Question 1

What is the reason that all economic issues and problems occur?

Accepted Answer

A) All nations use some form of money to buy and sell goods and services. 
B) Humans are always wasteful and inefficient in production and consumption. 
C) Powerful governments are able to control production and consumption. 
D) Human wants exceed the resources available to satisfy them. 
E) People seek only their own self-interest. 
A) All nations use some form of money to buy and sell goods and services. 
B) Humans are always wasteful and inefficient in production and consumption. 
C) Powerful governments are able to control production and consumption. 
D) Human wants exceed the resources available to satisfy them. 
E) People seek only their own self-interest.

Question 2

Which of the following is a topic studied in macroeconomics?

Accepted Answer

A) The pricing decisions in the computer hardware industry 
B) The effect on economic growth if the government raises taxes 
C) How the wheat industry determines how much wheat to grow 
D) The impact of labor unions on wages 
E) The impact of higher prices for gasoline on the number of SUVs people buy 
A) The pricing decisions in the computer hardware industry 
B) The effect on economic growth if the government raises taxes 
C) How the wheat industry determines how much wheat to grow 
D) The impact of labor unions on wages 
E) The impact of higher prices for gasoline on the number of SUVs people buy

Question 3

If two variables are positively related,then

Accepted Answer

A) one variable causes the other. 
B) an increase in one variable is accompanied by a decrease in the other. 
C) an increase in one variable is accompanied by an increase in the other. 
D) they change together,but not necessarily in the same direction. 
E) neither variable can be positively related to any other variable. 
A) one variable causes the other. 
B) an increase in one variable is accompanied by a decrease in the other. 
C) an increase in one variable is accompanied by an increase in the other. 
D) they change together,but not necessarily in the same direction. 
E) neither variable can be positively related to any other variable.

Question 4

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

Accepted Answer

A) -1 1/3. 
B) -1 2/3. 
C) -1.25. 
D) -0.80. 
E) 5. 
A) -1 1/3. 
B) -1 2/3. 
C) -1.25. 
D) -0.80. 
E) 5.

Question 5

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A) letting all the variables change at once. 
B) changing the origin of the graph. 
C) holding constant all but two variables. 
D) rescaling the coordinates. 
E) swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis. 
A) letting all the variables change at once. 
B) changing the origin of the graph. 
C) holding constant all but two variables. 
D) rescaling the coordinates. 
E) swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis.

Question 6

The horizontal axis in a graph

Accepted Answer

A) measures time on a scatter diagram. 
B) measures the quality of a variable. 
C) is named the y-axis. 
D) is named the x-axis. 
E) is called the origin. 
A) measures time on a scatter diagram. 
B) measures the quality of a variable. 
C) is named the y-axis. 
D) is named the x-axis. 
E) is called the origin.

Question 7

Which of the following statements is true regarding scarcity?

Accepted Answer

A) Scarcity affects poorer countries only. 
B) An economy experiences scarcity only when the incomes of its citizens decline. 
C) Poor people experience scarcity more often than do rich people. 
D) All citizens in a wealthy economy experience scarcity. 
E) Scarcity could be overcome if people would make all choices in the social interest. 
A) Scarcity affects poorer countries only. 
B) An economy experiences scarcity only when the incomes of its citizens decline. 
C) Poor people experience scarcity more often than do rich people. 
D) All citizens in a wealthy economy experience scarcity. 
E) Scarcity could be overcome if people would make all choices in the social interest.

Question 8

Choices that are best for the society as a whole are choices in pursuit of

Accepted Answer

A) answering the "how" question. 
B) the social interest. 
C) self-interest. 
D) incentives. 
E) answering the "for whom" question. 
A) answering the "how" question. 
B) the social interest. 
C) self-interest. 
D) incentives. 
E) answering the "for whom" question.

Question 9

An economist observed that as more computers are added to a factory,the costs of production initially decline,reach a minimum,and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis,the relationship always is

Accepted Answer

A) negative and then linear after the minimum point. 
B) positive and then negative after the minimum point. 
C) negative and then positive after the minimum point. 
D) linear and then positive after the minimum point. 
E) negative both before and after the minimum point. 
A) negative and then linear after the minimum point. 
B) positive and then negative after the minimum point. 
C) negative and then positive after the minimum point. 
D) linear and then positive after the minimum point. 
E) negative both before and after the minimum point.

Question 10

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

Accepted Answer

A) the curve will shift rightward. 
B) the curve will shift leftward. 
C) there is a movement along the curve. 
D) the curve will be unaffected. 
E) None of the above answers is correct because the graph assumes that the price of pecans does not change. 
A) the curve will shift rightward. 
B) the curve will shift leftward. 
C) there is a movement along the curve. 
D) the curve will be unaffected. 
E) None of the above answers is correct because the graph assumes that the price of pecans does not change.

Question 11

-What does the slope of the curved line at point A shown in the above figure equal?

Accepted Answer

The slope of a curved line equals the sl

Question 12

When you make the decision to spend your time attending class,which economic question are you answering?

Accepted Answer

A) What? 
B) How? 
C) For whom? 
D) Why? 
E) Is this in the social interest? 
A) What? 
B) How? 
C) For whom? 
D) Why? 
E) Is this in the social interest?

Question 13

An incentive is

Accepted Answer

A) a reward or a penalty that encourages or discourages an action. 
B) when people make rational choices by comparing costs and benefits. 
C) what you must give up to get something. 
D) a choice is made on the margin. 
E) a good or service that satisfies wants. 
A) a reward or a penalty that encourages or discourages an action. 
B) when people make rational choices by comparing costs and benefits. 
C) what you must give up to get something. 
D) a choice is made on the margin. 
E) a good or service that satisfies wants.

Question 14

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

Accepted Answer

A) "For whom will goods be produced?" 
B) "When will the goods be produced?" 
C) "Where will the goods be produced?" 
D) "How will the goods be produced?" 
E) "Why will the goods be produced?" 
A) "For whom will goods be produced?" 
B) "When will the goods be produced?" 
C) "Where will the goods be produced?" 
D) "How will the goods be produced?" 
E) "Why will the goods be produced?"

Question 15

-What is the slope of the line in the graph?

Accepted Answer

A) +1/2 
B) -1/2 
C) +2 
D) -2 
E) -3/4 
A) +1/2 
B) -1/2 
C) +2 
D) -2 
E) -3/4

Question 16

The question "Should economics majors or sociology majors earn more after they graduate?" 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 17

-The graph shows a

Accepted Answer

A) positive relationship that becomes steeper. 
B) negative relationship that becomes steeper. 
C) positive relationship that becomes less steep. 
D) negative relationship that becomes less steep. 
E) negative trend between the total cost of a cake and the output of cakes. 
A) positive relationship that becomes steeper. 
B) negative relationship that becomes steeper. 
C) positive relationship that becomes less steep. 
D) negative relationship that becomes less steep. 
E) negative trend between the total cost of a cake and the output of cakes.

Question 18

You have data for sales of pizza for each of the 50 states in 2011.The type of graph to best display these data would be a

Accepted Answer

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

Question 19

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

Accepted Answer

A) the two previous hamburgers. 
B) all three hamburgers. 
C) just the third hamburger. 
D) just the second hamburger. 
E) the third hamburger minus the pleasure from consuming zero hamburgers. 
A) the two previous hamburgers. 
B) all three hamburgers. 
C) just the third hamburger. 
D) just the second hamburger. 
E) the third hamburger minus the pleasure from consuming zero hamburgers.

Question 20

An opportunity cost is

Accepted Answer

A) the dollar amount that is paid. 
B) anything the decision maker believes costs to be. 
C) the benefits of the highest-valued alternative forgone. 
D) whatever is paid out and cannot be reduced or reversed. 
E) another term for all the sunk costs. 
A) the dollar amount that is paid. 
B) anything the decision maker believes costs to be. 
C) the benefits of the highest-valued alternative forgone. 
D) whatever is paid out and cannot be reduced or reversed. 
E) another term for all the sunk costs.

What is the reason that all economic issues and problems occur?

Which of the following is a topic studied in macroeconomics?

If two variables are positively related,then

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

Ceteris paribus when graphing a relationship refers to

The horizontal axis in a graph

Which of the following statements is true regarding scarcity?

Choices that are best for the society as a whole are choices in pursuit of

An economist observed that as more computers are added to a factory,the costs of production initially decline,reach a minimum,and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis,the relationship always is

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

-What does the slope of the curved line at point A shown in the above figure equal?

When you make the decision to spend your time attending class,which economic question are you answering?

An incentive is

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

-What is the slope of the line in the graph?

The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a ________ question.

-The graph shows a

You have data for sales of pizza for each of the 50 states in 2011.The type of graph to best display these data would be a

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

An opportunity cost 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

What is the reason that all economic issues and problems occur?

Which of the following is a topic studied in macroeconomics?

If two variables are positively related,then

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

Ceteris paribus when graphing a relationship refers to

The horizontal axis in a graph

Which of the following statements is true regarding scarcity?

Choices that are best for the society as a whole are choices in pursuit of

An economist observed that as more computers are added to a factory,the costs of production initially decline,reach a minimum,and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis,the relationship always is

-In the figure above,suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply.If the price of pecans increases,

-What does the slope of the curved line at point A shown in the above figure equal?

When you make the decision to spend your time attending class,which economic question are you answering?

An incentive is

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

-What is the slope of the line in the graph?

The question "Should economics majors or sociology majors earn more after they graduate?" is an example of a ________ question.

-The graph shows a

You have data for sales of pizza for each of the 50 states in 2011.The type of graph to best display these data would be a

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

An opportunity cost 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