Question 1

Which type of graph is most useful in determining if two variables are correlated?

Accepted Answer

A)  time-series 
B)  scatter diagram 
C)  cross-section 
D)  variable-correlation figure 
E)  None of the above answers is correct. 
A)  time-series 
B)  scatter diagram 
C)  cross-section 
D)  variable-correlation figure 
E)  None of the above answers is correct.

Question 2

In economics,cost is measured as ________,and benefit is measured as ________.

Accepted Answer

A)  what you must give up to get something; what you are willing to give up to get it 
B)  what you are willing to give up to get it; what you must give up to get something 
C)  the amount of money that you pay for something; the amount of money that someone else is willing to pay you 
D)  what you are willing to pay on the margin; what the government pays you when you are unemployed or retired 
E)  the amount of money that you pay on the margin; the amount of money that you receive on the margin 
A)  what you must give up to get something; what you are willing to give up to get it 
B)  what you are willing to give up to get it; what you must give up to get something 
C)  the amount of money that you pay for something; the amount of money that someone else is willing to pay you 
D)  what you are willing to pay on the margin; what the government pays you when you are unemployed or retired 
E)  the amount of money that you pay on the margin; the amount of money that you receive on the margin

Question 3

-In the above figure,as the y variable increases,

Accepted Answer

A)  the x variable is constant. 
B)  the x variable increases. 
C)  the x variable decreases. 
D)  the x variable at first increases but then decreases. 
E)  the x variable probably changes, but more information is needed to determine if it increases, decreases, or stays the same. 
A)  the x variable is constant. 
B)  the x variable increases. 
C)  the x variable decreases. 
D)  the x variable at first increases but then decreases. 
E)  the x variable probably changes, but more information is needed to determine if it increases, decreases, or stays the same.

Question 4

Choices that are best for the individuals that make them are choices in pursuit of

Accepted Answer

A)  the social interest. 
B)  efficiency. 
C)  incentives. 
D)  self-interest. 
E)  equity. 
A)  the social interest. 
B)  efficiency. 
C)  incentives. 
D)  self-interest. 
E)  equity.

Question 5

An incentive is

Accepted Answer

A)  a reward or a penalty that encourages or discourages an action. 
B)  when people make rational choices by comparing costs and benefits. 
C)  what you must give up to get something. 
D)  a choice is made on the margin. 
E)  a good or service that satisfies wants. 
A)  a reward or a penalty that encourages or discourages an action. 
B)  when people make rational choices by comparing costs and benefits. 
C)  what you must give up to get something. 
D)  a choice is made on the margin. 
E)  a good or service that satisfies wants.

Question 6

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 7

Correlation means

Accepted Answer

A)  "after this, therefore because of this." 
B)  other things remaining the same. 
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)  "on the margin." 
A)  "after this, therefore because of this." 
B)  other things remaining the same. 
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)  "on the margin."

Question 8

People must make choices because

Accepted Answer

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

Question 9

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

Accepted Answer

A)  direct, linear. 
B)  inverse, linear. 
C)  direct, non-linear. 
D)  inverse, positive. 
E)  direct, negative. 
A)  direct, linear. 
B)  inverse, linear. 
C)  direct, non-linear. 
D)  inverse, positive. 
E)  direct, negative.

Question 10

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Accepted Answer

A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  had no effect on the marginal cost or marginal benefit but did affect the total benefit 
A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  had no effect on the marginal cost or marginal benefit but did affect the total benefit

Question 11

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

Question 12

A normative statement

Accepted Answer

A)  depends on someone's values. 
B)  cannot use the word "should." 
C)  says what is currently believed about the way the world operates. 
D)  must be tested to determine if it is correct. 
E)  can be tested to determine if it is correct. 
A)  depends on someone's values. 
B)  cannot use the word "should." 
C)  says what is currently believed about the way the world operates. 
D)  must be tested to determine if it is correct. 
E)  can be tested to determine if it is correct.

Question 13

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

Accepted Answer

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

Question 14

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

Accepted Answer

A)  3. 
B)  4. 
C)  3/4. 
D)  4/3. 
E)  1. 
A)  3. 
B)  4. 
C)  3/4. 
D)  4/3. 
E)  1.

Question 15

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Accepted Answer

The amount of goods and services a perso

Question 16

Moving rightward along a straight line,the slope of the line

Accepted Answer

A)  always increases. 
B)  always decreases. 
C)  stays the same. 
D)  increases if the line slopes upward to the right. 
E)  decreases if the line slopes downward to the right. 
A)  always increases. 
B)  always decreases. 
C)  stays the same. 
D)  increases if the line slopes upward to the right. 
E)  decreases if the line slopes downward to the right.

Question 17

A cross-section graph

Accepted Answer

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

Question 18

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

Question 19

Which of the following is true?
i.A rational choice is always made in the pursuit of social interest.
ii.Economics is a social science.
iii.Economists try to understand how the economic world works by testing positive statements.

Accepted Answer

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

Question 20

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

Accepted Answer

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

Which type of graph is most useful in determining if two variables are correlated?

In economics,cost is measured as ,and benefit is measured as .

-In the above figure,as the y variable increases,

Choices that are best for the individuals that make them are choices in pursuit of

An incentive is

-What does the slope of the line shown in the above figure equal?

Correlation means

People must make choices because

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

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

A normative statement

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

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Moving rightward along a straight line,the slope of the line

A cross-section graph

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 is true? i.A rational choice is always made in the pursuit of social interest. ii.Economics is a social science. iii.Economists try to understand how the economic world works by testing positive statements.

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

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: Getting Started

Which type of graph is most useful in determining if two variables are correlated?

In economics,cost is measured as ________,and benefit is measured as ________.

-In the above figure,as the y variable increases,

Choices that are best for the individuals that make them are choices in pursuit of

An incentive is

-What does the slope of the line shown in the above figure equal?

Correlation means

People must make choices because

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

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

A normative statement

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

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Moving rightward along a straight line,the slope of the line

A cross-section graph

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 is true? i.A rational choice is always made in the pursuit of social interest. ii.Economics is a social science. iii.Economists try to understand how the economic world works by testing positive statements.

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

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

In economics,cost is measured as ,and benefit is measured as .