macro econ
Macroeconomics Exam 1
Instructor:
Prof. Phelps
Name:
Results:
Class:
Period:
Date:
Read each question carefully then circle the correct answer. When you are finished transfer the answers to the Scantron sheet. Make sure that you enter your name on both the exam and the scantron sheet. You have 1 hour to complete the exam.
1. For economists, the word "utility" means:
a) versatility and flexibility.
b) rationality.
c) pleasure or satisfaction.**
d) purposefulness.
2. When economists say that people act rationally in their self interest, they mean that individuals:
a) look for and pursue opportunities to increase their utility.**
b) generally disregard the interests of others.
c) are mainly creatures of habit.
d) are usually impulsive and unpredictable.
3. A person should consume more of something when its marginal:
a) benefit exceeds its marginal cost.**
b) cost exceeds its marginal benefit.
c) cost equals its marginal benefit.
d) benefit is still positive.
4. Microeconomics is concerned with:
a) the aggregate or total levels of income, employment, and output.
b) a detailed examination of specific economic units that make up the economic system.**
c) positive economics, but not normative economics.
d) the establishing of an overall view of the operation of the economic system.
5. Any combination of goods lying outside of the budget line:
a) implies that the consumer is not spending all his income.
b) yields less utility than any point on the budget line.
c) yields less utility than any point inside the budget line.
d) is unattainable, given the consumer's income.***
6. In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of:
a) scarcity and opportunity costs.**8
b) money and real capital.
c) complementary economic goals.
d) full production.
7. Suppose that a consumer purchases just two goods, good X and good Y. The ratio of the price
Instructor:
Prof. Phelps
Name:
Results:
Class:
Period:
Date:
Read each question carefully then circle the correct answer. When you are finished transfer the answers to the Scantron sheet. Make sure that you enter your name on both the exam and the scantron sheet. You have 1 hour to complete the exam.
1. For economists, the word "utility" means:
a) versatility and flexibility.
b) rationality.
c) pleasure or satisfaction.**
d) purposefulness.
2. When economists say that people act rationally in their self interest, they mean that individuals:
a) look for and pursue opportunities to increase their utility.**
b) generally disregard the interests of others.
c) are mainly creatures of habit.
d) are usually impulsive and unpredictable.
3. A person should consume more of something when its marginal:
a) benefit exceeds its marginal cost.**
b) cost exceeds its marginal benefit.
c) cost equals its marginal benefit.
d) benefit is still positive.
4. Microeconomics is concerned with:
a) the aggregate or total levels of income, employment, and output.
b) a detailed examination of specific economic units that make up the economic system.**
c) positive economics, but not normative economics.
d) the establishing of an overall view of the operation of the economic system.
5. Any combination of goods lying outside of the budget line:
a) implies that the consumer is not spending all his income.
b) yields less utility than any point on the budget line.
c) yields less utility than any point inside the budget line.
d) is unattainable, given the consumer's income.***
6. In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of:
a) scarcity and opportunity costs.**8
b) money and real capital.
c) complementary economic goals.
d) full production.
7. Suppose that a consumer purchases just two goods, good X and good Y. The ratio of the price