Question 1

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. D

Question 2

Scarcity results from the fact that

Accepted Answer

A) people's wants exceed the resources available to satisfy them. 
B) not all goals are desirable. 
C) we cannot answer the major economic questions. 
D) choices made in self-interest are not always in the social interest. 
E) the population keeps growing. 
A) people's wants exceed the resources available to satisfy them. 
B) not all goals are desirable. 
C) we cannot answer the major economic questions. 
D) choices made in self-interest are not always in the social interest. 
E) the population keeps growing. A

Question 3

Scarcity exists because

Accepted Answer

A) human wants exceed the resources available to satisfy them. 
B) some individuals have low income. 
C) the costs of production are high. 
D) some people make bad economic decisions. 
E) people take too much leisure time. 
A) human wants exceed the resources available to satisfy them. 
B) some individuals have low income. 
C) the costs of production are high. 
D) some people make bad economic decisions. 
E) people take too much leisure time. A

Question 4

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

Policymakers know that people making rat

Question 5

Rational choice

Accepted Answer

A) is a choice that uses the available resources to best achieve the objective of the person making the choice. 
B) is always efficient. 
C) is what you must give up to get what you want. 
D) is made by comparing different incentives. 
E) provides the answer to only the "how" question. 
A) is a choice that uses the available resources to best achieve the objective of the person making the choice. 
B) is always efficient. 
C) is what you must give up to get what you want. 
D) is made by comparing different incentives. 
E) provides the answer to only the "how" question.

Question 6

-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 7

Which of the following is an example of a positive economic statement?

Accepted Answer

A) Voter ID laws should be strictly enforced in all states. 
B) Illegal immigration is the biggest threat to national security that we face today. 
C) Medicare recipients should only be allowed to visit a doctor for non-emergency reasons on Mondays,Wednesdays,and Fridays. 
D) The death penalty is a strong deterrent to violent criminal activity. 
E) The Affordable Care Act should be repealed. 
A) Voter ID laws should be strictly enforced in all states. 
B) Illegal immigration is the biggest threat to national security that we face today. 
C) Medicare recipients should only be allowed to visit a doctor for non-emergency reasons on Mondays,Wednesdays,and Fridays. 
D) The death penalty is a strong deterrent to violent criminal activity. 
E) The Affordable Care Act should be repealed.

Question 8

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 9

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Accepted Answer

A) the wages you would have earned from working. 
B) the lower grade earned by not studying. 
C) the wages you would have earned from working and the lower grade earned by not studying. 
D) the value of the trip. 
E) We cannot determine what the opportunity cost is without knowing which alternative,working or studying,you would have preferred. 
A) the wages you would have earned from working. 
B) the lower grade earned by not studying. 
C) the wages you would have earned from working and the lower grade earned by not studying. 
D) the value of the trip. 
E) We cannot determine what the opportunity cost is without knowing which alternative,working or studying,you would have preferred.

Question 10

To graph a relationship among several variables,we hold all but ________ variable(s)constant and use the ________ assumption.

Accepted Answer

A) one;scarcity 
B) two;ceteris paribus 
C) three;scarcity 
D) one;ceteris paribus 
E) one;absence of trend 
A) one;scarcity 
B) two;ceteris paribus 
C) three;scarcity 
D) one;ceteris paribus 
E) one;absence of trend

Question 11

The study of economics is best described as a study of

Accepted Answer

A) the factors that influence the stock and bond markets. 
B) capitalism. 
C) the choices made in producing goods and services. 
D) coping with scarcity,and choices made as a result of scarcity in a society. 
E) how people earn a living. 
A) the factors that influence the stock and bond markets. 
B) capitalism. 
C) the choices made in producing goods and services. 
D) coping with scarcity,and choices made as a result of scarcity in a society. 
E) how people earn a living.

Question 12

To show the values of an economic variable for different groups in a population at a point in time,it is best to use a

Accepted Answer

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

Question 13

The tendency for the values of two variables to move in a predictable and related way is known as

Accepted Answer

A) a natural experiment. 
B) a normative relationship. 
C) an economic model. 
D) correlation. 
E) a policy relationship. 
A) a natural experiment. 
B) a normative relationship. 
C) an economic model. 
D) correlation. 
E) a policy relationship.

Question 14

-What is the slope of the line in the figure above?

Accepted Answer

A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) zero 
A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) zero

Question 15

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 16

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 17

-In the above figure,while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold,the

Accepted Answer

A) price of a pound of pecans does not change. 
B) price of a pound of peanuts does not change. 
C) the quantity of peanuts that farmers supply does not change. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct. 
A) price of a pound of pecans does not change. 
B) price of a pound of peanuts does not change. 
C) the quantity of peanuts that farmers supply does not change. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

Question 18

-What is the slope of the line in the figure above?

Accepted Answer

A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) zero 
A) 0.75 
B) -0.75 
C) 1.33 
D) -1.33 
E) zero

Question 19

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

Accepted Answer

A) larger than the marginal benefit 
B) smaller than the marginal benefit 
C) equal to the marginal benefit 
D) not related to the marginal benefit 
E) equal to the marginal cost and the marginal benefit 
A) larger than the marginal benefit 
B) smaller than the marginal benefit 
C) equal to the marginal benefit 
D) not related to the marginal benefit 
E) equal to the marginal cost and the marginal benefit

Question 20

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.

Which of the following is a microeconomic issue?

Scarcity results from the fact that

Scarcity exists because

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.

Rational choice

-The figure above shows a

Which of the following is an example of a positive economic statement?

Correlation means

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

To graph a relationship among several variables,we hold all but variable(s)constant and use the assumption.

The study of economics is best described as a study of

To show the values of an economic variable for different groups in a population at a point in time,it is best to use a

The tendency for the values of two variables to move in a predictable and related way is known as

-What is the slope of the line in the figure above?

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

What is a normative statement? Give an example.

-In the above figure,while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold,the

-What is the slope of the line in the figure above?

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

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

The Usand 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 microeconomic issue?

Scarcity results from the fact that

Scarcity exists because

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.

Rational choice

-The figure above shows a

Which of the following is an example of a positive economic statement?

Correlation means

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

To graph a relationship among several variables,we hold all but ________ variable(s)constant and use the ________ assumption.

The study of economics is best described as a study of

To show the values of an economic variable for different groups in a population at a point in time,it is best to use a

The tendency for the values of two variables to move in a predictable and related way is known as

-What is the slope of the line in the figure above?

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

What is a normative statement? Give an example.

-In the above figure,while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold,the

-What is the slope of the line in the figure above?

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

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

The Usand 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 graph a relationship among several variables,we hold all but variable(s)constant and use the assumption.