Question 1

In the diagram below, label the x-axis, the y-axis, and the origin.

Accepted Answer

@#IMG-DLM& The figure above ha

Question 2

What does ceteris paribus mean and why do economists use it?

Accepted Answer

Ceteris paribus is Latin for "other thin

Question 3

By donating $1,000 to the Salvation Army, Caroline reduces her taxable income.To Caroline, the reduction in her taxable income is

Accepted Answer

A)  a marginal benefit. 
B)  an opportunity cost. 
C)  an incentive. 
D)  a marginal cost. 
E)  the margin. 
A)  a marginal benefit. 
B)  an opportunity cost. 
C)  an incentive. 
D)  a marginal cost. 
E)  the margin.

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

-The figure above shows how the sales of the video game "Tomb Raider.Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive, negative, or neither?
 Explain your answer.

Accepted Answer

The figure shows that there is a positiv

Question 6

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 "sunk 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 "sunk benefit."

Question 7

Must a rational choice always work out well?
 In other words, is it possible for someone to regret a rational decision?

Accepted Answer

It is not necessarily the case that a ra

Question 8

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 benefits of this decision to the sunk costs of the 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 benefits of this decision to the sunk costs of the decision.

Question 9

What is NOT true about rational choice?

Accepted Answer

A)  It can result in different decisions for different individuals. 
B)  It involves comparing costs and benefits. 
C)  It might turn out not to have been the best choice after the event. 
D)  It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E)  It is the same for all individuals. 
A)  It can result in different decisions for different individuals. 
B)  It involves comparing costs and benefits. 
C)  It might turn out not to have been the best choice after the event. 
D)  It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E)  It is the same for all individuals.

Question 10

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 11

Which of the following is a microeconomic issue?

Accepted Answer

A)  Growth in the U.S.economy slowed. 
B)  Increased federal government expenditures have lowered the unemployment rate. 
C)  The inflation rate fell this year. 
D)  The quantity of wheat grown in the United States increases this year. 
E)  The U.S.government cuts taxes to combat a recession. 
A)  Growth in the U.S.economy slowed. 
B)  Increased federal government expenditures have lowered the unemployment rate. 
C)  The inflation rate fell this year. 
D)  The quantity of wheat grown in the United States increases this year. 
E)  The U.S.government cuts taxes to combat a recession.

Question 12

-In the above, which figure(s) show relationship between the variables that is always positive?

Accepted Answer

A)  Figure A only 
B)  Figures C and D 
C)  Figures A and C 
D)  Figures A, C, and D 
E)  Figures A and B 
A)  Figure A only 
B)  Figures C and D 
C)  Figures A and C 
D)  Figures A, C, and D 
E)  Figures A and B

Question 13

Which of the following is a macroeconomic topic?

Accepted Answer

A)  The growth of the amount of money that Americans are borrowing from the rest of the world. 
B)  The government's choice to sue Microsoft for acting like a monopoly 
C)  How your local phone company decides to set its fee structure 
D)  How you decide whether to take out a loan to finance your college education 
E)  Whether Honda will make more gasoline powered cars or more hybrid powered cars 
A)  The growth of the amount of money that Americans are borrowing from the rest of the world. 
B)  The government's choice to sue Microsoft for acting like a monopoly 
C)  How your local phone company decides to set its fee structure 
D)  How you decide whether to take out a loan to finance your college education 
E)  Whether Honda will make more gasoline powered cars or more hybrid powered cars

Question 14

"Lower ticket prices would lead to more people attending ballgames." This statement is a

Accepted Answer

A)  ceteris paribus assertion. 
B)  normative statement. 
C)  positive statement. 
D)  macroeconomic statement. 
E)  statement that confuses marginal cost and sunk cost. 
A)  ceteris paribus assertion. 
B)  normative statement. 
C)  positive statement. 
D)  macroeconomic statement. 
E)  statement that confuses marginal cost and sunk cost.

Question 15

-A graph that shows the value of an economic variable for different groups in a population at a given time is called a

Accepted Answer

A)  scatter diagram. 
B)  times-series graph. 
C)  pie chart. 
D)  cross-section graph. 
E)  fixed-time diagram. 
A)  scatter diagram. 
B)  times-series graph. 
C)  pie chart. 
D)  cross-section graph. 
E)  fixed-time diagram.

Question 16

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 17

The horizontal axis in a graph

Accepted Answer

A)  measures time on a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
E)  is called the origin. 
A)  measures time on a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
E)  is called the origin.

Question 18

Suppose you have tickets to a hockey game.The tickets cannot be refunded or resold.In deciding whether or not to attend the game, the cost of the tickets is

Accepted Answer

A)  a marginal benefit of choosing to attend. 
B)  a marginal cost of choosing to attend. 
C)  a sunk cost. 
D)  an opportunity cost of missing the game. 
E)  an incentive. 
A)  a marginal benefit of choosing to attend. 
B)  a marginal cost of choosing to attend. 
C)  a sunk cost. 
D)  an opportunity cost of missing the game. 
E)  an incentive.

Question 19

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 20

What is a normative statement?
 Give an example.

Accepted Answer

A normative statement is a statement abo

In the diagram below, label the x-axis, the y-axis, and the origin.

What does ceteris paribus mean and why do economists use it?

By donating $1,000 to the Salvation Army, Caroline reduces her taxable income.To Caroline, the reduction in her taxable income is

Economics is the social science that studies

-The figure above shows how the sales of the video game "Tomb Raider.Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

The benefit of a one-unit increase in an activity

Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?

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

What is NOT true about rational choice?

The slope

Which of the following is a microeconomic issue?

-In the above, which figure(s) show relationship between the variables that is always positive?

Which of the following is a macroeconomic topic?

"Lower ticket prices would lead to more people attending ballgames." This statement is a

-A graph that shows the value of an economic variable for different groups in a population at a given time is called a

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

The horizontal axis in a graph

Suppose you have tickets to a hockey game.The tickets cannot be refunded or resold.In deciding whether or not to attend the game, the cost of the tickets is

Why do economists say that even very rich people face scarcity?

What is a normative statement? Give an example.

The Usand 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

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 1: Getting Started

In the diagram below, label the x-axis, the y-axis, and the origin.

What does ceteris paribus mean and why do economists use it?

By donating $1,000 to the Salvation Army, Caroline reduces her taxable income.To Caroline, the reduction in her taxable income is

Economics is the social science that studies

-The figure above shows how the sales of the video game "Tomb Raider.Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.

The benefit of a one-unit increase in an activity

Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?

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

What is NOT true about rational choice?

The slope

Which of the following is a microeconomic issue?

-In the above, which figure(s) show relationship between the variables that is always positive?

Which of the following is a macroeconomic topic?

"Lower ticket prices would lead to more people attending ballgames." This statement is a

-A graph that shows the value of an economic variable for different groups in a population at a given time is called a

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

The horizontal axis in a graph

Suppose you have tickets to a hockey game.The tickets cannot be refunded or resold.In deciding whether or not to attend the game, the cost of the tickets is

Why do economists say that even very rich people face scarcity?

What is a normative statement? Give an example.

The Usand 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

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters