Question 1

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.
A) why
B) how
C) for whom
D) what
E) where

Accepted Answer

The question is asking who benefits from the decision to pay senators more than soldiers. The answer is that senators benefit, therefore the question is related to the "for whom" aspect of economics.

Question 2

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.
A) what
B) how
C) for whom
D) where
E) why

Accepted Answer

Deciding to increase production of hybrid cars directly answers the "what" question in economics, which concerns what goods and services to produce.

Question 3

When Delta decides to quit flying to Lithuania,it directly answers the ________ question.
A) what
B) why
C) for whom
D) how
E) when

Accepted Answer

The decision to stop flying to Lithuania directly answers the "what" question, as it specifies what action Delta is taking.

Question 4

When Fresh Express Salads decides to mechanically pick all of its lettuce,it directly answers the ________ question.
A) what
B) how
C) for whom
D) where
E) when

Accepted Answer

The question is asking how the lettuce will be picked, which is a method or process, resulting in the answer being the "how" question.

Question 5

Which of the following is a macroeconomic issue?
A) The price of a ticket to Walt Disney World in Orlando is increased.
B) The National Football League signs a new television contract.
C) The number of jobs and production in Zimbabwe increase.
D) The Iowa corn harvest is smaller than normal.
E) Utilities are required to install more anti-pollution devices.

Accepted Answer

The number of jobs and production in Zimbabwe increasing is a macroeconomic issue as it involves the overall economy of a country.

Question 6

Which of the following is a macroeconomic topic?
A) The federal government's decision to spend more on environmental protection
B) The county government's decision to increase the sales tax for your county
C) Why did production and jobs expand slowly in 2011?
D) General Motors decides what prices to set for their new models.
E) The effect of floods in the growing areas on the price and quantity of wheat

Accepted Answer

Production and jobs are macroeconomic indicators that are relevant at the national level.

Answer: A
 The federal government's decision to spend more on environmental protection is a macroeconomic topic as it affects the entire country, not just one specific region or industry.

Question 7

Of the three major economic questions,which of the following is the best example of a "How?" question?
A) Should we produce more heavy fleece coats?
B) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines?
C) Should we build log homes or build factories from bricks?
D) Should we spend more on health care?
E) Should we eat more oatmeal?

Accepted Answer

The question in option B asks about the specific method of toll collection and is therefore a "How?" question. The other options all ask about broader decisions related to what goods or services to produce or consume.

Question 8

Which of the following is a microeconomic topic?
I.Gas prices increase after a hurricane hits the gulf coast.
II.Xavier starts a new business designing web pages.
III.Abby decides to practice an extra hour of soccer instead of studying.
A) i, ii and iii
B) i only
C) ii and iii
D) ii only
E) i and ii

Accepted Answer

The answer of Which of the following is a microeconomic...

Question 9

The question of "What goods and services get produced?" most closely relates to which of the following issues?
A) the distribution of goods and services in the economy
B) producing goods and services in the least costly manner
C) building a missile defense system, or putting a computer in every elementary school classroom
D) obtaining specialized training to increase one's income
E) taxing high income workers to give payments to poor households

Accepted Answer

The question of "What goods and services get produced?" is related to the issue of what the society collectively chooses to produce with its resources. In this case, the question refers to the choice between building a missile defense system or putting a computer in every elementary school classroom. It is a question of societal priorities and values, and requires the allocation of limited resources to different ends.

Question 10

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.
A) for whom
B) what
C) where
D) how
E) why

Accepted Answer

By computerizing production schedules, the home builder is addressing the "how" question, specifically how they will manage and execute their production schedule.

Question 11

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.
A) for whom
B) what
C) how
D) why
E) social interest vs. self-interest

Accepted Answer

The question being answered is "for whom" - as in, who is benefiting or being prioritized in the allocation of resources (in this case, salary) - given that a relatively low-skilled and non-essential athlete is being compensated more than a public servant tasked with maintaining public safety.

Question 12

Which of the following is a macroeconomic topic?
I.China increases interest rates to slow its economic growth.
II.Congress lowers tax rates to try and lower the unemployment rate.
III.Nissan decides to produce more electric Leaf models and fewer Altima sedans.
A) i and ii
B) i, ii and iii
C) iii only
D) i and iii
E) ii and iii

Accepted Answer

Macroeconomics is concerned with the behavior of the entire economy. The decision to increase interest rates and the effort to lower the unemployment rate are both macroeconomic policies. The decision of a single company, Nissan, to produce more Leaf models and fewer Altima sedans, is a microeconomic issue.

Question 13

Which of the following is a topic studied in macroeconomics?
A) The pricing decisions in the computer hardware industry
B) The effect on economic growth if the government raises taxes
C) How the wheat industry determines how much wheat to grow
D) The impact of labor unions on wages
E) The impact of higher prices for gasoline on the number of SUVs people buy

Accepted Answer

Macroeconomics focuses on the broader aspects of the economy such as economic growth, inflation, and unemployment, so the impact of government policy on economic growth would be a topic studied in macroeconomics.

Question 14

Which of the following BEST describes macroeconomics?
A) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments.
B) It studies the choices that individuals and businesses make when coping with scarcity.
C) It examines how the choices that individuals affect governments.
D) It is not a social science because its predictions cannot be tested.
E) Proving causation is never a problem for macroeconomics.

Accepted Answer

Macroeconomics is the branch of economics that studies the aggregate behavior of the whole economy, including issues such as inflation, unemployment, and economic growth. It analyzes the effects of the choices made by individuals, firms, and governments on the overall economy.

Question 15

Macroeconomics is the study of
A) the actions of individual consumers.
B) national or global economies.
C) the actions of individual businesses.
D) the government.
E) how ceteris paribus affects causation.

Accepted Answer

Macroeconomics focuses on the analysis of large-scale economic systems such as national or global economies and the interactions between different economic factors. It looks at trends and patterns that affect entire industries and societies rather than individual consumers, businesses or government actions.

Question 16

The question of "How are goods and services produced?" most closely addresses which of the following issues?
A) Should Ford build SUVs or luxury cars?
B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs?
C) Should contractors building residential housing or shopping malls?
D) Is income distributed fairly in the United States?
E) Why are Christmas trees popular only in December?

Accepted Answer

The question of how goods and services are produced deals with the methods and resources used to create products and services. Choosing between expensive industrial robots and inexpensive Mexican autoworkers is an example of decision-making regarding production methods.

Question 17

When you make the decision to spend your time attending class,which economic question are you answering?
A) What?
B) How?
C) For whom?
D) Why?
E) Social interest

Accepted Answer

The question is about the decision to spend time attending class, which is a decision about how to allocate scarce resources (time). The economic question of "What?" is about the goods and services that are produced.

Question 18

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?
A) What?
B) How?
C) For whom?
D) Why?
E) Where?

Accepted Answer

The economic question that asks "for whom?" is concerned with the distribution of goods and services among different individuals and groups in society. This is affected by the incomes that people earn, as well as the prices they pay for goods and services, since these factors determine who has the ability and willingness to buy certain products or services.

Question 19

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.
A) what
B) for whom
C) how
D) why
E) when

Accepted Answer

The question of how the power company will bury its lines is directly answered by the decision to use manpower.

Question 20

Of the three major economic questions,which of the following is the best example of a "What?" question?
A) Should automobiles be produced using workers or robots?
B) Should higher-income or lower-income people buy SUVs?
C) Should we make faster microprocessors or pest-resistant corn?
D) Should migrant workers or domestic workers be used to pick grapes?
E) What should doctors be paid?

Accepted Answer

The "What?" question in economics refers to determining which goods and services should be produced. Option C directly addresses the decision of what products to make, specifically choosing between faster microprocessors or pest-resistant corn.

Quiz 1: Getting Started

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.

When Delta decides to quit flying to Lithuania,it directly answers the ________ question.

When Fresh Express Salads decides to mechanically pick all of its lettuce,it directly answers the ________ question.

Which of the following is a macroeconomic issue?

Which of the following is a macroeconomic topic?

Of the three major economic questions,which of the following is the best example of a "How?" question?

Which of the following is a microeconomic topic? I.Gas prices increase after a hurricane hits the gulf coast. II.Xavier starts a new business designing web pages. III.Abby decides to practice an extra hour of soccer instead of studying.

The question of "What goods and services get produced?" most closely relates to which of the following issues?

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

Which of the following is a macroeconomic topic? I.China increases interest rates to slow its economic growth. II.Congress lowers tax rates to try and lower the unemployment rate. III.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Which of the following is a topic studied in macroeconomics?

Which of the following BEST describes macroeconomics?

Macroeconomics is the study of

The question of "How are goods and services produced?" most closely addresses which of the following issues?

When you make the decision to spend your time attending class,which economic question are you answering?

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

Of the three major economic questions,which of the following is the best example of a "What?" question?