Question 1

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Accepted Answer

A) as a trend. 
B) by a cross-section graph. 
C) by a scatter diagram. 
D) by a trend-section graph. 
E) by a time-series graph. 
A) as a trend. 
B) by a cross-section graph. 
C) by a scatter diagram. 
D) by a trend-section graph. 
E) by a time-series graph.

Question 2

As a curve approaches a maximum point, the slope will

Accepted Answer

A) decrease before and after the maximum point. 
B) increase before and after the maximum point. 
C) remain constant on either side of the maximum point. 
D) be negative and then positive after the maximum point. 
E) be positive and then negative after the maximum point. 
A) decrease before and after the maximum point. 
B) increase before and after the maximum point. 
C) remain constant on either side of the maximum point. 
D) be negative and then positive after the maximum point. 
E) be positive and then negative after the maximum point.

Question 3

Macroeconomics is the study of

Accepted Answer

A) national or global economies. 
B) how ceteris paribus affects causation. 
C) the actions of individual consumers. 
D) the government. 
E) the actions of individual businesses. 
A) national or global economies. 
B) how ceteris paribus affects causation. 
C) the actions of individual consumers. 
D) the government. 
E) the actions of individual businesses.

Question 4

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

Accepted Answer

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

Question 5

A slope is measured as the

Accepted Answer

A) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
B) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis. 
A) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
B) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis.

Question 6

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

Accepted Answer

A) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
B) Should Ford build SUVs or luxury cars? 
C) Should contractors building residential housing or shopping malls? 
D) Why are Christmas trees popular only in December? 
E) Is income distributed fairly in the United States? 
A) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
B) Should Ford build SUVs or luxury cars? 
C) Should contractors building residential housing or shopping malls? 
D) Why are Christmas trees popular only in December? 
E) Is income distributed fairly in the United States?

Question 7

A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls. The graph shows

Accepted Answer

A) a positive relationship. 
B) a direct relationship. 
C) an invalid relationship. 
D) no relationship. 
E) a negative relationship. 
A) a positive relationship. 
B) a direct relationship. 
C) an invalid relationship. 
D) no relationship. 
E) a negative relationship.

Question 8

A steep slope in a time series graph means the variable is

Accepted Answer

A) very close to its trend point. 
B) rising or falling slowly. 
C) rising or falling quickly. 
D) falling. 
E) high. 
A) very close to its trend point. 
B) rising or falling slowly. 
C) rising or falling quickly. 
D) falling. 
E) high.

Question 9

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

Accepted Answer

A) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
B) He loses a total of $120 per day, so his decision is irrational. 
C) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
D) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
E) Adam is definitely making a decision that is in the social interest. 
A) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
B) He loses a total of $120 per day, so his decision is irrational. 
C) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
D) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
E) Adam is definitely making a decision that is in the social interest.

Question 10

When analyzing graphically the relationship between more than two variables, which of the following must be used?

Accepted Answer

A) assumption of little change 
B) positive slope assumption 
C) negative slope assumption 
D) the assumption that only relevant factors change 
E) ceteris paribus 
A) assumption of little change 
B) positive slope assumption 
C) negative slope assumption 
D) the assumption that only relevant factors change 
E) ceteris paribus

Question 11

Which type of economic graph reveals trends in data?

Accepted Answer

A) scatter diagram 
B) time-series graph 
C) cross-section graph 
D) Answers A and C are correct. 
E) Answers A, B, and C are all correct. 
A) scatter diagram 
B) time-series graph 
C) cross-section graph 
D) Answers A and C are correct. 
E) Answers A, B, and C are all correct.

Question 12

Normative statements
I. describe how the world is.
Ii. describe how the world ought to be.
Iii. depend on people's values and cannot be tested.

Accepted Answer

A) i only. 
B) ii only. 
C) i and iii. 
D) iii only. 
E) ii and iii. 
A) i only. 
B) ii only. 
C) i and iii. 
D) iii only. 
E) ii and iii.

Question 13

Scarcity results from the fact that

Accepted Answer

A) we cannot answer the major economic questions. 
B) people's wants exceed the resources available to satisfy them. 
C) the population keeps growing. 
D) choices made in self-interest rare not always in the social interest. 
E) not all goals are desirable. 
A) we cannot answer the major economic questions. 
B) people's wants exceed the resources available to satisfy them. 
C) the population keeps growing. 
D) choices made in self-interest rare not always in the social interest. 
E) not all goals are desirable.

Question 14

People must make choices because

Accepted Answer

A) there are many goods available. 
B) the question "What goods and services are produced?" is not adequately answered. 
C) making choices is in the social interest. 
D) of scarcity. 
E) most people enjoy shopping. 
A) there are many goods available. 
B) the question "What goods and services are produced?" is not adequately answered. 
C) making choices is in the social interest. 
D) of scarcity. 
E) most people enjoy shopping.

Question 15

Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

Accepted Answer

A) all three hamburgers. 
B) the third hamburger minus the pleasure from consuming zero hamburgers. 
C) just the second hamburger. 
D) the two previous hamburgers. 
E) just the third hamburger. 
A) all three hamburgers. 
B) the third hamburger minus the pleasure from consuming zero hamburgers. 
C) just the second hamburger. 
D) the two previous hamburgers. 
E) just the third hamburger.

Question 16

A scatter diagram can be used to see

Accepted Answer

A) the value of a variable for different groups in a population. 
B) whether a variable is positively or negatively related to itself. 
C) if the value of a variable is rising or falling. 
D) how a variable behaves over time. 
E) if a relationship exists between two variables. 
A) the value of a variable for different groups in a population. 
B) whether a variable is positively or negatively related to itself. 
C) if the value of a variable is rising or falling. 
D) how a variable behaves over time. 
E) if a relationship exists between two variables.

Question 17

In the above figure, which of the figures show(s)a relationships between x and y with a positive slope?

Accepted Answer

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

Question 18

All economic questions and problems arise from

Accepted Answer

A) the fact that society has more than it needs. 
B) the unequal distribution of income. 
C) the difference between self-interest and social interest. 
D) a society's wants exceeding what its scarce resources can produce. 
E) turmoil in the stock market. 
A) the fact that society has more than it needs. 
B) the unequal distribution of income. 
C) the difference between self-interest and social interest. 
D) a society's wants exceeding what its scarce resources can produce. 
E) turmoil in the stock market.

Question 19

Which of the following is a microeconomic topic?

Accepted Answer

A) Unemployment soars as taxes increase. 
B) The government leaves interest rates unchanged as the economy improves. 
C) Northwest Airlines analyzes the benefits of adding one more flight to Salt Lake City. 
D) Germany's government increases taxes to avoid a budget deficit. 
E) Chinese economic growth slows. 
A) Unemployment soars as taxes increase. 
B) The government leaves interest rates unchanged as the economy improves. 
C) Northwest Airlines analyzes the benefits of adding one more flight to Salt Lake City. 
D) Germany's government increases taxes to avoid a budget deficit. 
E) Chinese economic growth slows.

Question 20

A statement that "All children should receive free health care" is an example of what kind of statement?

Accepted Answer

A) a positive statement 
B) a normative statement 
C) a fair statement 
D) a statement on the margin 
E) a natural experiment statement 
A) a positive statement 
B) a normative statement 
C) a fair statement 
D) a statement on the margin 
E) a natural experiment statement

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

As a curve approaches a maximum point, the slope will

Macroeconomics is the study of

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

A slope is measured as the

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

A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls. The graph shows

A steep slope in a time series graph means the variable is

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

When analyzing graphically the relationship between more than two variables, which of the following must be used?

Which type of economic graph reveals trends in data?

Normative statements I. describe how the world is. Ii. describe how the world ought to be. Iii. depend on people's values and cannot be tested.

Scarcity results from the fact that

People must make choices because

Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

A scatter diagram can be used to see

In the above figure, which of the figures show(s)a relationships between x and y with a positive slope?

All economic questions and problems arise from

Which of the following is a microeconomic topic?

A statement that "All children should receive free health care" is an example of what kind of statement?

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

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

As a curve approaches a maximum point, the slope will

Macroeconomics is the study of

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

A slope is measured as the

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

A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls. The graph shows

A steep slope in a time series graph means the variable is

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

When analyzing graphically the relationship between more than two variables, which of the following must be used?

Which type of economic graph reveals trends in data?

Normative statements I. describe how the world is. Ii. describe how the world ought to be. Iii. depend on people's values and cannot be tested.

Scarcity results from the fact that

People must make choices because

Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

A scatter diagram can be used to see

In the above figure, which of the figures show(s)a relationships between x and y with a positive slope?

All economic questions and problems arise from

Which of the following is a microeconomic topic?

A statement that "All children should receive free health care" is an example of what kind of statement?

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