Introduction to Economics Chapter Exam Questions https://quizplus.com/study-set/3313 17 Chapters 2470 Verified Questions
Introduction to Economics Chapter Exam Questions Course Introduction Introduction to Economics offers a comprehensive overview of fundamental economic principles and concepts, including supply and demand, market equilibrium, elasticity, and the roles of consumers and producers. The course explores the differences between microeconomics and macroeconomics, examines how economies allocate resources, and introduces students to basic models of economic decision-making. By analyzing real-world examples and policy issues, students develop a foundational understanding of how economic forces shape daily life and global events, preparing them for further study in the field.
Recommended Textbook Essentials of Economics 9th Edition by Bradley R Schiller
Available Study Resources on Quizplus 17 Chapters 2470 Verified Questions 2470 Flashcards Source URL: https://quizplus.com/study-set/3313
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Chapter 1: The Challenge of Economics Available Study Resources on Quizplus for this Chatper 135 Verified Questions 135 Flashcards Source URL: https://quizplus.com/quiz/65760
Sample Questions Q1) Market failure means: A) Government solutions fail to improve economic outcomes. B) The market mechanism does not produce the best mix of output. C) The market allocates goods more efficiently than does the government. D) The market is responsive to consumer demanD. Answer: B Q2) Karl Marx wrote: A) Das Kapital,which was used as the rationale for centrally-planned economies. B) Das Kapital,which described the virtues of market-based economies. C) The Wealth of Nations,which provided the rationale for centrally-planned economies. D) The Wealth of Nations,which described the virtues of market-based economies. Answer: A Q3) Which of the following is an example of labor as a factor of production? A) People who bring together the skills necessary for creating products and services. B) The skills and abilities of workers. C) People who are paid an hourly wage but not those paid a salary. D) A college or university that educates people. Answer: B To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The US Economy Available Study Resources on Quizplus for this Chatper 131 Verified Questions 131 Flashcards Source URL: https://quizplus.com/quiz/65759
Sample Questions Q1) The decline in employment in the farm sector in the U.S.during the 1900s can be attributed primarily to: A) New technology that made it possible to grow more food with fewer workers. B) An increase in the importance of the manufacturing sector. C) Competition from imported agricultural products. D) A decline in the amount of food consumption per person. Answer: A Q2) Which of the following sectors contributes the largest amount to the U.S.GDP? A) Farming. B) Manufacturing. C) Services. D) Exports. Answer: C Q3) Which of the following plays an increasingly important role in the U.S.economy? A) International trade. B) Manufacturing. C) Farming. D) Construction and mining. Answer: A To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Supply and Demand Available Study Resources on Quizplus for this Chatper 148 Verified Questions 148 Flashcards Source URL: https://quizplus.com/quiz/65758
Sample Questions Q1) If a state decides to reduce the cost of college tuition,by providing more Pell grants to students ceteris paribus,then the: A) Quantity demanded of a college education in the state will decrease. B) Demand for a college education in the state will decrease. C) Quantity demanded of a college education in the state will increase. D) Quantity supplied of a college education in the state will increase. Answer: C Q2) Which of the following will cause a leftward shift of the supply curve for houses? A) A decrease in consumer incomes. B) An improvement in the technology used to build houses. C) Consumer expectations that the price of houses will increase next year. D) An increase in the cost of construction materials. Answer: D Q3) Which of the following provides the best example of the law of supply? A) Falling labor costs cause an increase in supply. B) Improved technology shifts the supply curve to the right. C) Some producers leave the industry,and the supply curve shifts to the left. D) An increase in price entices suppliers to produce more. Answer: D To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Consumer Demand Available Study Resources on Quizplus for this Chatper 137 Verified Questions 137 Flashcards Source URL: https://quizplus.com/quiz/65757
Sample Questions Q1) The law of diminishing marginal utility helps to explain the: A) Upward sloping supply curve. B) Equilibrium price. C) Downward sloping demand curve. D) Equilibrium quantity of a good in the marketplace. Q2) Ceteris paribus,a price decrease will cause total revenue to decrease for a firm,if the demand for its product is: A) Unitary elastic. B) Inelastic. C) Elastic. D) Increasing rapidly. Q3) The price elasticity of demand is defined as the: A) Percentage change in quantity demanded times the percentage change in price. B) Unit change in price divided by the unit change in quantity demanded. C) Percentage change in quantity demanded divided by the percentage change in price. D) Unit change in quantity demanded times the unit change in price. Q4) On average,consumers spend the largest portion of their income on food. A)True B)False Page 6 To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Supply Decisions Available Study Resources on Quizplus for this Chatper 151 Verified Questions 151 Flashcards Source URL: https://quizplus.com/quiz/65756
Sample Questions Q1) What is the marginal cost of the 30<sup>th</sup> pair of jeans in Table 5.2? A) $4.50 B) $45.00 C) $6.00 D) $1.50 Q2) Long-run choices imply that all factors are variable. A)True B)False Q3) If the firm in Table 5.2 can sell jeans for $7.00 per pair,the total profit from producing 40 pair is: A) $-10. B) $10. C) $290. D) $280. Q4) Which of the following is most likely a fixed cost? A) Raw materials B) Labor cost C) Shipping costs D) Property taxes To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Competition Available Study Resources on Quizplus for this Chatper 146 Verified Questions 146 Flashcards Source URL: https://quizplus.com/quiz/65755
Sample Questions Q1) The ability and willingness to sell specific quantities of a good at alternative prices in a given period of time,ceteris paribus,defines: A) Demand. B) Equilibrium price. C) Supply. D) Economic profit. Q2) Based on the NEWSWIRE article,"Catfish Farmers Feel Forced Out of Business",what should happen to the equilibrium price and quantity of catfish over time? A) Equilibrium price and quantity should both go up. B) Equilibrium price should go up,and equilibrium quantity should go down. C) Equilibrium price should go down,and equilibrium quantity should go up. D) Equilibrium price and quantity should both go down. Q3) When firms exit an industry,price _______ and industry output _______. A) Decreases;increases B) Increases;decreases C) Increases;increases D) Decreases;decreases To view all questions and flashcards with answers, click on the resource link above.
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Chapter 7: Monopoly Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/65754
Sample Questions Q1) Compared to a competitive market with the same long-run costs and market demand,a monopolist has: A) Less pressure to reduce costs and less incentive to improve quality. B) Less pressure to reduce costs and more incentive to improve quality. C) More pressure to reduce costs and less incentive to improve quality. D) More pressure to reduce costs and more incentive to improve quality. Q2) A monopolist produces more output at a lower price than a competitive market would,ceteris paribus. A)True B)False Q3) In a competitive industry,barriers to entry prevent new suppliers from entering the market. A)True B)False Q4) In Figure 7.1,if this industry is competitive,the profit-maximizing level of output is: A) 2 units. B) 3 units. C) 4 units. D) Between 3 and 4 units. To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: The Labor Market Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/65753
Sample Questions Q1) An increase in the wage rate will always cause more labor to be supplied. A)True B)False Q2) Unions influence a labor market by doing all of the following except: A) Raising the wages for workers in the nonunion market. B) Excluding some workers from the unionized market. C) Increasing the labor supply curve in the nonunion market. D) Attaining above-equilibrium wages for union members. Q3) Ceteris paribus,if additional immigrants come to the United States with marketable skills,and they decide to enter the labor market: A) There is movement up the labor supply curve. B) The labor supply curve shifts to the right. C) There is movement down the labor supply curve. D) The labor supply curve shifts to the left. Q4) The equilibrium level of employment is determined by: A) The market demand for labor and the market supply of labor. B) The intersection of MPP and MRP. C) Government regulations. D) Collusion by the most powerful employers in a market. To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Government Intervention Available Study Resources on Quizplus for this Chatper 150 Verified Questions 150 Flashcards Source URL: https://quizplus.com/quiz/65752
Sample Questions Q1) One News Wire article in the text links secondhand smoke to cancer and other health issues.Which type of market failure does the article illustrate? A) Negative externality. B) A failure to produce public goods. C) Market power by the cigarette producers. D) External benefits. Q2) Whenever external benefits exist: A) Market demand will exceed social demand. B) Social demand will exceed market demand. C) Market demand and social demand will be equal. D) Market demand overstates the social benefits. Q3) Public goods: A) Can be consumed by more than one person at the same time. B) Include most goods and services that the market produces. C) Lead to the pay-as-you-go problem. D) By definition,must be produced by the government. Q4) Explain the impact of external costs and external benefits on the production of public verses private goods. To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: The Business Cycle Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/65751
Sample Questions Q1) If the inflation rate is zero,changes in relative prices signal a change in the _____ for the economy. A) Production possibilities B) Unemployment rate C) Level of GDP D) Desirable mix of output Q2) During a period of inflation: A) All prices will rise. B) People who have borrowed money may be better off. C) The real incomes of everyone will decrease. D) All prices will fall. Q3) The price of one good compared to the price of other goods refers to: A) Relative price. B) Inflation. C) Deflation. D) The income effect. Q4) Macroeconomics is the study of the economy as a whole. A)True B)False Q5) Define a recession and the effects of recession on rate of growth. Page 12 To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Aggregate Supply and Demand Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/65750
Sample Questions Q1) Macroeconomics is the study of individual businesses and government agencies. A)True B)False Q2) Which of the following is an example of the foreign trade effect,assuming the U.S.price level decreases? A) The purchasing power of money decreases and people buy fewer goods. B) U.S.goods are less expensive for Americans so they buy fewer imports and more domestic goods. C) U.S.production costs stay constant and profits for businesses increase. D) The demand for loans decreases so interest rates decline and loan-financed purchases increase. Q3) In Figure 11.2,at what level of output does equilibrium occur? A) Q<sub>2</sub> B) Q<sub>3</sub> C) Q<sub>4</sub> D) Q<sub>5</sub> Q4) Supply-side theories focus on stimulating production by increasing the demand for goods and services. A)True B)False Page 13 To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Fiscal Policy Available Study Resources on Quizplus for this Chatper 150 Verified Questions 150 Flashcards Source URL: https://quizplus.com/quiz/65749
Sample Questions Q1) If aggregate demand is inadequate,equilibrium real output is less than the full-employment output level. A)True B)False Q2) On October 24,1929,the stock market crashed.By the end of the year,over $40 billion of wealth had vanished.Which of the following indicates the appropriate change in the U.S.economy? A) The economy moved up along the aggregate demand curve. B) The economy moved down along the aggregate demand curve. C) Aggregate demand shifted to the left. D) Aggregate demand shifted to the right. Q3) In Figure 12.1,assume aggregate demand is represented by AD<sub>3</sub>.Which of the following could cause a shift to AD<sub>2</sub>? A) An increase in government spending on goods and services B) An increase in taxes C) A decrease in consumer confidence D) A decrease in investment spending Q4) Discuss why Aggregate demand falls when people buy more imports,ceteris paribus. To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Money and Banks Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/65748
Sample Questions Q1) Refer to Table 13.1.With total reserves of $50,000 and a required reserve ratio of 10 percent,potential deposit creation for the banking system is equal to: A) $20,000. B) $50,000. C) $80,000. D) $300,000. Q2) The smallest component of the basic money supply is in the form of: A) Savings accounts. B) Transactions accounts. C) Currency in circulation. D) Traveler's checks. Q3) The money multiplier is: A) A bank's transaction deposits divided by its reserves. B) The amount of a bank's excess reserves divided by its required reserves. C) The amount of a bank's actual reserves divided by its required reserves. D) 1 divided by the required reserve ratio. Q4) If the required reserve ratio decreases,the money multiplier decreases. A)True B)False Q5) What is a reserve requirement and what function does a reserve serve? Page 15 To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Monetary Policy Available Study Resources on Quizplus for this Chatper 148 Verified Questions 148 Flashcards Source URL: https://quizplus.com/quiz/65747
Sample Questions Q1)
Using
Figure
14.2,a
shift
in
aggregate
demand
from
AD<sub>3</sub>
to
AD<sub>1</sub>
to
AD<sub>4</sub> will cause,ceteris paribus: A) An increase in real output and an increase in the price level. B) An increase in real output,but no change in the price level. C) An increase in the price level,but no change in real output. D) A decrease in the price level,but no change in real output. Q2)
Using
Figure
14.2,a
shift
in
aggregate
demand
from
AD<sub>2</sub> will cause,ceteris paribus: A) An increase in real output and an increase in the price level. B) An increase in real output,but no change in the price level. C) An increase in price level,but no change in real output. D) A decrease in the price level,but no change in real output. Q3) Ceteris paribus,the amount of required reserves decreases when the dollar volume of transactions accounts increases. A)True B)False Q4) Congress and the president are the key decision makers for U.S.monetary policy. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Economic Growth Available Study Resources on Quizplus for this Chatper 131 Verified Questions 131 Flashcards Source URL: https://quizplus.com/quiz/65746
Sample Questions Q1) If GDP per capita grows at a constant rate of 9 percent per year,using the "rule of 72" it will take approximately ___ years for GDP per capita to double. A) 7 B) 8 C) 9 D) 16 Q2) Rising employment rates imply falling GDP per capita. A)True B)False Q3) Most people who make minimum-wages are in favor of increases in the minimum-wage.How would you explain to them that this may not be the best thing for the economy? Q4) If real GDP was $750 billion in 2006 and $800 billion in 2007,the economic growth rate was approximately ___ percent. A) 6.7 B) 6.3 C) 5.0 D) 3.3 To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Theory and Reality Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/65745
Sample Questions Q1)
Policies
that
make
good
sense
politically
typically
make
good
sense
economically,too. A)True B)False Q2) Which of the following will reduce inflation and also reduce the level of output,ceteris paribus? A) A leftward shift of the aggregate supply curve. B) A rightward shift of the aggregate supply curve. C) A leftward shift of the aggregate demand curve. D) A rightward shift of the aggregate demand curve. Q3) The fact that inflation and unemployment may be fairly critical before anyone notices is an example of: A) A design problem. B) An implementation problem. C) A measurement problem. D) A goal conflict. Q4) The case against discretionary economic policy is based on the errors made in the past. A)True B)False Page 18 To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: International Trade Available Study Resources on Quizplus for this Chatper 149 Verified Questions 149 Flashcards Source URL: https://quizplus.com/quiz/65744
Sample Questions Q1) Why do countries enter into trade agreements for products that could be produced within their own country? Q2) Exports account for approximately ___ percent of U.S.GDP. A) 5 B) 9 C) 11 D) 25 Q3) Which of the following explains why world output is greater as a result of trade? A) Specialization in production. B) Reduced terms of trade. C) Imported technologies. D) Protection of infant industries. Q4) Specialization decreases total world output. A)True B)False Q5) Without trade it is impossible for a country to consume a mix of goods and services beyond its production possibilities curve. A)True B)False 19 click on the resource link above. To view all questions and flashcards withPage answers,