Question 1

When the Dallas Cowboys score more than 30 points in a game, they win the game. This is an example of

Accepted Answer

A) an economic theory. 
B) a correlation. 
C) an incentive to win the game. 
D) a normative statement. 
E) a statement on the margin. 
A) an economic theory. 
B) a correlation. 
C) an incentive to win the game. 
D) a normative statement. 
E) a statement on the margin.

Question 2

-The graph shows

Accepted Answer

A) a positive relationship that becomes less steep. 
B) a negative relationship that is linear. 
C) positive relationship that is linear. 
D) no relationship between the variables. 
E) a trend relationship between the variables. 
A) a positive relationship that becomes less steep. 
B) a negative relationship that is linear. 
C) positive relationship that is linear. 
D) no relationship between the variables. 
E) a trend relationship between the variables.

Question 3

A choice made by comparing all relevant alternatives systematically and incrementally is

Accepted Answer

A) an opportunity cost. 
B) a choice on the margin. 
C) a benefit. 
D) a sunk cost. 
E) a choice made in the social interest. 
A) an opportunity cost. 
B) a choice on the margin. 
C) a benefit. 
D) a sunk cost. 
E) a choice made in the social interest.

Question 4

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 5

Which of the following is a microeconomic issue?

Accepted Answer

A) Growth in the U.S. economy slowed. 
B) Increased federal government expenditures have lowered the unemployment rate. 
C) The inflation rate fell this year. 
D) The quantity of wheat grown in the United States increases this year. 
E) The U.S. government cuts taxes to combat a recession. 
A) Growth in the U.S. economy slowed. 
B) Increased federal government expenditures have lowered the unemployment rate. 
C) The inflation rate fell this year. 
D) The quantity of wheat grown in the United States increases this year. 
E) The U.S. government cuts taxes to combat a recession.

Question 6

The primary focus of microeconomics is

Accepted Answer

A) to examine the operation of the entire (aggregate)economy. 
B) to examine the behavior and operation of the individual units or sectors that make up the economy. 
C) our government's monetary policy. 
D) the levels of employment and inflation. 
E) to study how we managed to eliminate scarcity. 
A) to examine the operation of the entire (aggregate)economy. 
B) to examine the behavior and operation of the individual units or sectors that make up the economy. 
C) our government's monetary policy. 
D) the levels of employment and inflation. 
E) to study how we managed to eliminate scarcity.

Question 7

Moving rightward along a straight line, the slope of the line

Accepted Answer

A) always increases. 
B) always decreases. 
C) stays the same. 
D) increases if the line slopes upward to the right. 
E) decreases if the line slopes downward to the right. 
A) always increases. 
B) always decreases. 
C) stays the same. 
D) increases if the line slopes upward to the right. 
E) decreases if the line slopes downward to the right.

Question 8

Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is

Accepted Answer

A) definitely going to sleep. 
B) studying since this is the choice she opted for. 
C) sleeping or going out for dinner, whichever she would have preferred the most. 
D) sleeping and going out for dinner. 
E) definitely going out to dinner because she must eat at some time. 
A) definitely going to sleep. 
B) studying since this is the choice she opted for. 
C) sleeping or going out for dinner, whichever she would have preferred the most. 
D) sleeping and going out for dinner. 
E) definitely going out to dinner because she must eat at some time.

Question 9

-In the above figure, the diagram shows

Accepted Answer

A) a downward trend in x. 
B) an upward trend in x. 
C) a scatter diagram. 
D) a two-variable scatter diagram. 
E) a cross-section graph between x and time. 
A) a downward trend in x. 
B) an upward trend in x. 
C) a scatter diagram. 
D) a two-variable scatter diagram. 
E) a cross-section graph between x and time.

Question 10

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

Accepted Answer

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

Question 11

-In the figure above, the relationship between the x variable and the y variable

Accepted Answer

A) is positive. 
B) is negative. 
C) starts by being positive and then becomes negative. 
D) starts by being negative and then becomes positive. 
E) is non-existent because the two variables are unrelated. 
A) is positive. 
B) is negative. 
C) starts by being positive and then becomes negative. 
D) starts by being negative and then becomes positive. 
E) is non-existent because the two variables are unrelated.

Question 12

If the marginal benefit of getting a college degree rises, rational people will

Accepted Answer

A) attend college in greater numbers. 
B) drop out of college. 
C) not change their behavior. 
D) require that college get easier. 
E) raise the marginal cost of attending college. 
A) attend college in greater numbers. 
B) drop out of college. 
C) not change their behavior. 
D) require that college get easier. 
E) raise the marginal cost of attending college.

Question 13

What is the relationship between wants, resources, scarcity, and choices?
 Discuss the relationship for an individual and for a society.

Accepted Answer

A person faces scarcity whenever his or

Question 14

Scarcity forces people to

Accepted Answer

A) choose among available alternatives. 
B) cheat and steal. 
C) be unwilling to help others. 
D) live at a low standard of living. 
E) consume as much as they can as quickly as they can. 
A) choose among available alternatives. 
B) cheat and steal. 
C) be unwilling to help others. 
D) live at a low standard of living. 
E) consume as much as they can as quickly as they can.

Question 15

An opportunity cost is

Accepted Answer

A) the dollar amount that is paid. 
B) anything the decision maker believes costs to be. 
C) the benefits of the highest-valued alternative forgone. 
D) whatever is paid out and cannot be reduced or reversed. 
E) another term for all the sunk costs. 
A) the dollar amount that is paid. 
B) anything the decision maker believes costs to be. 
C) the benefits of the highest-valued alternative forgone. 
D) whatever is paid out and cannot be reduced or reversed. 
E) another term for all the sunk costs.

Question 16

If a curve falls and then rises, it

Accepted Answer

A) has a maximum. 
B) has a minimum. 
C) has a linear relationship. 
D) has a constant slope relationship. 
E) shows no relationship between the two variables. 
A) has a maximum. 
B) has a minimum. 
C) has a linear relationship. 
D) has a constant slope relationship. 
E) shows no relationship between the two variables.

Question 17

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

Accepted Answer

A) negative and then linear after the minimum point. 
B) positive and then negative after the minimum point. 
C) negative and then positive after the minimum point. 
D) linear and then positive after the minimum point. 
E) negative both before and after the minimum point. 
A) negative and then linear after the minimum point. 
B) positive and then negative after the minimum point. 
C) negative and then positive after the minimum point. 
D) linear and then positive after the minimum point. 
E) negative both before and after the minimum point.

Question 18

The benefit from a good or service that you purchase is measured by

Accepted Answer

A) the dollar amount that is paid for the good or service. 
B) the dollar amount you can get by selling the good or service. 
C) what you are willing to give up to obtain the good or service. 
D) how strong the incentives were that lead to buying the good or service. 
E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service. 
A) the dollar amount that is paid for the good or service. 
B) the dollar amount you can get by selling the good or service. 
C) what you are willing to give up to obtain the good or service. 
D) how strong the incentives were that lead to buying the good or service. 
E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service.

Question 19

-The figure above shows a

Accepted Answer

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

Question 20

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

Accepted Answer

A) how 
B) what 
C) for whom 
D) opportunity cost 
E) why 
A) how 
B) what 
C) for whom 
D) opportunity cost 
E) why

When the Dallas Cowboys score more than 30 points in a game, they win the game. This is an example of

-The graph shows

A choice made by comparing all relevant alternatives systematically and incrementally is

Define economics and describe its branches of study.

Which of the following is a microeconomic issue?

The primary focus of microeconomics is

Moving rightward along a straight line, the slope of the line

Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is

-In the above figure, the diagram shows

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

-In the figure above, the relationship between the x variable and the y variable

If the marginal benefit of getting a college degree rises, rational people will

What is the relationship between wants, resources, scarcity, and choices? Discuss the relationship for an individual and for a society.

Scarcity forces people to

An opportunity cost is

If a curve falls and then rises, it

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

The benefit from a good or service that you purchase is measured by

-The figure above shows a

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

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

When the Dallas Cowboys score more than 30 points in a game, they win the game. This is an example of

-The graph shows

A choice made by comparing all relevant alternatives systematically and incrementally is

Define economics and describe its branches of study.

Which of the following is a microeconomic issue?

The primary focus of microeconomics is

Moving rightward along a straight line, the slope of the line

Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is

-In the above figure, the diagram shows

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

-In the figure above, the relationship between the x variable and the y variable

If the marginal benefit of getting a college degree rises, rational people will

What is the relationship between wants, resources, scarcity, and choices? Discuss the relationship for an individual and for a society.

Scarcity forces people to

An opportunity cost is

If a curve falls and then rises, it

An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

The benefit from a good or service that you purchase is measured by

-The figure above shows a

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

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