Question 1

-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 2

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Accepted Answer

A)  marginal benefit and marginal cost 
B)  opportunity cost and the sunk cost 
C)  positive benefits and normative costs 
D)  normative benefits and positive costs 
E)  self-interest and social-interest 
A)  marginal benefit and marginal cost 
B)  opportunity cost and the sunk cost 
C)  positive benefits and normative costs 
D)  normative benefits and positive costs 
E)  self-interest and social-interest

Question 3

Rather than go out to eat by yourself,you decide to stay at home and fix dinner for yourself and your two roommates.Your roommates applaud your decision.Your roommates tell you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry.Is this comment correct?

Accepted Answer

Your roommates' comment is incorrect.The

Question 4

Which of the following statements is the best example of the term ceteris paribus?

Accepted Answer

A)  An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B)  More money should be spent on cleaning up the environment. 
C)  The government budget surplus was $200 billion in 2000 because the economy was growing. 
D)  An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E)  When studying the effects of a budget deficit, an economist must take account of all the factors involved. 
A)  An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B)  More money should be spent on cleaning up the environment. 
C)  The government budget surplus was $200 billion in 2000 because the economy was growing. 
D)  An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E)  When studying the effects of a budget deficit, an economist must take account of all the factors involved.

Question 5

What do economists mean when they discuss "scarcity"?

Accepted Answer

Scarcity occurs whenever people's wants

Question 6

Proponents of cuts in income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

Accepted Answer

A)  workers are irrational. 
B)  workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
C)  the opportunity cost of working is negative. 
D)  the marginal cost of each additional work hour is not important to most workers. 
E)  workers make decisions based on the social interest. 
A)  workers are irrational. 
B)  workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
C)  the opportunity cost of working is negative. 
D)  the marginal cost of each additional work hour is not important to most workers. 
E)  workers make decisions based on the social interest.

Question 7

-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 8

-In the figure above,an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
E)  trend change in both x and y. 
A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
E)  trend change in both x and y.

Question 9

Shaniq can spend the next hour studying for a finance test,hiking along the Oregon coast,watching reruns of Lost on television,or napping.If she decides to study,what is the opportunity cost of her choice: hiking,watching television,or napping?

Accepted Answer

With the information given,it is impossi

Question 10

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

Accepted Answer

A)  cross-section graph. 
B)  time-series graph. 
C)  scatter diagram. 
D)  Venn diagram. 
E)  None of the above answers is correct. 
A)  cross-section graph. 
B)  time-series graph. 
C)  scatter diagram. 
D)  Venn diagram. 
E)  None of the above answers is correct.

Question 11

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.

Question 12

When economists use the term "correlation," they are referring to

Accepted Answer

A)  cause and effect relationships between variables. 
B)  how two variables move together in a predictable way. 
C)  positive economics. 
D)  normative economics. 
E)  economic policy. 
A)  cause and effect relationships between variables. 
B)  how two variables move together in a predictable way. 
C)  positive economics. 
D)  normative economics. 
E)  economic policy.

Question 13

-In the above figure,a negative relationship between x and y is shown in Figure

Accepted Answer

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

Question 14

As part of its proposal to win the 2012 Olympics,London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011,the organizers decided to drop this plan to reduce emissions.We can conclude that

Accepted Answer

A)  the marginal cost of reducing emissions exceeded the marginal benefits of reducing emissions. 
B)  the organizers are not making a rational decision. 
C)  the organizers are ignoring a sunk cost. 
D)  there are no incentives to reduce carbon emissions. 
E)  it is difficult to calculate the cost of reducing emissions. 
A)  the marginal cost of reducing emissions exceeded the marginal benefits of reducing emissions. 
B)  the organizers are not making a rational decision. 
C)  the organizers are ignoring a sunk cost. 
D)  there are no incentives to reduce carbon emissions. 
E)  it is difficult to calculate the cost of reducing emissions.

Question 15

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

Accepted Answer

A)  for whom 
B)  what 
C)  how 
D)  why 
E)  social interest vs. self-interest 
A)  for whom 
B)  what 
C)  how 
D)  why 
E)  social interest vs. self-interest

Question 16

-In the above,in which figure(s)is the slope the same at every point?

Accepted Answer

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

Question 17

-The graph shows a

Accepted Answer

A)  positive relationship that becomes steeper. 
B)  negative relationship that becomes steeper. 
C)  positive relationship that becomes less steep. 
D)  negative relationship that become less steep. 
E)  negative trend between the total cost of a cake and the output of cakes. 
A)  positive relationship that becomes steeper. 
B)  negative relationship that becomes steeper. 
C)  positive relationship that becomes less steep. 
D)  negative relationship that become less steep. 
E)  negative trend between the total cost of a cake and the output of cakes.

Question 18

Scarcity

Accepted Answer

A)  is the inability to satisfy all our wants. 
B)  leads to higher prices. 
C)  applies only to people living in poverty. 
D)  is not something that affects very rich people. 
E)  used to exist everywhere but has been eliminated in advanced economies. 
A)  is the inability to satisfy all our wants. 
B)  leads to higher prices. 
C)  applies only to people living in poverty. 
D)  is not something that affects very rich people. 
E)  used to exist everywhere but has been eliminated in advanced economies.

Question 19

Which of the following is a microeconomic topic?
I.Gas prices increase after a hurricane hits the gulf coast.
II.Xavier starts a new business designing web pages.
III.Abby decides to practice an extra hour of soccer instead of studying.

Accepted Answer

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

Question 20

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

Accepted Answer

A)  3. 
B)  4. 
C)  3/4. 
D)  4/3. 
E)  1. 
A)  3. 
B)  4. 
C)  3/4. 
D)  4/3. 
E)  1.

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

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Which of the following statements is the best example of the term ceteris paribus?

What do economists mean when they discuss "scarcity"?

Proponents of cuts in income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

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

-In the figure above,an increase in z leads to a

Shaniq can spend the next hour studying for a finance test,hiking along the Oregon coast,watching reruns of Lost on television,or napping.If she decides to study,what is the opportunity cost of her choice: hiking,watching television,or napping?

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

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

When economists use the term "correlation," they are referring to

-In the above figure,a negative relationship between x and y is shown in Figure

As part of its proposal to win the 2012 Olympics,London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011,the organizers decided to drop this plan to reduce emissions.We can conclude that

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

-In the above,in which figure(s)is the slope the same at every point?

-The graph shows a

Scarcity

Which of the following is a microeconomic topic? I.Gas prices increase after a hurricane hits the gulf coast. II.Xavier starts a new business designing web pages. III.Abby decides to practice an extra hour of soccer instead of studying.

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

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 slope of the line shown in the above figure is

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Which of the following statements is the best example of the term ceteris paribus?

What do economists mean when they discuss "scarcity"?

Proponents of cuts in income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

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

-In the figure above,an increase in z leads to a

Shaniq can spend the next hour studying for a finance test,hiking along the Oregon coast,watching reruns of Lost on television,or napping.If she decides to study,what is the opportunity cost of her choice: hiking,watching television,or napping?

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

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

When economists use the term "correlation," they are referring to

-In the above figure,a negative relationship between x and y is shown in Figure

As part of its proposal to win the 2012 Olympics,London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011,the organizers decided to drop this plan to reduce emissions.We can conclude that

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

-In the above,in which figure(s)is the slope the same at every point?

-The graph shows a

Scarcity

Which of the following is a microeconomic topic? I.Gas prices increase after a hurricane hits the gulf coast. II.Xavier starts a new business designing web pages. III.Abby decides to practice an extra hour of soccer instead of studying.

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

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