Question 1

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 C and D equals

Accepted Answer

A) 2. 
B) 4. 
C) 12 
D) 8. 
E) 1. 
A) 2. 
B) 4. 
C) 12 
D) 8. 
E) 1.

Question 2

In a graph, a straight line has a negative slope if the line

Accepted Answer

A) is vertical. 
B) is horizontal. 
C) rises from left to right. 
D) shows a trend. 
E) falls from left to right. 
A) is vertical. 
B) is horizontal. 
C) rises from left to right. 
D) shows a trend. 
E) falls from left to right.

Question 3

The benefit of an activity is

Accepted Answer

A) measured by what must be given up to get one more unit of the activity. 
B) purely objective and measured in dollars. 
C) the value of its opportunity cost. 
D) the gain or pleasure that it brings. 
E) not measurable on the margin. 
A) measured by what must be given up to get one more unit of the activity. 
B) purely objective and measured in dollars. 
C) the value of its opportunity cost. 
D) the gain or pleasure that it brings. 
E) not measurable on the margin.

Question 4

The vertical axis in a graph

Accepted Answer

A) is named the x-axis. 
B) measures time in a cross-section and time series graph. 
C) is named the y-axis. 
D) has no origin. 
E) measures time only in a time series graph. 
A) is named the x-axis. 
B) measures time in a cross-section and time series graph. 
C) is named the y-axis. 
D) has no origin. 
E) measures time only in a time series graph.

Question 5

The slope

Accepted Answer

A) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
B) of a straight line is the same regardless of where on the line it is calculated. 
C) falls as the x variable increases if the line has a negative slope. 
D) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
E) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
A) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
B) of a straight line is the same regardless of where on the line it is calculated. 
C) falls as the x variable increases if the line has a negative slope. 
D) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
E) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis.

Question 6

Scarcity forces people to

Accepted Answer

A) live at a low standard of living. 
B) consume as much as they can as quickly as they can. 
C) cheat and steal. 
D) choose among available alternatives. 
E) be unwilling to help others. 
A) live at a low standard of living. 
B) consume as much as they can as quickly as they can. 
C) cheat and steal. 
D) choose among available alternatives. 
E) be unwilling to help others.

Question 7

Which of the following is a microeconomic issue?

Accepted Answer

A) Inflation skyrockets in Russia. 
B) The price of gasoline increases in the United States this year. 
C) The Brazilian economy experiences rapid economic growth. 
D) The U.S. government cuts taxes to combat a recession. 
E) The unemployment rate soars in Spain. 
A) Inflation skyrockets in Russia. 
B) The price of gasoline increases in the United States this year. 
C) The Brazilian economy experiences rapid economic growth. 
D) The U.S. government cuts taxes to combat a recession. 
E) The unemployment rate soars in Spain.

Question 8

If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable on the x-axis decreases by 2, then the slope of the curve equals

Accepted Answer

A) 10. 
B) -5. 
C) 2. 
D) -10. 
E) None of the above answers are correct. 
A) 10. 
B) -5. 
C) 2. 
D) -10. 
E) None of the above answers are correct.

Question 9

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

Accepted Answer

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

Question 10

Opportunity cost is best defined as

Accepted Answer

A) how much money and time it takes to consume something. 
B) the sunk cost of any decision. 
C) the total of all other alternatives that are forgone in making a choice. 
D) how much money is paid for something. 
E) the value of the highest-valued alternative that is forgone in making a choice. 
A) how much money and time it takes to consume something. 
B) the sunk cost of any decision. 
C) the total of all other alternatives that are forgone in making a choice. 
D) how much money is paid for something. 
E) the value of the highest-valued alternative that is forgone in making a choice.

Question 11

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is a

Accepted Answer

A) horizontal line. 
B) positively sloped line. 
C) negatively sloped line. 
D) curve with a maximum. 
E) vertical line. 
A) horizontal line. 
B) positively sloped line. 
C) negatively sloped line. 
D) curve with a maximum. 
E) vertical line.

Question 12

Correlation means

Accepted Answer

A) the same as causation. 
B) the values of two variables move in a predictable and related way. 
C) holding everything else constant. 
D) making statements about how the world should be. 
E) after this, therefore because of this. 
A) the same as causation. 
B) the values of two variables move in a predictable and related way. 
C) holding everything else constant. 
D) making statements about how the world should be. 
E) after this, therefore because of this.

Question 13

To show how a variable --------------------, we typically use a-------------------- .

Accepted Answer

A) changes over time; cross section graph 
B) relates to another variable; pie chart 
C) changes over time; time series graph 
D) relates to another variable; time series graph 
E) changes over time; cross time chart 
A) changes over time; cross section graph 
B) relates to another variable; pie chart 
C) changes over time; time series graph 
D) relates to another variable; time series graph 
E) changes over time; cross time chart

Question 14

To graph a relationship among several variables, we hold all but --------------------variable(s) constant and use the--------------------assumption.

Accepted Answer

A) one; scarcity 
B) one; absence of trend 
C) two; ceteris paribus 
D) one; ceteris paribus 
E) three; scarcity 
A) one; scarcity 
B) one; absence of trend 
C) two; ceteris paribus 
D) one; ceteris paribus 
E) three; scarcity

Question 15

When the power company decides to use manpower to bury its lines, it directly answers the --------------------question.

Accepted Answer

A) when 
B) why 
C) what 
D) for whom 
E) how 
A) when 
B) why 
C) what 
D) for whom 
E) how

Question 16

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

Accepted Answer

A) What type of health care will be produced and in what quantity? 
B) Why will we offer health care? 
C) Must we offer health care? 
D) For whom will health care be produced? 
E) How will health care be produced? 
A) What type of health care will be produced and in what quantity? 
B) Why will we offer health care? 
C) Must we offer health care? 
D) For whom will health care be produced? 
E) How will health care be produced?

Question 17

In the above figure, which of the figures shows a relationship between x and y with a negative slope?

Accepted Answer

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

Question 18

The slope of the line shown in the above figure is

Accepted Answer

A) 5/2. 
B) 2/5. 
C) 2/3. 
D) 5. 
E) 2. 
A) 5/2. 
B) 2/5. 
C) 2/3. 
D) 5. 
E) 2.

Question 19

Which of the following is a microeconomic issue?

Accepted Answer

A) Growth in the U.S. economy slowed. 
B) Increased federal government expenditures have lowered the unemployment rate. 
C) The inflation rate fell this year. 
D) The U.S. government cuts taxes to combat a recession. 
E) The quantity of wheat grown in the United States increases this year. 
A) Growth in the U.S. economy slowed. 
B) Increased federal government expenditures have lowered the unemployment rate. 
C) The inflation rate fell this year. 
D) The U.S. government cuts taxes to combat a recession. 
E) The quantity of wheat grown in the United States increases this year.

Question 20

In the above figure, the diagram shows

Accepted Answer

A) a two-variable scatter diagram. 
B) a scatter diagram. 
C) a cross-section graph between x and time. 
D) a downward trend in x. 
E) an upward trend in x. 
A) a two-variable scatter diagram. 
B) a scatter diagram. 
C) a cross-section graph between x and time. 
D) a downward trend in x. 
E) an upward trend in x.

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 C and D equals

In a graph, a straight line has a negative slope if the line

The benefit of an activity is

The vertical axis in a graph

The slope

Scarcity forces people to

Which of the following is a microeconomic issue?

If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable on the x-axis decreases by 2, then the slope of the curve equals

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

Opportunity cost is best defined as

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is a

Correlation means

To show how a variable _{--------------------}, we typically use a_{--------------------} .

To graph a relationship among several variables, we hold all but _{--------------------}variable(s) constant and use the_{--------------------}assumption.

When the power company decides to use manpower to bury its lines, it directly answers the _{--------------------}question.

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

In the above figure, which of the figures shows a relationship between x and y with a negative slope?

The slope of the line shown in the above figure is

Which of the following is a microeconomic issue?

In the above figure, the diagram shows

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

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 C and D equals

In a graph, a straight line has a negative slope if the line

The benefit of an activity is

The vertical axis in a graph

The slope

Scarcity forces people to

Which of the following is a microeconomic issue?

If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable on the x-axis decreases by 2, then the slope of the curve equals

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

Opportunity cost is best defined as

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis. The price of a pound of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is a

Correlation means

To show how a variable --------------------, we typically use a-------------------- .

To graph a relationship among several variables, we hold all but --------------------variable(s) constant and use the--------------------assumption.

When the power company decides to use manpower to bury its lines, it directly answers the --------------------question.

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

In the above figure, which of the figures shows a relationship between x and y with a negative slope?

The slope of the line shown in the above figure is

Which of the following is a microeconomic issue?

In the above figure, the diagram shows

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

To show how a variable _{--------------------}, we typically use a_{--------------------} .

To graph a relationship among several variables, we hold all but _{--------------------}variable(s) constant and use the_{--------------------}assumption.

When the power company decides to use manpower to bury its lines, it directly answers the _{--------------------}question.