Question 1

The vertical axis in a graph

Accepted Answer

A)  is named the y-axis. 
B)  is named the x-axis. 
C)  measures time in a cross-section and time series graph. 
D)  has no origin. 
E)  measures time only in a time series graph. 
A)  is named the y-axis. 
B)  is named the x-axis. 
C)  measures time in a cross-section and time series graph. 
D)  has no origin. 
E)  measures time only in a time series graph.

Question 2

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 3

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score.Is the relationship between hours on the web and the SAT score positive,negative,neither? Explain your answer.

Accepted Answer

The figure shows that there is a negativ

Question 4

A graph of the value of one variable against the value of another variable is known as a

Accepted Answer

A)  two-dimensional graph. 
B)  three-dimensional graph. 
C)  time-series graph. 
D)  scatter diagram. 
E)  two-variable graph. 
A)  two-dimensional graph. 
B)  three-dimensional graph. 
C)  time-series graph. 
D)  scatter diagram. 
E)  two-variable graph.

Question 5

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 6

The marginal cost of an activity ________ as you do more of it.

Accepted Answer

A)  increases 
B)  decreases 
C)  doesn't change 
D)  changes only if the marginal benefit of the activity does not change 
E)  changes only if the marginal benefit of the activity changes 
A)  increases 
B)  decreases 
C)  doesn't change 
D)  changes only if the marginal benefit of the activity does not change 
E)  changes only if the marginal benefit of the activity changes

Question 7

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Accepted Answer

A)  Should Ford build SUVs or luxury cars? 
B)  Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
C)  Should contractors building residential housing or shopping malls? 
D)  Is income distributed fairly in the United States? 
E)  Why are Christmas trees popular only in December? 
A)  Should Ford build SUVs or luxury cars? 
B)  Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
C)  Should contractors building residential housing or shopping malls? 
D)  Is income distributed fairly in the United States? 
E)  Why are Christmas trees popular only in December?

Question 8

Suppose you take a trip during Spring Break.To determine the benefit of taking the trip,you

Accepted Answer

A)  calculate the opportunity cost of the trip. 
B)  measure what you are willing to give up to take the trip. 
C)  determine the sunk cost of taking the trip. 
D)  calculate the value of the next best alternative foregone. 
E)  must measure what the trip is worth to you and then subtract the cost of the trip. 
A)  calculate the opportunity cost of the trip. 
B)  measure what you are willing to give up to take the trip. 
C)  determine the sunk cost of taking the trip. 
D)  calculate the value of the next best alternative foregone. 
E)  must measure what the trip is worth to you and then subtract the cost of the trip.

Question 9

Which of the following is a microeconomic topic?
I.K-Mart's decision to close stores that are not making a profit
II.Home Depot's choice to hire more full-time employees because its sales increased
III.Delta Airlines changes its fares.

Accepted Answer

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

Question 10

If a decision is made and it is the best choice for society,the decision is said to be

Accepted Answer

A)  a valid economic choice. 
B)  made in self-interest. 
C)  made in social interest. 
D)  consist with scarcity. 
E)  a want-maximizing choice. 
A)  a valid economic choice. 
B)  made in self-interest. 
C)  made in social interest. 
D)  consist with scarcity. 
E)  a want-maximizing choice.

Question 11

Which of the following statements is true regarding scarcity?

Accepted Answer

A)  Scarcity affects poorer countries only. 
B)  An economy experiences scarcity only when the incomes of its citizens decline. 
C)  Poor people experience scarcity more often than do rich people. 
D)  All citizens in a wealthy economy experience scarcity. 
E)  Scarcity could be overcome if people would make all choices in the social interest. 
A)  Scarcity affects poorer countries only. 
B)  An economy experiences scarcity only when the incomes of its citizens decline. 
C)  Poor people experience scarcity more often than do rich people. 
D)  All citizens in a wealthy economy experience scarcity. 
E)  Scarcity could be overcome if people would make all choices in the social interest.

Question 12

For spring break,Melanie will either stay home or go to Daytona Beach.At home,Melanie pays $10 per day for food and earns $90 a day at her job.At Daytona Beach,Melanie will stay with friends and so has no lodging cost.She will pay $20 per day for food.In terms of dollars,Melanie's opportunity cost per day of going to Daytona Beach is how much?

Accepted Answer

Melanie's opportunity cost of

Question 13

Matt pays a $50 a month membership fee at Bruno's Gym.He can exercise at the gym as many times as he wishes.If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis,the graph between his membership fee and the number of times he exercises will

Accepted Answer

A)  be a horizontal line. 
B)  be positively sloped. 
C)  be negatively sloped. 
D)  be a vertical line. 
E)  start out positively sloped and then, as Matt loses interest, become negatively sloped. 
A)  be a horizontal line. 
B)  be positively sloped. 
C)  be negatively sloped. 
D)  be a vertical line. 
E)  start out positively sloped and then, as Matt loses interest, become negatively sloped.

Question 14

-In the above,which figure shows both a positive and a negative relationship between the variables?

Accepted Answer

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

Question 15

-"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

Accepted Answer

The statement is false because it is pos

Question 16

Economists measure opportunity cost

Accepted Answer

A)  only when it is on the margin. 
B)  as the best thing given up. 
C)  as the sum of all forgone opportunities. 
D)  as the same as marginal benefit. 
E)  as equal to the sum of all the sunk costs. 
A)  only when it is on the margin. 
B)  as the best thing given up. 
C)  as the sum of all forgone opportunities. 
D)  as the same as marginal benefit. 
E)  as equal to the sum of all the sunk costs.

Question 17

What is the difference between positive and normative statements?

Accepted Answer

Positive statements tell what is and nor

Question 18

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Accepted Answer

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

Question 19

The question of "What goods and services get produced?" most closely relates to which of the following issues?

Accepted Answer

A)  the distribution of goods and services in the economy 
B)  producing goods and services in the least costly manner 
C)  building a missile defense system, or putting a computer in every elementary school classroom 
D)  obtaining specialized training to increase one's income 
E)  taxing high income workers to give payments to poor households 
A)  the distribution of goods and services in the economy 
B)  producing goods and services in the least costly manner 
C)  building a missile defense system, or putting a computer in every elementary school classroom 
D)  obtaining specialized training to increase one's income 
E)  taxing high income workers to give payments to poor households

Question 20

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

The vertical axis in a graph

-What does the slope of the curved line at point A shown in the above figure equal?

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score.Is the relationship between hours on the web and the SAT score positive,negative,neither? Explain your answer.

A graph of the value of one variable against the value of another variable is known as a

-What does the slope of the line shown in the above figure equal?

The marginal cost of an activity ________ as you do more of it.

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Suppose you take a trip during Spring Break.To determine the benefit of taking the trip,you

Which of the following is a microeconomic topic? I.K-Mart's decision to close stores that are not making a profit II.Home Depot's choice to hire more full-time employees because its sales increased III.Delta Airlines changes its fares.

If a decision is made and it is the best choice for society,the decision is said to be

Which of the following statements is true regarding scarcity?

-In the above,which figure shows both a positive and a negative relationship between the variables?

-"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

Economists measure opportunity cost

What is the difference between positive and normative statements?

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

The question of "What goods and services get produced?" most closely relates to which of the following issues?

-What does the slope of the line shown in the above figure equal?

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 vertical axis in a graph

-What does the slope of the curved line at point A shown in the above figure equal?

-The figure above shows how the relationship between the number of hours per week a high school student spends on the web and the student's SAT score.Is the relationship between hours on the web and the SAT score positive,negative,neither? Explain your answer.

A graph of the value of one variable against the value of another variable is known as a

-What does the slope of the line shown in the above figure equal?

The marginal cost of an activity ________ as you do more of it.

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Suppose you take a trip during Spring Break.To determine the benefit of taking the trip,you

Which of the following is a microeconomic topic? I.K-Mart's decision to close stores that are not making a profit II.Home Depot's choice to hire more full-time employees because its sales increased III.Delta Airlines changes its fares.

If a decision is made and it is the best choice for society,the decision is said to be

Which of the following statements is true regarding scarcity?

-In the above,which figure shows both a positive and a negative relationship between the variables?

-"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

Economists measure opportunity cost

What is the difference between positive and normative statements?

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

The question of "What goods and services get produced?" most closely relates to which of the following issues?

-What does the slope of the line shown in the above figure equal?

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