Question 1

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
E)  swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis. 
A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
E)  swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis.

Question 2

The additional benefit of increasing some activity by one-unit is called the

Accepted Answer

A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  unit cost/benefit. 
A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  unit cost/benefit.

Question 3

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

Accepted Answer

A)  larger than the marginal benefit 
B)  smaller than the marginal benefit 
C)  equal to the marginal benefit 
D)  not related to the marginal benefit 
E)  equal to the marginal cost and the marginal benefit 
A)  larger than the marginal benefit 
B)  smaller than the marginal benefit 
C)  equal to the marginal benefit 
D)  not related to the marginal benefit 
E)  equal to the marginal cost and the marginal benefit

Question 4

When Ferrari decides to produce 1,200 360 Modenas each year,Ferrari is answering the ________ question.

Accepted Answer

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

Question 5

The ________ of something is the gain or pleasure that it brings.

Accepted Answer

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

Question 6

-The graph shows

Accepted Answer

A)  positive relationship that becomes less steep. 
B)  negative relationship that is linear. 
C)  positive relationship that is linear. 
D)  no relationship between the variables. 
E)  a trend relationship between the variables. 
A)  positive relationship that becomes less steep. 
B)  negative relationship that is linear. 
C)  positive relationship that is linear. 
D)  no relationship between the variables. 
E)  a trend relationship between the variables.

Question 7

A steep slope in a time series graph means the variable is

Accepted Answer

A)  high. 
B)  falling. 
C)  rising or falling quickly. 
D)  rising or falling slowly. 
E)  very close to its trend point. 
A)  high. 
B)  falling. 
C)  rising or falling quickly. 
D)  rising or falling slowly. 
E)  very close to its trend point.

Question 8

If there is no scarcity,

Accepted Answer

A)  the opportunity cost of an action would be greater than its sunk cost. 
B)  an action would have zero opportunity cost. 
C)  choices are no longer rational. 
D)  marginal cost of an action is greater than its marginal benefit. 
E)  all marginal benefits would equal zero. 
A)  the opportunity cost of an action would be greater than its sunk cost. 
B)  an action would have zero opportunity cost. 
C)  choices are no longer rational. 
D)  marginal cost of an action is greater than its marginal benefit. 
E)  all marginal benefits would equal zero.

Question 9

The slope of a line equals the change in the variable measured along the

Accepted Answer

A)  x-axis divided by the change in the variable measured along the y-axis. 
B)  y-axis divided by the change in the variable measured along the x-axis. 
C)  x-axis minus the change in the variable measured along the y-axis. 
D)  x-axis multiplied by the change in the variable measured along the y-axis. 
E)  y-axis minus the change in the variable measured along the x-axis. 
A)  x-axis divided by the change in the variable measured along the y-axis. 
B)  y-axis divided by the change in the variable measured along the x-axis. 
C)  x-axis minus the change in the variable measured along the y-axis. 
D)  x-axis multiplied by the change in the variable measured along the y-axis. 
E)  y-axis minus the change in the variable measured along the x-axis.

Question 10

-In the figure above,the relationship between the x variable and the y variable

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
E)  is non-existent because the two variables are unrelated. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
E)  is non-existent because the two variables are unrelated.

Question 11

Which of the following statements is a positive statement?

Accepted Answer

A)  Our country must increase military spending. 
B)  There should be a computer in every elementary school classroom. 
C)  We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D)  Online shopping increased by 50 percent this Christmas season. 
E)  Too many people are unemployed. 
A)  Our country must increase military spending. 
B)  There should be a computer in every elementary school classroom. 
C)  We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D)  Online shopping increased by 50 percent this Christmas season. 
E)  Too many people are unemployed.

Question 12

Which of the following is a positive statement?

Accepted Answer

A)  An increase in college tuition is not fair to students. 
B)  A recession leads to higher enrollments at universities. 
C)  University bookstore prices are too high. 
D)  Parking tickets on campus impose an excessive fee. 
E)  The school needs more parking for students. 
A)  An increase in college tuition is not fair to students. 
B)  A recession leads to higher enrollments at universities. 
C)  University bookstore prices are too high. 
D)  Parking tickets on campus impose an excessive fee. 
E)  The school needs more parking for students.

Question 13

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 14

Jamie has enough money to buy either a Mountain Dew,or a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is

Accepted Answer

A)  the Pepsi and the bag of chips. 
B)  the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. 
C)  the Mountain Dew. 
D)  the Pepsi because it is a drink, as is the Mountain Dew. 
E)  zero because he enjoys the Mountain Dew. 
A)  the Pepsi and the bag of chips. 
B)  the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. 
C)  the Mountain Dew. 
D)  the Pepsi because it is a drink, as is the Mountain Dew. 
E)  zero because he enjoys the Mountain Dew.

Question 15

In order to make a rational choice,people must

Accepted Answer

A)  only know what they want. 
B)  be able to afford the choice decided upon. 
C)  decide quickly without wasting time. 
D)  compare marginal costs and marginal benefits. 
E)  determine what is in the social interest. 
A)  only know what they want. 
B)  be able to afford the choice decided upon. 
C)  decide quickly without wasting time. 
D)  compare marginal costs and marginal benefits. 
E)  determine what is in the social interest.

Question 16

-In the above,which figure(s)has at least one point at which the slope equals zero?

Accepted Answer

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

Question 17

________ shows the values of a variable for different groups in the population at a certain point in time.

Accepted Answer

A)  A time-series graph 
B)  The origin 
C)  A cross-section graph 
D)  A scatter plot 
E)  A trend-line graph 
A)  A time-series graph 
B)  The origin 
C)  A cross-section graph 
D)  A scatter plot 
E)  A trend-line graph

Question 18

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

Accepted Answer

A)  independent. 
B)  correlated. 
C)  statistics. 
D)  significantly related. 
E)  casually related. 
A)  independent. 
B)  correlated. 
C)  statistics. 
D)  significantly related. 
E)  casually related.

Question 19

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Accepted Answer

A)  forgone work. 
B)  forgone party. 
C)  forgone working and partying. 
D)  forgone working or partying, depending on which was your next best choice. 
E)  test because you are taking it. 
A)  forgone work. 
B)  forgone party. 
C)  forgone working and partying. 
D)  forgone working or partying, depending on which was your next best choice. 
E)  test because you are taking it.

Question 20

Self interest

Accepted Answer

A)  reflects choices that are best for society as a whole. 
B)  reflects choices that are best for the individual who makes them. 
C)  has nothing to do with determining what goods are produced. 
D)  occurs only when wants exceed available resources. 
E)  cannot be used to determine how goods are produced. 
A)  reflects choices that are best for society as a whole. 
B)  reflects choices that are best for the individual who makes them. 
C)  has nothing to do with determining what goods are produced. 
D)  occurs only when wants exceed available resources. 
E)  cannot be used to determine how goods are produced.

Ceteris paribus when graphing a relationship refers to

The additional benefit of increasing some activity by one-unit is called the

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

When Ferrari decides to produce 1,200 360 Modenas each year,Ferrari is answering the ________ question.

The ________ of something is the gain or pleasure that it brings.

-The graph shows

A steep slope in a time series graph means the variable is

If there is no scarcity,

The slope of a line equals the change in the variable measured along the

-In the figure above,the relationship between the x variable and the y variable

Which of the following statements is a positive statement?

Which of the following is a positive statement?

A cross-section graph

Jamie has enough money to buy either a Mountain Dew,or a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is

In order to make a rational choice,people must

-In the above,which figure(s)has at least one point at which the slope equals zero?

________ shows the values of a variable for different groups in the population at a certain point in time.

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Self interest

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

Ceteris paribus when graphing a relationship refers to

The additional benefit of increasing some activity by one-unit is called the

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

When Ferrari decides to produce 1,200 360 Modenas each year,Ferrari is answering the ________ question.

The ________ of something is the gain or pleasure that it brings.

-The graph shows

A steep slope in a time series graph means the variable is

If there is no scarcity,

The slope of a line equals the change in the variable measured along the

-In the figure above,the relationship between the x variable and the y variable

Which of the following statements is a positive statement?

Which of the following is a positive statement?

A cross-section graph

Jamie has enough money to buy either a Mountain Dew,or a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is

In order to make a rational choice,people must

-In the above,which figure(s)has at least one point at which the slope equals zero?

________ shows the values of a variable for different groups in the population at a certain point in time.

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Self interest

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