Question 1

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

Accepted Answer

A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  time axis. 
A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  time axis.

Question 2

List and explain the three fundamental economic questions that must be answered by all economic systems.

Accepted Answer

First, all economic systems must answer

Question 3

An independent relationship between two variables is shown in a graph by

Accepted Answer

A)  an upward-sloping line. 
B)  a horizontal or a vertical line. 
C)  a downward-sloping line. 
D)  a steeply sloped line. 
E)  any straight line curve. 
A)  an upward-sloping line. 
B)  a horizontal or a vertical line. 
C)  a downward-sloping line. 
D)  a steeply sloped line. 
E)  any straight line curve.

Question 4

The Latin phrase ceteris paribus means

Accepted Answer

A)  let the buyer beware. 
B)  other things remaining the same. 
C)  positive, not normative. 
D)  normative, not positive. 
E)  on the margin. 
A)  let the buyer beware. 
B)  other things remaining the same. 
C)  positive, not normative. 
D)  normative, not positive. 
E)  on the margin.

Question 5

If the marginal benefit of getting a college degree rises, rational people will

Accepted Answer

A)  attend college in greater numbers. 
B)  drop out of college. 
C)  not change their behavior. 
D)  require that college get easier. 
E)  raise the marginal cost of attending college. 
A)  attend college in greater numbers. 
B)  drop out of college. 
C)  not change their behavior. 
D)  require that college get easier. 
E)  raise the marginal cost of attending college.

Question 6

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost, marginal cost, and marginal benefit.

Accepted Answer

Economists assume that people act ration

Question 7

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

Accepted Answer

A)  study time becomes less effective. 
B)  study time becomes more effective. 
C)  the number of problems worked increases. 
D)  the number of problems worked decreases. 
E)  the relationship between study time and the number of problems worked changes from direct to inverse. 
A)  study time becomes less effective. 
B)  study time becomes more effective. 
C)  the number of problems worked increases. 
D)  the number of problems worked decreases. 
E)  the relationship between study time and the number of problems worked changes from direct to inverse.

Question 8

To help unscramble cause and effect, economists

Accepted Answer

A)  use the concept of opportunity costs. 
B)  must use the ceteris paribus assumption. 
C)  answer the "what" question. 
D)  answer the "how" question. 
E)  must use normative statements. 
A)  use the concept of opportunity costs. 
B)  must use the ceteris paribus assumption. 
C)  answer the "what" question. 
D)  answer the "how" question. 
E)  must use normative statements.

Question 9

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

Accepted Answer

A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended 
A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended

Question 10

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

Accepted Answer

A)  positive. 
B)  negative. 
C)  nonexistent. 
D)  linear. 
E)  cross-sectionally trended. 
A)  positive. 
B)  negative. 
C)  nonexistent. 
D)  linear. 
E)  cross-sectionally trended.

Question 11

-A time-series graph measures

Accepted Answer

A)  the value of one variable against the value of another variable. 
B)  the value of an economic variable for different groups in a population at a point in time. 
C)  time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D)  time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E)  time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure. 
A)  the value of one variable against the value of another variable. 
B)  the value of an economic variable for different groups in a population at a point in time. 
C)  time on the x-axis and the variable or variables in which we are interested on the y-axis. 
D)  time on the y-axis and the variable or variables in which we are interested on the x-axis. 
E)  time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure.

Question 12

For spring break, Melanie will either stay home or go to Daytona Beach.At home, Melanie pays $10 per day for food and earns $90 a day at her job.At Daytona Beach, Melanie will stay with friends and so has no lodging cost.She will pay $20 per day for food.In terms of dollars, Melanie's opportunity cost per day of going to Daytona Beach is how much?

Accepted Answer

Melanie's opportunity cost of

Question 13

What is a positive statement?
 Give an example.

Accepted Answer

A positive statement addresses

Question 14

-What is the slope of the line in the figure above?

Accepted Answer

A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  Zero 
A)  0.75 
B)  -0.75 
C)  1.33 
D)  -1.33 
E)  Zero

Question 15

-In the figure above, an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
E)  trend change in both x and y. 
A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
E)  trend change in both x and y.

Question 16

If there is a positive relationship between two variables,

Accepted Answer

A)  the graph of the relationship will be upward sloping. 
B)  the graph of the relationship will be downward sloping. 
C)  the slope of the line graphing the relationship will be negative. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. 
A)  the graph of the relationship will be upward sloping. 
B)  the graph of the relationship will be downward sloping. 
C)  the slope of the line graphing the relationship will be negative. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct.

Question 17

Which of the following is a positive statement?

Accepted Answer

A)  Taxes should be lower because then people get to keep more of what they earn, so they will work more. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions. 
E)  The class average on this test should be more than 80 percent. 
A)  Taxes should be lower because then people get to keep more of what they earn, so they will work more. 
B)  My economics class should last for two terms because it is my favorite class. 
C)  A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. 
D)  Given their negative impact on productivity, the government should eliminate labor unions. 
E)  The class average on this test should be more than 80 percent.

Question 18

-The graph shows a

Accepted Answer

A)  positive relationship that becomes steeper. 
B)  negative relationship that becomes steeper. 
C)  positive relationship that becomes less steep. 
D)  negative relationship that become less steep. 
E)  negative trend between the total cost of a cake and the output of cakes. 
A)  positive relationship that becomes steeper. 
B)  negative relationship that becomes steeper. 
C)  positive relationship that becomes less steep. 
D)  negative relationship that become less steep. 
E)  negative trend between the total cost of a cake and the output of cakes.

Question 19

Which of the following BEST describes macroeconomics?

Accepted Answer

A)  It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. 
B)  It studies the choices that individuals and businesses make when coping with scarcity. 
C)  It examines how the choices that individuals affect governments. 
D)  It never uses the ceteris paribus assumption. 
E)  Proving causation is never a problem for macroeconomics. 
A)  It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. 
B)  It studies the choices that individuals and businesses make when coping with scarcity. 
C)  It examines how the choices that individuals affect governments. 
D)  It never uses the ceteris paribus assumption. 
E)  Proving causation is never a problem for macroeconomics.

Question 20

The slope

Accepted Answer

A)  of a straight line is the same regardless of where on the line it is calculated. 
B)  equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C)  will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D)  equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E)  falls as the x variable increases if the line has a negative slope. 
A)  of a straight line is the same regardless of where on the line it is calculated. 
B)  equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C)  will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D)  equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E)  falls as the x variable increases if the line has a negative slope.

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

List and explain the three fundamental economic questions that must be answered by all economic systems.

An independent relationship between two variables is shown in a graph by

The Latin phrase ceteris paribus means

If the marginal benefit of getting a college degree rises, rational people will

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost, marginal cost, and marginal benefit.

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

To help unscramble cause and effect, economists

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

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

-A time-series graph measures

What is a positive statement? Give an example.

-What is the slope of the line in the figure above?

-In the figure above, an increase in z leads to a

If there is a positive relationship between two variables,

Which of the following is a positive statement?

-The graph shows a

Which of the following BEST describes macroeconomics?

The slope

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

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

List and explain the three fundamental economic questions that must be answered by all economic systems.

An independent relationship between two variables is shown in a graph by

The Latin phrase ceteris paribus means

If the marginal benefit of getting a college degree rises, rational people will

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost, marginal cost, and marginal benefit.

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

To help unscramble cause and effect, economists

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

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

-A time-series graph measures

What is a positive statement? Give an example.

-What is the slope of the line in the figure above?

-In the figure above, an increase in z leads to a

If there is a positive relationship between two variables,

Which of the following is a positive statement?

-The graph shows a

Which of the following BEST describes macroeconomics?

The slope

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