Question 1

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

Accepted Answer

A) This topic would be studied in microeconomics. 
B) Ceteris paribus does not apply to the government. 
C) The federal government does not face scarcity. 
D) This is a normative statement. 
E) Social interest must always be more important than self-interest. 
A) This topic would be studied in microeconomics. 
B) Ceteris paribus does not apply to the government. 
C) The federal government does not face scarcity. 
D) This is a normative statement. 
E) Social interest must always be more important than self-interest.

Question 2

The decision to go to graduate school is a rational one for a college student if the

Accepted Answer

A) cost is not too great. 
B) marginal benefit of graduate school exceeds the marginal cost. 
C) opportunity cost of graduate school equals zero. 
D) marginal cost exceeds the marginal benefit of graduate school. 
E) student carefully compared the social benefits of this decision. 
A) cost is not too great. 
B) marginal benefit of graduate school exceeds the marginal cost. 
C) opportunity cost of graduate school equals zero. 
D) marginal cost exceeds the marginal benefit of graduate school. 
E) student carefully compared the social benefits of this decision.

Question 3

Scarcity means we must

Accepted Answer

A) work more. 
B) earn more. 
C) consume less. 
D) produce less. 
E) make choices. 
A) work more. 
B) earn more. 
C) consume less. 
D) produce less. 
E) make choices.

Question 4

A choice made by comparing all relevant alternatives systematically and incrementally is

Accepted Answer

A) a sunk cost. 
B) a choice made in the social interest. 
C) an opportunity cost. 
D) a choice on the margin. 
E) a benefit. 
A) a sunk cost. 
B) a choice made in the social interest. 
C) an opportunity cost. 
D) a choice on the margin. 
E) a benefit.

Question 5

Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is

Accepted Answer

A) the Pepsi and the bag of chips. 
B) zero because he enjoys the Mountain Dew. 
C) the Pepsi because it is a drink, as is the Mountain Dew. 
D) the Mountain Dew. 
E) the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. 
A) the Pepsi and the bag of chips. 
B) zero because he enjoys the Mountain Dew. 
C) the Pepsi because it is a drink, as is the Mountain Dew. 
D) the Mountain Dew. 
E) the Pepsi or the bag of chips, whichever the highest-valued alternative forgone.

Question 6

Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the

Accepted Answer

A) origin. 
B) variable. 
C) point of beginning. 
D) y-axis. 
E) x-axis. 
A) origin. 
B) variable. 
C) point of beginning. 
D) y-axis. 
E) x-axis.

Question 7

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points A and B is

Accepted Answer

A) 2. 
B) 20. 
C) 16. 
D) 4 
E) nonexistent because at point A, no roses are sold. 
A) 2. 
B) 20. 
C) 16. 
D) 4 
E) nonexistent because at point A, no roses are sold.

Question 8

A graph that shows the value of an economic variable for different groups in a population at a given time is called a

Accepted Answer

A) cross-section graph. 
B) pie chart. 
C) time-series graph. 
D) fixed-time diagram. 
E) scatter diagram. 
A) cross-section graph. 
B) pie chart. 
C) time-series graph. 
D) fixed-time diagram. 
E) scatter diagram.

Question 9

If a small change in the x variable results in a large change in the y variable, the curve will be

Accepted Answer

A) flat. 
B) trended. 
C) negatively sloped. 
D) positively sloped. 
E) steep. 
A) flat. 
B) trended. 
C) negatively sloped. 
D) positively sloped. 
E) steep.

Question 10

The relationship between distance traveled in five hours and speed shown in the figure above is

Accepted Answer

A) inverse. 
B) negative. 
C) multilateral. 
D) positive. 
E) cross-sectional. 
A) inverse. 
B) negative. 
C) multilateral. 
D) positive. 
E) cross-sectional.

Question 11

To economists, scarcity means that

Accepted Answer

A) a person looking for work is not able to find work. 
B) there can never be answers to the what, how or for whom questions. 
C) limited wants cannot be satisfied by the unlimited resources. 
D) the number of people without jobs rises when economic times are bad. 
E) unlimited wants cannot be satisfied by the limited resources. 
A) a person looking for work is not able to find work. 
B) there can never be answers to the what, how or for whom questions. 
C) limited wants cannot be satisfied by the unlimited resources. 
D) the number of people without jobs rises when economic times are bad. 
E) unlimited wants cannot be satisfied by the limited resources.

Question 12

A time series graph

Accepted Answer

A) is not useful if the goal is to determine a variable's trend. 
B) shows how a certain variable changes over time. 
C) uses bars rather than lines. 
D) depicts a series of good economic times a nation had. 
E) shows points that are scattered. 
A) is not useful if the goal is to determine a variable's trend. 
B) shows how a certain variable changes over time. 
C) uses bars rather than lines. 
D) depicts a series of good economic times a nation had. 
E) shows points that are scattered.

Question 13

The slope

Accepted Answer

A) equals the change in the value of the variable measured on the vertical axis divided by the change in the variable measured along the horizontal axis. 
B) of a straight line is the same regardless of where on the line it is calculated. 
C) will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D) Answers A and B are correct. 
E) Answers A and C are correct. 
A) equals the change in the value of the variable measured on the vertical axis divided by the change in the variable measured along the horizontal axis. 
B) of a straight line is the same regardless of where on the line it is calculated. 
C) will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D) Answers A and B are correct. 
E) Answers A and C are correct.

Question 14

In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,

Accepted Answer

A) the curve will shift leftward. 
B) the curve will shift rightward. 
C) the curve will be unaffected. 
D) there is a movement along the curve. 
E) None of the above answers is correct because the graph assumes that the price of pecans does not change. 
A) the curve will shift leftward. 
B) the curve will shift rightward. 
C) the curve will be unaffected. 
D) there is a movement along the curve. 
E) None of the above answers is correct because the graph assumes that the price of pecans does not change.

Question 15

To help unscramble cause and effect, economists

Accepted Answer

A) must use the ceteris paribus assumption. 
B) use the concept of opportunity costs. 
C) must use normative statements. 
D) answer the "how" question. 
E) answer the "what" question. 
A) must use the ceteris paribus assumption. 
B) use the concept of opportunity costs. 
C) must use normative statements. 
D) answer the "how" question. 
E) answer the "what" question.

Question 16

When economists use the term "correlation," they are referring to

Accepted Answer

A) normative economics. 
B) how two variables move together in a predictable way. 
C) positive economics. 
D) economic policy. 
E) cause and effect relationships between variables. 
A) normative economics. 
B) how two variables move together in a predictable way. 
C) positive economics. 
D) economic policy. 
E) cause and effect relationships between variables.

Question 17

In the figure above, an increase in z leads to a

Accepted Answer

A) leftward shift of the line showing the relationship between x and y. 
B) rightward shift of the line showing the relationship between x and y. 
C) movement down along one of the lines showing the relationship between x and y. 
D) movement up along one of the lines showing the relationship between x and y. 
E) trend change in both x and y. 
A) leftward shift of the line showing the relationship between x and y. 
B) rightward shift of the line showing the relationship between x and y. 
C) movement down along one of the lines showing the relationship between x and y. 
D) movement up along one of the lines showing the relationship between x and y. 
E) trend change in both x and y.

Question 18

When unskilled teens earn less than college graduates, society answers the-------------------- question.

Accepted Answer

A) why 
B) social interest versus self-interest 
C) for whom 
D) what 
E) how 
A) why 
B) social interest versus self-interest 
C) for whom 
D) what 
E) how

Question 19

If the change in y = 10 and the change in x = 3, there is

Accepted Answer

A) a negative relationship between y and x. 
B) a positive relationship between y and x. 
C) a +0.33 relationship between the two variables. 
D) no relationship between y and x. 
E) an independent relationship between y and x. 
A) a negative relationship between y and x. 
B) a positive relationship between y and x. 
C) a +0.33 relationship between the two variables. 
D) no relationship between y and x. 
E) an independent relationship between y and x.

Question 20

The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is-------------------- the slope of the line between points B and C.

Accepted Answer

A) not comparable to 
B) greater than 
C) unrelated to 
D) equal to 
E) less than 
A) not comparable to 
B) greater than 
C) unrelated to 
D) equal to 
E) less than

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

The decision to go to graduate school is a rational one for a college student if the

Scarcity means we must

A choice made by comparing all relevant alternatives systematically and incrementally is

Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is

Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points A and B is

A graph that shows the value of an economic variable for different groups in a population at a given time is called a

If a small change in the x variable results in a large change in the y variable, the curve will be

The relationship between distance traveled in five hours and speed shown in the figure above is

To economists, scarcity means that

A time series graph

The slope

In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,

To help unscramble cause and effect, economists

When economists use the term "correlation," they are referring to

In the figure above, an increase in z leads to a

When unskilled teens earn less than college graduates, society answers the_{--------------------} question.

If the change in y = 10 and the change in x = 3, there is

The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is_{--------------------} the slope of the line between points B and C.

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 true regarding this statement? "The president's decision to spend more money on national defense is smart."

The decision to go to graduate school is a rational one for a college student if the

Scarcity means we must

A choice made by comparing all relevant alternatives systematically and incrementally is

Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is

Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points A and B is

A graph that shows the value of an economic variable for different groups in a population at a given time is called a

If a small change in the x variable results in a large change in the y variable, the curve will be

The relationship between distance traveled in five hours and speed shown in the figure above is

To economists, scarcity means that

A time series graph

The slope

In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,

To help unscramble cause and effect, economists

When economists use the term "correlation," they are referring to

In the figure above, an increase in z leads to a

When unskilled teens earn less than college graduates, society answers the-------------------- question.

If the change in y = 10 and the change in x = 3, there is

The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is-------------------- the slope of the line between points B and C.

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

When unskilled teens earn less than college graduates, society answers the_{--------------------} question.

The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is_{--------------------} the slope of the line between points B and C.