Question 1

Which of the following is a macroeconomic issue?

Accepted Answer

A) The price of a ticket to Walt Disney World in Orlando is increased. 
B) The National Football League signs a new television contract. 
C) The number of jobs and production in Zimbabwe increase. 
D) The Iowa corn harvest is smaller than normal. 
E) Utilities are required to install more anti-pollution devices. 
A) The price of a ticket to Walt Disney World in Orlando is increased. 
B) The National Football League signs a new television contract. 
C) The number of jobs and production in Zimbabwe increase. 
D) The Iowa corn harvest is smaller than normal. 
E) Utilities are required to install more anti-pollution devices.

Question 2

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is

Accepted Answer

A) positive. 
B) negative. 
C) nonexistent. 
D) linear. 
E) cross-sectionally trended. 
A) positive. 
B) negative. 
C) nonexistent. 
D) linear. 
E) cross-sectionally trended.

Question 3

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 4

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A) letting all the variables change at once. 
B) changing the origin of the graph. 
C) holding constant all but two variables. 
D) rescaling the coordinates. 
E) swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis. 
A) letting all the variables change at once. 
B) changing the origin of the graph. 
C) holding constant all but two variables. 
D) rescaling the coordinates. 
E) swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis.

Question 5

-In the above, which figure(s)show relationship between the variables that is always positive?

Accepted Answer

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

Question 6

"Lower ticket prices would lead to more people attending ballgames." This statement is a

Accepted Answer

A) statement assessing the social interest versus the private interest. 
B) normative statement. 
C) positive statement. 
D) macroeconomic statement. 
E) statement that confuses marginal cost and sunk cost. 
A) statement assessing the social interest versus the private interest. 
B) normative statement. 
C) positive statement. 
D) macroeconomic statement. 
E) statement that confuses marginal cost and sunk cost.

Question 7

When economists use the term "correlation," they are referring to

Accepted Answer

A) cause and effect relationships between variables. 
B) how two variables move together in a predictable way. 
C) positive economics. 
D) normative economics. 
E) economic policy. 
A) cause and effect relationships between variables. 
B) how two variables move together in a predictable way. 
C) positive economics. 
D) normative economics. 
E) economic policy.

Question 8

Whenever one variable increases, another variable decreases. The two variables are

Accepted Answer

A) definitely related through a third variable. 
B) negatively related. 
C) positively related. 
D) unrelated to each other. 
E) related but whether positively or negatively related depends on which variable is plotted on the vertical axis. 
A) definitely related through a third variable. 
B) negatively related. 
C) positively related. 
D) unrelated to each other. 
E) related but whether positively or negatively related depends on which variable is plotted on the vertical axis.

Question 9

-In the figure above, between points A and B, what is the slope of the line?

Accepted Answer

A) 4 
B) 1 
C) 3 
D) -3 
E) 0 
A) 4 
B) 1 
C) 3 
D) -3 
E) 0

Question 10

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A) to organize production so that scarcity does not occur. 
B) firms make profits. 
C) we make choices in the face of scarcity. 
D) to create incentives so that scarcity does not exist. 
E) businesses reach decisions. 
A) to organize production so that scarcity does not occur. 
B) firms make profits. 
C) we make choices in the face of scarcity. 
D) to create incentives so that scarcity does not exist. 
E) businesses reach decisions.

Question 11

Choices that are best for the individuals that make them are choices in pursuit of

Accepted Answer

A) the social interest. 
B) efficiency. 
C) incentives. 
D) self interest. 
E) equity. 
A) the social interest. 
B) efficiency. 
C) incentives. 
D) self interest. 
E) equity.

Question 12

As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then shrinks. In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ________.

Accepted Answer

A) positive; negative 
B) negative; positive 
C) linear; negative 
D) positive; linear 
E) positive; nonexistent 
A) positive; negative 
B) negative; positive 
C) linear; negative 
D) positive; linear 
E) positive; nonexistent

Question 13

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

Accepted Answer

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

Question 14

What is NOT true about rational choice?

Accepted Answer

A) It can result in different decisions for different individuals. 
B) It involves comparing costs and benefits. 
C) It might turn out not to have been the best choice after the event. 
D) It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E) It is the same for all individuals. 
A) It can result in different decisions for different individuals. 
B) It involves comparing costs and benefits. 
C) It might turn out not to have been the best choice after the event. 
D) It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E) It is the same for all individuals.

Question 15

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 16

-In the above figure, a negative relationship between x and y is shown in Figure

Accepted Answer

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

Question 17

To show how a variable ________, we typically use a ________.

Accepted Answer

A) relates to another variable; time series graph 
B) relates to another variable; pie chart 
C) changes over time; time series graph 
D) changes over time; cross section graph 
E) changes over time; cross time chart 
A) relates to another variable; time series graph 
B) relates to another variable; pie chart 
C) changes over time; time series graph 
D) changes over time; cross section graph 
E) changes over time; cross time chart

Question 18

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

Accepted Answer

A) scatter diagram. 
B) time-series graph. 
C) linear graph. 
D) cross-section graph. 
E) Venn diagram. 
A) scatter diagram. 
B) time-series graph. 
C) linear graph. 
D) cross-section graph. 
E) Venn diagram.

Question 19

The question "Will doctors or lawyers have higher annual incomes?
" represents which of the three basic economic questions?

Accepted Answer

The amount of goods and services a perso

Question 20

In the above, which figure(s)show a relationship between the variables that is always negative?

Accepted Answer

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

Which of the following is a macroeconomic issue?

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is

Why do economists say that even very rich people face scarcity?

Ceteris paribus when graphing a relationship refers to

-In the above, which figure(s)show relationship between the variables that is always positive?

"Lower ticket prices would lead to more people attending ballgames." This statement is a

When economists use the term "correlation," they are referring to

Whenever one variable increases, another variable decreases. The two variables are

-In the figure above, between points A and B, what is the slope of the line?

Which of the following statements best describes the study of economics? Economics studies how

Choices that are best for the individuals that make them are choices in pursuit of

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

What is NOT true about rational choice?

-What does the slope of the line shown in the above figure equal?

-In the above figure, a negative relationship between x and y is shown in Figure

To show how a variable , we typically use a .

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

The question "Will doctors or lawyers have higher annual incomes? " represents which of the three basic economic questions?

In the above, which figure(s)show a relationship between the variables that is always negative?

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 of the following is a macroeconomic issue?

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is

Why do economists say that even very rich people face scarcity?

Ceteris paribus when graphing a relationship refers to

-In the above, which figure(s)show relationship between the variables that is always positive?

"Lower ticket prices would lead to more people attending ballgames." This statement is a

When economists use the term "correlation," they are referring to

Whenever one variable increases, another variable decreases. The two variables are

-In the figure above, between points A and B, what is the slope of the line?

Which of the following statements best describes the study of economics? Economics studies how

Choices that are best for the individuals that make them are choices in pursuit of

A graph that shows how the amount of advertising expenditure differs among various industries can be shown

What is NOT true about rational choice?

-What does the slope of the line shown in the above figure equal?

-In the above figure, a negative relationship between x and y is shown in Figure

To show how a variable ________, we typically use a ________.

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

The question "Will doctors or lawyers have higher annual incomes? " represents which of the three basic economic questions?

In the above, which figure(s)show a relationship between the variables that is always negative?

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

To show how a variable , we typically use a .