Question 1

The slope

Accepted Answer

A)  of a straight line is the same regardless of where on the line it is calculated. 
B)  equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C)  will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D)  equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E)  falls as the x variable increases if the line has a negative slope. 
A)  of a straight line is the same regardless of where on the line it is calculated. 
B)  equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C)  will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D)  equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E)  falls as the x variable increases if the line has a negative slope.

Question 2

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours,Kiki could have played tennis or watched a movie.Therefore,the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect.The

Question 3

-In the diagram above,which figure(s)show(s)no relationship between the variables?

Accepted Answer

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

Question 4

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points C and D equals

Accepted Answer

A)  8. 
B)  4. 
C)  2. 
D)  1. 
E)  12 
A)  8. 
B)  4. 
C)  2. 
D)  1. 
E)  12

Question 5

The horizontal axis in a graph

Accepted Answer

A)  measures time on a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
E)  is called the origin. 
A)  measures time on a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
E)  is called the origin.

Question 6

When analyzing graphically the relationship between more than two variables,which of the following must be used?

Accepted Answer

A)  positive slope assumption 
B)  assumption of little change 
C)  ceteris paribus 
D)  negative slope assumption 
E)  the assumption that only relevant factors change 
A)  positive slope assumption 
B)  assumption of little change 
C)  ceteris paribus 
D)  negative slope assumption 
E)  the assumption that only relevant factors change

Question 7

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2,peanut farmers are willing to sell

Accepted Answer

A)  no peanuts. 
B)  1000 pounds of peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts. 
E)  more than 4000 pounds of peanuts. 
A)  no peanuts. 
B)  1000 pounds of peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts. 
E)  more than 4000 pounds of peanuts.

Question 8

To graph a relationship among several variables,we hold all but ________ variable(s)constant and use the ________ assumption.

Accepted Answer

A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; scarcity 
D)  one; ceteris paribus 
E)  one; absence of trend 
A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; scarcity 
D)  one; ceteris paribus 
E)  one; absence of trend

Question 9

-In the figure above,ceteris paribus,an increase in x is associated with

Accepted Answer

A)  an increase in y. 
B)  a decrease in y. 
C)  an increase in z. 
D)  a random change in z. 
E)  no change in either y or z. 
A)  an increase in y. 
B)  a decrease in y. 
C)  an increase in z. 
D)  a random change in z. 
E)  no change in either y or z.

Question 10

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

Accepted Answer

A)  greater than 
B)  equal to 
C)  less than 
D)  unrelated to 
E)  not comparable to 
A)  greater than 
B)  equal to 
C)  less than 
D)  unrelated to 
E)  not comparable to

Question 11

A rational choice is one that

Accepted Answer

A)  always turns out for the best for the decision maker. 
B)  creates no costs for the decision maker. 
C)  must be made with perfect information. 
D)  uses the available resources to most effectively satisfy the wants of the person making the choice. 
E)  is made in the social interest rather than the self-interest. 
A)  always turns out for the best for the decision maker. 
B)  creates no costs for the decision maker. 
C)  must be made with perfect information. 
D)  uses the available resources to most effectively satisfy the wants of the person making the choice. 
E)  is made in the social interest rather than the self-interest.

Question 12

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

Accepted Answer

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

Question 13

Scarcity means that

Accepted Answer

A)  what we can produce with our resources is greater than our material wants. 
B)  resources are unlimited. 
C)  wants are greater than what we can produce with out resources. 
D)  governments must make up for shortages in resources. 
E)  choices made in self-interest cannot be the same as those made in the social interest. 
A)  what we can produce with our resources is greater than our material wants. 
B)  resources are unlimited. 
C)  wants are greater than what we can produce with out resources. 
D)  governments must make up for shortages in resources. 
E)  choices made in self-interest cannot be the same as those made in the social interest.

Question 14

What typically happens to benefits as the amount of an activity is increased?

Accepted Answer

A)  Total benefits remain constant. 
B)  Marginal benefit increases. 
C)  Marginal benefit remains constant. 
D)  Marginal benefit decreases. 
E)  The marginal benefit changes only if the marginal cost changes. 
A)  Total benefits remain constant. 
B)  Marginal benefit increases. 
C)  Marginal benefit remains constant. 
D)  Marginal benefit decreases. 
E)  The marginal benefit changes only if the marginal cost changes.

Question 15

If two variables are unrelated,their graph is

Accepted Answer

A)  either a horizontal or a vertical line. 
B)  a downward-sloping line. 
C)  an upward-sloping line. 
D)  a curved line. 
E)  None of the above answers is correct because it is not possible to graph unrelated variables. 
A)  either a horizontal or a vertical line. 
B)  a downward-sloping line. 
C)  an upward-sloping line. 
D)  a curved line. 
E)  None of the above answers is correct because it is not possible to graph unrelated variables.

Question 16

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a positive relationship. 
D)  a line with a positive slope. 
E)  None of the above answers is correct. 
A)  a horizontal line. 
B)  a vertical line. 
C)  a positive relationship. 
D)  a line with a positive slope. 
E)  None of the above answers is correct.

Question 17

-The figure above shows the price of a DVD player from 1996 to 2000.
a.What type of graph is illustrated above?
b.What is the trend in the price of a DVD player?

Accepted Answer

a.The graph is a time-series graph becau

The slope

-In the diagram above,which figure(s)show(s)no relationship between the variables?

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points C and D equals

The horizontal axis in a graph

When analyzing graphically the relationship between more than two variables,which of the following must be used?

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2,peanut farmers are willing to sell

To graph a relationship among several variables,we hold all but variable(s)constant and use the assumption.

-In the figure above,ceteris paribus,an increase in x is associated with

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

A rational choice is one that

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

Scarcity means that

What typically happens to benefits as the amount of an activity is increased?

If two variables are unrelated,their graph is

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

-The figure above shows the price of a DVD player from 1996 to 2000. a.What type of graph is illustrated above? b.What is the trend in the price of a DVD player?

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

-In the diagram above,which figure(s)show(s)no relationship between the variables?

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points C and D equals

The horizontal axis in a graph

When analyzing graphically the relationship between more than two variables,which of the following must be used?

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2,peanut farmers are willing to sell

To graph a relationship among several variables,we hold all but ________ variable(s)constant and use the ________ assumption.

-In the figure above,ceteris paribus,an increase in x is associated with

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

A rational choice is one that

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

Scarcity means that

What typically happens to benefits as the amount of an activity is increased?

If two variables are unrelated,their graph is

As the number of days without rain increases,the amount of wheat grown per acre declines.A graph showing this relationship shows

-The figure above shows the price of a DVD player from 1996 to 2000. a.What type of graph is illustrated above? b.What is the trend in the price of a DVD player?

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 graph a relationship among several variables,we hold all but variable(s)constant and use the assumption.