Question 1

The reason why economists do not need details regarding the topography of a region when determining driving directions is because the topography is irrelevant to complete your objective of getting to a certain place.

Accepted Answer

Economists are concerned with economic principles and analysis, and do not need knowledge of topography to determine driving directions for reaching a specific destination. The objective is simply to reach a specific location, which can be accomplished by following basic navigation instructions such as street names, turn-by-turn directions, and distances.

Question 2

The example about London's congestion problem illustrates which of the following economic ways of thinking?
A) isolate variables-ceteris paribus
B) use of assumptions to simplify
C) thinking at the margin
D) all of the above

Accepted Answer

The example about London's congestion problem involves isolating variables by examining the effects of congestion charges and public transportation options while holding other factors constant (ceteris paribus). Assumptions are also used to simplify the analysis, such as assuming that the demand for driving is relatively inelastic. Finally, thinking at the margin is evident in considering the costs and benefits of each additional trip taken and how that relates to congestion and the use of public transportation. Therefore, all of the above economic ways of thinking are relevant to the example.

Question 3

The reason why economists do not need details regarding the topography of a region when determining driving directions is because economics desires unrealistic assumptions.

Accepted Answer

The statement is incorrect. Economists do not require detailed topographical knowledge for determining driving directions because it is not relevant to their field. Economics is a social science that studies the production, distribution, and consumption of goods and services. It does not need unrealistic assumptions, but rather relies on data and models to make predictions and analysis.

Question 4

An example of analysis that involves variables and how they affect one another would include the relationship of the price of smart phones to the quantity of smart phones purchased.

Accepted Answer

This is an example of how two variables are related to each other. The price of smart phones is a variable that can affect the quantity of smart phones purchased. As the price increases, the quantity demanded typically decreases. This is a basic principle in economics known as the law of demand. Therefore, analyzing the relationship between these two variables can help determine how changes in price will affect sales of the product.

Question 5

What did Adam Smith mean when he wrote that individuals rationally act in their own self-interest?

Accepted Answer

The answer of What did Adam Smith mean when he...

Question 6

A key assumption of most economic analysis is that people act rationally and in their own self-interest.

Accepted Answer

This assumption is fundamental to many economic models and theories, where it is assumed that individuals make rational decisions based on their preferences and available information, in order to maximize their own well-being or utility. However, there are also critiques of this assumption and alternative approaches that consider other factors influencing human behavior and decision-making.

Question 7

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s).
-According to the Application,which of the following increased the incentive to buy hybrid vehicles?
A) Purchases of hybrid vehicles qualified for a $3,400 subsidy from the federal government.
B) Oil prices decreased.
C) Hybrid vehicles were more expensive than regular vehicles.
D) Hybrid vehicles had similar emissions as the non-hybrid vehicles.

Accepted Answer

The Application states that purchases of hybrid vehicles received a $3,400 subsidy from the federal government, increasing the incentive to buy hybrid vehicles.

Question 8

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Accepted Answer

Using assumptions helps to simplify complex situations and allow for focusing on the most important aspects, similar to how a road map helps in planning a trip by providing a clear route and avoiding unnecessary detours.

Question 9

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

Accepted Answer

Unrealistic simplifying assumptions can be useful in analysis as they allow for the creation of models that are easier to understand and work with, even if they do not perfectly reflect reality.

Question 10

Macroeconomics is best described as the study of
A) very large issues.
B) the choices made by individual households, firms, and governments.
C) the nation's economy as a whole.
D) the relationship between inflation and wage inequality.

Accepted Answer

Macroeconomics is the study of the national economy as a whole, including issues such as inflation, unemployment, economic growth, and government policies that affect the economy as a whole. It is concerned with aggregate measures such as gross domestic product (GDP) and the overall performance of the economy rather than individual households, firms or specific issues such as inflation and wage inequality.

Question 11

When a student is thinking at the margin,he analyzes how many more points he would get on his economics final exam if he devotes one more hour for studying.

Accepted Answer

Thinking at the margin involves analyzing the benefits and costs of taking an incremental action. In this case, the student is considering the marginal benefit of studying for an additional hour in terms of points gained on the exam.

Question 12

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s).
-According to the book,what are the four elements of economic thinking?

Accepted Answer

The answer of Recall the Application about the incentives to...

Question 13

Recall the Application about housing prices in Cuba to answer the following question(s).
-According to the Application,from 1960 until 2011,tenants who paid monthly rent for housing for 20 years to the Cuban government
A) were required to then vacate the dwelling and move in with relatives.
B) were given government jobs at twice their most recent salary.
C) officially owned the dwelling, and could legally sell it or rent it to others.
D) officially owned the dwelling, but could not sell it or rent it to others.

Accepted Answer

Tenants who paid monthly rent for 20 years to the Cuban government officially owned the dwelling, but could not sell it or rent it to others.

Question 14

Recall the Application about housing prices in Cuba to answer the following question(s).
-Prior to the recent housing reforms in Cuba,homeowners had ________ incentives to repair their homes,which therefore ________ construction of new homes.
A) more; decreased
B) more; increased
C) fewer; decreased
D) fewer; increased

Accepted Answer

Prior to the housing reforms, homeowners had fewer incentives to repair their homes, as the government did not allow them to sell their homes for a profit or earn rental income. Therefore, they were less likely to invest in repairs or renovations. This decreased the construction of new homes as well, as there was less demand for housing due to the lack of housing options.

Question 15

Economists assume that individuals make informed decisions and act in their own self-interest.

Accepted Answer

This assumption is known as the rational economic actor assumption, which is a fundamental principle in economics.

Question 16

Which of the following is a macroeconomic question?
A) Will a constitutional amendment to balance the federal budget lead to good economic policy?
B) Should a firm decide to enter a particular market?
C) Should the government prevent the merger of two large firms?
D) All of the above are macroeconomic questions.

Accepted Answer

Macroeconomics deals with the performance, structure, and behavior of the entire economy, including factors like inflation, unemployment, and economic growth. The question about a constitutional amendment to balance the federal budget concerns a broad economic issue, making it a macroeconomic question. The other options relate more to microeconomics, which focuses on individual firms and markets.

Question 17

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s).
-According to the Application,which of the following is NOT a way to reduce CO₂ emissions in a country?
A) improved building insulation
B) deforestations
C) using energy efficient lighting
D) using hybrid vehicles

Accepted Answer

Deforestation actually increases CO₂ emissions as trees are carbon sinks and absorb CO₂ from the atmosphere. Therefore, B is not a way to reduce CO₂ emissions. A, C and D are all ways to reduce CO₂ emissions.

Question 18

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s).
-According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO₂ emissions.

Accepted Answer

Subsidies for hybrid vehicles might not be the most efficient way to reduce CO₂ emissions due to factors like the cost-effectiveness of the subsidies compared to other methods (e.g., investing in renewable energy, improving public transportation), the actual reduction in emissions from hybrids, and the potential for more comprehensive approaches to address emissions more effectively.

Question 19

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s).
-According to the Application,which of the following decreased the incentive to buy hybrid vehicles?
A) Purchases of hybrid vehicles qualified for a $3,400 subsidy from the federal government.
B) Oil prices increased.
C) Hybrid vehicles were more expensive than regular vehicles.
D) Hybrid vehicles had lower emissions than the non-hybrid vehicles.

Accepted Answer

Hybrid vehicles being more expensive than regular vehicles would decrease the incentive to buy them, as the higher upfront cost could outweigh the benefits of fuel savings and environmental impact for some consumers.

Question 20

Ceteris paribus means "Let the buyer beware."

Accepted Answer

Ceteris paribus actually means "all other things being equal" or "with all other things remaining constant". It is a Latin phrase commonly used in economics and statistics to examine the effect of one variable while holding all others constant.

Quiz 1: Introduction: What Is Economics

The reason why economists do not need details regarding the topography of a region when determining driving directions is because the topography is irrelevant to complete your objective of getting to a certain place.

The example about London's congestion problem illustrates which of the following economic ways of thinking?

The reason why economists do not need details regarding the topography of a region when determining driving directions is because economics desires unrealistic assumptions.

An example of analysis that involves variables and how they affect one another would include the relationship of the price of smart phones to the quantity of smart phones purchased.

What did Adam Smith mean when he wrote that individuals rationally act in their own self-interest?

A key assumption of most economic analysis is that people act rationally and in their own self-interest.

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s) . -According to the Application,which of the following increased the incentive to buy hybrid vehicles?

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

Macroeconomics is best described as the study of

When a student is thinking at the margin,he analyzes how many more points he would get on his economics final exam if he devotes one more hour for studying.

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the book,what are the four elements of economic thinking?

Recall the Application about housing prices in Cuba to answer the following question(s) . -According to the Application,from 1960 until 2011,tenants who paid monthly rent for housing for 20 years to the Cuban government

Recall the Application about housing prices in Cuba to answer the following question(s) . -Prior to the recent housing reforms in Cuba,homeowners had incentives to repair their homes,which therefore construction of new homes.

Economists assume that individuals make informed decisions and act in their own self-interest.

Which of the following is a macroeconomic question?

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s) . -According to the Application,which of the following is NOT a way to reduce CO₂ emissions in a country?

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO₂ emissions.

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s) . -According to the Application,which of the following decreased the incentive to buy hybrid vehicles?

Ceteris paribus means "Let the buyer beware."

Quiz 1: Introduction: What Is Economics

The reason why economists do not need details regarding the topography of a region when determining driving directions is because the topography is irrelevant to complete your objective of getting to a certain place.

The example about London's congestion problem illustrates which of the following economic ways of thinking?

The reason why economists do not need details regarding the topography of a region when determining driving directions is because economics desires unrealistic assumptions.

An example of analysis that involves variables and how they affect one another would include the relationship of the price of smart phones to the quantity of smart phones purchased.

What did Adam Smith mean when he wrote that individuals rationally act in their own self-interest?

A key assumption of most economic analysis is that people act rationally and in their own self-interest.

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s) . -According to the Application,which of the following increased the incentive to buy hybrid vehicles?

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Unrealistic simplifying assumptions should be avoided because they cause the analysis that is based on the assumption to be incorrect.

Macroeconomics is best described as the study of

When a student is thinking at the margin,he analyzes how many more points he would get on his economics final exam if he devotes one more hour for studying.

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the book,what are the four elements of economic thinking?

Recall the Application about housing prices in Cuba to answer the following question(s) . -According to the Application,from 1960 until 2011,tenants who paid monthly rent for housing for 20 years to the Cuban government

Recall the Application about housing prices in Cuba to answer the following question(s) . -Prior to the recent housing reforms in Cuba,homeowners had ________ incentives to repair their homes,which therefore ________ construction of new homes.

Economists assume that individuals make informed decisions and act in their own self-interest.

Which of the following is a macroeconomic question?

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s) . -According to the Application,which of the following is NOT a way to reduce CO₂ emissions in a country?

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s). -According to the Application,giving subsidies for the purchase of hybrid vehicles was the most efficient way for the government to reduce CO₂ emissions.

Recall the Application about the incentives to buy hybrid vehicles to answer the following question(s) . -According to the Application,which of the following decreased the incentive to buy hybrid vehicles?

Ceteris paribus means "Let the buyer beware."

Recall the Application about housing prices in Cuba to answer the following question(s) . -Prior to the recent housing reforms in Cuba,homeowners had incentives to repair their homes,which therefore construction of new homes.