Question 1

A positive relationship exists between two variables if

Accepted Answer

A) one variable has "positively" no effect on the other variable. 
B) a decrease in one variable is associated with an increase in the other variable. 
C) a decrease in one variable is associated with a decrease in the other variable. 
D) an increase in one variable is associated with both a decrease and an increase in the other variable. 
E) None of the above answers is correct. 
A) one variable has "positively" no effect on the other variable. 
B) a decrease in one variable is associated with an increase in the other variable. 
C) a decrease in one variable is associated with a decrease in the other variable. 
D) an increase in one variable is associated with both a decrease and an increase in the other variable. 
E) None of the above answers is correct.

Question 2

List and explain the three fundamental economic questions that must be answered by all economic systems.

Accepted Answer

First,all economic systems must answer t

Question 3

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 4

Why is the benefit of something measured by what you are willing to give up?

Accepted Answer

The benefit of a good or service,say a s

Question 5

-In the above figure,which of the figures shows a relationship between x and y with a negative slope?

Accepted Answer

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

Question 6

"Increasing income tax rates will solve the Social Security time bomb issue" is an example of

Accepted Answer

A) business economic policy. 
B) a positive economic statement. 
C) marginal cost exceeding marginal benefit. 
D) answering the "how" question. 
E) globalization. 
A) business economic policy. 
B) a positive economic statement. 
C) marginal cost exceeding marginal benefit. 
D) answering the "how" question. 
E) globalization.

Question 7

If the change in y = 10 and the change in x = 3,there is

Accepted Answer

A) a positive relationship between y and x. 
B) a negative relationship between y and x. 
C) an independent relationship between y and x. 
D) no relationship between y and x. 
E) a +0.33 relationship between the two variables. 
A) a positive relationship between y and x. 
B) a negative relationship between y and x. 
C) an independent relationship between y and x. 
D) no relationship between y and x. 
E) a +0.33 relationship between the two variables.

Question 8

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 9

Kevin is re-finishing an antique grandfather clock that he purchased at a flea market for $300.He expects to be able to sell the clock for $450.At the last minute,Kevin discovers that he needs to repair the gears at a cost of $175 to make the clock worth $450 to potential buyers.It turns out that he could also sell the clock now,without completing the additional repairs,for $250.What should Kevin do?

Accepted Answer

A) He should sell the clock now for $250. 
B) He should keep the clock but not make the repairs since the original $300 is a sunk cost. 
C) He should complete the additional repairs and sell the clock for $450. 
D) He should keep the clock after making the repairs since it is not rational to spend a total of $475 on an item that can only be sold for $450. 
E) Kevin is indifferent between selling the clock as is or selling it after completing the repairs. 
A) He should sell the clock now for $250. 
B) He should keep the clock but not make the repairs since the original $300 is a sunk cost. 
C) He should complete the additional repairs and sell the clock for $450. 
D) He should keep the clock after making the repairs since it is not rational to spend a total of $475 on an item that can only be sold for $450. 
E) Kevin is indifferent between selling the clock as is or selling it after completing the repairs.

Question 10

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

Accepted Answer

The slope equals the change in

Question 11

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 12

-The table above shows data on two variables.If these data were graphed,the slope of the line would be

Accepted Answer

A) 1/2. 
B) 4/3. 
C) 2/3. 
D) 3/4. 
E) 2. 
A) 1/2. 
B) 4/3. 
C) 2/3. 
D) 3/4. 
E) 2.

Question 13

To graph a relationship involving more than two variables,we use which assumption?

Accepted Answer

A) linear assumption 
B) positive relationship assumption 
C) marginal analysis 
D) ceteris paribus 
E) trend assumption 
A) linear assumption 
B) positive relationship assumption 
C) marginal analysis 
D) ceteris paribus 
E) trend assumption

Question 14

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

Accepted Answer

A) what 
B) how 
C) for whom 
D) where 
E) why 
A) what 
B) how 
C) for whom 
D) where 
E) why

Question 15

The marginal cost of an activity ________ as you do more of it.

Accepted Answer

A) increases 
B) decreases 
C) doesn't change 
D) changes only if the marginal benefit of the activity does not change 
E) changes only if the marginal benefit of the activity changes 
A) increases 
B) decreases 
C) doesn't change 
D) changes only if the marginal benefit of the activity does not change 
E) changes only if the marginal benefit of the activity changes

Question 16

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

Accepted Answer

A) price of gold is falling. 
B) price of gold is rising. 
C) quantity of gold is falling. 
D) price of gold is low and not changing. 
E) price of gold fluctuates. 
A) price of gold is falling. 
B) price of gold is rising. 
C) quantity of gold is falling. 
D) price of gold is low and not changing. 
E) price of gold fluctuates.

Question 17

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.The professor has

Accepted Answer

A) increased the marginal cost of cheating. 
B) decreased the marginal benefit of cheating. 
C) made all the students act in the social interest. 
D) recognized that students don't respond to incentives. 
E) recognized that students don't make rational choices. 
A) increased the marginal cost of cheating. 
B) decreased the marginal benefit of cheating. 
C) made all the students act in the social interest. 
D) recognized that students don't respond to incentives. 
E) recognized that students don't make rational choices.

Question 18

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive,negative,or neither? Explain your answer.

Accepted Answer

The figure shows that there is a positiv

Question 19

The cost of a one-unit increase in an activity is called the

Accepted Answer

A) opportunity benefit. 
B) rational cost. 
C) marginal cost. 
D) marginal benefit. 
E) margin. 
A) opportunity benefit. 
B) rational cost. 
C) marginal cost. 
D) marginal benefit. 
E) margin.

Question 20

A graph that shows the value of an economic variable for different groups in a population at a given time is called a

Accepted Answer

A) scatter diagram. 
B) time-series graph. 
C) pie chart. 
D) cross-section graph. 
E) fixed-time diagram. 
A) scatter diagram. 
B) time-series graph. 
C) pie chart. 
D) cross-section graph. 
E) fixed-time diagram.

A positive relationship exists between two variables if

List and explain the three fundamental economic questions that must be answered by all economic systems.

Which of the following is a macroeconomic issue?

Why is the benefit of something measured by what you are willing to give up?

-In the above figure,which of the figures shows a relationship between x and y with a negative slope?

"Increasing income tax rates will solve the Social Security time bomb issue" is an example of

If the change in y = 10 and the change in x = 3,there is

To show how a variable ,we typically use a .

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

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

-The table above shows data on two variables.If these data were graphed,the slope of the line would be

To graph a relationship involving more than two variables,we use which assumption?

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

The marginal cost of an activity ________ as you do more of it.

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.The professor has

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive,negative,or neither? Explain your answer.

The cost of a one-unit increase in an activity is called the

A graph that shows the value of an economic variable for different groups in a population at a given 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

A positive relationship exists between two variables if

List and explain the three fundamental economic questions that must be answered by all economic systems.

Which of the following is a macroeconomic issue?

Why is the benefit of something measured by what you are willing to give up?

-In the above figure,which of the figures shows a relationship between x and y with a negative slope?

"Increasing income tax rates will solve the Social Security time bomb issue" is an example of

If the change in y = 10 and the change in x = 3,there is

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

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

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy.Why can this difference exist? Be sure to use the terms positive and normative in your answer.

-The table above shows data on two variables.If these data were graphed,the slope of the line would be

To graph a relationship involving more than two variables,we use which assumption?

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

The marginal cost of an activity ________ as you do more of it.

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.The professor has

-The figure above shows how the sales of the video game "Tomb Raider-Lara Retires" change when the advertising spent on the game changes.Is the relationship between advertising and the number of games sold positive,negative,or neither? Explain your answer.

The cost of a one-unit increase in an activity is called the

A graph that shows the value of an economic variable for different groups in a population at a given 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

To show how a variable ,we typically use a .