Question 1

If two variables are positively related, then

Accepted Answer

A)  one variable causes the other. 
B)  an increase in one variable is accompanied by a decrease in the other. 
C)  an increase in one variable is accompanied by an increase in the other. 
D)  they change together, but not necessarily in the same direction. 
E)  neither variable can be positively related to any other variable. 
A)  one variable causes the other. 
B)  an increase in one variable is accompanied by a decrease in the other. 
C)  an increase in one variable is accompanied by an increase in the other. 
D)  they change together, but not necessarily in the same direction. 
E)  neither variable can be positively related to any other variable.

Question 2

Which of the following statements is the best example of the term ceteris paribus?

Accepted Answer

A)  An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B)  More money should be spent on cleaning up the environment. 
C)  The government budget surplus was $200 billion in 2000 because the economy was growing. 
D)  An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E)  When studying the effects of a budget deficit, an economist must take account of all the factors involved. 
A)  An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
B)  More money should be spent on cleaning up the environment. 
C)  The government budget surplus was $200 billion in 2000 because the economy was growing. 
D)  An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
E)  When studying the effects of a budget deficit, an economist must take account of all the factors involved.

Question 3

Scarcity means that

Accepted Answer

A)  what we can produce with our resources is greater than our material wants. 
B)  resources are unlimited. 
C)  wants are greater than what we can produce with out resources. 
D)  governments must make up for shortages in resources. 
E)  choices made in self-interest cannot be the same as those made in the social interest. 
A)  what we can produce with our resources is greater than our material wants. 
B)  resources are unlimited. 
C)  wants are greater than what we can produce with out resources. 
D)  governments must make up for shortages in resources. 
E)  choices made in self-interest cannot be the same as those made in the social interest.

Question 4

The slope of a line equals the change in the variable measured along the

Accepted Answer

A)  x-axis divided by the change in the variable measured along the y-axis. 
B)  y-axis divided by the change in the variable measured along the x-axis. 
C)  x-axis minus the change in the variable measured along the y-axis. 
D)  x-axis multiplied by the change in the variable measured along the y-axis. 
E)  y-axis minus the change in the variable measured along the x-axis. 
A)  x-axis divided by the change in the variable measured along the y-axis. 
B)  y-axis divided by the change in the variable measured along the x-axis. 
C)  x-axis minus the change in the variable measured along the y-axis. 
D)  x-axis multiplied by the change in the variable measured along the y-axis. 
E)  y-axis minus the change in the variable measured along the x-axis.

Question 5

Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie.Leann is making

Accepted Answer

A)  a decision that does not involve an opportunity cost. 
B)  a rational decision if her marginal cost from the movie is greater than her marginal benefit. 
C)  a rational decision if her marginal benefit from the movie is greater than her marginal cost. 
D)  an irrational decision because studying is more important than watching a movie. 
E)  a decision that is not on the margin because she will see the entire movie. 
A)  a decision that does not involve an opportunity cost. 
B)  a rational decision if her marginal cost from the movie is greater than her marginal benefit. 
C)  a rational decision if her marginal benefit from the movie is greater than her marginal cost. 
D)  an irrational decision because studying is more important than watching a movie. 
E)  a decision that is not on the margin because she will see the entire movie.

Question 6

If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will

Accepted Answer

A)  eat the slice of pizza. 
B)  not eat the slice of pizza. 
C)  be unable to choose between eating or not eating. 
D)  eat half the slice. 
E)  More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice. 
A)  eat the slice of pizza. 
B)  not eat the slice of pizza. 
C)  be unable to choose between eating or not eating. 
D)  eat half the slice. 
E)  More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

Question 7

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 8

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

Accepted Answer

A)  vertical line. 
B)  horizontal line. 
C)  line that has positive slope. 
D)  line that has a negative slope. 
E)  non-existent because the two variables are not related. 
A)  vertical line. 
B)  horizontal line. 
C)  line that has positive slope. 
D)  line that has a negative slope. 
E)  non-existent because the two variables are not related.

Question 9

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

Accepted Answer

A)  scatter diagram. 
B)  time-series graph. 
C)  linear graph. 
D)  cross-section graph 
E)  trend-section diagram. 
A)  scatter diagram. 
B)  time-series graph. 
C)  linear graph. 
D)  cross-section graph 
E)  trend-section diagram.

Question 10

An incentive is

Accepted Answer

A)  a reward or a penalty that encourages or discourages an action. 
B)  when people make rational choices by comparing costs and benefits. 
C)  what you must give up to get something. 
D)  a choice is made on the margin. 
E)  a good or service that satisfies wants. 
A)  a reward or a penalty that encourages or discourages an action. 
B)  when people make rational choices by comparing costs and benefits. 
C)  what you must give up to get something. 
D)  a choice is made on the margin. 
E)  a good or service that satisfies wants.

Question 11

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

Accepted Answer

A)  This is a normative statement. 
B)  The federal government does not face scarcity. 
C)  This topic would be studied in microeconomics. 
D)  Social interest must always be more important than self-interest. 
E)  Ceteris paribus does not apply to the government. 
A)  This is a normative statement. 
B)  The federal government does not face scarcity. 
C)  This topic would be studied in microeconomics. 
D)  Social interest must always be more important than self-interest. 
E)  Ceteris paribus does not apply to the government.

Question 12

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles?
 In your answer, be sure to mention the role played by rational choice.

Accepted Answer

Policy makers know that people making ra

Question 13

Which of the following statements is correct?

Accepted Answer

A)  When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B)  When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C)  The higher the temperature, the more ice cream people consume.Thus the temperature and ice cream consumption are inversely related. 
D)  If two variables are directly related, a graph of the two variables has a negative slope. 
E)  None of the above statements are correct. 
A)  When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B)  When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C)  The higher the temperature, the more ice cream people consume.Thus the temperature and ice cream consumption are inversely related. 
D)  If two variables are directly related, a graph of the two variables has a negative slope. 
E)  None of the above statements are correct.

Question 14

A graph shows the average SAT scores for males and females in 2010.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)  time-stationary graph. 
E)  trend figure. 
A)  scatter diagram. 
B)  time-series graph. 
C)  cross-section graph. 
D)  time-stationary graph. 
E)  trend figure.

Question 15

Which of the following statements is a positive statement?

Accepted Answer

A)  Our country must increase military spending. 
B)  There should be a computer in every elementary school classroom. 
C)  We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D)  Online shopping increased by 50 percent this Christmas season. 
E)  Too many people are unemployed. 
A)  Our country must increase military spending. 
B)  There should be a computer in every elementary school classroom. 
C)  We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. 
D)  Online shopping increased by 50 percent this Christmas season. 
E)  Too many people are unemployed.

Question 16

-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 is ________ the slope of the line between points B and C.

Accepted Answer

A)  greater than 
B)  equal to 
C)  less than 
D)  unrelated to 
E)  not comparable to 
A)  greater than 
B)  equal to 
C)  less than 
D)  unrelated to 
E)  not comparable to

Question 17

Choices that are best for the individuals that make them are choices in pursuit of

Accepted Answer

A)  the social interest. 
B)  efficiency. 
C)  incentives. 
D)  self interest. 
E)  equity. 
A)  the social interest. 
B)  efficiency. 
C)  incentives. 
D)  self interest. 
E)  equity.

Question 18

-To graph a relationship that involves more than two variables, we use

Accepted Answer

A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  ceteris paribus. 
E)  movement up along one of the lines showing the relationship between x and y. 
A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  ceteris paribus. 
E)  movement up along one of the lines showing the relationship between x and y.

Question 19

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 20

The additional benefit of increasing some activity by one-unit is called the

Accepted Answer

A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  sunk benefit. 
A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  sunk benefit.

If two variables are positively related, then

Which of the following statements is the best example of the term ceteris paribus?

Scarcity means that

The slope of a line equals the change in the variable measured along the

Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie.Leann is making

If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will

-What does the slope of the line shown in the above figure equal?

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

An incentive is

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer, be sure to mention the role played by rational choice.

Which of the following statements is correct?

A graph shows the average SAT scores for males and females in 2010.The kind of graph used to show these data would be a

Which of the following statements is a positive statement?

-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 is ________ the slope of the line between points B and C.

Choices that are best for the individuals that make them are choices in pursuit of

-To graph a relationship that involves more than two variables, we use

-What does the slope of the line shown in the above figure equal?

The additional benefit of increasing some activity by one-unit is called the

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

If two variables are positively related, then

Which of the following statements is the best example of the term ceteris paribus?

Scarcity means that

The slope of a line equals the change in the variable measured along the

Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie.Leann is making

If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will

-What does the slope of the line shown in the above figure equal?

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

An incentive is

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can.Why does the state pay people to return bottles? In your answer, be sure to mention the role played by rational choice.

Which of the following statements is correct?

A graph shows the average SAT scores for males and females in 2010.The kind of graph used to show these data would be a

Which of the following statements is a positive statement?

-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 is ________ the slope of the line between points B and C.

Choices that are best for the individuals that make them are choices in pursuit of

-To graph a relationship that involves more than two variables, we use

-What does the slope of the line shown in the above figure equal?

The additional benefit of increasing some activity by one-unit is called the

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