Question 1

The two most important actors of the economy are:

Accepted Answer

A)   land and capital.
B)   households and firms.
C)   firms and capital.
D)   exports and imports.E) None of the above
F) C) and D)

Question 2

A car dealer advertises free satellite radio for one year with the purchase of a new car. This is an example of:

Accepted Answer

A)   bait and switch.
B)   marginal sales.
C)   an incentive.
D)   voluntary exchange.E) A) and C)
F) A) and B)

Question 3

When the unemployment rate rises, college enrollment increases because workers seek to expand training. This is an example of:

Accepted Answer

A)   correlation and causation.
B)   a negative correlation.
C)   normative economics.
D)   macroeconomics.E) A) and B)
F) All of the above

Exam 1: Economics and Life

When the unemployment rate rises, college enrollment increases because workers seek to expand training. This is an example of: