Question 1

-The figure above shows the relationship between distance sprinted and recovery time. The curve becomes steeper because as the distance sprinted increases,

Accepted Answer

A) the extra recovery time needed from sprinting another 100 yards increases. 
B) the extra recovery time needed from sprinting another 100 yards decreases. 
C) the recovery time increases. 
D) the recovery time decreases. 
E) the relationship between distance sprinted and recovery time becomes more inverse. 
A) the extra recovery time needed from sprinting another 100 yards increases. 
B) the extra recovery time needed from sprinting another 100 yards decreases. 
C) the recovery time increases. 
D) the recovery time decreases. 
E) the relationship between distance sprinted and recovery time becomes more inverse.

Question 2

When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

Accepted Answer

A) benefits of the candy bars to the desires he had for the candy bars. 
B) marginal benefits of the candy bars to the marginal costs of the candy bars. 
C) opportunity costs of the candy bars to the scarcity of the candy bars. 
D) benefits of the candy bars to the scarcity candy bars. 
E) self-interest to the social interest. 
A) benefits of the candy bars to the desires he had for the candy bars. 
B) marginal benefits of the candy bars to the marginal costs of the candy bars. 
C) opportunity costs of the candy bars to the scarcity of the candy bars. 
D) benefits of the candy bars to the scarcity candy bars. 
E) self-interest to the social interest.

Question 3

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 4

As the price of home heating oil rises, families buy less home heating oil. Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationship.

Accepted Answer

A) positive 
B) linear 
C) time-series 
D) negative 
E) cross-sectional 
A) positive 
B) linear 
C) time-series 
D) negative 
E) cross-sectional

Question 5

-In the diagram above, which figure(s)show(s)no relationship between the variables?

Accepted Answer

A) both B and C 
B) only B 
C) both A and C 
D) only D 
E) both A and B 
A) both B and C 
B) only B 
C) both A and C 
D) only D 
E) both A and B

Question 6

Which of the following is a microeconomic topic?
I. K-Mart's decision to close stores that are not making a profit
Ii. Home Depot's choice to hire more full-time employees because its sales increased
Iii. Delta Airlines changes its fares

Accepted Answer

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

Question 7

Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is

Accepted Answer

A) the $10 he could have earned at his job. 
B) the value of the session minus the $10 he could have earned at his job. 
C) nothing, because the review session does not cost anything. 
D) equal to the benefit he gets from the review session. 
E) the one-hour review session. 
A) the $10 he could have earned at his job. 
B) the value of the session minus the $10 he could have earned at his job. 
C) nothing, because the review session does not cost anything. 
D) equal to the benefit he gets from the review session. 
E) the one-hour review session.

Question 8

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 9

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would

Accepted Answer

A) have a negative slope. 
B) have a positive relationship. 
C) have a direct relationship. 
D) be a horizontal line. 
E) be a vertical line. 
A) have a negative slope. 
B) have a positive relationship. 
C) have a direct relationship. 
D) be a horizontal line. 
E) be a vertical line.

Question 10

We are investigating the relationship among three variables. We have graphed two of them. Suppose that the variable that is not measured on the x-axis or the y-axis changes. Then, there is

Accepted Answer

A) a movement along the plotted curve. 
B) a shift in the plotted curve. 
C) no impact on the plotted curve because the variable is not measured on either of the axes. 
D) an omitted variable. 
E) a violation of the absence of trend assumption. 
A) a movement along the plotted curve. 
B) a shift in the plotted curve. 
C) no impact on the plotted curve because the variable is not measured on either of the axes. 
D) an omitted variable. 
E) a violation of the absence of trend assumption.

Question 11

Normative statements i. describe how the world is.
Ii. describe how the world ought to be.
Iii. depend on people's values and cannot be tested.

Accepted Answer

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

Question 12

If a decision is made and it is the best choice for society, the decision is said to be

Accepted Answer

A) a valid economic choice. 
B) made in self-interest. 
C) made in social interest. 
D) consist with scarcity. 
E) a want-maximizing choice. 
A) a valid economic choice. 
B) made in self-interest. 
C) made in social interest. 
D) consist with scarcity. 
E) a want-maximizing choice.

Question 13

Moving from left to right, a U-shaped curve starts with a

Accepted Answer

A) positive slope, reaches a maximum, then ends with a negative slope. 
B) positive slope, reaches a minimum, then ends with a negative slope. 
C) negative slope, reaches a maximum, then ends with a positive slope. 
D) negative slope, reaches a minimum, then ends with a positive slope. 
E) negative slope, reaches a minimum, then ends with a negative slope. 
A) positive slope, reaches a maximum, then ends with a negative slope. 
B) positive slope, reaches a minimum, then ends with a negative slope. 
C) negative slope, reaches a maximum, then ends with a positive slope. 
D) negative slope, reaches a minimum, then ends with a positive slope. 
E) negative slope, reaches a minimum, then ends with a negative slope.

Question 14

Different nations answer the what, how, and for whom questions differently. China, for instance, builds dams using many workers and only a little capital equipment. The United States builds dams using a few workers and a lot of capital equipment. Which economic question are these two nations answering and why do the answers differ?

Accepted Answer

The nations are answering the "how" ques

Question 15

Which of the following is a positive statement?

Accepted Answer

A) An increase in college tuition is not fair to students. 
B) A recession leads to higher enrollments at universities. 
C) University bookstore prices are too high. 
D) Parking tickets on campus impose an excessive fee. 
E) The school needs more parking for students. 
A) An increase in college tuition is not fair to students. 
B) A recession leads to higher enrollments at universities. 
C) University bookstore prices are too high. 
D) Parking tickets on campus impose an excessive fee. 
E) The school needs more parking for students.

Question 16

Which of the following is true?
I. A rational choice is made on the margin.
Ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy.
Iii. Economists try to understand how the economic world works by testing normative statements.

Accepted Answer

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

Question 17

Discuss what is necessary to make rational decisions. Be sure to mention opportunity cost, marginal cost, and marginal benefit.

Accepted Answer

Economists assume that people act ration

Question 18

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 19

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

Accepted Answer

A) a decrease in marginal benefit to attend the review session. 
B) an increase in marginal cost to attend the review session. 
C) a rational choice. 
D) an incentive to attend the review session. 
E) None of the above answers are correct. 
A) a decrease in marginal benefit to attend the review session. 
B) an increase in marginal cost to attend the review session. 
C) a rational choice. 
D) an incentive to attend the review session. 
E) None of the above answers are correct.

Question 20

-The slope of the line shown in the above figure is

Accepted Answer

A) 5. 
B) 2/5. 
C) 2/3. 
D) 5/2. 
E) 2. 
A) 5. 
B) 2/5. 
C) 2/3. 
D) 5/2. 
E) 2.

-The figure above shows the relationship between distance sprinted and recovery time. The curve becomes steeper because as the distance sprinted increases,

When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

-What does the slope of the curved line at point A shown in the above figure equal?

As the price of home heating oil rises, families buy less home heating oil. Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationship.

-In the diagram above, which figure(s)show(s)no relationship between the variables?

Which of the following is a microeconomic topic? I. K-Mart's decision to close stores that are not making a profit Ii. Home Depot's choice to hire more full-time employees because its sales increased Iii. Delta Airlines changes its fares

Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is

Which of the following statements is correct?

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would

We are investigating the relationship among three variables. We have graphed two of them. Suppose that the variable that is not measured on the x-axis or the y-axis changes. Then, there is

Normative statements i. describe how the world is. Ii. describe how the world ought to be. Iii. depend on people's values and cannot be tested.

If a decision is made and it is the best choice for society, the decision is said to be

Moving from left to right, a U-shaped curve starts with a

Which of the following is a positive statement?

Which of the following is true? I. A rational choice is made on the margin. Ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. Iii. Economists try to understand how the economic world works by testing normative statements.

Discuss what is necessary to make rational decisions. Be sure to mention opportunity cost, marginal cost, and marginal benefit.

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.

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

-The slope of the line shown in the above figure is

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 relationship between distance sprinted and recovery time. The curve becomes steeper because as the distance sprinted increases,

When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the

-What does the slope of the curved line at point A shown in the above figure equal?

As the price of home heating oil rises, families buy less home heating oil. Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationship.

-In the diagram above, which figure(s)show(s)no relationship between the variables?

Which of the following is a microeconomic topic? I. K-Mart's decision to close stores that are not making a profit Ii. Home Depot's choice to hire more full-time employees because its sales increased Iii. Delta Airlines changes its fares

Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is

Which of the following statements is correct?

"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would

We are investigating the relationship among three variables. We have graphed two of them. Suppose that the variable that is not measured on the x-axis or the y-axis changes. Then, there is

Normative statements i. describe how the world is. Ii. describe how the world ought to be. Iii. depend on people's values and cannot be tested.

If a decision is made and it is the best choice for society, the decision is said to be

Moving from left to right, a U-shaped curve starts with a

Which of the following is a positive statement?

Which of the following is true? I. A rational choice is made on the margin. Ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. Iii. Economists try to understand how the economic world works by testing normative statements.

Discuss what is necessary to make rational decisions. Be sure to mention opportunity cost, marginal cost, and marginal benefit.

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.

Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of

-The slope of the line shown in the above figure is

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