Question 1

When Gabriel made a rational choice to spend his entire allowance on candy bars,he did so by comparing the

Accepted Answer

A)  benefits of the candy bars to the desires he had for the candy bars. 
B)  marginal benefits of the candy bars to the marginal costs of the candy bars. 
C)  opportunity costs of the candy bars to the scarcity of the candy bars. 
D)  benefits of the candy bars to the scarcity candy bars. 
E)  self-interest to the social interest. 
A)  benefits of the candy bars to the desires he had for the candy bars. 
B)  marginal benefits of the candy bars to the marginal costs of the candy bars. 
C)  opportunity costs of the candy bars to the scarcity of the candy bars. 
D)  benefits of the candy bars to the scarcity candy bars. 
E)  self-interest to the social interest.

Question 2

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

Accepted Answer

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

Question 3

"As the price of gasoline increases,fewer people buy cars that are gas guzzlers." A graph showing this relationship would

Accepted Answer

A)  have a negative slope. 
B)  have a positive relationship. 
C)  have a direct relationship. 
D)  be a horizontal line. 
E)  be a vertical line. 
A)  have a negative slope. 
B)  have a positive relationship. 
C)  have a direct relationship. 
D)  be a horizontal line. 
E)  be a vertical line.

Question 4

-The graph shows

Accepted Answer

A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear relationship. 
E)  a cross-section relationship. 
A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear relationship. 
E)  a cross-section relationship.

Question 5

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 vertical axis divided by the change in the variable measured along the horizontal axis. 
C)  will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D)  Answers A and B are correct. 
E)  Answers A and C are correct. 
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 vertical axis divided by the change in the variable measured along the horizontal axis. 
C)  will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D)  Answers A and B are correct. 
E)  Answers A and C are correct.

Question 6

The important characteristic of normative statements is that they

Accepted Answer

A)  explain what really exists. 
B)  are based on somebody's values and cannot be tested. 
C)  explain what normally happens in the real world. 
D)  help guide us to what will normally occur if some economic variable changes its value. 
E)  do not use the ceteris paribus assumption. 
A)  explain what really exists. 
B)  are based on somebody's values and cannot be tested. 
C)  explain what normally happens in the real world. 
D)  help guide us to what will normally occur if some economic variable changes its value. 
E)  do not use the ceteris paribus assumption.

Question 7

A cross-section graph

Accepted Answer

A)  is divided into different sections. 
B)  shows the 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 A and B are correct. 
A)  is divided into different sections. 
B)  shows the 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 A and B are correct.

Question 8

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

Accepted Answer

A)  the fall in the cost per mile becomes smaller. 
B)  the fall in the cost per mile becomes greater. 
C)  the cost per mile decreases. 
D)  the cost per mile increases. 
E)  the cost per mile remains unchanged. 
A)  the fall in the cost per mile becomes smaller. 
B)  the fall in the cost per mile becomes greater. 
C)  the cost per mile decreases. 
D)  the cost per mile increases. 
E)  the cost per mile remains unchanged.

Question 9

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions. 
A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions.

Question 10

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

Accepted Answer

A)  the two previous hamburgers. 
B)  all three hamburgers. 
C)  just the third hamburger. 
D)  just the second hamburger. 
E)  the third hamburger minus the pleasure from consuming zero hamburgers. 
A)  the two previous hamburgers. 
B)  all three hamburgers. 
C)  just the third hamburger. 
D)  just the second hamburger. 
E)  the third hamburger minus the pleasure from consuming zero hamburgers.

Question 11

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

Accepted Answer

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

Question 12

If two variables are positively related,then

Accepted Answer

A)  one variable causes the other. 
B)  an increase in one variable is accompanied by a decrease in the other. 
C)  an increase in one variable is accompanied by an increase in the other. 
D)  they change together, but not necessarily in the same direction. 
E)  neither variable can be positively related to any other variable. 
A)  one variable causes the other. 
B)  an increase in one variable is accompanied by a decrease in the other. 
C)  an increase in one variable is accompanied by an increase in the other. 
D)  they change together, but not necessarily in the same direction. 
E)  neither variable can be positively related to any other variable.

Question 13

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

Accepted Answer

A)  the $10 he could have earned at his job. 
B)  the value of the session minus the $10 he could have earned at his job. 
C)  nothing, because the review session does not cost anything. 
D)  equal to the benefit he gets from the review session. 
E)  the one-hour review session. 
A)  the $10 he could have earned at his job. 
B)  the value of the session minus the $10 he could have earned at his job. 
C)  nothing, because the review session does not cost anything. 
D)  equal to the benefit he gets from the review session. 
E)  the one-hour review session.

Question 14

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand,it is answering the ________ question.

Accepted Answer

A)  how 
B)  what 
C)  for whom 
D)  opportunity cost 
E)  why 
A)  how 
B)  what 
C)  for whom 
D)  opportunity cost 
E)  why

Question 15

In a graph,a straight line has a negative slope if the line

Accepted Answer

A)  is vertical. 
B)  is horizontal. 
C)  falls from left to right. 
D)  rises from left to right. 
E)  shows a trend. 
A)  is vertical. 
B)  is horizontal. 
C)  falls from left to right. 
D)  rises from left to right. 
E)  shows a trend.

Question 16

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

Accepted Answer

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

Question 17

Whenever one variable increases,another variable decreases.The two variables are

Accepted Answer

A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other. 
E)  related but whether positively or negatively related depends on which variable is plotted on the vertical axis. 
A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other. 
E)  related but whether positively or negatively related depends on which variable is plotted on the vertical axis.

Question 18

A change in a marginal benefit or cost will

Accepted Answer

A)  increase consumption. 
B)  decrease production. 
C)  cause an individual to make a rational choice. 
D)  increase sunk costs. 
E)  change incentives. 
A)  increase consumption. 
B)  decrease production. 
C)  cause an individual to make a rational choice. 
D)  increase sunk costs. 
E)  change incentives.

Question 19

-What is the slope of the line in the figure above?

Accepted Answer

A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  Zero 
A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  Zero

Question 20

Which type of economic graph reveals trends in data?

Accepted Answer

A)  cross-section graph 
B)  time-series graph 
C)  scatter diagram 
D)  Answers A and C are correct. 
E)  Answers A, B, and C are all correct. 
A)  cross-section graph 
B)  time-series graph 
C)  scatter diagram 
D)  Answers A and C are correct. 
E)  Answers A, B, and C are all correct.

When Gabriel made a rational choice to spend his entire allowance on candy bars,he did so by comparing the

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

"As the price of gasoline increases,fewer people buy cars that are gas guzzlers." A graph showing this relationship would

-The graph shows

The slope

The important characteristic of normative statements is that they

A cross-section graph

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

Which of the following statements best describes the study of economics? Economics studies how

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

If two variables are positively related,then

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand,it is answering the ________ question.

In a graph,a straight line has a negative slope if the line

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

Whenever one variable increases,another variable decreases.The two variables are

A change in a marginal benefit or cost will

-What is the slope of the line in the figure above?

Which type of economic graph reveals trends in data?

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

When Gabriel made a rational choice to spend his entire allowance on candy bars,he did so by comparing the

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

"As the price of gasoline increases,fewer people buy cars that are gas guzzlers." A graph showing this relationship would

-The graph shows

The slope

The important characteristic of normative statements is that they

A cross-section graph

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

Which of the following statements best describes the study of economics? Economics studies how

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

If two variables are positively related,then

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand,it is answering the ________ question.

In a graph,a straight line has a negative slope if the line

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

Whenever one variable increases,another variable decreases.The two variables are

A change in a marginal benefit or cost will

-What is the slope of the line in the figure above?

Which type of economic graph reveals trends in data?

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