Question 1

To economists,scarcity means that

Accepted Answer

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

Question 2

Trend refers to

Accepted Answer

A) a general tendency for a variable to rise or fall. 
B) the difference between the maximum value of the variable and the minimum value of the variable. 
C) the scale used on the x- and y-axes. 
D) decreases but not increases of a variable. 
E) increases but not decreases of a variable. 
A) a general tendency for a variable to rise or fall. 
B) the difference between the maximum value of the variable and the minimum value of the variable. 
C) the scale used on the x- and y-axes. 
D) decreases but not increases of a variable. 
E) increases but not decreases of a variable.

Question 3

Which of the following statements is true regarding scarcity?

Accepted Answer

A) An economy experiences scarcity only when the incomes of its citizens decline. 
B) Scarcity affects poorer countries only. 
C) Scarcity could be overcome if people would make all choices in the social interest. 
D) All citizens in a wealthy economy experience scarcity. 
E) Poor people experience scarcity more often than do rich people. 
A) An economy experiences scarcity only when the incomes of its citizens decline. 
B) Scarcity affects poorer countries only. 
C) Scarcity could be overcome if people would make all choices in the social interest. 
D) All citizens in a wealthy economy experience scarcity. 
E) Poor people experience scarcity more often than do rich people.

Question 4

The slope of the curve at point B

Accepted Answer

A) can be compared with the slope at point A,but more information is needed to determine if the slope is greater than,less than or equal to the slope at point A. 
B) is greater than the slope at point A. 
C) is equal to the slope at point A. 
D) cannot be compared with the slope at point A. 
E) is less than the slope at point A. 
A) can be compared with the slope at point A,but more information is needed to determine if the slope is greater than,less than or equal to the slope at point A. 
B) is greater than the slope at point A. 
C) is equal to the slope at point A. 
D) cannot be compared with the slope at point A. 
E) is less than the slope at point A.

Question 5

The additional benefit of increasing some activity by one unit is called the

Accepted Answer

A) opportunity cost. 
B) total benefit. 
C) unit cost/benefit. 
D) scarcity. 
E) marginal benefit. 
A) opportunity cost. 
B) total benefit. 
C) unit cost/benefit. 
D) scarcity. 
E) marginal benefit.

Question 6

Macroeconomics is the study of

Accepted Answer

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

Question 7

Matt pays a $50 a month membership fee at Bruno's Gym.He can exercise at the gym as many times as he wishes.If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis,the graph between his membership fee and the number of times he exercises will

Accepted Answer

A) be negatively sloped. 
B) be a horizontal line. 
C) start out positively sloped and then,as Matt loses interest,become negatively sloped. 
D) be positively sloped. 
E) be a vertical line. 
A) be negatively sloped. 
B) be a horizontal line. 
C) start out positively sloped and then,as Matt loses interest,become negatively sloped. 
D) be positively sloped. 
E) be a vertical line.

Question 8

Which of the following is a topic studied in macroeconomics?

Accepted Answer

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

Question 9

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

Question 10

Economists measure opportunity cost

Accepted Answer

A) as the sum of all forgone opportunities. 
B) as equal to the sum of all the sunk costs. 
C) as the best thing given up. 
D) as the same as marginal benefit. 
E) only when it is on the margin. 
A) as the sum of all forgone opportunities. 
B) as equal to the sum of all the sunk costs. 
C) as the best thing given up. 
D) as the same as marginal benefit. 
E) only when it is on the margin.

Question 11

A curve with a positive but decreasing slope represents a relationship where,every time the variable measured along the horizontal axis increases by one unit,the variable measured along the vertical axis

Accepted Answer

A) increases by a decreasing amount. 
B) increases by an increasing amount. 
C) increases by a constant amount. 
D) does not change by much. 
E) decreases. 
A) increases by a decreasing amount. 
B) increases by an increasing amount. 
C) increases by a constant amount. 
D) does not change by much. 
E) decreases.

Question 12

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

Question 13

The primary focus of microeconomics is

Accepted Answer

A) our government's monetary policy. 
B) the levels of employment and inflation. 
C) to study how we managed to eliminate scarcity. 
D) to examine the behaviour and operation of the individual units or sectors that make up the economy. 
E) to examine the operation of the entire (aggregat
E) economy. 
A) our government's monetary policy. 
B) the levels of employment and inflation. 
C) to study how we managed to eliminate scarcity. 
D) to examine the behaviour and operation of the individual units or sectors that make up the economy. 
E) to examine the operation of the entire (aggregat
E) economy.

Question 14

The minimum point of a U-shaped curve

Accepted Answer

A) is a point where the variable is neither increasing nor decreasing. 
B) has a slope equal to zero. 
C) has the maximum slope possible. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct. 
A) is a point where the variable is neither increasing nor decreasing. 
B) has a slope equal to zero. 
C) has the maximum slope possible. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct.

Question 15

To graph a relationship among several variables,we hold all but ________ variable(s)constant and use the ________ assumption.

Accepted Answer

A) three;scarcity 
B) two;ceteris paribus 
C) one;ceteris paribus 
D) one;absence of trend 
E) one;scarcity 
A) three;scarcity 
B) two;ceteris paribus 
C) one;ceteris paribus 
D) one;absence of trend 
E) one;scarcity

Question 16

If the change in y = -4 and the change in x = 2,there is

Accepted Answer

A) a positive relationship between y and x. 
B) no relationship between y and x. 
C) a negative relationship between y and x. 
D) a relationship between x and y,but more information is needed to determine if it is a negative or positive relationship. 
E) an independent relationship between y and x. 
A) a positive relationship between y and x. 
B) no relationship between y and x. 
C) a negative relationship between y and x. 
D) a relationship between x and y,but more information is needed to determine if it is a negative or positive relationship. 
E) an independent relationship between y and x.

Question 17

Which of the following is a positive statement?

Accepted Answer

A) University bookstore prices are too high. 
B) The university needs more parking for students. 
C) A recession leads to higher enrolments at universities. 
D) Parking tickets on campus impose an excessive fee. 
E) An increase in university tuition is not fair to students. 
A) University bookstore prices are too high. 
B) The university needs more parking for students. 
C) A recession leads to higher enrolments at universities. 
D) Parking tickets on campus impose an excessive fee. 
E) An increase in university tuition is not fair to students.

Question 18

Suppose the relationship between a person's age and his or her height is plotted with age measured along the x-axis and height measured along the y-axis.Then,the curve showing this relationship is

Accepted Answer

A) positively sloped and becoming less steep. 
B) a straight line with a positive slope. 
C) negatively sloped and becoming less steep. 
D) positively sloped and becoming more steep. 
E) a straight line with a negative slope. 
A) positively sloped and becoming less steep. 
B) a straight line with a positive slope. 
C) negatively sloped and becoming less steep. 
D) positively sloped and becoming more steep. 
E) a straight line with a negative slope.

Question 19

As a curve approaches a maximum point,the slope will

Accepted Answer

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

Question 20

The tendency for the values of two variables to move in a predictable and related way is known as

Accepted Answer

A) correlation. 
B) a natural experiment. 
C) a normative relationship. 
D) a policy relationship. 
E) an economic model. 
A) correlation. 
B) a natural experiment. 
C) a normative relationship. 
D) a policy relationship. 
E) an economic model.

To economists,scarcity means that

Trend refers to

Which of the following statements is true regarding scarcity?

The slope of the curve at point B

The additional benefit of increasing some activity by one unit is called the

Macroeconomics is the study of

Which of the following is a topic studied in macroeconomics?

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

Economists measure opportunity cost

A curve with a positive but decreasing slope represents a relationship where,every time the variable measured along the horizontal axis increases by one unit,the variable measured along the vertical axis

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 primary focus of microeconomics is

The minimum point of a U-shaped curve

To graph a relationship among several variables,we hold all but variable(s)constant and use the assumption.

If the change in y = -4 and the change in x = 2,there is

Which of the following is a positive statement?

Suppose the relationship between a person's age and his or her height is plotted with age measured along the x-axis and height measured along the y-axis.Then,the curve showing this relationship is

As a curve approaches a maximum point,the slope will

The tendency for the values of two variables to move in a predictable and related way is known as

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

To economists,scarcity means that

Trend refers to

Which of the following statements is true regarding scarcity?

The slope of the curve at point B

The additional benefit of increasing some activity by one unit is called the

Macroeconomics is the study of

Which of the following is a topic studied in macroeconomics?

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

Economists measure opportunity cost

A curve with a positive but decreasing slope represents a relationship where,every time the variable measured along the horizontal axis increases by one unit,the variable measured along the vertical axis

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 primary focus of microeconomics is

The minimum point of a U-shaped curve

To graph a relationship among several variables,we hold all but ________ variable(s)constant and use the ________ assumption.

If the change in y = -4 and the change in x = 2,there is

Which of the following is a positive statement?

Suppose the relationship between a person's age and his or her height is plotted with age measured along the x-axis and height measured along the y-axis.Then,the curve showing this relationship is

As a curve approaches a maximum point,the slope will

The tendency for the values of two variables to move in a predictable and related way is known as

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

To graph a relationship among several variables,we hold all but variable(s)constant and use the assumption.