Question 1

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 2

If a small change in the x variable results in a large change in the y variable, the curve will be

Accepted Answer

A)  positively sloped. 
B)  negatively sloped. 
C)  steep. 
D)  flat. 
E)  trended. 
A)  positively sloped. 
B)  negatively sloped. 
C)  steep. 
D)  flat. 
E)  trended.

Question 3

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

Accepted Answer

A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
E)  5. 
A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
E)  5.

Question 4

A positive statement i. makes a statement about how the world operates.
Ii) is a true statement.
Iii) can be tested against the facts.

Accepted Answer

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

Question 5

-A cross-section graph

Accepted Answer

A)  is divided into different sections. 
B)  shows the values of an economic variable for different groups in a population at a point in time. 
C)  measures time on the x-axis and the variable in which we are interested on the y-axis. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  is divided into different sections. 
B)  shows the values of an economic variable for different groups in a population at a point in time. 
C)  measures time on the x-axis and the variable in which we are interested on the y-axis. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 6

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Accepted Answer

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

Question 7

-In the figure above, what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 8

The primary focus of microeconomics is

Accepted Answer

A)  to examine the operation of the entire (aggregate) economy. 
B)  to examine the behavior and operation of the individual units or sectors that make up the economy. 
C)  our government's monetary policy. 
D)  the levels of employment and inflation. 
E)  to study how we managed to eliminate scarcity. 
A)  to examine the operation of the entire (aggregate) economy. 
B)  to examine the behavior and operation of the individual units or sectors that make up the economy. 
C)  our government's monetary policy. 
D)  the levels of employment and inflation. 
E)  to study how we managed to eliminate scarcity.

Question 9

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates.Your roommates applaud your decision.
a. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry.Is this roommate's comment correct?
b. When preparing dinner, you use some milk that has a pull-date of tomorrow, so that the milk would not be good tomorrow.Your second roommate notices the date on the carton, and comments that the cost of the milk you are using is a sunk cost.Is this roommate's comment correct?

Accepted Answer

a. Your first roommate's comment is inco

Question 10

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist?
 Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 11

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

Accepted Answer

A)  negative and then linear after the minimum point. 
B)  positive and then negative after the minimum point. 
C)  negative and then positive after the minimum point. 
D)  linear and then positive after the minimum point. 
E)  negative both before and after the minimum point. 
A)  negative and then linear after the minimum point. 
B)  positive and then negative after the minimum point. 
C)  negative and then positive after the minimum point. 
D)  linear and then positive after the minimum point. 
E)  negative both before and after the minimum point.

Question 12

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
E)  swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis. 
A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
E)  swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis.

Question 13

If two variables are unrelated, their graph is

Accepted Answer

A)  either a horizontal or a vertical line. 
B)  a downward-sloping line. 
C)  an upward-sloping line. 
D)  a curved line. 
E)  None of the above answers is correct because it is not possible to graph unrelated variables. 
A)  either a horizontal or a vertical line. 
B)  a downward-sloping line. 
C)  an upward-sloping line. 
D)  a curved line. 
E)  None of the above answers is correct because it is not possible to graph unrelated variables.

Question 14

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

Accepted Answer

A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse. 
A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse.

Question 15

The important characteristic of normative statements is that they

Accepted Answer

A)  explain what really exists. 
B)  are based on somebody's values and cannot be tested. 
C)  explain what normally happens in the real world. 
D)  help guide us to what will normally occur if some economic variable changes its value. 
E)  do not use the ceteris paribus assumption. 
A)  explain what really exists. 
B)  are based on somebody's values and cannot be tested. 
C)  explain what normally happens in the real world. 
D)  help guide us to what will normally occur if some economic variable changes its value. 
E)  do not use the ceteris paribus assumption.

Question 16

The question of "How are goods and services produced? " most closely addresses which of the following issues?

Accepted Answer

A)  Should Ford build SUV's or luxury cars? 
B)  Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUV's? 
C)  Should contractors building residential housing or shopping malls? 
D)  Is income distributed fairly in the United States? 
E)  Why are Christmas trees popular only in December? 
A)  Should Ford build SUV's or luxury cars? 
B)  Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUV's? 
C)  Should contractors building residential housing or shopping malls? 
D)  Is income distributed fairly in the United States? 
E)  Why are Christmas trees popular only in December?

Question 17

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

Question 18

Economics is defined as the social science that studies

Accepted Answer

A)  how a person can get everything he or she wants. 
B)  the reason money exists. 
C)  the way to eliminate choices in our decisions. 
D)  the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. 
E)  how choices made in the social interest must conflict with choices made in the self-interest. 
A)  how a person can get everything he or she wants. 
B)  the reason money exists. 
C)  the way to eliminate choices in our decisions. 
D)  the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. 
E)  how choices made in the social interest must conflict with choices made in the self-interest.

Question 19

Which of the following is true?
I.A rational choice is always made in the pursuit of social interest.
II.Economics is a social science.
III.Economists try to understand how the economic world works by testing positive statements.

Accepted Answer

A)  II and III. 
B)  Only I. 
C)  Only II. 
D)  Only III. 
E)  I and II. 
A)  II and III. 
B)  Only I. 
C)  Only II. 
D)  Only III. 
E)  I and II.

Question 20

The study of the choices of one individual or business is called

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  scarcity. 
D)  finance. 
E)  ceteris paribus. 
A)  macroeconomics. 
B)  microeconomics. 
C)  scarcity. 
D)  finance. 
E)  ceteris paribus.

What is the difference between a positive and a negative relationship?

If a small change in the x variable results in a large change in the y variable, the curve will be

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

A positive statement i. makes a statement about how the world operates. Ii) is a true statement. Iii) can be tested against the facts.

-A cross-section graph

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

-In the figure above, what can you deduce about the slope of the curve?

The primary focus of microeconomics is

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

Ceteris paribus when graphing a relationship refers to

If two variables are unrelated, their graph is

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

The important characteristic of normative statements is that they

The question of "How are goods and services produced? " most closely addresses which of the following issues?

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Economics is defined as the social science that studies

Which of the following is true? I.A rational choice is always made in the pursuit of social interest. II.Economics is a social science. III.Economists try to understand how the economic world works by testing positive statements.

The study of the choices of one individual or business is called

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 a positive and a negative relationship?

If a small change in the x variable results in a large change in the y variable, the curve will be

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

A positive statement i. makes a statement about how the world operates. Ii) is a true statement. Iii) can be tested against the facts.

-A cross-section graph

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

-In the figure above, what can you deduce about the slope of the curve?

The primary focus of microeconomics is

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

Ceteris paribus when graphing a relationship refers to

If two variables are unrelated, their graph is

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

The important characteristic of normative statements is that they

The question of "How are goods and services produced? " most closely addresses which of the following issues?

Explain whether the statement, "There is life on Mars," is a normative or positive statement.

Economics is defined as the social science that studies

Which of the following is true? I.A rational choice is always made in the pursuit of social interest. II.Economics is a social science. III.Economists try to understand how the economic world works by testing positive statements.

The study of the choices of one individual or business is called

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