Question 1

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour,the opportunity cost of the hour spent studying is

Accepted Answer

A)  definitely going to sleep. 
B)  studying since this is the choice she opted for. 
C)  sleeping or going out for dinner, whichever she would have preferred the most. 
D)  sleeping and going out for dinner. 
E)  definitely going out to dinner because she must eat at some time. 
A)  definitely going to sleep. 
B)  studying since this is the choice she opted for. 
C)  sleeping or going out for dinner, whichever she would have preferred the most. 
D)  sleeping and going out for dinner. 
E)  definitely going out to dinner because she must eat at some time.

Question 2

The benefit of an activity is

Accepted Answer

A)  purely objective and measured in dollars. 
B)  the gain or pleasure that it brings. 
C)  the value of its opportunity cost. 
D)  measured by what must be given up to get one more unit of the activity. 
E)  not measurable on the margin. 
A)  purely objective and measured in dollars. 
B)  the gain or pleasure that it brings. 
C)  the value of its opportunity cost. 
D)  measured by what must be given up to get one more unit of the activity. 
E)  not measurable on the margin.

Question 3

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

Accepted Answer

The slope equals the change in

Question 4

Economics is the social science that studies

Accepted Answer

A)  the real reasons people buy goods and services. 
B)  the psychology of individuals and businesses. 
C)  whether a nation has enough natural resources. 
D)  how people make choices to cope with scarcity. 
E)  how choices made in the social interest could eliminate scarcity. 
A)  the real reasons people buy goods and services. 
B)  the psychology of individuals and businesses. 
C)  whether a nation has enough natural resources. 
D)  how people make choices to cope with scarcity. 
E)  how choices made in the social interest could eliminate scarcity.

Question 5

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 6

The decision to go to graduate school is a rational one for a college student if the

Accepted Answer

A)  cost is not too great. 
B)  marginal cost exceeds the marginal benefit of graduate school. 
C)  marginal benefit of graduate school exceeds the marginal cost. 
D)  opportunity cost of graduate school equals zero. 
E)  student carefully compared the social benefits of this decision. 
A)  cost is not too great. 
B)  marginal cost exceeds the marginal benefit of graduate school. 
C)  marginal benefit of graduate school exceeds the marginal cost. 
D)  opportunity cost of graduate school equals zero. 
E)  student carefully compared the social benefits of this decision.

Question 7

A time series graph

Accepted Answer

A)  shows how a variable changes over time. 
B)  uses bars rather than lines. 
C)  shows points in a scatter diagram. 
D)  is similar to a cross-section graph because both can show trends over time. 
E)  is in the shape of a pie. 
A)  shows how a variable changes over time. 
B)  uses bars rather than lines. 
C)  shows points in a scatter diagram. 
D)  is similar to a cross-section graph because both can show trends over time. 
E)  is in the shape of a pie.

Question 8

To make a rational choice,a person

Accepted Answer

A)  compares the extra benefits of one more unit to the extra costs of one more unit. 
B)  adds the total benefits and the total costs and then compares the two totals. 
C)  adds the total benefits to determine if the total is large enough. 
D)  adds the total costs to determine if the total is small enough. 
E)  takes account of all benefits and all opportunity costs, including both marginal costs and sunk costs. 
A)  compares the extra benefits of one more unit to the extra costs of one more unit. 
B)  adds the total benefits and the total costs and then compares the two totals. 
C)  adds the total benefits to determine if the total is large enough. 
D)  adds the total costs to determine if the total is small enough. 
E)  takes account of all benefits and all opportunity costs, including both marginal costs and sunk costs.

Question 9

The benefit of a one-unit increase in an activity

Accepted Answer

A)  is called marginal cost. 
B)  is always greater than the opportunity cost of that activity. 
C)  decreases as you do more of it. 
D)  is measured by what you must give up. 
E)  is called rational-choice benefit. 
A)  is called marginal cost. 
B)  is always greater than the opportunity cost of that activity. 
C)  decreases as you do more of it. 
D)  is measured by what you must give up. 
E)  is called rational-choice benefit.

Question 10

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

Accepted Answer

A)  price of gold is falling. 
B)  price of gold is rising. 
C)  quantity of gold is falling. 
D)  price of gold is low and not changing. 
E)  price of gold fluctuates. 
A)  price of gold is falling. 
B)  price of gold is rising. 
C)  quantity of gold is falling. 
D)  price of gold is low and not changing. 
E)  price of gold fluctuates.

Question 11

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

Accepted Answer

A)  you must ignore the problem of scarcity. 
B)  you considered the marginal cost and marginal benefit of your choice. 
C)  you have used the ceteris paribus assumption. 
D)  you have made a positive statement. 
E)  you must have considered the social interest. 
A)  you must ignore the problem of scarcity. 
B)  you considered the marginal cost and marginal benefit of your choice. 
C)  you have used the ceteris paribus assumption. 
D)  you have made a positive statement. 
E)  you must have considered the social interest.

Question 12

-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 A and B is

Accepted Answer

A)  20. 
B)  16. 
C)  2. 
D)  4 
E)  nonexistent because at point A, no roses are sold. 
A)  20. 
B)  16. 
C)  2. 
D)  4 
E)  nonexistent because at point A, no roses are sold.

Question 13

To graph a relationship involving more than two variables,we use which assumption?

Accepted Answer

A)  linear assumption 
B)  positive relationship assumption 
C)  marginal analysis 
D)  ceteris paribus 
E)  trend assumption 
A)  linear assumption 
B)  positive relationship assumption 
C)  marginal analysis 
D)  ceteris paribus 
E)  trend assumption

Question 14

A statement that "All children should receive free health care" is an example of what kind of statement?

Accepted Answer

A)  a fair statement 
B)  a natural experiment statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement on the margin 
A)  a fair statement 
B)  a natural experiment statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement on the margin

Question 15

To show the values of an economic variable for different groups in a population at a point in time,it is best to use a

Accepted Answer

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

Question 16

-The table above shows data on two variables.If these data were graphed,the slope of the line would be

Accepted Answer

A)  1/2. 
B)  4/3. 
C)  2/3. 
D)  3/4. 
E)  2. 
A)  1/2. 
B)  4/3. 
C)  2/3. 
D)  3/4. 
E)  2.

Question 17

To help unscramble cause and effect,economists

Accepted Answer

A)  use the concept of opportunity costs. 
B)  must use the ceteris paribus assumption. 
C)  answer the "what" question. 
D)  answer the "how" question. 
E)  must use normative statements. 
A)  use the concept of opportunity costs. 
B)  must use the ceteris paribus assumption. 
C)  answer the "what" question. 
D)  answer the "how" question. 
E)  must use normative statements.

Question 18

On a graph showing the relationship between x and y,the ceteris paribus condition implies that

Accepted Answer

A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant. 
E)  the value of x and the value of y are held constant. 
A)  no other variables are related to x and y. 
B)  the value of x is held constant. 
C)  the value of y is held constant. 
D)  other variables not shown are held constant. 
E)  the value of x and the value of y are held constant.

Question 19

-In the above figure,no relationship between x and y is shown in Figure

Accepted Answer

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

Question 20

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

Accepted Answer

A)  scatter diagram. 
B)  time-series graph. 
C)  linear graph. 
D)  cross-section graph. 
E)  Venn diagram. 
A)  scatter diagram. 
B)  time-series graph. 
C)  linear graph. 
D)  cross-section graph. 
E)  Venn diagram.

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour,the opportunity cost of the hour spent studying is

The benefit of an activity is

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

Economics is the social science that studies

What is the difference between a positive and a negative relationship?

The decision to go to graduate school is a rational one for a college student if the

A time series graph

To make a rational choice,a person

The benefit of a one-unit increase in an activity

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

-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 A and B is

To graph a relationship involving more than two variables,we use which assumption?

A statement that "All children should receive free health care" is an example of what kind of statement?

To show the values of an economic variable for different groups in a population at a point in time,it is best to use a

-The table above shows data on two variables.If these data were graphed,the slope of the line would be

To help unscramble cause and effect,economists

On a graph showing the relationship between x and y,the ceteris paribus condition implies that

-In the above figure,no relationship between x and y is shown in Figure

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

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

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour,the opportunity cost of the hour spent studying is

The benefit of an activity is

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

Economics is the social science that studies

What is the difference between a positive and a negative relationship?

The decision to go to graduate school is a rational one for a college student if the

A time series graph

To make a rational choice,a person

The benefit of a one-unit increase in an activity

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

-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 A and B is

To graph a relationship involving more than two variables,we use which assumption?

A statement that "All children should receive free health care" is an example of what kind of statement?

To show the values of an economic variable for different groups in a population at a point in time,it is best to use a

-The table above shows data on two variables.If these data were graphed,the slope of the line would be

To help unscramble cause and effect,economists

On a graph showing the relationship between x and y,the ceteris paribus condition implies that

-In the above figure,no relationship between x and y is shown in Figure

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

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