Question 1

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

Accepted Answer

Variables can have two relationships: po

Question 2

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

Accepted Answer

A)  a movement along the drawn curve. 
B)  a shift in the curve. 
C)  no impact on the curve because the variable is not measured on either of the axes. 
D)  either a shift in the curve or a movement along the curve, but more information is needed to determine which. 
E)  None of the above answers is correct. 
A)  a movement along the drawn curve. 
B)  a shift in the curve. 
C)  no impact on the curve because the variable is not measured on either of the axes. 
D)  either a shift in the curve or a movement along the curve, but more information is needed to determine which. 
E)  None of the above answers is correct.

Question 3

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Accepted Answer

A)  the wages you would have earned from working. 
B)  the lower grade earned by not studying. 
C)  the wages you would have earned from working and the lower grade earned by not studying. 
D)  the value of the trip. 
E)  We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred. 
A)  the wages you would have earned from working. 
B)  the lower grade earned by not studying. 
C)  the wages you would have earned from working and the lower grade earned by not studying. 
D)  the value of the trip. 
E)  We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.

Question 4

Increasing income tax rates will solve the "Social Security time bomb issue" is an example of

Accepted Answer

A)  business economic policy. 
B)  a positive economic statement. 
C)  marginal cost exceeding marginal benefit. 
D)  answering the "how" question. 
E)  globalization. 
A)  business economic policy. 
B)  a positive economic statement. 
C)  marginal cost exceeding marginal benefit. 
D)  answering the "how" question. 
E)  globalization.

Question 5

Which of the following is a topic studied in macroeconomics?

Accepted Answer

A)  The pricing decisions in the computer hardware industry 
B)  The effect on economic growth if the government raises taxes 
C)  How the wheat industry determines how much wheat to grow 
D)  The impact of labor unions on wages 
E)  The impact of higher prices for gasoline on the number of SUVs people buy 
A)  The pricing decisions in the computer hardware industry 
B)  The effect on economic growth if the government raises taxes 
C)  How the wheat industry determines how much wheat to grow 
D)  The impact of labor unions on wages 
E)  The impact of higher prices for gasoline on the number of SUVs people buy

Question 6

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions. 
A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions.

Question 7

A time series graph

Accepted Answer

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

Question 8

A positive statement

Accepted Answer

A)  must always be right. 
B)  cannot be tested. 
C)  might be right or wrong. 
D)  depends on someone's value judgment. 
E)  cannot be negative. 
A)  must always be right. 
B)  cannot be tested. 
C)  might be right or wrong. 
D)  depends on someone's value judgment. 
E)  cannot be negative.

Question 9

A graph shows the average wage of various demographic groups in 2012.The kind of graph used to show these data would be a

Accepted Answer

A)  scatter diagram. 
B)  time-series graph. 
C)  cross-section graph. 
D)  Venn diagram. 
E)  fixed-year figure. 
A)  scatter diagram. 
B)  time-series graph. 
C)  cross-section graph. 
D)  Venn diagram. 
E)  fixed-year figure.

Question 10

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

Accepted Answer

A)  vertical line. 
B)  horizontal line. 
C)  line that has positive slope. 
D)  line that has a negative slope. 
E)  non-existent because the two variables are not related. 
A)  vertical line. 
B)  horizontal line. 
C)  line that has positive slope. 
D)  line that has a negative slope. 
E)  non-existent because the two variables are not related.

Question 11

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

Question 12

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A ________ the slope at point B.

Accepted Answer

A)  is greater than 
B)  is less than 
C)  is equal to 
D)  cannot be compared to 
E)  can be compared but more information is needed to determine whether the slope is greater than, less than, or equal to 
A)  is greater than 
B)  is less than 
C)  is equal to 
D)  cannot be compared to 
E)  can be compared but more information is needed to determine whether the slope is greater than, less than, or equal to

Question 13

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

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

Must a rational choice always work out well? In other words,is it possible for someone to regret a rational decision?

Accepted Answer

It is not necessarily the case that a ra

Question 16

Whenever one variable increases,another variable decreases.The two variables are

Accepted Answer

A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other. 
E)  related but whether positively or negatively related depends on which variable is plotted on the vertical axis. 
A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other. 
E)  related but whether positively or negatively related depends on which variable is plotted on the vertical axis.

Question 17

Scarcity exists because

Accepted Answer

A)  human wants exceed the resources available to satisfy them. 
B)  some individuals have low income. 
C)  the costs of production are high. 
D)  some people make bad economic decisions. 
E)  people take too much leisure time. 
A)  human wants exceed the resources available to satisfy them. 
B)  some individuals have low income. 
C)  the costs of production are high. 
D)  some people make bad economic decisions. 
E)  people take too much leisure time.

Question 18

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

Accepted Answer

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

Question 19

-The graph shows

Accepted Answer

A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear relationship. 
E)  a cross-section relationship. 
A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear relationship. 
E)  a cross-section relationship.

Question 20

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

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Increasing income tax rates will solve the "Social Security time bomb issue" is an example of

Which of the following is a topic studied in macroeconomics?

Which of the following statements best describes the study of economics? Economics studies how

A time series graph

A positive statement

A graph shows the average wage of various demographic groups in 2012.The kind of graph used to show these data would be a

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

-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

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A ________ the slope at point B.

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

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

Must a rational choice always work out well? In other words,is it possible for someone to regret a rational decision?

Whenever one variable increases,another variable decreases.The two variables are

Scarcity exists because

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

-The graph shows

-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,

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

What are the two different types of relationships that variables can have? Explain each.What do these relationships look like when they are graphed?

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Increasing income tax rates will solve the "Social Security time bomb issue" is an example of

Which of the following is a topic studied in macroeconomics?

Which of the following statements best describes the study of economics? Economics studies how

A time series graph

A positive statement

A graph shows the average wage of various demographic groups in 2012.The kind of graph used to show these data would be a

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

-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

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A ________ the slope at point B.

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

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

Must a rational choice always work out well? In other words,is it possible for someone to regret a rational decision?

Whenever one variable increases,another variable decreases.The two variables are

Scarcity exists because

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

-The graph shows

-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,

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

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