Question 1

Which of the following statements is a normative statement?

Accepted Answer

A)  Inflation has been at an all time low this year. 
B)  The minimum wage should be increased to $8.50 per hour. 
C)  Unemployment this month has increased by less than 0.5 percentage point.. 
D)  Additional spending on education has not produced any rise in test scores. 
E)  Pepsi is less expensive than Coke this week. 
A)  Inflation has been at an all time low this year. 
B)  The minimum wage should be increased to $8.50 per hour. 
C)  Unemployment this month has increased by less than 0.5 percentage point.. 
D)  Additional spending on education has not produced any rise in test scores. 
E)  Pepsi is less expensive than Coke this week.

Question 2

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 3

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost,marginal cost,and marginal benefit.

Accepted Answer

Economists assume that people act ration

Question 4

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 5

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 6

-Graph the data in the table above in the figure.Label the axes.
   
a.Is the relationship between X and Y positive or negative?
b.What is the slope when X = 4?
c.What is the slope when X = 8?

Accepted Answer

@#IMG-DLM& 
The figure labels the axes a

Question 7

If the change in y = -4 and the change in x = 2,there is

Accepted Answer

A)  an independent relationship between y and x. 
B)  a positive relationship between y and x. 
C)  a negative relationship between y and x. 
D)  no relationship between y and x. 
E)  a relationship between x and y but more information is needed to determine if it is a negative or positive relationship. 
A)  an independent relationship between y and x. 
B)  a positive relationship between y and x. 
C)  a negative relationship between y and x. 
D)  no relationship between y and x. 
E)  a relationship between x and y but more information is needed to determine if it is a negative or positive relationship.

Question 8

-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 9

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

Accepted Answer

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

Question 10

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

Accepted Answer

A)  eat the slice of pizza. 
B)  not eat the slice of pizza. 
C)  be unable to choose between eating or not eating. 
D)  eat half the slice. 
E)  More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice. 
A)  eat the slice of pizza. 
B)  not eat the slice of pizza. 
C)  be unable to choose between eating or not eating. 
D)  eat half the slice. 
E)  More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

Question 11

-Jamie is preparing to take his SAT tests.The table above shows how Jamie's score depends on the number of hours a week Jamie studies
a.Plot the relationship in the figure,putting the hours studied on the horizontal axis.
   
b.Is the relationship you plotted positive or negative?
c.What happens to the slope of the relationship as hours studied increase?
d.Suppose Jamie can enroll in an SAT prep course and,by so doing,for every possible number of hours he studies,his score will be 100 points higher.Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e.How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& 
a.The figure above plots the relations

Question 12

What is the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies the decisions of

Question 13

-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 14

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 15

The opportunity cost of a one-unit increase in an activity

Accepted Answer

A)  is greater than the marginal benefit. 
B)  is called rational cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity. 
A)  is greater than the marginal benefit. 
B)  is called rational cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity.

Question 16

Correlation means

Accepted Answer

A)  holding everything else constant. 
B)  after this, therefore because of this. 
C)  the values of two variables move in a predictable and related way. 
D)  making statements about how the world should be. 
E)  the same as causation. 
A)  holding everything else constant. 
B)  after this, therefore because of this. 
C)  the values of two variables move in a predictable and related way. 
D)  making statements about how the world should be. 
E)  the same as causation.

Question 17

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 18

Normative statements
I.describe how the world is.
II.describe how the world ought to be.
III.depend on people's values and cannot be tested.

Accepted Answer

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

Question 19

The cost of a one-unit increase in an activity

Accepted Answer

A)  is called the total one-unit cost. 
B)  is called the marginal cost. 
C)  decreases as more of the activity is done. 
D)  is called the marginal benefit/cost. 
E)  is called the unit cost. 
A)  is called the total one-unit cost. 
B)  is called the marginal cost. 
C)  decreases as more of the activity is done. 
D)  is called the marginal benefit/cost. 
E)  is called the unit cost.

Question 20

A time-series graph measures

Accepted Answer

A)  the value of one variable against the value of another variable. 
B)  the value of an economic variable for different groups in a population at a point in time. 
C)  time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D)  time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E)  time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure. 
A)  the value of one variable against the value of another variable. 
B)  the value of an economic variable for different groups in a population at a point in time. 
C)  time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D)  time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E)  time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure.

Which of the following statements is a normative statement?

To show how a variable ,we typically use a .

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost,marginal cost,and marginal benefit.

Scarcity exists because

What is a normative statement? Give an example.

-Graph the data in the table above in the figure.Label the axes. a.Is the relationship between X and Y positive or negative? b.What is the slope when X = 4? c.What is the slope when X = 8?

If the change in y = -4 and the change in x = 2,there is

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

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

What is the difference between microeconomics and macroeconomics?

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

Which of the following BEST describes macroeconomics?

The opportunity cost of a one-unit increase in an activity

Correlation means

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Normative statements I.describe how the world is. II.describe how the world ought to be. III.depend on people's values and cannot be tested.

The cost of a one-unit increase in an activity

A time-series graph measures

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

Which of the following statements is a normative statement?

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

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost,marginal cost,and marginal benefit.

Scarcity exists because

What is a normative statement? Give an example.

-Graph the data in the table above in the figure.Label the axes. a.Is the relationship between X and Y positive or negative? b.What is the slope when X = 4? c.What is the slope when X = 8?

If the change in y = -4 and the change in x = 2,there is

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

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

What is the difference between microeconomics and macroeconomics?

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

Which of the following BEST describes macroeconomics?

The opportunity cost of a one-unit increase in an activity

Correlation means

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Normative statements I.describe how the world is. II.describe how the world ought to be. III.depend on people's values and cannot be tested.

The cost of a one-unit increase in an activity

A time-series graph measures

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

To show how a variable ,we typically use a .