Question 1

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Accepted Answer

A) What? 
B) How? 
C) For whom? 
D) Why? 
E) Where? 
A) What? 
B) How? 
C) For whom? 
D) Why? 
E) Where?

Question 2

What are the two different types of relationships that variables can have?
 Explain each. What do these relationships look like when they are graphed?

Accepted Answer

Variables can have two relationships: po

Question 3

If there is no scarcity,

Accepted Answer

A) the opportunity cost of an action would be greater than its sunk cost. 
B) an action would have zero opportunity cost. 
C) choices are no longer rational. 
D) marginal cost of an action is greater than its marginal benefit. 
E) all marginal benefits would equal zero. 
A) the opportunity cost of an action would be greater than its sunk cost. 
B) an action would have zero opportunity cost. 
C) choices are no longer rational. 
D) marginal cost of an action is greater than its marginal benefit. 
E) all marginal benefits would equal zero.

Question 4

Self interest

Accepted Answer

A) reflects choices that are best for society as a whole. 
B) reflects choices that are best for the individual who makes them. 
C) has nothing to do with determining what goods are produced. 
D) occurs only when wants exceed available resources. 
E) cannot be used to determine how goods are produced. 
A) reflects choices that are best for society as a whole. 
B) reflects choices that are best for the individual who makes them. 
C) has nothing to do with determining what goods are produced. 
D) occurs only when wants exceed available resources. 
E) cannot be used to determine how goods are produced.

Question 5

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 6

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 7

What is the difference between a positive and a negative relationship?

Accepted Answer

Two variables are positively related whe

Question 8

In the diagram below, draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 9

In the above, in which figure(s)is the slope the same at every point?

Accepted Answer

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

Question 10

Which of the following is a normative statement?

Accepted Answer

A) Flood victims should pay for their own rebuilding. 
B) When the price of kiwi fruit increases, fewer people eat kiwi fruit. 
C) An increase in the supply of computers has caused computer prices to fall. 
D) Recessions lead to increases in the unemployment rate. 
E) Hurricanes strike mainly Florida and North Carolina. 
A) Flood victims should pay for their own rebuilding. 
B) When the price of kiwi fruit increases, fewer people eat kiwi fruit. 
C) An increase in the supply of computers has caused computer prices to fall. 
D) Recessions lead to increases in the unemployment rate. 
E) Hurricanes strike mainly Florida and North Carolina.

Question 11

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 12

Suppose you take a trip during Spring Break. To determine the benefit of taking the trip, you

Accepted Answer

A) calculate the opportunity cost of the trip. 
B) measure what you are willing to give up to take the trip. 
C) determine the sunk cost of taking the trip. 
D) calculate the value of the next best alternative foregone. 
E) must measure what the trip is worth to you and then subtract the cost of the trip. 
A) calculate the opportunity cost of the trip. 
B) measure what you are willing to give up to take the trip. 
C) determine the sunk cost of taking the trip. 
D) calculate the value of the next best alternative foregone. 
E) must measure what the trip is worth to you and then subtract the cost of the trip.

Question 13

If the change in y = 10 and the change in x = 3, there is

Accepted Answer

A) a positive relationship between y and x. 
B) a negative relationship between y and x. 
C) an independent relationship between y and x. 
D) no relationship between y and x. 
E) a +0.33 relationship between the two variables. 
A) a positive relationship between y and x. 
B) a negative relationship between y and x. 
C) an independent relationship between y and x. 
D) no relationship between y and x. 
E) a +0.33 relationship between the two variables.

Question 14

-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 15

The question "Should we produce houses using bricks or wood? " is an example of a ________ 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 16

Which of the following is true?
I. A rational choice is always made in the pursuit of social interest.
Ii. Economics is a social science.
Iii. Economists try to understand how the economic world works by testing positive statements.

Accepted Answer

A) ii and iii 
B) Only i 
C) Only ii 
D) Only iii 
E) i and ii 
A) ii and iii 
B) Only i 
C) Only ii 
D) Only iii 
E) i and ii

Question 17

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 18

Which of the following is a microeconomic topic?
i. Gas prices increase after a hurricane hits the gulf coast.
ii. Xavier starts a new business designing web pages.
iii. Abby decides to practice an extra hour of soccer instead of studying.

Accepted Answer

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

Question 19

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 20

-The slope of the curve at point B

Accepted Answer

A) is greater than the slope at point A. 
B) is less than the slope at point A. 
C) is equal to the slope at point A. 
D) cannot be compared with the slope at point A. 
E) can be compared with the slope at point A, but more information is needed to determine if the slope is greater than, less than, or equal to the slope at point A. 
A) is greater than the slope at point A. 
B) is less than the slope at point A. 
C) is equal to the slope at point A. 
D) cannot be compared with the slope at point A. 
E) can be compared with the slope at point A, but more information is needed to determine if the slope is greater than, less than, or equal to the slope at point A.

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

If there is no scarcity,

Self interest

Which of the following is a positive statement?

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

What is the difference between a positive and a negative relationship?

In the diagram below, draw a straight line with a slope of zero.

In the above, in which figure(s)is the slope the same at every point?

Which of the following is a normative statement?

Suppose you take a trip during Spring Break. To determine the benefit of taking the trip, you

If the change in y = 10 and the change in x = 3, there is

-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,

The question "Should we produce houses using bricks or wood? " is an example of a ________ question.

Which of the following is true? I. A rational choice is always made in the pursuit of social interest. Ii. Economics is a social science. Iii. Economists try to understand how the economic world works by testing positive statements.

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

Which of the following is a microeconomic topic? i. Gas prices increase after a hurricane hits the gulf coast. ii. Xavier starts a new business designing web pages. iii. Abby decides to practice an extra hour of soccer instead of studying.

A time-series graph measures

-The slope of the curve at point B

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

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?

If there is no scarcity,

Self interest

Which of the following is a positive statement?

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

What is the difference between a positive and a negative relationship?

In the diagram below, draw a straight line with a slope of zero.

In the above, in which figure(s)is the slope the same at every point?

Which of the following is a normative statement?

Suppose you take a trip during Spring Break. To determine the benefit of taking the trip, you

If the change in y = 10 and the change in x = 3, there is

-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,

The question "Should we produce houses using bricks or wood? " is an example of a ________ question.

Which of the following is true? I. A rational choice is always made in the pursuit of social interest. Ii. Economics is a social science. Iii. Economists try to understand how the economic world works by testing positive statements.

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

Which of the following is a microeconomic topic? i. Gas prices increase after a hurricane hits the gulf coast. ii. Xavier starts a new business designing web pages. iii. Abby decides to practice an extra hour of soccer instead of studying.

A time-series graph measures

-The slope of the curve at point B

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