Question 1

Two variables are unrelated if their graph is
i.a vertical line.
ii.a 45 degree line.
iii.a horizontal line.

Accepted Answer

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

Question 2

As a curve approaches a maximum point,the slope will

Accepted Answer

A)  be positive and then negative after the maximum point. 
B)  be negative and then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
E)  decrease before and after the maximum point. 
A)  be positive and then negative after the maximum point. 
B)  be negative and then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
E)  decrease before and after the maximum point.

Question 3

-The graph shows a

Accepted Answer

A)  positive relationship that becomes less steep. 
B)  negative relationship that is linear. 
C)  positive relationship that is linear. 
D)  negative relationship that become less steep. 
E)  None of the above answers is correct. 
A)  positive relationship that becomes less steep. 
B)  negative relationship that is linear. 
C)  positive relationship that is linear. 
D)  negative relationship that become less steep. 
E)  None of the above answers is correct.

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 B and C equals

Accepted Answer

A)  16. 
B)  8. 
C)  4. 
D)  2. 
E)  14. 
A)  16. 
B)  8. 
C)  4. 
D)  2. 
E)  14.

Question 5

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Accepted Answer

A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  had no effect on the marginal cost or marginal benefit but did affect the total benefit 
A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  had no effect on the marginal cost or marginal benefit but did affect the total benefit

Question 6

Canada has nationalized health care,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Canada has decided that "everyone,regardless of their ability to pay" is the answer to what microeconomic question?

Accepted Answer

A)  What type of health care will be produced and in what quantity? 
B)  How will health care be produced? 
C)  For whom will health care be produced? 
D)  Why will we offer health care? 
E)  Must we offer health care? 
A)  What type of health care will be produced and in what quantity? 
B)  How will health care be produced? 
C)  For whom will health care be produced? 
D)  Why will we offer health care? 
E)  Must we offer health care?

Question 7

If x increases whenever y decreases,then x and y are

Accepted Answer

A)  not related. 
B)  positively related. 
C)  directly related. 
D)  negatively related. 
E)  related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis. 
A)  not related. 
B)  positively related. 
C)  directly related. 
D)  negatively related. 
E)  related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.

Question 8

-What is the slope of the line in the graph?

Accepted Answer

A)  +1/2 
B)  -1/2 
C)  + 2 
D)  -2 
E)  -3/4 
A)  +1/2 
B)  -1/2 
C)  + 2 
D)  -2 
E)  -3/4

Question 9

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

Accepted Answer

A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
E)  None of the above answers is correct because the graph assumes that the price of pecans does not change. 
A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
E)  None of the above answers is correct because the graph assumes that the price of pecans does not change.

Question 10

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

Accepted Answer

A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse. 
A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse.

Question 11

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then,there is

Accepted Answer

A)  a movement along the plotted curve. 
B)  a shift in the plotted curve. 
C)  no impact on the plotted curve because the variable is not measured on either of the axes. 
D)  an omitted variable. 
E)  a violation of the absence of trend assumption. 
A)  a movement along the plotted curve. 
B)  a shift in the plotted curve. 
C)  no impact on the plotted curve because the variable is not measured on either of the axes. 
D)  an omitted variable. 
E)  a violation of the absence of trend assumption.

Question 12

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  rational-decision statement. 
E)  marginal statement. 
A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  rational-decision statement. 
E)  marginal statement.

Question 13

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 14

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

Accepted Answer

A)  horizontal line. 
B)  vertical line. 
C)  curve with a maximum. 
D)  positively sloped line. 
E)  negatively sloped line. 
A)  horizontal line. 
B)  vertical line. 
C)  curve with a maximum. 
D)  positively sloped line. 
E)  negatively sloped line.

Question 15

Which of the following is true regarding a normative statement?
i.It uses the ceteris paribus assumption.
ii.It is a value judgment.
iii.It accounts for opportunity costs.

Accepted Answer

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

Question 16

A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

Accepted Answer

A)  falling. 
B)  rising. 
C)  high and not changing. 
D)  low and falling. 
E)  high and falling. 
A)  falling. 
B)  rising. 
C)  high and not changing. 
D)  low and falling. 
E)  high and falling.

Question 17

An incentive is

Accepted Answer

A)  an inducement to take a particular action. 
B)  the marginal cost of some course of action. 
C)  the marginal benefit of some course of action. 
D)  the net gain of some course of action. 
E)  a constraint that society imposes on those who make self-interested choices. 
A)  an inducement to take a particular action. 
B)  the marginal cost of some course of action. 
C)  the marginal benefit of some course of action. 
D)  the net gain of some course of action. 
E)  a constraint that society imposes on those who make self-interested choices.

Question 18

Of the three major economic questions,which of the following is the best example of a "What?" question?

Accepted Answer

A)  Should automobiles be produced using workers or robots? 
B)  Should higher-income or lower-income people buy SUVs? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid? 
A)  Should automobiles be produced using workers or robots? 
B)  Should higher-income or lower-income people buy SUVs? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid?

Question 19

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

Accepted Answer

A)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C)  He loses a total of $120 per day, so his decision is irrational. 
D)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E)  Adam is definitely making a decision that is in the social interest. 
A)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C)  He loses a total of $120 per day, so his decision is irrational. 
D)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E)  Adam is definitely making a decision that is in the social interest.

Question 20

What kind of information is conveyed in a time-series graph?

Accepted Answer

A time series graph reveals four types o

Two variables are unrelated if their graph is i.a vertical line. ii.a 45 degree line. iii.a horizontal line.

As a curve approaches a maximum point,the slope will

-The graph shows a

-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 B and C equals

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Canada has nationalized health care,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Canada has decided that "everyone,regardless of their ability to pay" is the answer to what microeconomic question?

If x increases whenever y decreases,then x and y are

-What is the slope of the line in the graph?

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then,there is

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Define economics and describe its branches of study.

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

Which of the following is true regarding a normative statement? i.It uses the ceteris paribus assumption. ii.It is a value judgment. iii.It accounts for opportunity costs.

A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

An incentive is

Of the three major economic questions,which of the following is the best example of a "What?" question?

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

What kind of information is conveyed in a time-series graph?

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

Two variables are unrelated if their graph is i.a vertical line. ii.a 45 degree line. iii.a horizontal line.

As a curve approaches a maximum point,the slope will

-The graph shows a

-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 B and C equals

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Canada has nationalized health care,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Canada has decided that "everyone,regardless of their ability to pay" is the answer to what microeconomic question?

If x increases whenever y decreases,then x and y are

-What is the slope of the line in the graph?

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then,there is

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Define economics and describe its branches of study.

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

Which of the following is true regarding a normative statement? i.It uses the ceteris paribus assumption. ii.It is a value judgment. iii.It accounts for opportunity costs.

A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

An incentive is

Of the three major economic questions,which of the following is the best example of a "What?" question?

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

What kind of information is conveyed in a time-series graph?

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