Question 1

When economists use the term "correlation," they are referring to

Accepted Answer

A)  cause and effect relationships between variables. 
B)  how two variables move together in a predictable way. 
C)  positive economics. 
D)  normative economics. 
E)  economic policy. 
A)  cause and effect relationships between variables. 
B)  how two variables move together in a predictable way. 
C)  positive economics. 
D)  normative economics. 
E)  economic policy.

Question 2

-The graph shows

Accepted Answer

A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a relationship that becomes less steep. 
E)  a cross-section relationship. 
A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a relationship that becomes less steep. 
E)  a cross-section relationship.

Question 3

When the federal government decides to pay senators more than it pays soldiers, it answers the ________ question.

Accepted Answer

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

Question 4

Correlation means

Accepted Answer

A)  holding everything else constant. 
B)  after this, therefore because of this. 
C)  the values of two variables move in a predictable and related way. 
D)  making statements about how the world should be. 
E)  the same as causation. 
A)  holding everything else constant. 
B)  after this, therefore because of this. 
C)  the values of two variables move in a predictable and related way. 
D)  making statements about how the world should be. 
E)  the same as causation.

Question 5

As a curve approaches a maximum point, the slope will

Accepted Answer

A)  be positive and then negative after the maximum point. 
B)  be negative and then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
E)  decrease before and after the maximum point. 
A)  be positive and then negative after the maximum point. 
B)  be negative and then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
E)  decrease before and after the maximum point.

Question 6

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B, the slope of the line equals

Accepted Answer

A)  -5. 
B)  -4. 
C)  -3. 
D)  -1. 
E)  -2 
A)  -5. 
B)  -4. 
C)  -3. 
D)  -1. 
E)  -2

Question 7

When unskilled teens earn less than college graduates, society answers the ________ question.

Accepted Answer

A)  how 
B)  what 
C)  for whom. 
D)  why 
E)  social interest versus self-interest 
A)  how 
B)  what 
C)  for whom. 
D)  why 
E)  social interest versus self-interest

Question 8

Of the three major economic questions, which of the following is the best example of a "How? " question?

Accepted Answer

A)  Should we produce more heavy fleece coats? 
B)  Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
C)  Should we build log homes or build factories from bricks? 
D)  Should we spend more on health care? 
E)  Should we eat more oatmeal? 
A)  Should we produce more heavy fleece coats? 
B)  Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
C)  Should we build log homes or build factories from bricks? 
D)  Should we spend more on health care? 
E)  Should we eat more oatmeal?

Question 9

Microeconomics includes the study of

Accepted Answer

A)  how countries decide to fund their budget deficits. 
B)  the choices that individuals and businesses make. 
C)  how a nation promotes economic growth. 
D)  the effect on the national economy of the choices that individuals make. 
E)  the overall amount of production within the economy. 
A)  how countries decide to fund their budget deficits. 
B)  the choices that individuals and businesses make. 
C)  how a nation promotes economic growth. 
D)  the effect on the national economy of the choices that individuals make. 
E)  the overall amount of production within the economy.

Question 10

A curve with a positive but decreasing slope represents a relationship where, every time the variable measured along the horizontal axis increases by one unit, the variable measured along the vertical axis

Accepted Answer

A)  increases by a constant amount. 
B)  increases by an increasing amount. 
C)  increases by a decreasing amount. 
D)  decreases. 
E)  does not change by much. 
A)  increases by a constant amount. 
B)  increases by an increasing amount. 
C)  increases by a decreasing amount. 
D)  decreases. 
E)  does not change by much.

Question 11

$\begin{array}{cc}
\begin{array}{c}
\text { Hours studied } \
\text { (per week) }
\end{array} & \text { SAT Scores } \
\hline 2 & 900 \
4 & 1000 \
6 & 1050 \
8 & 1075 \
10 & 1090
\end{array}$
-Jamie is preparing to take his SAT tests.The table above shows how Jamie's score depends on the number of hours a week Jamie studies
a. Plot the relationship in the figure, putting the hours studied on the horizontal axis.
   
b. Is the relationship you plotted positive or negative?
c. What happens to the slope of the relationship as hours studied increase?
d. Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher.Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e. How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& 
a. The figure above plots the relation

Question 12

The minimum point of a U-shaped curve,

Accepted Answer

A)  is a point where the variable is neither increasing nor decreasing. 
B)  has a slope equal to zero. 
C)  has the maximum slope possible. 
D)  Both answers A and B are correct. 
E)  Both answers A and C are correct. 
A)  is a point where the variable is neither increasing nor decreasing. 
B)  has a slope equal to zero. 
C)  has the maximum slope possible. 
D)  Both answers A and B are correct. 
E)  Both answers A and C are correct.

Question 13

The marginal cost of an activity ________ as you do more of it.

Accepted Answer

A)  increases 
B)  decreases 
C)  doesn't change 
D)  changes only if the marginal benefit of the activity does not change 
E)  changes only if the marginal benefit of the activity changes 
A)  increases 
B)  decreases 
C)  doesn't change 
D)  changes only if the marginal benefit of the activity does not change 
E)  changes only if the marginal benefit of the activity changes

Question 14

-In the above figure, which of the figures shows a relationship between x and y with a negative slope?

Accepted Answer

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

Question 15

-A cross-section graph

Accepted Answer

A)  is divided into different sections. 
B)  shows 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 B and C are correct. 
A)  is divided into different sections. 
B)  shows 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 B and C are correct.

Question 16

-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 C and D equals

Accepted Answer

A)  8. 
B)  4. 
C)  2. 
D)  1. 
E)  12 
A)  8. 
B)  4. 
C)  2. 
D)  1. 
E)  12

Question 17

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

Accepted Answer

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

Question 18

Which of the following is an example of a sunk cost?

Accepted Answer

A)  after you start watching a movie, the $8 you paid for the ticket 
B)  the $100,000 a shoe factory will pay for the leather it uses to make shoes 
C)  the electricity purchased by a horse breeder 
D)  the $10 being spent on gasoline purchased by a traveling salesperson 
E)  the $6,000 Tommy's insurance company pays him after an accident. 
A)  after you start watching a movie, the $8 you paid for the ticket 
B)  the $100,000 a shoe factory will pay for the leather it uses to make shoes 
C)  the electricity purchased by a horse breeder 
D)  the $10 being spent on gasoline purchased by a traveling salesperson 
E)  the $6,000 Tommy's insurance company pays him after an accident.

Question 19

A statement that "All children should receive free health care" is an example of what kind of statement?

Accepted Answer

A)  a fair statement 
B)  a natural experiment statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement on the margin 
A)  a fair statement 
B)  a natural experiment statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement on the margin

Question 20

-Which type of economic graph reveals trends in data?

Accepted Answer

A)  cross-section graph 
B)  time-series graph 
C)  scatter diagram 
D)  slopes 
E)  Answers A, B, and C are all correct. 
A)  cross-section graph 
B)  time-series graph 
C)  scatter diagram 
D)  slopes 
E)  Answers A, B, and C are all correct.

When economists use the term "correlation," they are referring to

-The graph shows

When the federal government decides to pay senators more than it pays soldiers, it answers the ________ question.

Correlation means

As a curve approaches a maximum point, the slope will

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B, the slope of the line equals

When unskilled teens earn less than college graduates, society answers the ________ question.

Of the three major economic questions, which of the following is the best example of a "How? " question?

Microeconomics includes the study of

A curve with a positive but decreasing slope represents a relationship where, every time the variable measured along the horizontal axis increases by one unit, the variable measured along the vertical axis

The minimum point of a U-shaped curve,

The marginal cost of an activity ________ as you do more of it.

-In the above figure, which of the figures shows a relationship between x and y with a negative slope?

-A cross-section graph

-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 C and D equals

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

Which of the following is an example of a sunk cost?

A statement that "All children should receive free health care" is an example of what kind of statement?

-Which type of economic graph reveals trends in data?

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

When economists use the term "correlation," they are referring to

-The graph shows

When the federal government decides to pay senators more than it pays soldiers, it answers the ________ question.

Correlation means

As a curve approaches a maximum point, the slope will

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B, the slope of the line equals

When unskilled teens earn less than college graduates, society answers the ________ question.

Of the three major economic questions, which of the following is the best example of a "How? " question?

Microeconomics includes the study of

A curve with a positive but decreasing slope represents a relationship where, every time the variable measured along the horizontal axis increases by one unit, the variable measured along the vertical axis

The minimum point of a U-shaped curve,

The marginal cost of an activity ________ as you do more of it.

-In the above figure, which of the figures shows a relationship between x and y with a negative slope?

-A cross-section graph

-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 C and D equals

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

Which of the following is an example of a sunk cost?

A statement that "All children should receive free health care" is an example of what kind of statement?

-Which type of economic graph reveals trends in data?

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