Question 1

Which of the following is a macroeconomic issue?

Accepted Answer

A) The number of jobs and production in Zimbabwe increase. 
B) Utilities are required to install more anti-pollution devices. 
C) The price of a ticket to Walt Disney World in Orlando is increased. 
D) The Iowa corn harvest is smaller than normal. 
E) The National Football League signs a new television contract. 
A) The number of jobs and production in Zimbabwe increase. 
B) Utilities are required to install more anti-pollution devices. 
C) The price of a ticket to Walt Disney World in Orlando is increased. 
D) The Iowa corn harvest is smaller than normal. 
E) The National Football League signs a new television contract. A

Question 2

If a decision is made and it is the best choice for society, the decision is said to be

Accepted Answer

A) made in social interest. 
B) made in self-interest. 
C) a valid economic choice. 
D) a want-maximizing choice. 
E) consist with scarcity. 
A) made in social interest. 
B) made in self-interest. 
C) a valid economic choice. 
D) a want-maximizing choice. 
E) consist with scarcity. A

Question 3

A graph shows the average wage of various demographic groups in 2012. The kind of graph used to show these data would be a

Accepted Answer

A) fixed-year figure. 
B) scatter diagram. 
C) Venn diagram. 
D) time-series graph. 
E) cross-section graph. 
A) fixed-year figure. 
B) scatter diagram. 
C) Venn diagram. 
D) time-series graph. 
E) cross-section graph. E

Question 4

A rational choice is one that

Accepted Answer

A) always turns out for the best for the decision maker. 
B) creates no costs for the decision maker. 
C) uses the available resources to most effectively satisfy the wants of the person making the choice. 
D) must be made with perfect information. 
E) is made in the social interest rather than the self-interest. 
A) always turns out for the best for the decision maker. 
B) creates no costs for the decision maker. 
C) uses the available resources to most effectively satisfy the wants of the person making the choice. 
D) must be made with perfect information. 
E) is made in the social interest rather than the self-interest.

Question 5

A cross-section graph

Accepted Answer

A) is divided into different sections. 
B) measures time on the x-axis and the variable in which we are interested on the y-axis. 
C) shows values of an economic variable for different groups in a population at a point in time. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct. 
A) is divided into different sections. 
B) measures time on the x-axis and the variable in which we are interested on the y-axis. 
C) shows values of an economic variable for different groups in a population at a point in time. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct.

Question 6

In the above, in which figure(s)is the slope the same at every point?

Accepted Answer

A) Figures A and C 
B) Figure A only 
C) Figure B only 
D) Figures A, C, and D 
E) Figures C and D 
A) Figures A and C 
B) Figure A only 
C) Figure B only 
D) Figures A, C, and D 
E) Figures C and D

Question 7

A time series graph

Accepted Answer

A) is similar to a cross-section graph because both can show trends over time. 
B) shows points in a scatter diagram. 
C) shows how a variable changes over time. 
D) uses bars rather than lines. 
E) is in the shape of a pie. 
A) is similar to a cross-section graph because both can show trends over time. 
B) shows points in a scatter diagram. 
C) shows how a variable changes over time. 
D) uses bars rather than lines. 
E) is in the shape of a pie.

Question 8

The figure above shows the relationship between study time and the number of problems worked. The curve becomes less steep because as you study more,

Accepted Answer

A) study time becomes more effective. 
B) the relationship between study time and the number of problems worked changes from direct to inverse. 
C) study time becomes less effective. 
D) the number of problems worked decreases. 
E) the number of problems worked increases. 
A) study time becomes more effective. 
B) the relationship between study time and the number of problems worked changes from direct to inverse. 
C) study time becomes less effective. 
D) the number of problems worked decreases. 
E) the number of problems worked increases.

Question 9

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

Accepted Answer

A) Should higher-income or lower-income people buy SUVs? 
B) Should automobiles be produced using workers or robots? 
C) What should doctors be paid? 
D) Should we make faster microprocessors or pest-resistant corn? 
E) Should migrant workers or domestic workers be used to pick grapes? 
A) Should higher-income or lower-income people buy SUVs? 
B) Should automobiles be produced using workers or robots? 
C) What should doctors be paid? 
D) Should we make faster microprocessors or pest-resistant corn? 
E) Should migrant workers or domestic workers be used to pick grapes?

Question 10

Economists measure opportunity cost

Accepted Answer

A) as the sum of all forgone opportunities. 
B) only when it is on the margin. 
C) as equal to the sum of all the sunk costs. 
D) as the best thing given up. 
E) as the same as marginal benefit. 
A) as the sum of all forgone opportunities. 
B) only when it is on the margin. 
C) as equal to the sum of all the sunk costs. 
D) as the best thing given up. 
E) as the same as marginal benefit.

Question 11

Increasing income tax rates will solve the "social security time bomb issue" is an example of

Accepted Answer

A) a positive economic statement. 
B) business economic policy. 
C) globalization. 
D) answering the "how" question. 
E) marginal cost exceeding marginal benefit. 
A) a positive economic statement. 
B) business economic policy. 
C) globalization. 
D) answering the "how" question. 
E) marginal cost exceeding marginal benefit.

Question 12

Correlation means

Accepted Answer

A) other things remaining the same. 
B) "on the margin." 
C) a natural experiment has been conducted. 
D) the tendency for the values of two variables to move in a predictable and related way. 
E) "after this, therefore because of this." 
A) other things remaining the same. 
B) "on the margin." 
C) a natural experiment has been conducted. 
D) the tendency for the values of two variables to move in a predictable and related way. 
E) "after this, therefore because of this."

Question 13

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?

Accepted Answer

A) Going out to eat, playing football, and watching TV are all called sunk costs. 
B) The students made a rational choice as long as they face no scarcity. 
C) The marginal cost of the decision is the same if they make the same score on the exam. 
D) The benefit the three students receive must be the same because they all make the same choice. 
E) The students could each have different opportunity costs. 
A) Going out to eat, playing football, and watching TV are all called sunk costs. 
B) The students made a rational choice as long as they face no scarcity. 
C) The marginal cost of the decision is the same if they make the same score on the exam. 
D) The benefit the three students receive must be the same because they all make the same choice. 
E) The students could each have different opportunity costs.

Question 14

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

Accepted Answer

A) a rational choice. 
B) an incentive to attend the review session. 
C) a decrease in marginal benefit to attend the review session. 
D) an increase in marginal cost to attend the review session. 
E) None of the above answers are correct. 
A) a rational choice. 
B) an incentive to attend the review session. 
C) a decrease in marginal benefit to attend the review session. 
D) an increase in marginal cost to attend the review session. 
E) None of the above answers are correct.

Question 15

Which of the following statements is correct?

Accepted Answer

A) When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B) If two variables are directly related, a graph of the two variables has a negative slope. 
C) When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
D) The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related. 
E) None of the above statements are correct. 
A) When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B) If two variables are directly related, a graph of the two variables has a negative slope. 
C) When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
D) The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related. 
E) None of the above statements are correct.

Question 16

Suppose the relationship between a person's age and his or her height is plotted with the age measured along the x-axis and the height measured along the y-axis. Then, the curve showing this relationship is

Accepted Answer

A) a straight line with a positive slope. 
B) negatively sloped and becoming less steep. 
C) positively sloped and becoming less steep. 
D) a straight line with a negative slope. 
E) positively sloped and becoming more steep. 
A) a straight line with a positive slope. 
B) negatively sloped and becoming less steep. 
C) positively sloped and becoming less steep. 
D) a straight line with a negative slope. 
E) positively sloped and becoming more steep.

Question 17

The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,

Accepted Answer

A) the cost per mile decreases. 
B) the cost per mile increases. 
C) the cost per mile remains unchanged. 
D) the fall in the cost per mile becomes smaller. 
E) the fall in the cost per mile becomes greater. 
A) the cost per mile decreases. 
B) the cost per mile increases. 
C) the cost per mile remains unchanged. 
D) the fall in the cost per mile becomes smaller. 
E) the fall in the cost per mile becomes greater.

Question 18

What is the slope of the line in the figure above?

Accepted Answer

A) 0.75 
B) 1.33 
C) -0.75 
D) Zero 
E) -1.33 
A) 0.75 
B) 1.33 
C) -0.75 
D) Zero 
E) -1.33

Question 19

You have data for sales of pizza for each of the 50 states in 2011. The type of graph to best display these data would be a

Accepted Answer

A) multi-variable time-series graph. 
B) cross-section graph. 
C) trend-line diagram. 
D) time-series graph. 
E) scatter diagram. 
A) multi-variable time-series graph. 
B) cross-section graph. 
C) trend-line diagram. 
D) time-series graph. 
E) scatter diagram.

Question 20

Scarcity

Accepted Answer

A) applies only to people living in poverty. 
B) is not something that affects very rich people. 
C) is the inability to satisfy all our wants. 
D) used to exist everywhere but has been eliminated in advanced economies. 
E) leads to higher prices. 
A) applies only to people living in poverty. 
B) is not something that affects very rich people. 
C) is the inability to satisfy all our wants. 
D) used to exist everywhere but has been eliminated in advanced economies. 
E) leads to higher prices.

Which of the following is a macroeconomic issue?

If a decision is made and it is the best choice for society, the decision is said to be

A graph shows the average wage of various demographic groups in 2012. The kind of graph used to show these data would be a

A rational choice is one that

A cross-section graph

In the above, in which figure(s)is the slope the same at every point?

A time series graph

The figure above shows the relationship between study time and the number of problems worked. The curve becomes less steep because as you study more,

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

Economists measure opportunity cost

Increasing income tax rates will solve the "social security time bomb issue" is an example of

Correlation means

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

Which of the following statements is correct?

Suppose the relationship between a person's age and his or her height is plotted with the age measured along the x-axis and the height measured along the y-axis. Then, the curve showing this relationship is

The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,

What is the slope of the line in the figure above?

You have data for sales of pizza for each of the 50 states in 2011. The type of graph to best display these data would be a

Scarcity

The Us and Global Economies

The Economic Problem

Demand and Supply

GDP: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply Ad Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 1: Getting Started

Which of the following is a macroeconomic issue?

If a decision is made and it is the best choice for society, the decision is said to be

A graph shows the average wage of various demographic groups in 2012. The kind of graph used to show these data would be a

A rational choice is one that

A cross-section graph

In the above, in which figure(s)is the slope the same at every point?

A time series graph

The figure above shows the relationship between study time and the number of problems worked. The curve becomes less steep because as you study more,

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

Economists measure opportunity cost

Increasing income tax rates will solve the "social security time bomb issue" is an example of

Correlation means

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

Which of the following statements is correct?

Suppose the relationship between a person's age and his or her height is plotted with the age measured along the x-axis and the height measured along the y-axis. Then, the curve showing this relationship is

The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,

What is the slope of the line in the figure above?

You have data for sales of pizza for each of the 50 states in 2011. The type of graph to best display these data would be a

Scarcity

The Us and Global Economies

The Economic Problem

Demand and Supply

GDP: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply Ad Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters