Question 1

Which of the following statements is correct?

Accepted Answer

A)  The slope of a straight line changes depending where on the line it is calculated. 
B)  The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
C)  A straight line that slopes upward moving to the right has a positive slope. 
D)  Answers A and B are correct. 
E)  Answers A and C are correct. 
A)  The slope of a straight line changes depending where on the line it is calculated. 
B)  The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
C)  A straight line that slopes upward moving to the right has a positive slope. 
D)  Answers A and B are correct. 
E)  Answers A and C are correct.

Question 2

-In the above figure,no relationship between x and y is shown in Figure

Accepted Answer

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

Question 3

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The relationship between the price and the quantity the florist can sell is

Accepted Answer

A)  positive. 
B)  negative. 
C)  nonexistent. 
D)  linear. 
E)  cross-sectionally trended. 
A)  positive. 
B)  negative. 
C)  nonexistent. 
D)  linear. 
E)  cross-sectionally trended.

Question 4

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by rational choice.

Accepted Answer

Policy makers know that people making ra

Question 5

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

Accepted Answer

A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
E)  5. 
A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
E)  5.

Question 6

The marginal benefit of an activity is
i.the benefit from a one-unit increase in the activity.
ii.the benefit of a small,unimportant activity.
iii.measured by what the person is willing to give up to get one additional unit of the activity.

Accepted Answer

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

Question 7

If two variables are unrelated,their graph is

Accepted Answer

A)  either a horizontal or a vertical line. 
B)  a downward-sloping line. 
C)  an upward-sloping line. 
D)  a curved line. 
E)  None of the above answers is correct because it is not possible to graph unrelated variables. 
A)  either a horizontal or a vertical line. 
B)  a downward-sloping line. 
C)  an upward-sloping line. 
D)  a curved line. 
E)  None of the above answers is correct because it is not possible to graph unrelated variables.

Question 8

$$\begin{array} { c c } 
\begin{array} { c } 
\text { Katie's Income } \
\text { (dollars per year) }
\end{array} & \begin{array} { c } 
\text { Katie's purchases } \
\text { (books per year) }
\end{array} \
\hline 50,000 & 14 \
70,000 & 16 \
90,000 & 18 \
110,000 & 20 \
\hline
\end{array}$$
-The table above shows how the number of books Katie buys each year depends on her income
a.What kind of relationship exists between Katie's income and the number of books she purchases?
   
b.Plot the relationship between Katie's income and the number of books she purchases in the above figure.Measure income along the vertical axis and the number of books along the horizontal axis.Be sure to label the axes.
c.What is the slope of the relationship between $50,000 and $70,000 of income?
d.What is the slope of the relationship between $90,000 and $110,000 of income?
e.Comment on the similarity or dissimilarity of your answers to parts (c)and (d).

Accepted Answer

a.There is a positive relationship.When

Question 9

Which of the following is an example of a normative statement?

Accepted Answer

A)  If cars become more expensive, fewer people will buy them. 
B)  Car prices should be affordable. 
C)  If wages increase, firms will fire some workers. 
D)  Fewer people die in larger cars than in smaller cars. 
E)  Cars emit pollution. 
A)  If cars become more expensive, fewer people will buy them. 
B)  Car prices should be affordable. 
C)  If wages increase, firms will fire some workers. 
D)  Fewer people die in larger cars than in smaller cars. 
E)  Cars emit pollution.

Question 10

The Latin term "ceteris paribus" means

Accepted Answer

A)  "false unless proven true." 
B)  "other things remaining the same." 
C)  "after this, therefore because of this." 
D)  "what is true of the whole is not necessarily true of the parts." 
E)  "obviously true." 
A)  "false unless proven true." 
B)  "other things remaining the same." 
C)  "after this, therefore because of this." 
D)  "what is true of the whole is not necessarily true of the parts." 
E)  "obviously true."

Question 11

If a decision is made and it is the best choice for society,the decision is said to be

Accepted Answer

A)  a valid economic choice. 
B)  made in self-interest. 
C)  made in social interest. 
D)  consist with scarcity. 
E)  a want-maximizing choice. 
A)  a valid economic choice. 
B)  made in self-interest. 
C)  made in social interest. 
D)  consist with scarcity. 
E)  a want-maximizing choice.

Question 12

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Accepted Answer

A)  both B and C 
B)  only B 
C)  both A and C 
D)  only D 
E)  only C 
A)  both B and C 
B)  only B 
C)  both A and C 
D)  only D 
E)  only C

Question 13

Which of the following is the best example of a "What?" question?

Accepted Answer

A)  Should automobiles be produced using workers or robots? 
B)  Should higher-income or lower-income people buy SUVs? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid? 
A)  Should automobiles be produced using workers or robots? 
B)  Should higher-income or lower-income people buy SUVs? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid?

Question 14

A cross-section graph

Accepted Answer

A)  is divided into different sections. 
B)  shows 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 B and C are correct. 
A)  is divided into different sections. 
B)  shows 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 B and C are correct.

Question 15

A graph of two variables is a vertical line.What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

Question 16

Which of the following BEST describes macroeconomics?

Accepted Answer

A)  It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. 
B)  It studies the choices that individuals and businesses make when coping with scarcity. 
C)  It examines how the choices that individuals affect governments. 
D)  It is not a social science because its predictions cannot be tested. 
E)  Proving causation is never a problem for macroeconomics. 
A)  It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. 
B)  It studies the choices that individuals and businesses make when coping with scarcity. 
C)  It examines how the choices that individuals affect governments. 
D)  It is not a social science because its predictions cannot be tested. 
E)  Proving causation is never a problem for macroeconomics.

Question 17

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

Accepted Answer

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

Question 18

To economists,scarcity means that

Accepted Answer

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

Question 19

With y measured on the vertical axis and x measured on the horizontal axis,the slope of a straight line is defined as

Accepted Answer

A)  y/x. 
B)  x/y. 
C)  (change in y)/(change in x). 
D)  (change in x)/(change in y). 
E)  y - x. 
A)  y/x. 
B)  x/y. 
C)  (change in y)/(change in x). 
D)  (change in x)/(change in y). 
E)  y - x.

Question 20

Suppose the relationship between a person's age and his or her height is plotted with the age measured along the x-axis and the height measured along the y-axis.Then,the curve showing this relationship is

Accepted Answer

A)  a straight line with a positive slope. 
B)  positively sloped and becoming less steep. 
C)  a straight line with a negative slope. 
D)  negatively sloped and becoming less steep. 
E)  positively sloped and becoming more steep. 
A)  a straight line with a positive slope. 
B)  positively sloped and becoming less steep. 
C)  a straight line with a negative slope. 
D)  negatively sloped and becoming less steep. 
E)  positively sloped and becoming more steep.

Which of the following statements is correct?

-In the above figure,no relationship between x and y is shown in Figure

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The relationship between the price and the quantity the florist can sell is

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by rational choice.

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

The marginal benefit of an activity is i.the benefit from a one-unit increase in the activity. ii.the benefit of a small,unimportant activity. iii.measured by what the person is willing to give up to get one additional unit of the activity.

If two variables are unrelated,their graph is

Which of the following is an example of a normative statement?

The Latin term "ceteris paribus" means

If a decision is made and it is the best choice for society,the decision is said to be

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Which of the following is the best example of a "What?" question?

A cross-section graph

A graph of two variables is a vertical line.What is the interpretation of this result?

Which of the following BEST describes macroeconomics?

To show how a variable ,we typically use a .

To economists,scarcity means that

With y measured on the vertical axis and x measured on the horizontal axis,the slope of a straight line is defined as

Suppose the relationship between a person's age and his or her height is plotted with the age measured along the x-axis and the height measured along the y-axis.Then,the curve showing this relationship 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 of the following statements is correct?

-In the above figure,no relationship between x and y is shown in Figure

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The relationship between the price and the quantity the florist can sell is

In New State,the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer,be sure to mention the role played by rational choice.

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

The marginal benefit of an activity is i.the benefit from a one-unit increase in the activity. ii.the benefit of a small,unimportant activity. iii.measured by what the person is willing to give up to get one additional unit of the activity.

If two variables are unrelated,their graph is

Which of the following is an example of a normative statement?

The Latin term "ceteris paribus" means

If a decision is made and it is the best choice for society,the decision is said to be

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Which of the following is the best example of a "What?" question?

A cross-section graph

A graph of two variables is a vertical line.What is the interpretation of this result?

Which of the following BEST describes macroeconomics?

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

To economists,scarcity means that

With y measured on the vertical axis and x measured on the horizontal axis,the slope of a straight line is defined as

Suppose the relationship between a person's age and his or her height is plotted with the age measured along the x-axis and the height measured along the y-axis.Then,the curve showing this relationship 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

To show how a variable ,we typically use a .