Question 1

Which of the following is a positive statement?

Accepted Answer

A)  The rich should pay more in taxes. 
B)  Everyone should have some knowledge of economics. 
C)  Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  Social Security must be reformed. 
A)  The rich should pay more in taxes. 
B)  Everyone should have some knowledge of economics. 
C)  Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  Social Security must be reformed.

Question 2

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

Accepted Answer

A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse. 
A)  the extra recovery time needed from sprinting another 100 yards increases. 
B)  the extra recovery time needed from sprinting another 100 yards decreases. 
C)  the recovery time increases. 
D)  the recovery time decreases. 
E)  the relationship between distance sprinted and recovery time becomes more inverse.

Question 3

A choice made by comparing all relevant alternatives systematically and incrementally is

Accepted Answer

A)  an opportunity cost. 
B)  a choice on the margin. 
C)  a benefit. 
D)  a sunk cost. 
E)  a choice made in the social interest. 
A)  an opportunity cost. 
B)  a choice on the margin. 
C)  a benefit. 
D)  a sunk cost. 
E)  a choice made in the social interest.

Question 4

To help unscramble cause and effect,economists

Accepted Answer

A)  use the concept of opportunity costs. 
B)  must use the ceteris paribus assumption. 
C)  answer the "what" question. 
D)  answer the "how" question. 
E)  must use normative statements. 
A)  use the concept of opportunity costs. 
B)  must use the ceteris paribus assumption. 
C)  answer the "what" question. 
D)  answer the "how" question. 
E)  must use normative statements.

Question 5

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost,marginal cost,and marginal benefit.

Accepted Answer

Economists assume that people act ration

Question 6

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 7

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 8

When Ferrari decides to produce 1,200 360 Modenas each year,Ferrari is answering the ________ question.

Accepted Answer

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

Question 9

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 10

-The graph shows

Accepted Answer

A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear relationship. 
E)  a cross-section relationship. 
A)  a relationship with a minimum. 
B)  a relationship with a maximum. 
C)  no relationship. 
D)  a linear relationship. 
E)  a cross-section relationship.

Question 11

The additional benefit of increasing some activity by one-unit is called the

Accepted Answer

A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  unit cost/benefit. 
A)  marginal benefit. 
B)  opportunity cost. 
C)  total benefit. 
D)  scarcity. 
E)  unit cost/benefit.

Question 12

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 13

-In the above,which figure(s)show(s)relationship between the variables that is always positive?

Accepted Answer

A)  Figure A only 
B)  Figures C and D 
C)  Figures A and C 
D)  Figures A, C, and D 
E)  Figures A and B 
A)  Figure A only 
B)  Figures C and D 
C)  Figures A and C 
D)  Figures A, C, and D 
E)  Figures A and B

Question 14

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

Accepted Answer

A)  the $10 he could have earned at his job. 
B)  the value of the session minus the $10 he could have earned at his job. 
C)  nothing, because the review session does not cost anything. 
D)  equal to the benefit he gets from the review session. 
E)  the one-hour review session. 
A)  the $10 he could have earned at his job. 
B)  the value of the session minus the $10 he could have earned at his job. 
C)  nothing, because the review session does not cost anything. 
D)  equal to the benefit he gets from the review session. 
E)  the one-hour review session.

Question 15

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 16

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Accepted Answer

A)  both B and C 
B)  only B 
C)  both A and C 
D)  only D 
E)  only C 
A)  both B and C 
B)  only B 
C)  both A and C 
D)  only D 
E)  only C

Question 17

Which of the following statements is correct?

Accepted Answer

A)  The slope of a straight line changes depending where on the line it is calculated. 
B)  The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
C)  A straight line that slopes upward moving to the right has a positive slope. 
D)  Answers A and B are correct. 
E)  Answers A and C are correct. 
A)  The slope of a straight line changes depending where on the line it is calculated. 
B)  The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
C)  A straight line that slopes upward moving to the right has a positive slope. 
D)  Answers A and B are correct. 
E)  Answers A and C are correct.

Question 18

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

Accepted Answer

A)  This is a normative statement. 
B)  The federal government does not face scarcity. 
C)  This topic would be studied in microeconomics. 
D)  Social interest must always be more important than self-interest. 
E)  Ceteris paribus does not apply to the government. 
A)  This is a normative statement. 
B)  The federal government does not face scarcity. 
C)  This topic would be studied in microeconomics. 
D)  Social interest must always be more important than self-interest. 
E)  Ceteris paribus does not apply to the government.

Question 19

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line equals

Accepted Answer

A)  -5. 
B)  -4. 
C)  -3. 
D)  -1. 
E)  -2 
A)  -5. 
B)  -4. 
C)  -3. 
D)  -1. 
E)  -2

Question 20

-To graph a relationship that involves more than two variables,we use

Accepted Answer

A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  ceteris paribus. 
E)  movement up along one of the lines showing the relationship between x and y. 
A)  a positive relationship. 
B)  a direct relationship. 
C)  a negative relationship. 
D)  ceteris paribus. 
E)  movement up along one of the lines showing the relationship between x and y.

Which of the following is a positive statement?

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

A choice made by comparing all relevant alternatives systematically and incrementally is

To help unscramble cause and effect,economists

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost,marginal cost,and marginal benefit.

Which of the following best defines economics?

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

When Ferrari decides to produce 1,200 360 Modenas each year,Ferrari is answering the ________ question.

An incentive is

-The graph shows

The additional benefit of increasing some activity by one-unit is called the

Define economics and describe its branches of study.

-In the above,which figure(s)show(s)relationship between the variables that is always positive?

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

Which of the following statements is true regarding scarcity?

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Which of the following statements is correct?

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line equals

-To graph a relationship that involves more than two variables,we use

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: Getting Started

Which of the following is a positive statement?

-The figure above shows the relationship between distance sprinted and recovery time.The curve becomes steeper because as the distance sprinted increases,

A choice made by comparing all relevant alternatives systematically and incrementally is

To help unscramble cause and effect,economists

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost,marginal cost,and marginal benefit.

Which of the following best defines economics?

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

When Ferrari decides to produce 1,200 360 Modenas each year,Ferrari is answering the ________ question.

An incentive is

-The graph shows

The additional benefit of increasing some activity by one-unit is called the

Define economics and describe its branches of study.

-In the above,which figure(s)show(s)relationship between the variables that is always positive?

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

Which of the following statements is true regarding scarcity?

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Which of the following statements is correct?

Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line equals

-To graph a relationship that involves more than two variables,we use

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters