. b.socialsciences,butnotnaturalsciences. c.bothnaturalsciencesandsocialsciences. d.Noneoftheaboveiscorrect. 5.Whosaid,”Thewholeofscienceisnothingmorethantherefinementofeverydaythinking”? a.IsaacNewton b.AlbertEinstein c.AdamSmith d.BenjaminFranklin 6.AlbertEinsteinoncemadethefollowingobservationaboutscience: a.”Thewholeofscienceisnothingmorethantherefinementofeverydaythinking.” b.”Thewholeofscienceisnothingmorethananinterestingintellectualexercise.” c.”Inordertounderstandscience,onemustrelysolelyonabstraction.” d.”Inordertounderstandscience,onemusttranscendeverydaythinking.” 7.SirIsaacNewton’sdevelopmentofthetheoryofgravityafterobservinganapplefallfromatreeisanexampleof a.acontrolledexperimentthatleadtotheformulationofascientifictheory. b.beingintherightplaceattherighttime. c.anideawhosetimehadcome. d.theinterplaybetweenobservationandtheoryinscience. 8.Whichofthefollowingstepsdoesaneconomisttakewhenstudyingtheeconomy? a.devisetheories b.collectdata c.analyzedata d.Alloftheabovearecorrect. 9.Whichofthefollowingisanexampleofusingthescientificmethodwithanaturalexperiment? a.measuringhowlongittakesamarbletofallfromatenstorybuilding b.comparingplantgrowthwithandwithoutasoiladditive […]

  41) Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an […]

    6.1   Labor Market Indicators   1) The Bureau of Labor Statistics (BLS) compiles information about employment by A) performing a census of every household in the nation. B) performing a quarterly survey 6,000,000 households. C) performing a monthly survey of 60,000 households. D) determining the average estimate of labor market specialists around the nation. E) contacting each of the 50 states’ Departments of […]

  81) Since joining NAFTA in the early 1990s, Canada has experienced increases in productivity and output in many export-oriented industries because of economies of scale and learning by doing. In these industries, these gains from trade will lead to A) downward shifts in the long-run average cost (LRAC) curve. B) downward movement (to the right) along the LRAC curve only. C) downward shifts in […]

    41) The above figure shows the production possibility frontier for an economy. The point or points that are not attainable are A) points B and C. B) points A, B, and C. C) point E. D) points A, B, C, and D. E) points A and D.   42) In order for Ireland to grow more potatoes, wool production must decrease. This situation […]

  19.2   Comparative Advantage in International Trade 1) Absolute advantage is A) the ability to produce more of a good or service than competitors when using the same amount of resources. B) the ability to produce higher quality goods compared to one’s competitors. C) the ability to produce a good or service at a higher opportunity cost than one’s competitors. D) the ability to produce […]

  109.ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000. Variable costs are projected to be $17.50 per unit. Customer A offers to pay $10,000 to buy 400 lights from ProLight. Total fixed costs are $12,000 per year. This offer does not affect ProLight’s other planned operations. How much […]

    61.If a person uses fasting to lose weight, how will his or her body react? a.increase its basal metabolism to burn energy b.break down fat into ketone bodies to provide fuel c.become internally cleansed d.conserve its minerals by restricting their excretion   62.When setting a target for weight loss, an appropriate goal would be: a.rapid weight loss the first several weeks. b.reduction of […]

  41) Which of the following factors could start a demand-pull inflation? A) an increase in tax rates B) a decrease in government expenditure C) a decrease in the money wage rate D) an increase in the money wage rate E) an increase in the quantity of money 42) Increases in the quantity of money can start a ________ inflation and an increase in government […]

  51.Ifthelaborsupplycurveisveryelastic,ataxonlabor a.hasalargedeadweightloss. b.raisesenoughtaxrevenuetooffsetthelossinwelfare. c.hasarelativelysmallimpactonthenumberofhoursthatworkerschoosetowork. d.resultsinalargetaxburdenonthefirmsthathirelabor. 52.ThemarginaltaxrateonlaborincomeformanyworkersintheUnitedStatesisalmost a.30percent. b.40percent. c.50percent. d.65percent. 53.Thelessfreedomyoungmothershavetoworkoutsidethehome,the a.moreelasticthesupplyoflaborwillbe. b.lesselasticthesupplyoflaborwillbe. c.morehorizontalthelaborsupplycurvewillbe. d.largeristhedecreaseinemploymentthatwillresultfromataxonlabor. 54.Thelessfreedompeoplearegiventochoosethedateoftheirretirement,the a.moreelasticisthesupplyoflabor. b.lesselasticisthesupplyoflabor. c.flatteristhelaborsupplycurve. d.smalleristhedecreaseinemploymentthatwillresultfromataxonlabor. 55.Taxesonlaborencourageallofthefollowingexcept a.olderworkerstotakeearlyretirementfromthelaborforce. b.motherstostayathomeratherthanworkinthelaborforce. c.workerstoworkovertime. d.peopletobepaid“underthetable.” 56.Taxesonlaborencouragewhichofthefollowing? a.labordemandtobemoreinelastic b.motherstostayathomeratherthanworkinthelaborforce c.workerstoworkovertime d.fatherstotakeonsecondjobs 57.Asmorepeoplebecomeself-employed,whichallowsthemtodeterminehowmanyhourstheyworkperweek,wewouldexpectthedeadweightlossfromtheSocialSecuritytaxto a.increase,andtherevenuegeneratedfromthetaxtoincrease. b.increase,andtherevenuegeneratedfromthetaxtodecrease. c.decrease,andtherevenuegeneratedfromthetaxtoincrease. d.decrease,andtherevenuegeneratedfromthetaxtodecrease. 58.Whichofthefollowingisnotcorrect? a.Economistswhoarguethatlabortaxesarehighlydistortingbelievethatlaborsupplyisfairlyelastic. b.Economistswhoarguethatlabortaxesarenothighlydistortingbelievethatlaborsupplyisfairlyinelastic. c.Economistswhoarguethatlaborsupplyisfairlyinelasticciteelderlyworkerswhoadjustthedatetheyretireasanexample. d.Economistswhoarguethatlaborsupplyisfairlyelasticciteworkerswhoadjustthehoursofovertimethattheyworkasanexample. Figure8-15                                               […]