Question 1

What is the difference between positive and normative statements?

Accepted Answer

Positive statements tell what is and nor

Question 2

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

Accepted Answer

A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2. 
E)  2. 
A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2. 
E)  2.

Question 3

You have data for sales of pizza for each of the 50 states in 2010.The type of graph to best display these data would be a

Accepted Answer

A)  cross-section graph. 
B)  time-series graph. 
C)  scatter diagram. 
D)  multi-variable time-series graph. 
E)  a trend-line diagram. 
A)  cross-section graph. 
B)  time-series graph. 
C)  scatter diagram. 
D)  multi-variable time-series graph. 
E)  a trend-line diagram.

Question 4

If there is no scarcity,

Accepted Answer

A)  the opportunity cost of an action would be greater than its sunk cost. 
B)  an action would have zero opportunity cost. 
C)  choices are no longer rational. 
D)  marginal cost of an action is greater than its marginal benefit. 
E)  all marginal benefits would equal zero. 
A)  the opportunity cost of an action would be greater than its sunk cost. 
B)  an action would have zero opportunity cost. 
C)  choices are no longer rational. 
D)  marginal cost of an action is greater than its marginal benefit. 
E)  all marginal benefits would equal zero.

Question 5

If x increases and as a result y decreases, then x and y are

Accepted Answer

A)  not related because the relationship is a causal one. 
B)  positively related. 
C)  negatively related. 
D)  directly related. 
E)  trend-line related. 
A)  not related because the relationship is a causal one. 
B)  positively related. 
C)  negatively related. 
D)  directly related. 
E)  trend-line related.

Question 6

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 7

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 8

Which of the following is NOT a normative economic statement?

Accepted Answer

A)  States should reduce the tax on heating fuel oil during the winter. 
B)  People over the age of 75 should not be allowed to drive cars. 
C)  Teenagers are responsible for most driving fatalities. 
D)  We don't spend enough money on anti-smoking campaigns. 
E)  The price of gasoline is too high. 
A)  States should reduce the tax on heating fuel oil during the winter. 
B)  People over the age of 75 should not be allowed to drive cars. 
C)  Teenagers are responsible for most driving fatalities. 
D)  We don't spend enough money on anti-smoking campaigns. 
E)  The price of gasoline is too high.

Question 9

Which of the following is true regarding a normative statement?
I.It uses the ceteris paribus assumption.
Ii. It is a value judgment.
Iii. It accounts for opportunity costs.

Accepted Answer

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

Question 10

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

Accepted Answer

A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
E)  None of the above answers is correct because the graph assumes that the price of pecans does not change. 
A)  the curve will shift rightward. 
B)  the curve will shift leftward. 
C)  there is a movement along the curve. 
D)  the curve will be unaffected. 
E)  None of the above answers is correct because the graph assumes that the price of pecans does not change.

Question 11

-The figure above shows a

Accepted Answer

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

Question 12

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Accepted Answer

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

Question 13

As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then shrinks.In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ________.

Accepted Answer

A)  positive; negative 
B)  negative; positive 
C)  linear; negative 
D)  positive; linear 
E)  positive; nonexistent 
A)  positive; negative 
B)  negative; positive 
C)  linear; negative 
D)  positive; linear 
E)  positive; nonexistent

Question 14

Normative statements i. describe how the world is.
Ii) describe how the world ought to be.
Iii) depend on people's values and cannot be tested.

Accepted Answer

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

Question 15

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

Accepted Answer

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

Question 16

Which of the following statements is a normative statement?

Accepted Answer

A)  Inflation has been at an all time low this year. 
B)  The minimum wage should be increased to $8.50 per hour. 
C)  Unemployment this month has increased by less than 0.5 percentage point.. 
D)  Additional spending on education has not produced any rise in test scores. 
E)  Pepsi is less expensive than Coke this week. 
A)  Inflation has been at an all time low this year. 
B)  The minimum wage should be increased to $8.50 per hour. 
C)  Unemployment this month has increased by less than 0.5 percentage point.. 
D)  Additional spending on education has not produced any rise in test scores. 
E)  Pepsi is less expensive than Coke this week.

Question 17

A normative statement

Accepted Answer

A)  depends on someone's values. 
B)  cannot use the word "should." 
C)  says what is currently believed about the way the world operates. 
D)  must be tested to determine if it is correct. 
E)  can be tested to determine if it is correct. 
A)  depends on someone's values. 
B)  cannot use the word "should." 
C)  says what is currently believed about the way the world operates. 
D)  must be tested to determine if it is correct. 
E)  can be tested to determine if it is correct.

Question 18

$\begin{array}{cc}
\begin{array}{c}
x \text { variable } \
\text { (on the horizontal axis) }
\end{array} & \begin{array}{c}
y \text { variable } \
\text { (on the vertical axis) }
\end{array} \
\hline 100 & 50 \
200 & 125 \
300 & 200
\end{array}$
-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 19

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

Accepted Answer

A)  scarcity. 
B)  why to produce. 
C)  macroeconomics. 
D)  microeconomics. 
E)  social interest versus self-interest. 
A)  scarcity. 
B)  why to produce. 
C)  macroeconomics. 
D)  microeconomics. 
E)  social interest versus self-interest.

Question 20

When people make rational choices, they

Accepted Answer

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

What is the difference between positive and normative statements?

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

You have data for sales of pizza for each of the 50 states in 2010.The type of graph to best display these data would be a

If there is no scarcity,

If x increases and as a result y decreases, then x and y are

To make a rational choice, a person

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

Which of the following is NOT a normative economic statement?

Which of the following is true regarding a normative statement? I.It uses the ceteris paribus assumption. Ii. It is a value judgment. Iii. It accounts for opportunity costs.

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

-The figure above shows a

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Normative statements i. describe how the world is. Ii) describe how the world ought to be. Iii) depend on people's values and cannot be tested.

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

Which of the following statements is a normative statement?

A normative statement

x variable (on the horizontal axis) y variable (on the vertical axis) 100 50 200 125 300 200 -The table above shows data on two variables.If these data were graphed, the slope of the line would be

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

When people make rational choices, they

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

What is the difference between positive and normative statements?

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

You have data for sales of pizza for each of the 50 states in 2010.The type of graph to best display these data would be a

If there is no scarcity,

If x increases and as a result y decreases, then x and y are

To make a rational choice, a person

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

Which of the following is NOT a normative economic statement?

Which of the following is true regarding a normative statement? I.It uses the ceteris paribus assumption. Ii. It is a value judgment. Iii. It accounts for opportunity costs.

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

-The figure above shows a

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Normative statements i. describe how the world is. Ii) describe how the world ought to be. Iii) depend on people's values and cannot be tested.

-A graph shows that the number of U.S.tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls.The graph shows

Which of the following statements is a normative statement?

A normative statement

x variable (on the horizontal axis) y variable (on the vertical axis) 100 50 200 125 300 200 -The table above shows data on two variables.If these data were graphed, the slope of the line would be

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

When people make rational choices, they

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