Question 1

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 of whether to collect tolls using human toll collectors or mechanized toll machines is a "How?" question because it is asking about the best method for achieving a specific economic goal (collecting tolls). The other options are either "What?" questions (asking about what goods or services should be produced) or "Should?" questions (asking about whether or not to allocate resources toward a specific goal).

Question 2

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 asks about how the power company will bury its lines. The decision to use manpower directly answers this question.

Question 3

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 allocation of resources and prioritizing which goods and services to produce. Building a missile defense system or putting a computer in every elementary school classroom are examples of this issue.

Question 4

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

The decision to computerize the production schedule is related to the "how" question, which asks how the home builder will carry out its production process. The use of a computer system will affect the methods and processes used in the production schedule, making it the best answer.

Question 5

The question "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 build 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 "How are goods and services produced?" is related to the method of production, which is the focus of option B. The other options deal with different issues such as product selection, labor choice, income distribution, and consumer preferences, which are not directly related to the production process.

Question 6

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 of for whom is being answered as the federal government is making a decision regarding how much to pay senators and soldiers, and it has decided to prioritize paying senators more.

Question 7

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

Only choices i and ii are macroeconomic topics. Choice iii is a microeconomic topic as it pertains to the production decisions of a single company, Nissan. Macroeconomics deals with the overall functioning of an economy at a national or global level and includes topics such as inflation, interest rates, and unemployment rates.

Question 8

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 9

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)Is this in the social interest?

Accepted Answer

By choosing to attend class, you are deciding on "What" to do with your time, addressing the economic question of allocation of resources (in this case, time).

Question 10

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 question "For whom?" deals with the distribution of goods and services, which is affected by people's incomes and the prices they pay. It considers who gets access to the goods and services produced and in what quantities.

Question 11

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 study of national or global economies as a whole, including measuring and analyzing various economic indicators such as GDP, unemployment, inflation, and interest rates. It also examines the relationships between different economic sectors and explores policies that affect the overall performance of the economy.

Question 12

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 13

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 rather than a specific business or industry. The other options are either specific to a particular company or industry or are microeconomic issues.

Question 14

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 agricultural areas on the price and quantity of wheat

Accepted Answer

The expansion of production and jobs is a macroeconomic topic, as it relates to the overall performance of the economy as a whole rather than a specific individual or company.

Question 15

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 16

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

By deciding to mechanically pick all lettuce, Fresh Express Salads is answering the "how" question of the production process, as it specifies the method of harvesting the lettuce.

Question 17

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 deals with the overall performance, structure, and behavior of the economy as a whole. It focuses on the aggregate effects of individual choices made by households, firms, and governments on the national economy.

Question 18

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 19

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 studies the overall performance and behavior of the economy, which includes topics such as economic growth, inflation, unemployment, and government policies that affect the economy. The impact on economic growth if the government raises taxes is a topic that is studied in macroeconomics. Options A, C, D, and E are more specific microeconomic topics.

Question 20

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 answer of Which of the following is the best...

Quiz 1: Getting Started

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

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

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.

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

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

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

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?

Macroeconomics is the study of

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.

Which of the following is a macroeconomic issue?

Which of the following is a macroeconomic topic?

When Ford decides to increase production of hybrid cars,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 BEST describes macroeconomics?

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

Which of the following is a topic studied in macroeconomics?

Which of the following is the best example of a "What?" question?