Question 1

-The figure above shows the price of a DVD player from 1996 to 2000.
a. What type of graph is illustrated above?
b. What is the trend in the price of a DVD player?

Accepted Answer

a. The graph is a time-series graph because it plots time along the horizontal axis and the price of a DVD player along the vertical axis.
b. The trend in the price of a DVD player is negative, that is, the price of a DVD player has generally decreased from one year to the next.

Question 2

-The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,

Accepted Answer

A) the fall in the cost per mile becomes smaller. 
B) the fall in the cost per mile becomes greater. 
C) the cost per mile decreases. 
D) the cost per mile increases. 
E) the cost per mile remains unchanged. 
A) the fall in the cost per mile becomes smaller. 
B) the fall in the cost per mile becomes greater. 
C) the cost per mile decreases. 
D) the cost per mile increases. 
E) the cost per mile remains unchanged. A

Question 3

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

Accepted Answer

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

Question 4

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,

Accepted Answer

A) the curve will shift rightward. 
B) the curve will shift leftward. 
C) there is a movement along the curve. 
D) the curve will be unaffected. 
E) None of the above answers is correct because the graph assumes that the price of pecans does not change. 
A) the curve will shift rightward. 
B) the curve will shift leftward. 
C) there is a movement along the curve. 
D) the curve will be unaffected. 
E) None of the above answers is correct because the graph assumes that the price of pecans does not change.

Question 5

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 6

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 7

A change in a marginal benefit or cost will

Accepted Answer

A) increase consumption. 
B) decrease production. 
C) cause an individual to make a rational choice. 
D) increase sunk costs. 
E) change incentives. 
A) increase consumption. 
B) decrease production. 
C) cause an individual to make a rational choice. 
D) increase sunk costs. 
E) change incentives.

Question 8

If x increases and as a result y decreases, then x and y are

Accepted Answer

A) not related because the relationship is a causal one. 
B) positively related. 
C) negatively related. 
D) directly related. 
E) trend-line related. 
A) not related because the relationship is a causal one. 
B) positively related. 
C) negatively related. 
D) directly related. 
E) trend-line related.

Question 9

The relationship between distance traveled in five hours and speed shown in the figure above is

Accepted Answer

A) positive. 
B) negative. 
C) inverse. 
D) cross-sectional. 
E) multilateral. 
A) positive. 
B) negative. 
C) inverse. 
D) cross-sectional. 
E) multilateral.

Question 10

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

Accepted Answer

A) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C) He loses a total of $120 per day, so his decision is irrational. 
D) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E) Adam is definitely making a decision that is in the social interest. 
A) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C) He loses a total of $120 per day, so his decision is irrational. 
D) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E) Adam is definitely making a decision that is in the social interest.

Question 11

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 vertical axis divided by the change in the variable measured along the horizontal axis. 
C) will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D) Answers A and B are correct. 
E) Answers A and C are correct. 
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 vertical axis divided by the change in the variable measured along the horizontal axis. 
C) will be small if a large change in the variable measured on the vertical axis is associated with a small change in the variable measured along the horizontal axis. 
D) Answers A and B are correct. 
E) Answers A and C are correct.

Question 12

A graph of the value of one variable against the value of another variable is known as a

Accepted Answer

A) two-dimensional graph. 
B) three-dimensional graph. 
C) time-series graph. 
D) scatter diagram. 
E) two-variable graph. 
A) two-dimensional graph. 
B) three-dimensional graph. 
C) time-series graph. 
D) scatter diagram. 
E) two-variable graph.

Question 13

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester. The slope of the relationship at point A equals

Accepted Answer

A) 3. 
B) 3/20 
C) 2/20. 
D) 1/20. 
E) 0. 
A) 3. 
B) 3/20 
C) 2/20. 
D) 1/20. 
E) 0.

Question 14

By donating $1,000 to the Salvation Army, Caroline reduces her taxable income. To Caroline, the reduction in her taxable income is

Accepted Answer

A) a marginal benefit. 
B) an opportunity cost. 
C) an incentive. 
D) a marginal cost. 
E) the margin. 
A) a marginal benefit. 
B) an opportunity cost. 
C) an incentive. 
D) a marginal cost. 
E) the margin.

Question 15

Which of the following is a macroeconomic topic?
i. China increases interest rates to slow its economic growth.
ii. Congress lowers tax rates to try and lower the unemployment rate.
iii. Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Accepted Answer

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

Question 16

Which of the following statements is a normative statement?

Accepted Answer

A) Every American household should have health care insurance coverage. 
B) Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C) Welfare reform has decreased the amount the government spends on welfare. 
D) The price of computers fell last year. 
E) Fewer people are unemployed this year than last year. 
A) Every American household should have health care insurance coverage. 
B) Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C) Welfare reform has decreased the amount the government spends on welfare. 
D) The price of computers fell last year. 
E) Fewer people are unemployed this year than last year.

Question 17

-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 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 becomes 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 becomes less steep. 
E) negative trend between the total cost of a cake and the output of cakes.

Question 19

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 20

The tendency for the values of two variables to move in a predictable and related way is known as

Accepted Answer

A) a natural experiment. 
B) a normative relationship. 
C) an economic model. 
D) correlation. 
E) a policy relationship. 
A) a natural experiment. 
B) a normative relationship. 
C) an economic model. 
D) correlation. 
E) a policy relationship.

-The figure above shows the price of a DVD player from 1996 to 2000. a. What type of graph is illustrated above? b. What is the trend in the price of a DVD player?

-The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,

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.

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

A change in a marginal benefit or cost will

If x increases and as a result y decreases, then x and y are

The relationship between distance traveled in five hours and speed shown in the figure above is

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

The slope

A graph of the value of one variable against the value of another variable is known as a

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester. The slope of the relationship at point A equals

By donating $1,000 to the Salvation Army, Caroline reduces her taxable income. To Caroline, the reduction in her taxable income is

Which of the following is a macroeconomic topic? i. China increases interest rates to slow its economic growth. ii. Congress lowers tax rates to try and lower the unemployment rate. iii. Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Which of the following statements is a normative statement?

-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

-The graph shows a

A cross-section graph

The tendency for the values of two variables to move in a predictable and related way is known as

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 1: Getting Started

-The figure above shows the price of a DVD player from 1996 to 2000. a. What type of graph is illustrated above? b. What is the trend in the price of a DVD player?

-The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

-In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,

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.

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

A change in a marginal benefit or cost will

If x increases and as a result y decreases, then x and y are

The relationship between distance traveled in five hours and speed shown in the figure above is

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

The slope

A graph of the value of one variable against the value of another variable is known as a

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester. The slope of the relationship at point A equals

By donating $1,000 to the Salvation Army, Caroline reduces her taxable income. To Caroline, the reduction in her taxable income is

Which of the following is a macroeconomic topic? i. China increases interest rates to slow its economic growth. ii. Congress lowers tax rates to try and lower the unemployment rate. iii. Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Which of the following statements is a normative statement?

-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

-The graph shows a

A cross-section graph

The tendency for the values of two variables to move in a predictable and related way is known as

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters