Question 1

The cost of a one-unit increase in an activity is called the

Accepted Answer

A)  opportunity benefit. 
B)  rational cost. 
C)  marginal cost. 
D)  marginal benefit. 
E)  margin. 
A)  opportunity benefit. 
B)  rational cost. 
C)  marginal cost. 
D)  marginal benefit. 
E)  margin. C

Question 2

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

Accepted Answer

A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
E)  -10. 
A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
E)  -10. D

Question 3

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. C

Question 4

-In the above figure,which of the figures show(s)a relationships between x and y with a positive slope?

Accepted Answer

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

Question 5

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

Accepted Answer

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

Question 6

If there is a positive relationship between two variables,

Accepted Answer

A)  the graph of the relationship will be upward sloping. 
B)  the graph of the relationship will be downward sloping. 
C)  the slope of the line graphing the relationship will be negative. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. 
A)  the graph of the relationship will be upward sloping. 
B)  the graph of the relationship will be downward sloping. 
C)  the slope of the line graphing the relationship will be negative. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct.

Question 7

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 8

"Lower ticket prices would lead to more people attending ballgames." This statement is a

Accepted Answer

A)  statement assessing the social interest versus the private interest. 
B)  normative statement. 
C)  positive statement. 
D)  macroeconomic statement. 
E)  statement that confuses marginal cost and sunk cost. 
A)  statement assessing the social interest versus the private interest. 
B)  normative statement. 
C)  positive statement. 
D)  macroeconomic statement. 
E)  statement that confuses marginal cost and sunk cost.

Question 9

A straight line falls when moving rightward along it.Hence the slope of the line is

Accepted Answer

A)  positive. 
B)  negative. 
C)  undefined. 
D)  zero because it is a straight line. 
E)  perhaps positive, negative, or zero, but without more information it is impossible to determine. 
A)  positive. 
B)  negative. 
C)  undefined. 
D)  zero because it is a straight line. 
E)  perhaps positive, negative, or zero, but without more information it is impossible to determine.

Question 10

Microeconomics includes the study of the

Accepted Answer

A)  aggregate effects on the national economy. 
B)  recessions and inflation in the global economy. 
C)  choices made by individuals and businesses. 
D)  reasons why the government changes interest rates. 
E)  nationwide unemployment rate. 
A)  aggregate effects on the national economy. 
B)  recessions and inflation in the global economy. 
C)  choices made by individuals and businesses. 
D)  reasons why the government changes interest rates. 
E)  nationwide unemployment rate.

Question 11

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 12

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

Accepted Answer

A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended 
A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended

Question 13

Congress and the President passed a national health care policy.This is an example of

Accepted Answer

A)  the government using economic tools to make policy decisions. 
B)  answering the "how" question. 
C)  increasing the marginal cost of health care. 
D)  increasing the marginal benefit of health care. 
E)  normative versus positive economics. 
A)  the government using economic tools to make policy decisions. 
B)  answering the "how" question. 
C)  increasing the marginal cost of health care. 
D)  increasing the marginal benefit of health care. 
E)  normative versus positive economics.

Question 14

In making your decision whether to take a trip during Spring Break,you compare all the other activities you could undertake.As a result,you

Accepted Answer

A)  are making a choice on the margin. 
B)  limit the cost and the benefits you can gain. 
C)  are not making a rational choice. 
D)  do not face an opportunity cost. 
E)  must have made a choice in the social interest. 
A)  are making a choice on the margin. 
B)  limit the cost and the benefits you can gain. 
C)  are not making a rational choice. 
D)  do not face an opportunity cost. 
E)  must have made a choice in the social interest.

Question 15

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

Question 16

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point.Examine th

Question 17

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 18

A slope is measured as the

Accepted Answer

A)  value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B)  value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C)  change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D)  value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E)  value of the variable measured on the x-axis minus the value of the variable measured on the y-axis. 
A)  value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B)  value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C)  change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D)  value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E)  value of the variable measured on the x-axis minus the value of the variable measured on the y-axis.

Question 19

Which of the following is true?
i.A rational choice is made on the margin.
ii.Microeconomics is the study of the national economy while macroeconomics is the study of the global economy.
iii.Economists try to understand how the economic world works by testing normative statements.

Accepted Answer

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

Question 20

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?

The cost of a one-unit increase in an activity is called the

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

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

-In the above figure,which of the figures show(s)a relationships between x and y with a positive slope?

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

If there is a positive relationship between two variables,

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

"Lower ticket prices would lead to more people attending ballgames." This statement is a

A straight line falls when moving rightward along it.Hence the slope of the line is

Microeconomics includes the study of the

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

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

Congress and the President passed a national health care policy.This is an example of

In making your decision whether to take a trip during Spring Break,you compare all the other activities you could undertake.As a result,you

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 graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

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

A slope is measured as the

Which of the following is true? i.A rational choice is made on the margin. ii.Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii.Economists try to understand how the economic world works by testing normative statements.

Which of the following is a microeconomic issue?

The Usand 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

The cost of a one-unit increase in an activity is called the

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

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

-In the above figure,which of the figures show(s)a relationships between x and y with a positive slope?

The question "Should we produce houses using bricks or wood?" is an example of a ________ question.

If there is a positive relationship between two variables,

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

"Lower ticket prices would lead to more people attending ballgames." This statement is a

A straight line falls when moving rightward along it.Hence the slope of the line is

Microeconomics includes the study of the

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

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

Congress and the President passed a national health care policy.This is an example of

In making your decision whether to take a trip during Spring Break,you compare all the other activities you could undertake.As a result,you

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 graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

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

A slope is measured as the

Which of the following is true? i.A rational choice is made on the margin. ii.Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii.Economists try to understand how the economic world works by testing normative statements.

Which of the following is a microeconomic issue?

The Usand 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