Question 1

The Latin term "ceteris paribus" means

Accepted Answer

A)  "false unless proven true." 
B)  "other things remaining the same." 
C)  "after this, therefore because of this." 
D)  "what is true of the whole is not necessarily true of the parts." 
E)  "obviously true." 
A)  "false unless proven true." 
B)  "other things remaining the same." 
C)  "after this, therefore because of this." 
D)  "what is true of the whole is not necessarily true of the parts." 
E)  "obviously true."

Question 2

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Accepted Answer

A)  by a cross-section graph. 
B)  by a time-series graph. 
C)  as a trend. 
D)  by a scatter diagram. 
E)  by a trend-section graph. 
A)  by a cross-section graph. 
B)  by a time-series graph. 
C)  as a trend. 
D)  by a scatter diagram. 
E)  by a trend-section graph.

Question 3

When you make the decision to spend your time attending class,which economic question are you answering?

Accepted Answer

A)  What? 
B)  How? 
C)  For whom? 
D)  Why? 
E)  Social interest 
A)  What? 
B)  How? 
C)  For whom? 
D)  Why? 
E)  Social interest

Question 4

Which of the following is a topic studied in macroeconomics?

Accepted Answer

A)  The pricing decisions in the computer hardware industry 
B)  The effect on economic growth if the government raises taxes 
C)  How the wheat industry determines how much wheat to grow 
D)  The impact of labor unions on wages 
E)  The impact of higher prices for gasoline on the number of SUVs people buy 
A)  The pricing decisions in the computer hardware industry 
B)  The effect on economic growth if the government raises taxes 
C)  How the wheat industry determines how much wheat to grow 
D)  The impact of labor unions on wages 
E)  The impact of higher prices for gasoline on the number of SUVs people buy

Question 5

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Accepted Answer

A)  the wages you would have earned from working. 
B)  the lower grade earned by not studying. 
C)  the wages you would have earned from working and the lower grade earned by not studying. 
D)  the value of the trip. 
E)  We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred. 
A)  the wages you would have earned from working. 
B)  the lower grade earned by not studying. 
C)  the wages you would have earned from working and the lower grade earned by not studying. 
D)  the value of the trip. 
E)  We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.

Question 6

People must make choices because

Accepted Answer

A)  most people enjoy shopping. 
B)  of scarcity. 
C)  there are many goods available. 
D)  the question "What goods and services are produced?" is not adequately answered. 
E)  making choices is in the social interest. 
A)  most people enjoy shopping. 
B)  of scarcity. 
C)  there are many goods available. 
D)  the question "What goods and services are produced?" is not adequately answered. 
E)  making choices is in the social interest.

Question 7

Which type of graph is most useful in determining if two variables are correlated?

Accepted Answer

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

Question 8

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Accepted Answer

The amount of goods and services a perso

Question 9

Whenever people's incomes increase,they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

Accepted Answer

A)  a positive relationship. 
B)  a linear relationship. 
C)  a negative relationship. 
D)  some sort of relationship, but whether it is positive or negative depends on whether income is plotted on the vertical or horizontal axis. 
E)  a U-shaped relationship. 
A)  a positive relationship. 
B)  a linear relationship. 
C)  a negative relationship. 
D)  some sort of relationship, but whether it is positive or negative depends on whether income is plotted on the vertical or horizontal axis. 
E)  a U-shaped relationship.

Question 10

Which of the following statements is a normative statement?

Accepted Answer

A)  Every American household should have health care insurance coverage. 
B)  Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C)  Welfare reform has decreased the amount the government spends on welfare. 
D)  The price of computers fell last year. 
E)  Fewer people are unemployed this year than last year. 
A)  Every American household should have health care insurance coverage. 
B)  Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C)  Welfare reform has decreased the amount the government spends on welfare. 
D)  The price of computers fell last year. 
E)  Fewer people are unemployed this year than last year.

Question 11

Which of the following is a macroeconomic topic?

Accepted Answer

A)  The federal government's decision to spend more on environmental protection 
B)  The county government's decision to increase the sales tax for your county 
C)  Why did production and jobs expand slowly in 2011? 
D)  General Motors decides what prices to set for their new models. 
E)  The effect of floods in the growing areas on the price and quantity of wheat 
A)  The federal government's decision to spend more on environmental protection 
B)  The county government's decision to increase the sales tax for your county 
C)  Why did production and jobs expand slowly in 2011? 
D)  General Motors decides what prices to set for their new models. 
E)  The effect of floods in the growing areas on the price and quantity of wheat

Question 12

Which of the following is a macroeconomic topic?
I.China increases interest rates to slow its economic growth.
II.Congress lowers tax rates to try and lower the unemployment rate.
III.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Accepted Answer

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

Question 13

Scarcity requires that we

Accepted Answer

A)  produce efficiently. 
B)  learn to limit our wants. 
C)  have the most rapid economic growth possible. 
D)  have unlimited resources. 
E)  make choices about what goods and services to produce. 
A)  produce efficiently. 
B)  learn to limit our wants. 
C)  have the most rapid economic growth possible. 
D)  have unlimited resources. 
E)  make choices about what goods and services to produce.

Question 14

In the diagram below,label the x-axis,the y-axis,and the origin.

Accepted Answer

@#IMG-DLM& The figure above ha

Question 15

To economists,scarcity means that

Accepted Answer

A)  limited wants cannot be satisfied by the unlimited resources. 
B)  a person looking for work is not able to find work. 
C)  the number of people without jobs rises when economic times are bad. 
D)  there can never be answers to the what, how or for whom questions. 
E)  unlimited wants cannot be satisfied by the limited resources. 
A)  limited wants cannot be satisfied by the unlimited resources. 
B)  a person looking for work is not able to find work. 
C)  the number of people without jobs rises when economic times are bad. 
D)  there can never be answers to the what, how or for whom questions. 
E)  unlimited wants cannot be satisfied by the limited resources.

Question 16

Macroeconomics is the study of

Accepted Answer

A)  the actions of individual consumers. 
B)  national or global economies. 
C)  the actions of individual businesses. 
D)  the government. 
E)  how ceteris paribus affects causation. 
A)  the actions of individual consumers. 
B)  national or global economies. 
C)  the actions of individual businesses. 
D)  the government. 
E)  how ceteris paribus affects causation.

Question 17

The figure above shows a

Accepted Answer

A)  time-series graph. 
B)  scatter diagram. 
C)  cross-section graph. 
D)  slope. 
E)  trend diagram 
A)  time-series graph. 
B)  scatter diagram. 
C)  cross-section graph. 
D)  slope. 
E)  trend diagram

Question 18

A linear relationship

Accepted Answer

A)  when graphed is a straight line. 
B)  when graphed is a line whose slope changes. 
C)  can be a positive or a negative relationship. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  when graphed is a straight line. 
B)  when graphed is a line whose slope changes. 
C)  can be a positive or a negative relationship. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 19

As a shoe factory adds more workers,shoe production grows,reaches a maximum,and then shrinks.In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis,the relationship between the number of workers and the number of shoes starts as ________ and then,after the maximum point,is ________.

Accepted Answer

A)  positive; negative 
B)  negative; positive 
C)  linear; negative 
D)  positive; linear 
E)  positive; nonexistent 
A)  positive; negative 
B)  negative; positive 
C)  linear; negative 
D)  positive; linear 
E)  positive; nonexistent

Question 20

A graph of two variables is a vertical line.What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

The Latin term "ceteris paribus" means

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

When you make the decision to spend your time attending class,which economic question are you answering?

Which of the following is a topic studied in macroeconomics?

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

People must make choices because

Which type of graph is most useful in determining if two variables are correlated?

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Whenever people's incomes increase,they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

Which of the following statements is a normative statement?

Which of the following is a macroeconomic topic?

Which of the following is a macroeconomic topic? I.China increases interest rates to slow its economic growth. II.Congress lowers tax rates to try and lower the unemployment rate. III.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Scarcity requires that we

In the diagram below,label the x-axis,the y-axis,and the origin.

To economists,scarcity means that

Macroeconomics is the study of

The figure above shows a

A linear relationship

A graph of two variables is a vertical line.What is the interpretation of this result?

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 Latin term "ceteris paribus" means

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

When you make the decision to spend your time attending class,which economic question are you answering?

Which of the following is a topic studied in macroeconomics?

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

People must make choices because

Which type of graph is most useful in determining if two variables are correlated?

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Whenever people's incomes increase,they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

Which of the following statements is a normative statement?

Which of the following is a macroeconomic topic?

Which of the following is a macroeconomic topic? I.China increases interest rates to slow its economic growth. II.Congress lowers tax rates to try and lower the unemployment rate. III.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Scarcity requires that we

In the diagram below,label the x-axis,the y-axis,and the origin.

To economists,scarcity means that

Macroeconomics is the study of

The figure above shows a

A linear relationship

A graph of two variables is a vertical line.What is the interpretation of this result?

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