Question 1

Of the following examples,which would most likely be performed by an economist working for American Airlines?

Accepted Answer

An economist working for American Airlines would most likely analyze data related to passenger air traffic in various regions, including China, to understand market trends and make informed business decisions. The other choices are not directly related to the airline industry or the specific responsibilities of an economist at American Airlines.

Question 2

Which of the following statements is true about revenue?

Accepted Answer

Revenue refers to the total amount of money received by a company for selling its goods or services. It does not involve any calculation based on the number of units sold or the price per unit. Profit, on the other hand, refers to the amount of money earned after deducting all the relevant expenses from the revenue. Therefore, revenue and profit are two different concepts and can't be used interchangeably. Lastly, a company's revenue may or may not increase with a rise in its costs, as it largely depends on market conditions and pricing strategy.

Question 3

Which of the following can use economic principles to improve how they make important decisions?

Accepted Answer

All individuals, managers in businesses, and government policymakers can use economic principles to make important decisions. Economic principles can help individuals make decisions about their personal finances, such as how much to save or invest. Business managers can use economic principles to make decisions about production levels, pricing, and hiring. Government policymakers can use economic principles to design policies related to taxes, public goods, and regulations.

Question 4

Examining the conditions that could lead to economic growth is an example of a macroeconomic topic.

Accepted Answer

Macroeconomics deals with the overall performance and behavior of the economy, including economic growth.

Question 5

The decisions General Motors makes in determining production levels for its Chevy Volt is an example of a microeconomic topic.

Accepted Answer

Microeconomics deals with the individual economic agents like consumers, producers, and markets. General Motors is a producer and its decision regarding the production level of Chevy Volt comes under microeconomic topics.

Question 6

A primary role of ________ is to describe how choices are made,analyze the results of those choices,and advise on how better decisions can be made.

Accepted Answer

Economists are trained to analyze various factors such as costs, benefits, incentives, and trade-offs in decision-making processes. They use economic principles and data to evaluate different alternatives and advise individuals, firms, and governments on how to make better choices. Government policymakers may also play a role in decision-making, but their focus is primarily on implementing policy rather than analyzing the economic consequences of various options. A market economy is a system where buyers and sellers interact to determine prices and quantities, rather than being a group responsible for analyzing decision-making processes. Marginal analysis is a tool that economists use to evaluate the trade-offs between additional benefits and additional costs, but it is not a primary role.

Question 7

More chief executive officers of Fortune 500 companies majored in economics than in any other subject.

Accepted Answer

According to a study by LinkedIn in 2017, 20% of CEOs in Fortune 500 companies had majored in economics, more than any other subject.

Question 8

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomic topic.

Accepted Answer

This is an example of a microeconomic topic because it deals with specific issues and decisions made at individual or organizational levels, such as organ swapping and its impact on supply and demand within the healthcare sector.

Question 9

Human capital refers to

Accepted Answer

Human capital refers to the accumulated knowledge, skills, and abilities that individuals possess, which enable them to perform effectively in a job or occupation. It is not about the money or wealth that people have or the machines they work with.

Question 10

Define macroeconomics.

Accepted Answer

The answer of Define macroeconomics....

Question 11

Of the following examples,which would most likely be performed by an economist working for the Federal Reserve Bank of San Francisco?

Accepted Answer

Forecasting production trends in a specific region falls under the purview of regional economics, which is likely an area of focus for economists working at a branch of the Federal Reserve Bank. The other options involve analyzing data related to other countries or policy areas that are not typically within the jurisdiction of a regional Federal Reserve Bank.

Question 12

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics?
a.college tuition rates
b.farm subsidies
c.national income
d.automobile prices
e.air traffic congestion
f.economic recession

Accepted Answer

The answer of Which of the following are primarily macroeconomic...

Question 13

How does the study of microeconomics differ from that of macroeconomics? Give one example each of an issue studied in microeconomics and in macroeconomics.

Accepted Answer

The answer of How does the study of microeconomics differ...

Question 14

Which of the following is a macroeconomic question?

Accepted Answer

Determining the minimum wage is a macroeconomic question because it involves government policy and its impact on the economy as a whole, affecting employment levels, inflation, and overall economic growth.

Question 15

Very few businesses,and virtually no nonprofit organizations,hire economists.

Accepted Answer

While it is true that economists are more commonly hired by businesses, many nonprofit organizations such as think tanks, research institutes, and advocacy groups also hire economists to conduct research, analyze data, and provide policy recommendations.

Question 16

Which of the following is an example of an activity undertaken by an entrepreneur?

Accepted Answer

Starting a snow cone business involves taking initiative, assuming financial risk, and creating a new venture - all key characteristics of entrepreneurship. Choices A, B, and C involve personal or professional development but do not necessarily involve entrepreneurship.

Question 17

The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called

Accepted Answer

The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called macroeconomics. Option A (public economics) is a sub-field of microeconomics that deals with government spending, taxation, and provision of public goods. Option B (microeconomics) is the branch of economics that studies the behavior of individual agents, such as households, firms, and consumers. Option D (normative economics) is a branch of economics that deals with value judgments and determining how things ought to be rather than how they are.

Question 18

Which of the following is a microeconomic question?

Accepted Answer

The question about how Fiat decides on the price of a specific model is a microeconomic question as it pertains to the decision-making process of a specific firm in the market. The other options are macroeconomic questions as they deal with government policy and international trade.

Question 19

When Dr.Goldfinger decides on the companies in which he will invest,a ________ issue is being addressed.

Accepted Answer

Dr. Goldfinger is making decisions about individual companies, which falls under the realm of microeconomic analysis. This involves looking at the specific factors that affect a company's performance, such as its market position, financial statements, and management team. Macroecomics, on the other hand, looks at the overall economic conditions of an entire country or region. Positive economics is concerned with describing how the economy actually operates, while normative economics deals with questions of value and ethics in economic decision-making.

Question 20

Examining the conditions that could lead to inflation in an economy is an example of a microeconomic topic.

Accepted Answer

Examining the conditions that could lead to inflation in an economy is an example of a macroeconomic topic, as it involves analyzing the overall performance and behavior of the economy as a whole rather than individual consumers or firms.

Quiz 1: Economics: Foundations and Models