Question 1

In economics, the term "land" means

Accepted Answer

A)  only land that is used in agricultural production. 
B)  land, mineral resources, and nature's other bounties. 
C)  land that is devoted to economic pursuits. 
D)  land used for agricultural and urban purposes. 
A)  only land that is used in agricultural production. 
B)  land, mineral resources, and nature's other bounties. 
C)  land that is devoted to economic pursuits. 
D)  land used for agricultural and urban purposes. B

Question 2

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

Accepted Answer

A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. D

Question 3

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

Accepted Answer

A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity. 
A)  the change in price multiplied by the change in quantity. 
B)  the change in price divided by the change in quantity. 
C)  the change in quantity divided by the change in price. 
D)  price divided by quantity. B

Question 4

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

Accepted Answer

A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis. 
A)  origin. 
B)  scalar. 
C)  x-axis. 
D)  y-axis.

Question 5

The statement that ________ is a positive statement.

Accepted Answer

A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia 
A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia

Question 6

The slope of a straight line increases as the numbers on the x-axis become larger.

Accepted Answer

A) True 
 B)False

Question 7

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

Accepted Answer

A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction. 
A)  a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. 
B)  an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. 
C)  the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. 
D)  the variable measured along the x-axis and the variable measured along the y-axis move in the same direction.

Question 8

If there is a direct relationship between two variables

Accepted Answer

A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct. 
A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct.

Question 9

In which of the following cases is the slope of a line positive?

Accepted Answer

A)  As x increases, y increases. 
B)  As x increases, y decreases. 
C)  As x increases, y remains the same. 
D)  As x increases, y equals a positive number. 
A)  As x increases, y increases. 
B)  As x increases, y decreases. 
C)  As x increases, y remains the same. 
D)  As x increases, y equals a positive number.

Question 10

The United States produces more services than goods.

Accepted Answer

A) True 
 B)False

Question 11

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Accepted Answer

A)  the total revenue from sales of printers to the total cost of producing all the printers. 
B)  the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C)  the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D)  HP's printers to printers from competing companies, such as Lexmark. 
A)  the total revenue from sales of printers to the total cost of producing all the printers. 
B)  the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C)  the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D)  HP's printers to printers from competing companies, such as Lexmark.

Question 12

Which of the following is a normative statement?

Accepted Answer

A)  The United States has a comparative advantage compared to the European Union in the production of wheat. 
B)  The main reason why the United States has a trade deficit with China is because China's trade practices are unfair. 
C)  Both these statements are normative. 
D)  Neither of these statements is normative. 
A)  The United States has a comparative advantage compared to the European Union in the production of wheat. 
B)  The main reason why the United States has a trade deficit with China is because China's trade practices are unfair. 
C)  Both these statements are normative. 
D)  Neither of these statements is normative.

Question 13

Which of the following are considered factors of production used to produce goods and services? I. Land
II) Labor
III) Capital
IV) Entrepreneurship

Accepted Answer

A)  I and II only 
B)  I and III only 
C)  I, II and III only 
D)  I, II, III and IV 
A)  I and II only 
B)  I and III only 
C)  I, II and III only 
D)  I, II, III and IV

Question 14

Which of the following is a positive statement?

Accepted Answer

A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza. 
A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza.

Question 15

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 16

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

Accepted Answer

A)  the value of x never changes. 
B)  the value of y does not depend on the value of x. 
C)  the ratio of x to y is constant. 
D)  the slope of the line is not defined because y never changes. 
A)  the value of x never changes. 
B)  the value of y does not depend on the value of x. 
C)  the ratio of x to y is constant. 
D)  the slope of the line is not defined because y never changes.

Question 17

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Accepted Answer

A)  -1. 
B)  0. 
C)  1. 
D)  infinite. 
A)  -1. 
B)  0. 
C)  1. 
D)  infinite.

Question 18

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

Accepted Answer

Two variables are positively related whe

Question 19

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

Accepted Answer

A)  no peanuts. 
B)  1000 pounds of peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts. 
A)  no peanuts. 
B)  1000 pounds of peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts.

Question 20

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

Accepted Answer

A)  2 
B)  -2 
C)  6 
D)  -6 
A)  2 
B)  -2 
C)  6 
D)  -6

In economics, the term "land" means

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

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

The statement that ________ is a positive statement.

The slope of a straight line increases as the numbers on the x-axis become larger.

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

If there is a direct relationship between two variables

In which of the following cases is the slope of a line positive?

The United States produces more services than goods.

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Which of the following is a normative statement?

Which of the following are considered factors of production used to produce goods and services? I. Land II) Labor III) Capital IV) Entrepreneurship

Which of the following is a positive statement?

What is a normative statement? Give an example.

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

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

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 1: What Is Economics

In economics, the term "land" means

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

If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is

The value of the x-coordinate of a point in a graph is the length of a line from the point to the

The statement that ________ is a positive statement.

The slope of a straight line increases as the numbers on the x-axis become larger.

A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if

If there is a direct relationship between two variables

In which of the following cases is the slope of a line positive?

The United States produces more services than goods.

Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Which of the following is a normative statement?

Which of the following are considered factors of production used to produce goods and services? I. Land II) Labor III) Capital IV) Entrepreneurship

Which of the following is a positive statement?

What is a normative statement? Give an example.

A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

Along a straight line, the value of y is always equal to the value of x. The slope of the line is

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

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell

-In the above table, when x increases from 4 units to 6 units, y changes by ________ units.

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters