Question 1

-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 2

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

Accepted Answer

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

Question 3

What is the reason that all economic issues and problems occur?

Accepted Answer

A)  All nations use some form of money to buy and sell goods and services. 
B)  Humans are always wasteful and inefficient in production and consumption. 
C)  Powerful governments are able to control production and consumption. 
D)  Human wants exceed the resources available to satisfy them. 
E)  People seek only their own self-interest. 
A)  All nations use some form of money to buy and sell goods and services. 
B)  Humans are always wasteful and inefficient in production and consumption. 
C)  Powerful governments are able to control production and consumption. 
D)  Human wants exceed the resources available to satisfy them. 
E)  People seek only their own self-interest.

Question 4

Opportunity cost is best defined as

Accepted Answer

A)  how much money is paid for something. 
B)  how much money and time it takes to consume something. 
C)  the value of the highest-valued alternative that is forgone in making a choice. 
D)  the total of all other alternatives that are forgone in making a choice. 
E)  the sunk cost of any decision. 
A)  how much money is paid for something. 
B)  how much money and time it takes to consume something. 
C)  the value of the highest-valued alternative that is forgone in making a choice. 
D)  the total of all other alternatives that are forgone in making a choice. 
E)  the sunk cost of any decision.

Question 5

-A graph showing the values of an economic variable for different groups in a population at a point in time is called a

Accepted Answer

A)  cross-section graph. 
B)  time-series graph. 
C)  scatter diagram. 
D)  Venn diagram. 
E)  None of the above answers is correct. 
A)  cross-section graph. 
B)  time-series graph. 
C)  scatter diagram. 
D)  Venn diagram. 
E)  None of the above answers is correct.

Question 6

The opportunity cost of a one-unit increase in an activity

Accepted Answer

A)  is greater than the marginal benefit. 
B)  is called sunk cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity. 
A)  is greater than the marginal benefit. 
B)  is called sunk cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity.

Question 7

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 sunk 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 sunk cost. 
D)  measured by what must be given up to get one more unit of the activity. 
E)  not measurable on the margin.

Question 8

A choice made by comparing all relevant alternatives systematically and incrementally is

Accepted Answer

A)  an opportunity cost. 
B)  a choice on the margin. 
C)  a benefit. 
D)  a sunk cost. 
E)  a choice made in the social interest. 
A)  an opportunity cost. 
B)  a choice on the margin. 
C)  a benefit. 
D)  a sunk cost. 
E)  a choice made in the social interest.

Question 9

-The slope of the line shown in the above figure is

Accepted Answer

A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
E)  -10. 
A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
E)  -10.

Question 10

Most economic graphs have two lines perpendicular to each other.Where these lines met is called the

Accepted Answer

A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  point of beginning. 
A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  point of beginning.

Question 11

A graph has a point that is either a maximum or a minimum.To the left of the point, the slope of relationship is positive.To the right of the point, the slope is negative.Is the point a maximum point or a minimum point?
 Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point.Examine th

Question 12

A trend is

Accepted Answer

A)  a measure of closeness on a scatter diagram. 
B)  a general tendency for a variable to rise or fall. 
C)  the maximum value of a variable. 
D)  the minimum value of a variable. 
E)  the difference between the maximum value of a variable and the minimum value of the variable. 
A)  a measure of closeness on a scatter diagram. 
B)  a general tendency for a variable to rise or fall. 
C)  the maximum value of a variable. 
D)  the minimum value of a variable. 
E)  the difference between the maximum value of a variable and the minimum value of the variable.

Question 13

A graph of two variables is a vertical line.What is the interpretation of this result?

Accepted Answer

When the graph of two variables is a ver

Question 14

-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 15

Scarcity

Accepted Answer

A)  is the inability to satisfy all our wants. 
B)  leads to higher prices. 
C)  applies only to people living in poverty. 
D)  is not something that affects very rich people. 
E)  used to exist everywhere but has been eliminated in advanced economies. 
A)  is the inability to satisfy all our wants. 
B)  leads to higher prices. 
C)  applies only to people living in poverty. 
D)  is not something that affects very rich people. 
E)  used to exist everywhere but has been eliminated in advanced economies.

Question 16

Will, Bill, and Phil decide to study an extra hour for an exam.Instead of studying, they could have gone out to eat, played football, or watched TV.Which of the following statements is correct?

Accepted Answer

A)  The benefit the three students receive must be the same because they all make the same choice. 
B)  The students made a rational choice as long as they face no scarcity. 
C)  The students could each have different opportunity costs. 
D)  The marginal cost of the decision is the same if they make the same score on the exam. 
E)  Going out to eat, playing football, and watching TV are all called sunk costs. 
A)  The benefit the three students receive must be the same because they all make the same choice. 
B)  The students made a rational choice as long as they face no scarcity. 
C)  The students could each have different opportunity costs. 
D)  The marginal cost of the decision is the same if they make the same score on the exam. 
E)  Going out to eat, playing football, and watching TV are all called sunk costs.

Question 17

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

Accepted Answer

A)  ceteris paribus. 
B)  correlation. 
C)  part of rational choice. 
D)  related to marginal cost. 
E)  an example of thinking on the margin. 
A)  ceteris paribus. 
B)  correlation. 
C)  part of rational choice. 
D)  related to marginal cost. 
E)  an example of thinking on the margin.

Question 18

Scarcity means we must

Accepted Answer

A)  consume less. 
B)  produce less. 
C)  make choices. 
D)  earn more. 
E)  work more. 
A)  consume less. 
B)  produce less. 
C)  make choices. 
D)  earn more. 
E)  work more.

Question 19

Which of the following statements is true regarding scarcity?

Accepted Answer

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

Question 20

Shaniq can spend the next hour studying for a finance test, hiking along the Oregon coast, watching reruns of Lost on television, or napping.If she decides to study, what is the opportunity cost of her choice: hiking, watching television, or napping?

Accepted Answer

With the information given, it is imposs

-A time series graph

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

What is the reason that all economic issues and problems occur?

Opportunity cost is best defined as

-A graph showing the values of an economic variable for different groups in a population at a point in time is called a

The opportunity cost of a one-unit increase in an activity

The benefit of an activity is

A choice made by comparing all relevant alternatives systematically and incrementally is

-The slope of the line shown in the above figure is

Most economic graphs have two lines perpendicular to each other.Where these lines met is called the

A graph has a point that is either a maximum or a minimum.To the left of the point, the slope of relationship is positive.To the right of the point, the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

A trend is

A graph of two variables is a vertical line.What is the interpretation of this result?

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

Scarcity

Will, Bill, and Phil decide to study an extra hour for an exam.Instead of studying, they could have gone out to eat, played football, or watched TV.Which of the following statements is correct?

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

Scarcity means we must

Which of the following statements is true regarding scarcity?

Shaniq can spend the next hour studying for a finance test, hiking along the Oregon coast, watching reruns of Lost on television, or napping.If she decides to study, what is the opportunity cost of her choice: hiking, watching television, or napping?

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

-A time series graph

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

What is the reason that all economic issues and problems occur?

Opportunity cost is best defined as

-A graph showing the values of an economic variable for different groups in a population at a point in time is called a

The opportunity cost of a one-unit increase in an activity

The benefit of an activity is

A choice made by comparing all relevant alternatives systematically and incrementally is

-The slope of the line shown in the above figure is

Most economic graphs have two lines perpendicular to each other.Where these lines met is called the

A graph has a point that is either a maximum or a minimum.To the left of the point, the slope of relationship is positive.To the right of the point, the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

A trend is

A graph of two variables is a vertical line.What is the interpretation of this result?

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

Scarcity

Will, Bill, and Phil decide to study an extra hour for an exam.Instead of studying, they could have gone out to eat, played football, or watched TV.Which of the following statements is correct?

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

Scarcity means we must

Which of the following statements is true regarding scarcity?

Shaniq can spend the next hour studying for a finance test, hiking along the Oregon coast, watching reruns of Lost on television, or napping.If she decides to study, what is the opportunity cost of her choice: hiking, watching television, or napping?

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