Question 1

Most economic graphs have two lines perpendicular to each other.Where these lines meet is called the

Accepted Answer

A) origin. 
B) y-axis. 
C) x-axis. 
D) variable. 
E) point of beginning. 
A) origin. 
B) y-axis. 
C) x-axis. 
D) variable. 
E) point of beginning.

Question 2

The question of "What goods and services get produced?" most closely relates to which of the following issues?

Accepted Answer

A) the distribution of goods and services in the economy 
B) producing goods and services in the least costly manner 
C) building a missile defense system,or putting a computer in every elementary school classroom 
D) obtaining specialized training to increase one's income 
E) taxing high income workers to give payments to poor households 
A) the distribution of goods and services in the economy 
B) producing goods and services in the least costly manner 
C) building a missile defense system,or putting a computer in every elementary school classroom 
D) obtaining specialized training to increase one's income 
E) taxing high income workers to give payments to poor households

Question 3

In New York City,Mayor Michael Bloomberg has recently recommend that the city,with the help of private donors,make cash payments to poor and underprivileged parents who can certify that their children are attending school on a regular basis.The payments would start after third grade and go through high school,rising each year as dropout rates get higher and a child's forgone earning potential is higher.What economic concept does this policy represent?

Accepted Answer

A) public goods 
B) technological progress 
C) externalities 
D) the "invisible hand" 
E) incentives 
A) public goods 
B) technological progress 
C) externalities 
D) the "invisible hand" 
E) incentives

Question 4

-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 5

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point.Examine th

Question 6

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 7

A linear relationship

Accepted Answer

A) when graphed is a straight line. 
B) when graphed is a line whose slope changes. 
C) can be a positive or a negative relationship. 
D) Both answers A and C are correct. 
E) Both answers A and B are correct. 
A) when graphed is a straight line. 
B) when graphed is a line whose slope changes. 
C) can be a positive or a negative relationship. 
D) Both answers A and C are correct. 
E) Both answers A and B are correct.

Question 8

-The graph shows

Accepted Answer

A) a relationship with a minimum. 
B) a relationship with a maximum. 
C) no relationship. 
D) a relationship that becomes less steep. 
E) a cross-section relationship. 
A) a relationship with a minimum. 
B) a relationship with a maximum. 
C) no relationship. 
D) a relationship that becomes less steep. 
E) a cross-section relationship.

Question 9

Suppose you take a trip during spring break.To determine the benefit of taking the trip,you

Accepted Answer

A) calculate the opportunity cost of the trip. 
B) measure what you are willing to give up to take the trip. 
C) determine the sunk cost of taking the trip. 
D) calculate the value of the next best alternative foregone. 
E) must measure what the trip is worth to you and then subtract the cost of the trip. 
A) calculate the opportunity cost of the trip. 
B) measure what you are willing to give up to take the trip. 
C) determine the sunk cost of taking the trip. 
D) calculate the value of the next best alternative foregone. 
E) must measure what the trip is worth to you and then subtract the cost of the trip.

Question 10

Matt pays a $50 a month membership fee at Bruno's Gym.He can exercise at the gym as many times as he wishes.If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis,the graph between his membership fee and the number of times he exercises will

Accepted Answer

A) be a horizontal line. 
B) be positively sloped. 
C) be negatively sloped. 
D) be a vertical line. 
E) start out positively sloped and then,as Matt loses interest,become negatively sloped. 
A) be a horizontal line. 
B) be positively sloped. 
C) be negatively sloped. 
D) be a vertical line. 
E) start out positively sloped and then,as Matt loses interest,become negatively sloped.

Question 11

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

Question 12

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 13

The slope

Accepted Answer

A) of a straight line is the same regardless of where on the line it is calculated. 
B) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E) falls as the x variable increases if the line has a negative slope. 
A) of a straight line is the same regardless of where on the line it is calculated. 
B) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
C) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
D) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
E) falls as the x variable increases if the line has a negative slope.

Question 14

Of the three major economic questions,which of the following is the best example of a "How?" question?

Accepted Answer

A) Should we produce more heavy fleece coats? 
B) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
C) Should we build log homes or build factories from bricks? 
D) Should we spend more on health care? 
E) Should we eat more oatmeal? 
A) Should we produce more heavy fleece coats? 
B) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
C) Should we build log homes or build factories from bricks? 
D) Should we spend more on health care? 
E) Should we eat more oatmeal?

Question 15

A time-series graph

Accepted Answer

A) shows how a certain variable changes over time. 
B) uses bars rather than lines. 
C) shows points that are scattered. 
D) depicts a series of good economic times a nation had. 
E) is not useful if the goal is to determine a variable's trend. 
A) shows how a certain variable changes over time. 
B) uses bars rather than lines. 
C) shows points that are scattered. 
D) depicts a series of good economic times a nation had. 
E) is not useful if the goal is to determine a variable's trend.

Question 16

If the change in y = -4 and the change in x = 2,there is

Accepted Answer

A) an independent relationship between y and x. 
B) a positive relationship between y and x. 
C) a negative relationship between y and x. 
D) no relationship between y and x. 
E) a relationship between x and y,but more information is needed to determine if it is a negative or positive relationship. 
A) an independent relationship between y and x. 
B) a positive relationship between y and x. 
C) a negative relationship between y and x. 
D) no relationship between y and x. 
E) a relationship between x and y,but more information is needed to determine if it is a negative or positive relationship.

Question 17

A graph of the value of one variable against the value of another variable is known as a

Accepted Answer

A) two-dimensional graph. 
B) three-dimensional graph. 
C) time-series graph. 
D) scatter diagram. 
E) two-variable graph. 
A) two-dimensional graph. 
B) three-dimensional graph. 
C) time-series graph. 
D) scatter diagram. 
E) two-variable graph.

Question 18

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 19

What is a positive statement? Give an example.

Accepted Answer

A positive statement addresses

Question 20

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

Accepted Answer

A) cross-section graph. 
B) time-series graph. 
C) scatter diagram. 
D) Venn diagram. 
E) None of the above answers is correct. 
A) cross-section graph. 
B) time-series graph. 
C) scatter diagram. 
D) Venn diagram. 
E) None of the above answers is correct.

Most economic graphs have two lines perpendicular to each other.Where these lines meet is called the

The question of "What goods and services get produced?" most closely relates to which of the following issues?

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

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

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

A linear relationship

-The graph shows

Suppose you take a trip during spring break.To determine the benefit of taking the trip,you

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.

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.

The slope

Of the three major economic questions,which of the following is the best example of a "How?" question?

A time-series graph

If the change in y = -4 and the change in x = 2,there is

A graph of the value of one variable against the value of another variable is known as a

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.

What is a positive statement? Give an example.

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

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

Most economic graphs have two lines perpendicular to each other.Where these lines meet is called the

The question of "What goods and services get produced?" most closely relates to which of the following issues?

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

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

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

A linear relationship

-The graph shows

Suppose you take a trip during spring break.To determine the benefit of taking the trip,you

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.

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.

The slope

Of the three major economic questions,which of the following is the best example of a "How?" question?

A time-series graph

If the change in y = -4 and the change in x = 2,there is

A graph of the value of one variable against the value of another variable is known as a

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.

What is a positive statement? Give an example.

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

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