Question 1

-In the above figure, a negative relationship between x and y is shown in Figure

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  D. 
E)  B and Figure C. 
A)  A. 
B)  B. 
C)  C. 
D)  D. 
E)  B and Figure C.

Question 2

Why do economists use graphs?

Accepted Answer

Graphs help economists, and others, to v

Question 3

The vertical axis in a graph

Accepted Answer

A)  is named the y-axis. 
B)  is named the x-axis. 
C)  measures time in a cross-section and time series graph. 
D)  has no origin. 
E)  measures time only in a time series graph. 
A)  is named the y-axis. 
B)  is named the x-axis. 
C)  measures time in a cross-section and time series graph. 
D)  has no origin. 
E)  measures time only in a time series graph.

Question 4

An opportunity cost is

Accepted Answer

A)  the dollar amount that is paid. 
B)  anything the decision maker believes costs to be. 
C)  the benefits of the highest-valued alternative forgone. 
D)  whatever is paid out and cannot be reduced or reversed. 
E)  another term for all the sunk costs. 
A)  the dollar amount that is paid. 
B)  anything the decision maker believes costs to be. 
C)  the benefits of the highest-valued alternative forgone. 
D)  whatever is paid out and cannot be reduced or reversed. 
E)  another term for all the sunk costs.

Question 5

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

Accepted Answer

A)  larger than the marginal benefit 
B)  smaller than the marginal benefit 
C)  equal to the marginal benefit 
D)  not related to the marginal benefit 
E)  equal to the marginal cost and the marginal benefit 
A)  larger than the marginal benefit 
B)  smaller than the marginal benefit 
C)  equal to the marginal benefit 
D)  not related to the marginal benefit 
E)  equal to the marginal cost and the marginal benefit

Question 6

John has two hours of free time this evening.He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
E)  going to the concert because that is what John choose to do. 
A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
E)  going to the concert because that is what John choose to do.

Question 7

Which of the following statements is a normative statement?

Accepted Answer

A)  Every American household should have health care insurance coverage. 
B)  Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C)  Welfare reform has decreased the amount the government spends on welfare. 
D)  The price of computers fell last year. 
E)  Fewer people are unemployed this year than last year. 
A)  Every American household should have health care insurance coverage. 
B)  Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C)  Welfare reform has decreased the amount the government spends on welfare. 
D)  The price of computers fell last year. 
E)  Fewer people are unemployed this year than last year.

Question 8

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

Accepted Answer

A)  for whom will goods be produced. 
B)  when will the goods be produced. 
C)  where will the goods be produced. 
D)  how will the goods be produced. 
E)  why will the goods be produced. 
A)  for whom will goods be produced. 
B)  when will the goods be produced. 
C)  where will the goods be produced. 
D)  how will the goods be produced. 
E)  why will the goods be produced.

Question 9

The Latin phrase ceteris paribus is best defined as

Accepted Answer

A)  the rational choice is made. 
B)  benefits are greater than the costs. 
C)  other things remaining the same. 
D)  the tendency for the values of two variables to move together in a predictable and related way. 
E)  the study of choice. 
A)  the rational choice is made. 
B)  benefits are greater than the costs. 
C)  other things remaining the same. 
D)  the tendency for the values of two variables to move together in a predictable and related way. 
E)  the study of choice.

Question 10

-The figure above shows the price of a DVD player from 1996 to 2000.
a. What type of graph is illustrated above?
b. What is the trend in the price of a DVD player?

Accepted Answer

a. The graph is a time-series graph beca

Question 11

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

Accepted Answer

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

Question 12

If the change in y = 10 and the change in x = 3, there is

Accepted Answer

A)  a positive relationship between y and x. 
B)  a negative relationship between y and x. 
C)  an independent relationship between y and x. 
D)  no relationship between y and x. 
E)  a +0.33 relationship between the two variables. 
A)  a positive relationship between y and x. 
B)  a negative relationship between y and x. 
C)  an independent relationship between y and x. 
D)  no relationship between y and x. 
E)  a +0.33 relationship between the two variables.

Question 13

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

Accepted Answer

A)  horizontal line. 
B)  vertical line. 
C)  curve with a maximum. 
D)  positively sloped line. 
E)  negatively sloped line. 
A)  horizontal line. 
B)  vertical line. 
C)  curve with a maximum. 
D)  positively sloped line. 
E)  negatively sloped line.

Question 14

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

Accepted Answer

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

Question 15

-In the above, which figure shows both a positive and a negative relationship between the variables?

Accepted Answer

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

Question 16

Different nations answer the what, how, and for whom questions differently.China, for instance, builds dams using many workers and only a little capital equipment.The United States builds dams using a few workers and a lot of capital equipment.Which economic question are these two nations answering and why do the answers differ?

Accepted Answer

The nations are answering the "how" ques

Question 17

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

Accepted Answer

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

Question 18

Microeconomics includes the study of the

Accepted Answer

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

Question 19

Why does scarcity lead to the what, how, and for whom questions?

Accepted Answer

Human wants exceed the resources availab

Question 20

The benefit from a good or service that you purchase is measured by

Accepted Answer

A)  the dollar amount that is paid for the good or service. 
B)  the dollar amount you can get by selling the good or service. 
C)  what you are willing to give up to obtain the good or service. 
D)  how strong the incentives were that lead to buying the good or service. 
E)  None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service. 
A)  the dollar amount that is paid for the good or service. 
B)  the dollar amount you can get by selling the good or service. 
C)  what you are willing to give up to obtain the good or service. 
D)  how strong the incentives were that lead to buying the good or service. 
E)  None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service.

-In the above figure, a negative relationship between x and y is shown in Figure

Why do economists use graphs?

The vertical axis in a graph

An opportunity cost is

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

John has two hours of free time this evening.He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Which of the following statements is a normative statement?

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

The Latin phrase ceteris paribus is best defined as

-The figure above shows the price of a DVD player from 1996 to 2000. a. What type of graph is illustrated above? b. What is the trend in the price of a DVD player?

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

If the change in y = 10 and the change in x = 3, there is

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

-In the above, which figure shows both a positive and a negative relationship between the variables?

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

Microeconomics includes the study of the

Why does scarcity lead to the what, how, and for whom questions?

The benefit from a good or service that you purchase is measured by

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 above figure, a negative relationship between x and y is shown in Figure

Why do economists use graphs?

The vertical axis in a graph

An opportunity cost is

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

John has two hours of free time this evening.He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Which of the following statements is a normative statement?

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

The Latin phrase ceteris paribus is best defined as

-The figure above shows the price of a DVD player from 1996 to 2000. a. What type of graph is illustrated above? b. What is the trend in the price of a DVD player?

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

If the change in y = 10 and the change in x = 3, there is

A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis.The price of a pound of cucumbers remains constant as the quantity of new cars sold increases.The graph of these data is a

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

-In the above, which figure shows both a positive and a negative relationship between the variables?

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

Microeconomics includes the study of the

Why does scarcity lead to the what, how, and for whom questions?

The benefit from a good or service that you purchase is measured by

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