Question 1

Rational choice

Accepted Answer

A)  is a choice that uses the available resources to best achieve the objective of the person making the choice. 
B)  is always efficient. 
C)  is what you must give up to get what you want. 
D)  is made by comparing different incentives. 
E)  provides the answer to only the "how" question. 
A)  is a choice that uses the available resources to best achieve the objective of the person making the choice. 
B)  is always efficient. 
C)  is what you must give up to get what you want. 
D)  is made by comparing different incentives. 
E)  provides the answer to only the "how" question.

Question 2

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

Question 3

If there is no scarcity,

Accepted Answer

A)  the opportunity cost of an action would be greater than its sunk cost. 
B)  an action would have zero opportunity cost. 
C)  choices are no longer rational. 
D)  marginal cost of an action is greater than its marginal benefit. 
E)  all marginal benefits would equal zero. 
A)  the opportunity cost of an action would be greater than its sunk cost. 
B)  an action would have zero opportunity cost. 
C)  choices are no longer rational. 
D)  marginal cost of an action is greater than its marginal benefit. 
E)  all marginal benefits would equal zero.

Question 4

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 5

The minimum point of a U-shaped curve,

Accepted Answer

A)  is a point where the variable is neither increasing nor decreasing. 
B)  has a slope equal to zero. 
C)  has the maximum slope possible. 
D)  Both answers A and B are correct. 
E)  Both answers A and C are correct. 
A)  is a point where the variable is neither increasing nor decreasing. 
B)  has a slope equal to zero. 
C)  has the maximum slope possible. 
D)  Both answers A and B are correct. 
E)  Both answers A and C are correct.

Question 6

Which of the following is a microeconomic topic?
i.K-Mart's decision to close stores that are not making a profit
ii.Home Depot's choice to hire more full-time employees because its sales increased
iii.Delta Airlines changes its fares.

Accepted Answer

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

Question 7

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.The professor has

Accepted Answer

A)  increased the marginal cost of cheating. 
B)  decreased the marginal benefit of cheating. 
C)  made all the students act in the social interest. 
D)  recognized that students don't respond to incentives. 
E)  recognized that students don't make rational choices. 
A)  increased the marginal cost of cheating. 
B)  decreased the marginal benefit of cheating. 
C)  made all the students act in the social interest. 
D)  recognized that students don't respond to incentives. 
E)  recognized that students don't make rational choices.

Question 8

Which of the following is a positive statement?

Accepted Answer

A)  The rich should pay more in taxes. 
B)  Everyone should have some knowledge of economics. 
C)  Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  Social Security must be reformed. 
A)  The rich should pay more in taxes. 
B)  Everyone should have some knowledge of economics. 
C)  Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  Social Security must be reformed.

Question 9

A change in a marginal benefit or cost will

Accepted Answer

A)  increase consumption. 
B)  decrease production. 
C)  cause an individual to make a rational choice. 
D)  increase sunk costs. 
E)  change incentives. 
A)  increase consumption. 
B)  decrease production. 
C)  cause an individual to make a rational choice. 
D)  increase sunk costs. 
E)  change incentives.

Question 10

If whenever one variable increases,another variable also increases,then these two variables are ________ related.

Accepted Answer

A)  positively 
B)  negatively 
C)  inversely 
D)  cross-sectionally 
E)  trend-line 
A)  positively 
B)  negatively 
C)  inversely 
D)  cross-sectionally 
E)  trend-line

Question 11

Which of the following is a microeconomic issue?

Accepted Answer

A)  Why has unemployment risen nationwide? 
B)  Why has economic growth been rapid in China? 
C)  What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favor of non-carbonated drinks? 
D)  Why is the average income lower in Africa than in Latin America? 
E)  Why did overall production increase within the United States last year? 
A)  Why has unemployment risen nationwide? 
B)  Why has economic growth been rapid in China? 
C)  What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favor of non-carbonated drinks? 
D)  Why is the average income lower in Africa than in Latin America? 
E)  Why did overall production increase within the United States last year?

Question 12

-The slope of the line shown in the above figure is

Accepted Answer

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

Question 13

When two variables in a graph are related to a third,changing the third causes

Accepted Answer

A)  a movement along the curve. 
B)  a shift of the curve. 
C)  no change in the curve because the third variable isn't on the axes. 
D)  either a shift or a movement in the curve but more information is needed to determine which occurs. 
E)  None of the above answers is correct. 
A)  a movement along the curve. 
B)  a shift of the curve. 
C)  no change in the curve because the third variable isn't on the axes. 
D)  either a shift or a movement in the curve but more information is needed to determine which occurs. 
E)  None of the above answers is correct.

Question 14

When Gabriel made a rational choice to spend his entire allowance on candy bars,he did so by comparing the

Accepted Answer

A)  benefits of the candy bars to the desires he had for the candy bars. 
B)  marginal benefits of the candy bars to the marginal costs of the candy bars. 
C)  opportunity costs of the candy bars to the scarcity of the candy bars. 
D)  benefits of the candy bars to the scarcity candy bars. 
E)  self-interest to the social interest. 
A)  benefits of the candy bars to the desires he had for the candy bars. 
B)  marginal benefits of the candy bars to the marginal costs of the candy bars. 
C)  opportunity costs of the candy bars to the scarcity of the candy bars. 
D)  benefits of the candy bars to the scarcity candy bars. 
E)  self-interest to the social interest.

Question 15

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

Question 16

-In the above,which figure(s)show(s)relationship between the variables that is always positive?

Accepted Answer

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

Question 17

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 18

-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 19

The opportunity cost of a decision is measured in terms of

Accepted Answer

A)  time. 
B)  the price of the alternative we choose. 
C)  the next best thing given up. 
D)  the price of a new opportunity that arises. 
E)  sunk cost. 
A)  time. 
B)  the price of the alternative we choose. 
C)  the next best thing given up. 
D)  the price of a new opportunity that arises. 
E)  sunk cost.

Question 20

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

Accepted Answer

A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  time axis. 
A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  time axis.

Rational choice

-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.

If there is no scarcity,

Why do economists say that even very rich people face scarcity?

The minimum point of a U-shaped curve,

Which of the following is a microeconomic topic? i.K-Mart's decision to close stores that are not making a profit ii.Home Depot's choice to hire more full-time employees because its sales increased iii.Delta Airlines changes its fares.

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.The professor has

Which of the following is a positive statement?

A change in a marginal benefit or cost will

If whenever one variable increases,another variable also increases,then these two variables are ________ related.

Which of the following is a microeconomic issue?

-The slope of the line shown in the above figure is

When two variables in a graph are related to a third,changing the third causes

When Gabriel made a rational choice to spend his entire allowance on candy bars,he did so by comparing the

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

-In the above,which figure(s)show(s)relationship between the variables that is always positive?

Define economics and describe its branches of study.

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

The opportunity cost of a decision is measured in terms of

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

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

Rational choice

-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.

If there is no scarcity,

Why do economists say that even very rich people face scarcity?

The minimum point of a U-shaped curve,

Which of the following is a microeconomic topic? i.K-Mart's decision to close stores that are not making a profit ii.Home Depot's choice to hire more full-time employees because its sales increased iii.Delta Airlines changes its fares.

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.The professor has

Which of the following is a positive statement?

A change in a marginal benefit or cost will

If whenever one variable increases,another variable also increases,then these two variables are ________ related.

Which of the following is a microeconomic issue?

-The slope of the line shown in the above figure is

When two variables in a graph are related to a third,changing the third causes

When Gabriel made a rational choice to spend his entire allowance on candy bars,he did so by comparing the

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

-In the above,which figure(s)show(s)relationship between the variables that is always positive?

Define economics and describe its branches of study.

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

The opportunity cost of a decision is measured in terms of

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

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