Question 1

-A graph shows the average wage of various demographic groups in 2005.The kind of graph used to show these data would be a

Accepted Answer

A)  scatter diagram. 
B)  time-series graph. 
C)  cross-section graph. 
D)  Venn-diagram. 
E)  fixed-year figure. 
A)  scatter diagram. 
B)  time-series graph. 
C)  cross-section graph. 
D)  Venn-diagram. 
E)  fixed-year figure.

Question 2

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

Accepted Answer

A)  no peanuts. 
B)  1000 pounds of peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts. 
E)  more than 4000 pounds of peanuts. 
A)  no peanuts. 
B)  1000 pounds of peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts. 
E)  more than 4000 pounds of peanuts.

Question 3

To graph a relationship involving more than two variables, we use which assumption?

Accepted Answer

A)  rational decision making 
B)  post hoc 
C)  marginal analysis 
D)  ceteris paribus 
E)  trend assumption 
A)  rational decision making 
B)  post hoc 
C)  marginal analysis 
D)  ceteris paribus 
E)  trend assumption

Question 4

Which of the following is a topic studied in macroeconomics?

Accepted Answer

A)  The pricing decisions in the computer hardware industry 
B)  The effect on economic growth if the government raises taxes 
C)  How the wheat industry determines how much wheat to grow 
D)  The impact of labor unions on wages 
E)  The impact of higher prices for gasoline on the number of SUVs people buy 
A)  The pricing decisions in the computer hardware industry 
B)  The effect on economic growth if the government raises taxes 
C)  How the wheat industry determines how much wheat to grow 
D)  The impact of labor unions on wages 
E)  The impact of higher prices for gasoline on the number of SUVs people buy

Question 5

An incentive is

Accepted Answer

A)  an inducement to take a particular action. 
B)  the marginal cost of some course of action. 
C)  the marginal benefit of some course of action. 
D)  the net gain of some course of action. 
E)  a constraint that society imposes on those who make self-interested choices. 
A)  an inducement to take a particular action. 
B)  the marginal cost of some course of action. 
C)  the marginal benefit of some course of action. 
D)  the net gain of some course of action. 
E)  a constraint that society imposes on those who make self-interested choices.

Question 6

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  ceteris paribus statement. 
E)  marginal statement. 
A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  ceteris paribus statement. 
E)  marginal statement.

Question 7

The study of economics is best described as a study of

Accepted Answer

A)  the factors that influence the stock and bond markets. 
B)  capitalism. 
C)  the choices made in producing goods and services. 
D)  coping with scarcity, and choices made as a result of scarcity in a society. 
E)  how people earn a living. 
A)  the factors that influence the stock and bond markets. 
B)  capitalism. 
C)  the choices made in producing goods and services. 
D)  coping with scarcity, and choices made as a result of scarcity in a society. 
E)  how people earn a living.

Question 8

-In the figure above, what is the slope of the curve at point A?

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 9

What is the relationship between wants, resources, scarcity, and choices?
 Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or

Question 10

You have chosen to take a trip during Spring Break.If you had not gone, you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Accepted Answer

A)  the wages you would have earned from working. 
B)  the lower grade earned by not studying. 
C)  the wages you would have earned from working and the lower grade earned by not studying. 
D)  the value of the trip. 
E)  We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred. 
A)  the wages you would have earned from working. 
B)  the lower grade earned by not studying. 
C)  the wages you would have earned from working and the lower grade earned by not studying. 
D)  the value of the trip. 
E)  We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.

Question 11

Which of the following is a macroeconomic topic?

Accepted Answer

A)  The federal government's decision to spend more on environmental protection 
B)  The county government's decision to increase the sales tax for your county 
C)  Why did production and jobs expand rapidly in 2004? 
D)  General Motors decides what prices to set for their new models. 
E)  The effect of floods in the growing areas on the price and quantity of wheat. 
A)  The federal government's decision to spend more on environmental protection 
B)  The county government's decision to increase the sales tax for your county 
C)  Why did production and jobs expand rapidly in 2004? 
D)  General Motors decides what prices to set for their new models. 
E)  The effect of floods in the growing areas on the price and quantity of wheat.

Question 12

In order to study one more hour of economics, you must give up one hour of tennis.The hour of tennis is

Accepted Answer

A)  the benefit of spending the hour studying. 
B)  the cost of spending the hour studying. 
C)  a sunk cost. 
D)  a sunk benefit. 
E)  the incentive to study. 
A)  the benefit of spending the hour studying. 
B)  the cost of spending the hour studying. 
C)  a sunk cost. 
D)  a sunk benefit. 
E)  the incentive to study.

Question 13

Macroeconomics is the study of

Accepted Answer

A)  the actions of individual consumers. 
B)  national or global economies. 
C)  the actions of individual businesses. 
D)  the government. 
E)  how ceteris paribus affects causation. 
A)  the actions of individual consumers. 
B)  national or global economies. 
C)  the actions of individual businesses. 
D)  the government. 
E)  how ceteris paribus affects causation.

Question 14

Which of the following is a positive statement?

Accepted Answer

A)  The rich should pay more in taxes. 
B)  Everyone should have some knowledge of economics. 
C)  Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  social Security must be reformed. 
A)  The rich should pay more in taxes. 
B)  Everyone should have some knowledge of economics. 
C)  Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  social Security must be reformed.

Question 15

In a graph, a straight line has a negative slope if the line

Accepted Answer

A)  is vertical. 
B)  is horizontal. 
C)  falls from left to right. 
D)  rises from left to right. 
E)  shows a trend. 
A)  is vertical. 
B)  is horizontal. 
C)  falls from left to right. 
D)  rises from left to right. 
E)  shows a trend.

Question 16

-In the above, which figure(s) show a relationship between the variables that is always negative?

Accepted Answer

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

Question 17

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 18

A positive relationship exists between two variables if

Accepted Answer

A)  one variable has "positively" no effect on the other variable. 
B)  a decrease in one variable is associated with an increase in the other variable. 
C)  a decrease in one variable is associated with a decrease in the other variable. 
D)  an increase in one variable is associated with both a decrease and an increase in the other variable. 
E)  None of the above answers is correct. 
A)  one variable has "positively" no effect on the other variable. 
B)  a decrease in one variable is associated with an increase in the other variable. 
C)  a decrease in one variable is associated with a decrease in the other variable. 
D)  an increase in one variable is associated with both a decrease and an increase in the other variable. 
E)  None of the above answers is correct.

Question 19

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes, then there is

Accepted Answer

A)  a movement along the drawn curve. 
B)  a shift in the curve. 
C)  no impact on the curve because the variable is not measured on either of the axes. 
D)  either a shift in the curve or a movement along the curve but more information is needed to determine which. 
E)  None of the above answers are correct. 
A)  a movement along the drawn curve. 
B)  a shift in the curve. 
C)  no impact on the curve because the variable is not measured on either of the axes. 
D)  either a shift in the curve or a movement along the curve but more information is needed to determine which. 
E)  None of the above answers are correct.

Question 20

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

Accepted Answer

A)  a decrease in marginal benefit to attend the review session. 
B)  an increase in marginal cost to attend the review session. 
C)  a rational choice. 
D)  an incentive to attend the review session. 
E)  a sunk cost. 
A)  a decrease in marginal benefit to attend the review session. 
B)  an increase in marginal cost to attend the review session. 
C)  a rational choice. 
D)  an incentive to attend the review session. 
E)  a sunk cost.

-A graph shows the average wage of various demographic groups in 2005.The kind of graph used to show these data would be a

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

To graph a relationship involving more than two variables, we use which assumption?

Which of the following is a topic studied in macroeconomics?

An incentive is

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

The study of economics is best described as a study of

-In the figure above, what is the slope of the curve at point A?

What is the relationship between wants, resources, scarcity, and choices? Discuss the relationship for an individual and for a society.

You have chosen to take a trip during Spring Break.If you had not gone, you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Which of the following is a macroeconomic topic?

In order to study one more hour of economics, you must give up one hour of tennis.The hour of tennis is

Macroeconomics is the study of

Which of the following is a positive statement?

In a graph, a straight line has a negative slope if the line

-In the above, which figure(s) show a relationship between the variables that is always negative?

Define economics and describe its branches of study.

A positive relationship exists between two variables if

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes, then there is

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

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

-A graph shows the average wage of various demographic groups in 2005.The kind of graph used to show these data would be a

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

To graph a relationship involving more than two variables, we use which assumption?

Which of the following is a topic studied in macroeconomics?

An incentive is

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

The study of economics is best described as a study of

-In the figure above, what is the slope of the curve at point A?

What is the relationship between wants, resources, scarcity, and choices? Discuss the relationship for an individual and for a society.

You have chosen to take a trip during Spring Break.If you had not gone, you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Which of the following is a macroeconomic topic?

In order to study one more hour of economics, you must give up one hour of tennis.The hour of tennis is

Macroeconomics is the study of

Which of the following is a positive statement?

In a graph, a straight line has a negative slope if the line

-In the above, which figure(s) show a relationship between the variables that is always negative?

Define economics and describe its branches of study.

A positive relationship exists between two variables if

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes, then there is

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

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