Question 1

As the number of days without rain increases, the amount of wheat grown per acre declines.A graph showing this relationship shows

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a positive relationship. 
D)  a line with a positive slope. 
E)  None of the above answers is correct. 
A)  a horizontal line. 
B)  a vertical line. 
C)  a positive relationship. 
D)  a line with a positive slope. 
E)  None of the above answers is correct.

Question 2

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points A and B is

Accepted Answer

A)  20. 
B)  16. 
C)  2. 
D)  4 
E)  nonexistent because at point A, 0 roses are sold. 
A)  20. 
B)  16. 
C)  2. 
D)  4 
E)  nonexistent because at point A, 0 roses are sold.

Question 3

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

Accepted Answer

A)  for whom 
B)  what 
C)  where 
D)  how 
E)  why 
A)  for whom 
B)  what 
C)  where 
D)  how 
E)  why

Question 4

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then, there is

Accepted Answer

A)  a movement along the plotted curve. 
B)  a shift in the plotted curve. 
C)  no impact on the plotted curve because the variable is not measured on either of the axes. 
D)  an omitted variable. 
E)  a violation of the absence of trend assumption. 
A)  a movement along the plotted curve. 
B)  a shift in the plotted curve. 
C)  no impact on the plotted curve because the variable is not measured on either of the axes. 
D)  an omitted variable. 
E)  a violation of the absence of trend assumption.

Question 5

The opportunity cost of a decision is measured in terms of

Accepted Answer

A)  time. 
B)  the price of the alternative we choose. 
C)  the next best thing given up. 
D)  the price of a new opportunity that arises. 
E)  sunk cost. 
A)  time. 
B)  the price of the alternative we choose. 
C)  the next best thing given up. 
D)  the price of a new opportunity that arises. 
E)  sunk cost.

Question 6

To show how a variable ________, we typically use a ________.

Accepted Answer

A)  relates to another variable; time series graph 
B)  relates to another variable; pie chart 
C)  changes over time; time series graph 
D)  changes over time; cross section graph 
E)  changes over time; cross time chart 
A)  relates to another variable; time series graph 
B)  relates to another variable; pie chart 
C)  changes over time; time series graph 
D)  changes over time; cross section graph 
E)  changes over time; cross time chart

Question 7

A scatter diagram can be used to see

Accepted Answer

A)  if the value of a variable is rising or falling. 
B)  the value of a variable for different groups in a population. 
C)  if a relationship exists between two variables. 
D)  how a variable behaves over time. 
E)  whether a variable is positively or negatively related to itself. 
A)  if the value of a variable is rising or falling. 
B)  the value of a variable for different groups in a population. 
C)  if a relationship exists between two variables. 
D)  how a variable behaves over time. 
E)  whether a variable is positively or negatively related to itself.

Question 8

What is an opportunity cost?
 Given an example.

Accepted Answer

An opportunity cost of something is the

Question 9

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

Accepted Answer

A)  a natural experiment. 
B)  a normative relationship. 
C)  ceteris paribus. 
D)  correlation. 
E)  a policy relationship. 
A)  a natural experiment. 
B)  a normative relationship. 
C)  ceteris paribus. 
D)  correlation. 
E)  a policy relationship.

Question 10

When you make the decision to spend your time attending class, which economic question are you answering?

Accepted Answer

A)  What? 
B)  How? 
C)  For whom? 
D)  Why? 
E)  Social interest 
A)  What? 
B)  How? 
C)  For whom? 
D)  Why? 
E)  Social interest

Question 11

-In the above, which figure(s) has at least one point at which the slope equals zero?

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

If x increases whenever y decreases, then x and y are

Accepted Answer

A)  not related. 
B)  positively related. 
C)  directly related. 
D)  negatively related. 
E)  related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis. 
A)  not related. 
B)  positively related. 
C)  directly related. 
D)  negatively related. 
E)  related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.

Question 14

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions. 
A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions.

Question 15

All economic questions and problems arise from

Accepted Answer

A)  the fact that society has more than it needs. 
B)  turmoil in the stock market. 
C)  the unequal distribution of income. 
D)  a society's wants exceeding what its scarce resources can produce. 
E)  the difference between self-interest and social interest. 
A)  the fact that society has more than it needs. 
B)  turmoil in the stock market. 
C)  the unequal distribution of income. 
D)  a society's wants exceeding what its scarce resources can produce. 
E)  the difference between self-interest and social interest.

Question 16

If Jessie studies economics for two hours instead of going to the movies with her friends, then

Accepted Answer

A)  the benefit of studying is the missed movie. 
B)  the opportunity cost of studying is the missed movie. 
C)  Jesse definitely is making a rational choice. 
D)  Jessie is ignoring a sunk cost. 
E)  Jessie is not responding to any incentives. 
A)  the benefit of studying is the missed movie. 
B)  the opportunity cost of studying is the missed movie. 
C)  Jesse definitely is making a rational choice. 
D)  Jessie is ignoring a sunk cost. 
E)  Jessie is not responding to any incentives.

Question 17

The question of "What goods and services get produced? " most closely relates to which of the following issues?

Accepted Answer

A)  the distribution of goods and services in the economy 
B)  producing goods and services in the least costly manner 
C)  building a missile defense system, or putting a computer in every elementary school classroom 
D)  obtaining specialized training to increase one's income 
E)  taxing high income workers to give payments to poor households 
A)  the distribution of goods and services in the economy 
B)  producing goods and services in the least costly manner 
C)  building a missile defense system, or putting a computer in every elementary school classroom 
D)  obtaining specialized training to increase one's income 
E)  taxing high income workers to give payments to poor households

Question 18

Which is not a core economic idea?

Accepted Answer

A)  People make rational choices by comparing costs and benefits. 
B)  Efficiency and equity are important goals for an economy. 
C)  Cost is what you must give up to get something. 
D)  A rational choice is made on the margin. 
E)  Choices respond to incentives. 
A)  People make rational choices by comparing costs and benefits. 
B)  Efficiency and equity are important goals for an economy. 
C)  Cost is what you must give up to get something. 
D)  A rational choice is made on the margin. 
E)  Choices respond to incentives.

Question 19

-The graph shows

Accepted Answer

A)  positive relationship that becomes less steep. 
B)  negative relationship that is linear. 
C)  positive relationship that is linear. 
D)  no relationship between the variables. 
E)  a trend relationship between the variables. 
A)  positive relationship that becomes less steep. 
B)  negative relationship that is linear. 
C)  positive relationship that is linear. 
D)  no relationship between the variables. 
E)  a trend relationship between the variables.

Question 20

A positive statement

Accepted Answer

A)  must always be right. 
B)  cannot be tested. 
C)  might be right or wrong. 
D)  depends on someone's value judgment. 
E)  cannot be negative. 
A)  must always be right. 
B)  cannot be tested. 
C)  might be right or wrong. 
D)  depends on someone's value judgment. 
E)  cannot be negative.

As the number of days without rain increases, the amount of wheat grown per acre declines.A graph showing this relationship shows

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points A and B is

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then, there is

The opportunity cost of a decision is measured in terms of

To show how a variable , we typically use a .

A scatter diagram can be used to see

What is an opportunity cost? Given an example.

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

When you make the decision to spend your time attending class, which economic question are you answering?

-In the above, which figure(s) has at least one point at which the slope equals zero?

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

If x increases whenever y decreases, then x and y are

Which of the following statements best describes the study of economics? Economics studies how

All economic questions and problems arise from

If Jessie studies economics for two hours instead of going to the movies with her friends, then

The question of "What goods and services get produced? " most closely relates to which of the following issues?

Which is not a core economic idea?

-The graph shows

A positive statement

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

As the number of days without rain increases, the amount of wheat grown per acre declines.A graph showing this relationship shows

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points A and B is

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then, there is

The opportunity cost of a decision is measured in terms of

To show how a variable ________, we typically use a ________.

A scatter diagram can be used to see

What is an opportunity cost? Given an example.

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

When you make the decision to spend your time attending class, which economic question are you answering?

-In the above, which figure(s) has at least one point at which the slope equals zero?

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

If x increases whenever y decreases, then x and y are

Which of the following statements best describes the study of economics? Economics studies how

All economic questions and problems arise from

If Jessie studies economics for two hours instead of going to the movies with her friends, then

The question of "What goods and services get produced? " most closely relates to which of the following issues?

Which is not a core economic idea?

-The graph shows

A positive statement

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

To show how a variable , we typically use a .

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