Question 1

The question 'should economics majors or sociology majors earn more after they graduate? ' is an example of a ________ question.

Accepted Answer

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

Question 2

When people make rational choices,they

Accepted Answer

A) necessarily make a decision in the social interest. 
B) do not consider their emotions. 
C) are necessarily making the best decision. 
D) behave selfishly. 
E) weigh the costs and benefits of their options and act to satisfy their wants. 
A) necessarily make a decision in the social interest. 
B) do not consider their emotions. 
C) are necessarily making the best decision. 
D) behave selfishly. 
E) weigh the costs and benefits of their options and act to satisfy their wants.

Question 3

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Accepted Answer

A) self-interest and social interest 
B) normative benefits and positive costs 
C) positive benefits and normative costs 
D) marginal benefit and marginal cost 
E) opportunity cost and the sunk cost 
A) self-interest and social interest 
B) normative benefits and positive costs 
C) positive benefits and normative costs 
D) marginal benefit and marginal cost 
E) opportunity cost and the sunk cost

Question 4

Microeconomics includes the study of the

Accepted Answer

A) choices made by individuals and businesses. 
B) recessions and inflation in the global economy. 
C) reasons why the government changes interest rates. 
D) aggregate effects on the national economy. 
E) nationwide unemployment rate. 
A) choices made by individuals and businesses. 
B) recessions and inflation in the global economy. 
C) reasons why the government changes interest rates. 
D) aggregate effects on the national economy. 
E) nationwide unemployment rate.

Question 5

The benefit of a one-unit increase in an activity

Accepted Answer

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

Question 6

The slope of a line equals the change in the variable measured along the

Accepted Answer

A) x-axis minus the change in the variable measured along the y-axis. 
B) x-axis multiplied by the change in the variable measured along the y-axis. 
C) y-axis minus the change in the variable measured along the x-axis. 
D) y-axis divided by the change in the variable measured along the x-axis. 
E) x-axis divided by the change in the variable measured along the y-axis. 
A) x-axis minus the change in the variable measured along the y-axis. 
B) x-axis multiplied by the change in the variable measured along the y-axis. 
C) y-axis minus the change in the variable measured along the x-axis. 
D) y-axis divided by the change in the variable measured along the x-axis. 
E) x-axis divided by the change in the variable measured along the y-axis.

Question 7

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

Accepted Answer

A) a positive,linear 
B) cross-sectionally trended 
C) no 
D) a negative 
E) a positive but not linear 
A) a positive,linear 
B) cross-sectionally trended 
C) no 
D) a negative 
E) a positive but not linear

Question 8

A graph shows that the number of Australian tourists visiting a Caribbean island increases as the temperature in southern Australia falls.The graph shows

Accepted Answer

A) an invalid relationship. 
B) no relationship. 
C) a negative relationship. 
D) a direct relationship. 
E) a positive relationship. 
A) an invalid relationship. 
B) no relationship. 
C) a negative relationship. 
D) a direct relationship. 
E) a positive relationship.

Question 9

If,whenever one variable increases,another variable also increases,then these two variables are ________ related.

Accepted Answer

A) negatively 
B) cross-sectionally 
C) trend-line 
D) positively 
E) inversely 
A) negatively 
B) cross-sectionally 
C) trend-line 
D) positively 
E) inversely

Question 10

Scarcity means that

Accepted Answer

A) what we can produce with our resources is greater than our material wants. 
B) choices made in self-interest cannot be the same as those made in the social interest. 
C) wants are greater than what we can produce with our resources. 
D) governments must make up for shortages in resources. 
E) resources are unlimited. 
A) what we can produce with our resources is greater than our material wants. 
B) choices made in self-interest cannot be the same as those made in the social interest. 
C) wants are greater than what we can produce with our resources. 
D) governments must make up for shortages in resources. 
E) resources are unlimited.

Question 11

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

Accepted Answer

A) a movement along the drawn curve. 
B) either a shift in the curve or a movement along the curve,but more information is needed to determine which. 
C) no impact on the curve because the variable is not measured on either of the axes. 
D) a shift in the curve. 
E) None of the above answers is correct. 
A) a movement along the drawn curve. 
B) either a shift in the curve or a movement along the curve,but more information is needed to determine which. 
C) no impact on the curve because the variable is not measured on either of the axes. 
D) a shift in the curve. 
E) None of the above answers is correct.

Question 12

A rational choice is one that

Accepted Answer

A) is made in the social interest rather than the self-interest. 
B) always turns out for the best for the decision maker. 
C) creates no costs for the decision maker. 
D) uses the available resources to most effectively satisfy the wants of the person making the choice. 
E) must be made with perfect information. 
A) is made in the social interest rather than the self-interest. 
B) always turns out for the best for the decision maker. 
C) creates no costs for the decision maker. 
D) uses the available resources to most effectively satisfy the wants of the person making the choice. 
E) must be made with perfect information.

Question 13

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A) swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis. 
B) letting all the variables change at once. 
C) holding constant all but two variables. 
D) rescaling the coordinates. 
E) changing the origin of the graph. 
A) swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis. 
B) letting all the variables change at once. 
C) holding constant all but two variables. 
D) rescaling the coordinates. 
E) changing the origin of the graph.

Question 14

Self-interest

Accepted Answer

A) has nothing to do with determining what goods are produced. 
B) occurs only when wants exceed available resources. 
C) cannot be used to determine how goods are produced. 
D) reflects choices that are best for society as a whole. 
E) reflects choices that are best for the individual who makes them. 
A) has nothing to do with determining what goods are produced. 
B) occurs only when wants exceed available resources. 
C) cannot be used to determine how goods are produced. 
D) reflects choices that are best for society as a whole. 
E) reflects choices that are best for the individual who makes them.

Question 15

-A straight line falls when moving rightward along it.Hence the slope of the line is

Accepted Answer

A) undefined. 
B) perhaps positive,negative or zero,but without more information it is impossible to determine. 
C) positive. 
D) negative. 
E) zero because it is a straight line. 
A) undefined. 
B) perhaps positive,negative or zero,but without more information it is impossible to determine. 
C) positive. 
D) negative. 
E) zero because it is a straight line.

Question 16

The graph shows

Accepted Answer

A) no relationship between the variables. 
B) a trend relationship between the variables. 
C) a positive relationship that is linear. 
D) a negative relationship that is linear. 
E) a positive relationship that becomes less steep. 
A) no relationship between the variables. 
B) a trend relationship between the variables. 
C) a positive relationship that is linear. 
D) a negative relationship that is linear. 
E) a positive relationship that becomes less steep.

Question 17

The ________ of something is the gain or pleasure that it brings.

Accepted Answer

A) rational choice 
B) marginal cost 
C) benefit 
D) opportunity cost 
E) rational margin 
A) rational choice 
B) marginal cost 
C) benefit 
D) opportunity cost 
E) rational margin

Question 18

A normative statement i.can be tested as to whether it is true or false.
Ii)is considered negative.
Iii)depends on a person's values.

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

Which of the following statements is a positive statement?

Accepted Answer

A) There should be a computer in every primary school classroom. 
B) Too many people are unemployed. 
C) We need to spend less on luxury items for the wealthy,and more on necessities for the less fortunate. 
D) Our country must increase military spending. 
E) Online shopping increased by 50 per cent last Christmas season. 
A) There should be a computer in every primary school classroom. 
B) Too many people are unemployed. 
C) We need to spend less on luxury items for the wealthy,and more on necessities for the less fortunate. 
D) Our country must increase military spending. 
E) Online shopping increased by 50 per cent last Christmas season.

The question 'should economics majors or sociology majors earn more after they graduate? ' is an example of a ________ question.

When people make rational choices,they

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Microeconomics includes the study of the

The benefit of a one-unit increase in an activity

The slope of a line equals the change in the variable measured along the

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

A graph shows that the number of Australian tourists visiting a Caribbean island increases as the temperature in southern Australia falls.The graph shows

If,whenever one variable increases,another variable also increases,then these two variables are ________ related.

Scarcity means that

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

A rational choice is one that

Ceteris paribus when graphing a relationship refers to

Self-interest

-A straight line falls when moving rightward along it.Hence the slope of the line is

The graph shows

The ________ of something is the gain or pleasure that it brings.

A normative statement i.can be tested as to whether it is true or false. Ii)is considered negative. Iii)depends on a person's values.

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

Which of the following statements is a positive statement?

The Australian and Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance,saving and Investment

Money,the Price Level and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 1: Getting Started

The question 'should economics majors or sociology majors earn more after they graduate? ' is an example of a ________ question.

When people make rational choices,they

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Microeconomics includes the study of the

The benefit of a one-unit increase in an activity

The slope of a line equals the change in the variable measured along the

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

A graph shows that the number of Australian tourists visiting a Caribbean island increases as the temperature in southern Australia falls.The graph shows

If,whenever one variable increases,another variable also increases,then these two variables are ________ related.

Scarcity means that

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

A rational choice is one that

Ceteris paribus when graphing a relationship refers to

Self-interest

-A straight line falls when moving rightward along it.Hence the slope of the line is

The graph shows

The ________ of something is the gain or pleasure that it brings.

A normative statement i.can be tested as to whether it is true or false. Ii)is considered negative. Iii)depends on a person's values.

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

Which of the following statements is a positive statement?

The Australian and Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance,saving and Investment

Money,the Price Level and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters