Question 1

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 2

A statement that "All children should receive free health care" is an example of what kind of statement?

Accepted Answer

A) a fair statement 
B) a natural experiment statement 
C) a normative statement 
D) a positive statement 
E) a statement on the margin 
A) a fair statement 
B) a natural experiment statement 
C) a normative statement 
D) a positive statement 
E) a statement on the margin

Question 3

The minimum point of a U-shaped curve,

Accepted Answer

A) is a point where the variable is neither increasing nor decreasing. 
B) has a slope equal to zero. 
C) has the maximum slope possible. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct. 
A) is a point where the variable is neither increasing nor decreasing. 
B) has a slope equal to zero. 
C) has the maximum slope possible. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct.

Question 4

An independent relationship between two variables is shown in a graph by

Accepted Answer

A) an upward-sloping line. 
B) a horizontal or a vertical line. 
C) a downward-sloping line. 
D) a steeply sloped line. 
E) any straight line curve. 
A) an upward-sloping line. 
B) a horizontal or a vertical line. 
C) a downward-sloping line. 
D) a steeply sloped line. 
E) any straight line curve.

Question 5

Which of the following is true regarding a normative statement?
I.It uses the ceteris paribus assumption.
Ii.It is a value judgment.
Iii.It accounts for opportunity costs.

Accepted Answer

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

Question 6

A slope is measured as the

Accepted Answer

A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis. 
A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis.

Question 7

-In the figure above,what can you deduce about the slope of the curve?

Accepted Answer

The slope is positiv

Question 8

Which of the following is a normative statement?

Accepted Answer

A) Flood victims should pay for their own rebuilding. 
B) When the price of kiwi fruit increases,fewer people eat kiwi fruit. 
C) An increase in the supply of computers has caused computer prices to fall. 
D) Recessions lead to increases in the unemployment rate. 
E) Hurricanes strike mainly Florida and North Carolina. 
A) Flood victims should pay for their own rebuilding. 
B) When the price of kiwi fruit increases,fewer people eat kiwi fruit. 
C) An increase in the supply of computers has caused computer prices to fall. 
D) Recessions lead to increases in the unemployment rate. 
E) Hurricanes strike mainly Florida and North Carolina.

Question 9

Explain whether the statement,"There is life on Mars," is a normative or positive statement.

Accepted Answer

The statement is a positive statement be

Question 10

Which of the following best defines economics?

Accepted Answer

A) Economics teaches how to limit our wants. 
B) Economics studies how to choose the best alternative when coping with scarcity. 
C) Economics helps you earn as much money as possible. 
D) Economics analyzes all aspects of human behavior in general. 
E) Economics is concerned with prices and quantities of goods and services,both at the individual level and at the industry level. 
A) Economics teaches how to limit our wants. 
B) Economics studies how to choose the best alternative when coping with scarcity. 
C) Economics helps you earn as much money as possible. 
D) Economics analyzes all aspects of human behavior in general. 
E) Economics is concerned with prices and quantities of goods and services,both at the individual level and at the industry level.

Question 11

Which of the following is a microeconomic topic?
I.Gas prices increase after a hurricane hits the gulf coast.
Ii.Xavier starts a new business designing web pages.
Iii.Abby decides to practice an extra hour of soccer instead of studying.

Accepted Answer

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

Question 12

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour,the opportunity cost of the hour spent studying is

Accepted Answer

A) definitely going to sleep. 
B) studying since this is the choice she opted for. 
C) sleeping or going out for dinner,whichever she would have preferred the most. 
D) sleeping and going out for dinner. 
E) definitely going out to dinner because she must eat at some time. 
A) definitely going to sleep. 
B) studying since this is the choice she opted for. 
C) sleeping or going out for dinner,whichever she would have preferred the most. 
D) sleeping and going out for dinner. 
E) definitely going out to dinner because she must eat at some time.

Question 13

Rather than go out to eat by yourself,you decide to stay at home and fix dinner for yourself and your two roommates.Your roommates applaud your decision.Your roommates tell you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry.Is this comment correct?

Accepted Answer

Your roommates' comment is incorrect.The

Question 14

When two variables in a graph are related to a third,changing the third causes

Accepted Answer

A) a movement along the curve. 
B) a shift of the curve. 
C) no change in the curve because the third variable isn't on the axes. 
D) either a shift or a movement in the curve,but more information is needed to determine which occurs. 
E) None of the above answers is correct. 
A) a movement along the curve. 
B) a shift of the curve. 
C) no change in the curve because the third variable isn't on the axes. 
D) either a shift or a movement in the curve,but more information is needed to determine which occurs. 
E) None of the above answers is correct.

Question 15

Making choices on the margin means

Accepted Answer

A) scribbling on the edges of your notebook paper. 
B) comparing all relevant alternatives systematically and incrementally. 
C) making a decision based on emotions. 
D) making decisions in the largest possible increments. 
E) taking account of all marginal benefits,all opportunity costs,and all sunk costs. 
A) scribbling on the edges of your notebook paper. 
B) comparing all relevant alternatives systematically and incrementally. 
C) making a decision based on emotions. 
D) making decisions in the largest possible increments. 
E) taking account of all marginal benefits,all opportunity costs,and all sunk costs.

Question 16

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

Accepted Answer

The slope equals the change in

Question 17

Proponents of cuts in income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

Accepted Answer

A) workers are irrational. 
B) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
C) the opportunity cost of working is negative. 
D) the marginal cost of each additional work hour is not important to most workers. 
E) workers make decisions based on the social interest. 
A) workers are irrational. 
B) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
C) the opportunity cost of working is negative. 
D) the marginal cost of each additional work hour is not important to most workers. 
E) workers make decisions based on the social interest.

Question 18

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

Accepted Answer

A) direct,linear. 
B) inverse,linear. 
C) direct,non-linear. 
D) inverse,positive. 
E) direct,negative. 
A) direct,linear. 
B) inverse,linear. 
C) direct,non-linear. 
D) inverse,positive. 
E) direct,negative.

Question 19

An incentive is

Accepted Answer

A) an inducement to take a particular action. 
B) the marginal cost of some course of action. 
C) the marginal benefit of some course of action. 
D) the net gain of some course of action. 
E) a constraint that society imposes on those who make self-interested choices. 
A) an inducement to take a particular action. 
B) the marginal cost of some course of action. 
C) the marginal benefit of some course of action. 
D) the net gain of some course of action. 
E) a constraint that society imposes on those who make self-interested choices.

Question 20

A trend is

Accepted Answer

A) a measure of closeness on a scatter diagram. 
B) a general tendency for a variable to rise or fall. 
C) the maximum value of a variable. 
D) the minimum value of a variable. 
E) the difference between the maximum value of a variable and the minimum value of the variable. 
A) a measure of closeness on a scatter diagram. 
B) a general tendency for a variable to rise or fall. 
C) the maximum value of a variable. 
D) the minimum value of a variable. 
E) the difference between the maximum value of a variable and the minimum value of the variable.

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

A statement that "All children should receive free health care" is an example of what kind of statement?

The minimum point of a U-shaped curve,

An independent relationship between two variables is shown in a graph by

Which of the following is true regarding a normative statement? I.It uses the ceteris paribus assumption. Ii.It is a value judgment. Iii.It accounts for opportunity costs.

A slope is measured as the

-In the figure above,what can you deduce about the slope of the curve?

Which of the following is a normative statement?

Explain whether the statement,"There is life on Mars," is a normative or positive statement.

Which of the following best defines economics?

Which of the following is a microeconomic topic? I.Gas prices increase after a hurricane hits the gulf coast. Ii.Xavier starts a new business designing web pages. Iii.Abby decides to practice an extra hour of soccer instead of studying.

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour,the opportunity cost of the hour spent studying is

When two variables in a graph are related to a third,changing the third causes

Making choices on the margin means

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

Proponents of cuts in income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

An incentive is

A trend is

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

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

A statement that "All children should receive free health care" is an example of what kind of statement?

The minimum point of a U-shaped curve,

An independent relationship between two variables is shown in a graph by

Which of the following is true regarding a normative statement? I.It uses the ceteris paribus assumption. Ii.It is a value judgment. Iii.It accounts for opportunity costs.

A slope is measured as the

-In the figure above,what can you deduce about the slope of the curve?

Which of the following is a normative statement?

Explain whether the statement,"There is life on Mars," is a normative or positive statement.

Which of the following best defines economics?

Which of the following is a microeconomic topic? I.Gas prices increase after a hurricane hits the gulf coast. Ii.Xavier starts a new business designing web pages. Iii.Abby decides to practice an extra hour of soccer instead of studying.

Amy can study for an hour or spend that hour sleeping or going out for dinner.If she decides to study for the hour,the opportunity cost of the hour spent studying is

When two variables in a graph are related to a third,changing the third causes

Making choices on the margin means

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

Proponents of cuts in income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

An incentive is

A trend is

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