Question 1

The opportunity cost of a decision is measured in terms of

Accepted Answer

A)  time. 
B)  the price of the alternative we choose. 
C)  the next best thing given up. 
D)  the price of a new opportunity that arises. 
E)  sunk cost. 
A)  time. 
B)  the price of the alternative we choose. 
C)  the next best thing given up. 
D)  the price of a new opportunity that arises. 
E)  sunk cost.

Question 2

-In the figure above,between points A and B,what is the slope of the line?

Accepted Answer

A)  4 
B)  1 
C)  3 
D)  -3 
E)  0 
A)  4 
B)  1 
C)  3 
D)  -3 
E)  0

Question 3

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 4

Making choices on the margin means

Accepted Answer

A)  scribbling on the edges of your notebook paper. 
B)  comparing all relevant alternatives systematically and incrementally. 
C)  making a decision based on emotions. 
D)  making decisions in the largest possible increments. 
E)  taking account of all marginal benefits, all opportunity costs, and all sunk costs. 
A)  scribbling on the edges of your notebook paper. 
B)  comparing all relevant alternatives systematically and incrementally. 
C)  making a decision based on emotions. 
D)  making decisions in the largest possible increments. 
E)  taking account of all marginal benefits, all opportunity costs, and all sunk costs.

Question 5

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)  change in the value of variable on the x-axis divided by the change in the value of the variable 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)  change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis.

Question 6

Different nations answer the what,how,and for whom questions differently.China,for instance,builds dams using many workers and only a little capital equipment.The United States builds dams using a few workers and a lot of capital equipment.Which economic question are these two nations answering and why do the answers differ?

Accepted Answer

The nations are answering the "how" ques

Question 7

Instead of studying for an additional two hours for the economics final,Leann decides to watch a movie.Leann is making

Accepted Answer

A)  a decision that does not involve an opportunity cost. 
B)  a rational decision if her marginal cost from the movie is greater than her marginal benefit. 
C)  a rational decision if her marginal benefit from the movie is greater than her marginal cost. 
D)  an irrational decision because studying is more important than watching a movie. 
E)  a decision that is not on the margin because she will see the entire movie. 
A)  a decision that does not involve an opportunity cost. 
B)  a rational decision if her marginal cost from the movie is greater than her marginal benefit. 
C)  a rational decision if her marginal benefit from the movie is greater than her marginal cost. 
D)  an irrational decision because studying is more important than watching a movie. 
E)  a decision that is not on the margin because she will see the entire movie.

Question 8

-In the above figure,the diagram shows

Accepted Answer

A)  a downward trend in x. 
B)  an upward trend in x. 
C)  a scatter diagram. 
D)  a two-variable scatter diagram. 
E)  a cross-section graph between x and time. 
A)  a downward trend in x. 
B)  an upward trend in x. 
C)  a scatter diagram. 
D)  a two-variable scatter diagram. 
E)  a cross-section graph between x and time.

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

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something. 
B)  how much money and time it takes to consume something. 
C)  the value of the highest-valued alternative that is forgone in making a choice. 
D)  the total of all other alternatives that are forgone in making a choice. 
E)  the sunk cost of any decision. 
A)  how much money is paid for something. 
B)  how much money and time it takes to consume something. 
C)  the value of the highest-valued alternative that is forgone in making a choice. 
D)  the total of all other alternatives that are forgone in making a choice. 
E)  the sunk cost of any decision.

Question 11

-In the figure above,what is the slope of the curve at point A?

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 12

Why does scarcity lead to the what,how,and for whom questions?

Accepted Answer

Human wants exceed the resources availab

Question 13

When Ford decides to increase production of hybrid cars,it directly answers the ________ 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 14

Decision making on the margin involves

Accepted Answer

A)  comparing the marginal cost and marginal benefits when making a decision. 
B)  comparing the total cost and the total benefit when making a decision. 
C)  eliminating the additional cost when making a decision. 
D)  determining the total benefits of a decision. 
E)  comparing the benefits from the social interest to the benefits from the person's self-interest. 
A)  comparing the marginal cost and marginal benefits when making a decision. 
B)  comparing the total cost and the total benefit when making a decision. 
C)  eliminating the additional cost when making a decision. 
D)  determining the total benefits of a decision. 
E)  comparing the benefits from the social interest to the benefits from the person's self-interest.

Question 15

A statement that argues that "if taxes on gasoline increase,gasoline consumption will decrease" is an example of what kind of statement?

Accepted Answer

A)  a marginal statement 
B)  a macroeconomic statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement that violates rational choice 
A)  a marginal statement 
B)  a macroeconomic statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement that violates rational choice

Question 16

The benefit from a good or service that you purchase is measured by

Accepted Answer

A)  the dollar amount that is paid for the good or service. 
B)  the dollar amount you can get by selling the good or service. 
C)  what you are willing to give up to obtain the good or service. 
D)  how strong the incentives were that lead to buying the good or service. 
E)  None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service. 
A)  the dollar amount that is paid for the good or service. 
B)  the dollar amount you can get by selling the good or service. 
C)  what you are willing to give up to obtain the good or service. 
D)  how strong the incentives were that lead to buying the good or service. 
E)  None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service.

Question 17

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

Accepted Answer

A)  positive. 
B)  negative. 
C)  inverse. 
D)  cross-sectional. 
E)  multilateral. 
A)  positive. 
B)  negative. 
C)  inverse. 
D)  cross-sectional. 
E)  multilateral.

Question 18

What is a positive statement? Give an example.

Accepted Answer

A positive statement addresses

Question 19

Which of the following is a microeconomic issue?

Accepted Answer

A)  Growth in the U.S. economy slowed. 
B)  Increased federal government expenditures have lowered the unemployment rate. 
C)  The inflation rate fell this year. 
D)  The quantity of wheat grown in the United States increases this year. 
E)  The U.S. government cuts taxes to combat a recession. 
A)  Growth in the U.S. economy slowed. 
B)  Increased federal government expenditures have lowered the unemployment rate. 
C)  The inflation rate fell this year. 
D)  The quantity of wheat grown in the United States increases this year. 
E)  The U.S. government cuts taxes to combat a recession.

Question 20

Because human wants are insatiable and unlimited while available resources are limited,people are said to face the problem of

Accepted Answer

A)  scarcity. 
B)  why to produce. 
C)  macroeconomics. 
D)  microeconomics. 
E)  social interest versus self-interest. 
A)  scarcity. 
B)  why to produce. 
C)  macroeconomics. 
D)  microeconomics. 
E)  social interest versus self-interest.

The opportunity cost of a decision is measured in terms of

-In the figure above,between points A and B,what is the slope of the line?

A time series graph

Making choices on the margin means

A slope is measured as the

Instead of studying for an additional two hours for the economics final,Leann decides to watch a movie.Leann is making

-In the above figure,the diagram shows

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

Opportunity cost is best defined as

-In the figure above,what is the slope of the curve at point A?

Why does scarcity lead to the what,how,and for whom questions?

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.

Decision making on the margin involves

A statement that argues that "if taxes on gasoline increase,gasoline consumption will decrease" is an example of what kind of statement?

The benefit from a good or service that you purchase is measured by

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

What is a positive statement? Give an example.

Which of the following is a microeconomic issue?

Because human wants are insatiable and unlimited while available resources are limited,people are said to face the problem of

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 opportunity cost of a decision is measured in terms of

-In the figure above,between points A and B,what is the slope of the line?

A time series graph

Making choices on the margin means

A slope is measured as the

Instead of studying for an additional two hours for the economics final,Leann decides to watch a movie.Leann is making

-In the above figure,the diagram shows

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

Opportunity cost is best defined as

-In the figure above,what is the slope of the curve at point A?

Why does scarcity lead to the what,how,and for whom questions?

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.

Decision making on the margin involves

A statement that argues that "if taxes on gasoline increase,gasoline consumption will decrease" is an example of what kind of statement?

The benefit from a good or service that you purchase is measured by

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

What is a positive statement? Give an example.

Which of the following is a microeconomic issue?

Because human wants are insatiable and unlimited while available resources are limited,people are said to face the problem of

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