Question 1

A slope is measured as the

Accepted Answer

A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis. 
A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis.

Question 2

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 3

Must a rational choice always work out well?
 In other words, is it possible for someone to regret a rational decision?

Accepted Answer

It is not necessarily the case that a ra

Question 4

A time series graph

Accepted Answer

A) shows how a variable changes over time. 
B) uses bars rather than lines. 
C) shows points in a scatter diagram. 
D) is similar to a cross-section graph because both can show trends over time. 
E) is in the shape of a pie. 
A) shows how a variable changes over time. 
B) uses bars rather than lines. 
C) shows points in a scatter diagram. 
D) is similar to a cross-section graph because both can show trends over time. 
E) is in the shape of a pie.

Question 5

If a small change in the x variable results in a large change in the y variable, the curve will be

Accepted Answer

A) positively sloped. 
B) negatively sloped. 
C) steep. 
D) flat. 
E) trended. 
A) positively sloped. 
B) negatively sloped. 
C) steep. 
D) flat. 
E) trended.

Question 6

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4, then the slope of the curve equals

Accepted Answer

A) 3. 
B) 4. 
C) 3/4. 
D) 4/3. 
E) 1. 
A) 3. 
B) 4. 
C) 3/4. 
D) 4/3. 
E) 1.

Question 7

Which of the following is NOT a normative economic statement?

Accepted Answer

A) States should reduce the tax on heating fuel oil during the winter. 
B) People over the age of 75 should not be allowed to drive cars. 
C) Teenagers are responsible for most driving fatalities. 
D) We don't spend enough money on anti-smoking campaigns. 
E) The price of gasoline is too high. 
A) States should reduce the tax on heating fuel oil during the winter. 
B) People over the age of 75 should not be allowed to drive cars. 
C) Teenagers are responsible for most driving fatalities. 
D) We don't spend enough money on anti-smoking campaigns. 
E) The price of gasoline is too high.

Question 8

-In the above figure, no relationship between x and y is shown in Figure

Accepted Answer

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

Question 9

________ shows the values of a variable for different groups in the population at a certain point in time.

Accepted Answer

A) A time-series graph 
B) The origin 
C) A cross-section graph 
D) A scatter plot 
E) A trend-line graph 
A) A time-series graph 
B) The origin 
C) A cross-section graph 
D) A scatter plot 
E) A trend-line graph

Question 10

Which of the following BEST describes macroeconomics?

Accepted Answer

A) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. 
B) It studies the choices that individuals and businesses make when coping with scarcity. 
C) It examines how the choices that individuals affect governments. 
D) It is not a social science because its predictions cannot be tested. 
E) Proving causation is never a problem for macroeconomics. 
A) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. 
B) It studies the choices that individuals and businesses make when coping with scarcity. 
C) It examines how the choices that individuals affect governments. 
D) It is not a social science because its predictions cannot be tested. 
E) Proving causation is never a problem for macroeconomics.

Question 11

What do economists mean when they discuss "scarcity"?

Accepted Answer

Scarcity occurs whenever people's wants

Question 12

What is the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies the decisions of

Question 13

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?

Accepted Answer

A) The benefit the three students receive must be the same because they all make the same choice. 
B) The students made a rational choice as long as they face no scarcity. 
C) The students could each have different opportunity costs. 
D) The marginal cost of the decision is the same if they make the same score on the exam. 
E) Going out to eat, playing football, and watching TV are all called sunk costs. 
A) The benefit the three students receive must be the same because they all make the same choice. 
B) The students made a rational choice as long as they face no scarcity. 
C) The students could each have different opportunity costs. 
D) The marginal cost of the decision is the same if they make the same score on the exam. 
E) Going out to eat, playing football, and watching TV are all called sunk costs.

Question 14

-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 15

Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,

Accepted Answer

A) you must ignore the problem of scarcity. 
B) you considered the marginal cost and marginal benefit of your choice. 
C) you have used the ceteris paribus assumption. 
D) you have made a positive statement. 
E) you must have considered the social interest. 
A) you must ignore the problem of scarcity. 
B) you considered the marginal cost and marginal benefit of your choice. 
C) you have used the ceteris paribus assumption. 
D) you have made a positive statement. 
E) you must have considered the social interest.

Question 16

Making choices on the margin means

Accepted Answer

A) scribbling on the edges of your notebook paper. 
B) comparing all relevant alternatives systematically and incrementally. 
C) making a decision based on emotions. 
D) making decisions in the largest possible increments. 
E) taking account of all marginal benefits, all opportunity costs, and all sunk costs. 
A) scribbling on the edges of your notebook paper. 
B) comparing all relevant alternatives systematically and incrementally. 
C) making a decision based on emotions. 
D) making decisions in the largest possible increments. 
E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.

Question 17

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

Accepted Answer

A) marginal benefit and marginal cost 
B) opportunity cost and the sunk cost 
C) positive benefits and normative costs 
D) normative benefits and positive costs 
E) self-interest and social-interest 
A) marginal benefit and marginal cost 
B) opportunity cost and the sunk cost 
C) positive benefits and normative costs 
D) normative benefits and positive costs 
E) self-interest and social-interest

Question 18

Congress and the President passed a national health care policy. This is an example of

Accepted Answer

A) the government using economic tools to make policy decisions. 
B) answering the "how" question. 
C) increasing the marginal cost of health care. 
D) increasing the marginal benefit of health care. 
E) normative versus positive economics. 
A) the government using economic tools to make policy decisions. 
B) answering the "how" question. 
C) increasing the marginal cost of health care. 
D) increasing the marginal benefit of health care. 
E) normative versus positive economics.

Question 19

What typically happens to benefits as the amount of an activity is increased?

Accepted Answer

A) Total benefits remain constant. 
B) Marginal benefit increases. 
C) Marginal benefit remains constant. 
D) Marginal benefit decreases. 
E) The marginal benefit changes only if the marginal cost changes. 
A) Total benefits remain constant. 
B) Marginal benefit increases. 
C) Marginal benefit remains constant. 
D) Marginal benefit decreases. 
E) The marginal benefit changes only if the marginal cost changes.

Question 20

In economics, cost is measured as ________, and benefit is measured as ________.

Accepted Answer

A) what you must give up to get something; what you are willing to give up to get it 
B) what you are willing to give up to get it; what you must give up to get something 
C) the amount of money that you pay for something; the amount of money that someone else is willing to pay you 
D) what you are willing to pay on the margin; what the government pays you when you are unemployed or retired 
E) the amount of money that you pay on the margin; the amount of money that you receive on the margin 
A) what you must give up to get something; what you are willing to give up to get it 
B) what you are willing to give up to get it; what you must give up to get something 
C) the amount of money that you pay for something; the amount of money that someone else is willing to pay you 
D) what you are willing to pay on the margin; what the government pays you when you are unemployed or retired 
E) the amount of money that you pay on the margin; the amount of money that you receive on the margin

A slope is measured as the

Correlation means

Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?

A time series graph

If a small change in the x variable results in a large change in the y variable, the curve will be

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4, then the slope of the curve equals

Which of the following is NOT a normative economic statement?

-In the above figure, no relationship between x and y is shown in Figure

________ shows the values of a variable for different groups in the population at a certain point in time.

Which of the following BEST describes macroeconomics?

What do economists mean when they discuss "scarcity"?

What is the difference between microeconomics and macroeconomics?

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?

-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

Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,

Making choices on the margin means

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

Congress and the President passed a national health care policy. This is an example of

What typically happens to benefits as the amount of an activity is increased?

In economics, cost is measured as , and benefit is measured 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

A slope is measured as the

Correlation means

Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?

A time series graph

If a small change in the x variable results in a large change in the y variable, the curve will be

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4, then the slope of the curve equals

Which of the following is NOT a normative economic statement?

-In the above figure, no relationship between x and y is shown in Figure

________ shows the values of a variable for different groups in the population at a certain point in time.

Which of the following BEST describes macroeconomics?

What do economists mean when they discuss "scarcity"?

What is the difference between microeconomics and macroeconomics?

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?

-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

Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice,

Making choices on the margin means

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

Congress and the President passed a national health care policy. This is an example of

What typically happens to benefits as the amount of an activity is increased?

In economics, cost is measured as ________, and benefit is measured 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

In economics, cost is measured as , and benefit is measured as .