Question 1

A tractor is an example of which of the following factors of production?

Accepted Answer

A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy 
A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy A

Question 2

Use the figure below to answer the following questions.
   Figure 1A.3.3
-Figure 1A.3.3 illustrates two variables,x and y,which are

Accepted Answer

A) negatively related,with a decreasing slope as x increases. 
B) negatively related,with an increasing slope as x increases. 
C) positively related,with a decreasing slope as x increases. 
D) positively related,with an increasing slope as x increases. 
E) positively related,with slope first increasing then decreasing. 
A) negatively related,with a decreasing slope as x increases. 
B) negatively related,with an increasing slope as x increases. 
C) positively related,with a decreasing slope as x increases. 
D) positively related,with an increasing slope as x increases. 
E) positively related,with slope first increasing then decreasing. C

Question 3

Self-interest choices are

Accepted Answer

A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote. 
A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote. A

Question 4

Use the table below to answer the following questions.
Table 1A.4.2
 $$\begin{array} { c c c } 
\hline\begin{array} { c } 
\text { Family income } \
\text { (dollars per week) }
\end{array} & \begin{array} { c } 
\text { Price of strawberries } \
\text { (dollars per box) }
\end{array} & \begin{array} { c } 
\text { Number of boxes } \
\text { purchased per week }
\end{array} \
\hline 300 & 1.00 & 5 \
300 & 1.25 & 3 \
300 & 1.50 & 2 \
400 & 1.00 & 7 \
400 & 1.25 & 5 \
400 & 1.50 & 4\\hline
\end{array}$$
-Given the data in Table 1A.4.2,holding income constant,the graph relating the price of strawberries,measured on the y-axis and the purchases of strawberries,measured on the x-axis

Accepted Answer

A) is a vertical line. 
B) is a horizontal line. 
C) is a positively sloped line. 
D) is a negatively sloped line. 
E) reaches a minimum. 
A) is a vertical line. 
B) is a horizontal line. 
C) is a positively sloped line. 
D) is a negatively sloped line. 
E) reaches a minimum.

Question 5

Two variables are negatively related if

Accepted Answer

A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) both variables are less than zero. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other. 
A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) both variables are less than zero. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other.

Question 6

The slope of a straight line

Accepted Answer

A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope. 
A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope.

Question 7

Use the figure below to answer the following questions.
   Figure 1A.3.4
-Refer to Figure 1A.3.4.In Figure 1A.3.4,the slope at point B

Accepted Answer

A) lies between -2/3 and -1. 
B) lies between -3/4 and -3/2. 
C) lies between -2/3 and -4/3. 
D) lies between 1 and 3/2. 
E) is greater than 3/2. 
A) lies between -2/3 and -1. 
B) lies between -3/4 and -3/2. 
C) lies between -2/3 and -4/3. 
D) lies between 1 and 3/2. 
E) is greater than 3/2.

Question 8

Which one of the following is an example of capital?

Accepted Answer

A) money 
B) a carpenter 
C) pasture 
D) a bread-slicing machine 
E) a university professor 
A) money 
B) a carpenter 
C) pasture 
D) a bread-slicing machine 
E) a university professor

Question 9

Which of the following is not a factor of production?

Accepted Answer

A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat 
A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat

Question 10

Which one of the following is an example of land?

Accepted Answer

A) Bono's singing voice 
B) a computer program 
C) Lake Erie 
D) a road 
E) a dam 
A) Bono's singing voice 
B) a computer program 
C) Lake Erie 
D) a road 
E) a dam

Question 11

Use the figure below to answer the following question.
   Figure 1A.2.1
-In Figure 1A.2.1,the value of y is 5 when x is

Accepted Answer

A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8. 
A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8.

Question 12

Consider graph (a)of Figure 1A.1.5.Which one of the following statements is true?

Accepted Answer

A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) both A and D are correct. 
A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) both A and D are correct.

Question 13

Which of the following relates factors of production to the sources of income correctly?

Accepted Answer

A) Land earns interest. 
B) Land earns rent. 
C) Labour earns rent. 
D) Capital earns profit. 
E) Entrepreneurship earns rent. 
A) Land earns interest. 
B) Land earns rent. 
C) Labour earns rent. 
D) Capital earns profit. 
E) Entrepreneurship earns rent.

Question 14

Statements about "what is" are called

Accepted Answer

A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses. 
A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses.

Question 15

Consider graph (b)of Figure 1A.1.5.Which one of the following statements is true?

Accepted Answer

A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) both A and D are correct. 
A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) both A and D are correct.

Question 16

Which statement about incomes earned by factors of production is false?

Accepted Answer

A) Land earns rent. 
B) Natural resources earn rent. 
C) Labour earns wages. 
D) Capital earns profit. 
E) Entrepreneurship earns profit. 
A) Land earns rent. 
B) Natural resources earn rent. 
C) Labour earns wages. 
D) Capital earns profit. 
E) Entrepreneurship earns profit.

Question 17

A positive statement is

Accepted Answer

A) always true. 
B) always false. 
C) about what ought to be. 
D) what is currently believed about the way the world operates. 
E) an opinion that cannot be verified. 
A) always true. 
B) always false. 
C) about what ought to be. 
D) what is currently believed about the way the world operates. 
E) an opinion that cannot be verified.

Question 18

Use the figure below to answer the following question.
   Figure 1A.4.4
-Consider the following information on cola sales by number of cases for a typical university residence floor: Temp.Price (dollars per case)
(°C)10.00 12.50 15.00 17.50
15 50 40 30 20
20 60 50 40 30
25 70 60 50 40
30 80 70 60 50
35 90 80 70 60
Cola sales and temperature are

Accepted Answer

A) inversely related. 
B) positively related. 
C) not affected by the price. 
D) unrelated. 
E) negatively related at low prices,but positively related at high prices. 
A) inversely related. 
B) positively related. 
C) not affected by the price. 
D) unrelated. 
E) negatively related at low prices,but positively related at high prices.

Question 19

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

Accepted Answer

A) "who" 
B) "how" 
C) "what" 
D) "where" 
E) "when" 
A) "who" 
B) "how" 
C) "what" 
D) "where" 
E) "when"

Question 20

The two big economic questions include all of the following except

Accepted Answer

A) what to produce. 
B) why to produce. 
C) how to produce. 
D) for whom to produce. 
E) can choices made in the pursuit of self-interest also promote the social interest. 
A) what to produce. 
B) why to produce. 
C) how to produce. 
D) for whom to produce. 
E) can choices made in the pursuit of self-interest also promote the social interest.

A tractor is an example of which of the following factors of production?

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables,x and y,which are

Self-interest choices are

Two variables are negatively related if

The slope of a straight line

Use the figure below to answer the following questions. Figure 1A.3.4 -Refer to Figure 1A.3.4.In Figure 1A.3.4,the slope at point B

Which one of the following is an example of capital?

Which of the following is not a factor of production?

Which one of the following is an example of land?

Use the figure below to answer the following question. Figure 1A.2.1 -In Figure 1A.2.1,the value of y is 5 when x is

Consider graph (a)of Figure 1A.1.5.Which one of the following statements is true?

Which of the following relates factors of production to the sources of income correctly?

Statements about "what is" are called

Consider graph (b)of Figure 1A.1.5.Which one of the following statements is true?

Which statement about incomes earned by factors of production is false?

A positive statement is

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

The two big economic questions include all of the following except

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities,preferences,and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: What Is Economics

A tractor is an example of which of the following factors of production?

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables,x and y,which are

Self-interest choices are

Two variables are negatively related if

The slope of a straight line

Use the figure below to answer the following questions. Figure 1A.3.4 -Refer to Figure 1A.3.4.In Figure 1A.3.4,the slope at point B

Which one of the following is an example of capital?

Which of the following is not a factor of production?

Which one of the following is an example of land?

Use the figure below to answer the following question. Figure 1A.2.1 -In Figure 1A.2.1,the value of y is 5 when x is

Consider graph (a)of Figure 1A.1.5.Which one of the following statements is true?

Which of the following relates factors of production to the sources of income correctly?

Statements about "what is" are called

Consider graph (b)of Figure 1A.1.5.Which one of the following statements is true?

Which statement about incomes earned by factors of production is false?

A positive statement is

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

The two big economic questions include all of the following except

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities,preferences,and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters