Question 1

Whenever one variable increases,another variable decreases.The two variables are

Accepted Answer

A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other. 
E)  related but whether positively or negatively related depends on which variable is plotted on the vertical axis. 
A)  definitely related through a third variable. 
B)  negatively related. 
C)  positively related. 
D)  unrelated to each other. 
E)  related but whether positively or negatively related depends on which variable is plotted on the vertical axis.

Question 2

Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?

Accepted Answer

A)  The benefit the three students receive must be the same because they all make the same choice. 
B)  The students made a rational choice as long as they face no scarcity. 
C)  The students could each have different opportunity costs. 
D)  The marginal cost of the decision is the same if they make the same score on the exam. 
E)  Going out to eat, playing football, and watching TV are all called sunk costs. 
A)  The benefit the three students receive must be the same because they all make the same choice. 
B)  The students made a rational choice as long as they face no scarcity. 
C)  The students could each have different opportunity costs. 
D)  The marginal cost of the decision is the same if they make the same score on the exam. 
E)  Going out to eat, playing football, and watching TV are all called sunk costs.

Question 3

With y measured on the vertical axis and x measured on the horizontal axis,the slope of a straight line is defined as

Accepted Answer

A)  y/x. 
B)  x/y. 
C)  (change in y)/(change in x). 
D)  (change in x)/(change in y). 
E)  y - x. 
A)  y/x. 
B)  x/y. 
C)  (change in y)/(change in x). 
D)  (change in x)/(change in y). 
E)  y - x.

Question 4

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

Accepted Answer

A)  direct 
B)  benefit's 
C)  opportunity 
D)  explicit 
E)  sunk 
A)  direct 
B)  benefit's 
C)  opportunity 
D)  explicit 
E)  sunk

Question 5

A cross-section graph

Accepted Answer

A)  is divided into different sections. 
B)  shows values of an economic variable for different groups in a population at a point in time. 
C)  measures time on the x-axis and the variable in which we are interested on the y-axis. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. 
A)  is divided into different sections. 
B)  shows values of an economic variable for different groups in a population at a point in time. 
C)  measures time on the x-axis and the variable in which we are interested on the y-axis. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct.

Question 6

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 7

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Accepted Answer

A)  forgone work. 
B)  forgone party. 
C)  forgone working and partying. 
D)  forgone working or partying, depending on which was your next best choice. 
E)  test because you are taking it. 
A)  forgone work. 
B)  forgone party. 
C)  forgone working and partying. 
D)  forgone working or partying, depending on which was your next best choice. 
E)  test because you are taking it.

Question 8

Which of the following is a microeconomic issue?

Accepted Answer

A)  Why has unemployment risen nationwide? 
B)  Why has economic growth been rapid in China? 
C)  What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favor of non-carbonated drinks? 
D)  Why is the average income lower in Africa than in Latin America? 
E)  Why did overall production increase within the United States last year? 
A)  Why has unemployment risen nationwide? 
B)  Why has economic growth been rapid in China? 
C)  What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favor of non-carbonated drinks? 
D)  Why is the average income lower in Africa than in Latin America? 
E)  Why did overall production increase within the United States last year?

Question 9

-In the figure above,ceteris paribus,an increase in x is associated with

Accepted Answer

A)  an increase in y. 
B)  a decrease in y. 
C)  an increase in z. 
D)  a random change in z. 
E)  no change in either y or z. 
A)  an increase in y. 
B)  a decrease in y. 
C)  an increase in z. 
D)  a random change in z. 
E)  no change in either y or z.

Question 10

Economics is best defined as the social science that studies

Accepted Answer

A)  how a person can get everything he or she wants. 
B)  the reason money exists. 
C)  the way to eliminate choices in our decisions. 
D)  the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. 
E)  how choices made in the social interest must conflict with choices made in the self-interest. 
A)  how a person can get everything he or she wants. 
B)  the reason money exists. 
C)  the way to eliminate choices in our decisions. 
D)  the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. 
E)  how choices made in the social interest must conflict with choices made in the self-interest.

Question 11

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 12

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 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

Canada has nationalized health care,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Canada has decided that "everyone,regardless of their ability to pay" is the answer to what microeconomic question?

Accepted Answer

A)  What type of health care will be produced and in what quantity? 
B)  How will health care be produced? 
C)  For whom will health care be produced? 
D)  Why will we offer health care? 
E)  Must we offer health care? 
A)  What type of health care will be produced and in what quantity? 
B)  How will health care be produced? 
C)  For whom will health care be produced? 
D)  Why will we offer health care? 
E)  Must we offer health care?

Question 15

What is a positive statement? Give an example.

Accepted Answer

A positive statement addresses

Question 16

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 17

Which of the following statements best describes the study of economics? Economics studies how

Accepted Answer

A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions. 
A)  to organize production so that scarcity does not occur. 
B)  firms make profits. 
C)  we make choices in the face of scarcity. 
D)  to create incentives so that scarcity does not exist. 
E)  businesses reach decisions.

Question 18

Which of the following is true?
i.A rational choice is always made in the pursuit of social interest.
ii.Economics is a social science.
iii.Economists try to understand how the economic world works by testing positive statements.

Accepted Answer

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

Question 19

A graph shows the average SAT scores for males and females in 2012.The kind of graph used to show these data would be a

Accepted Answer

A)  scatter diagram. 
B)  time-series graph. 
C)  cross-section graph. 
D)  time-stationary graph. 
E)  trend figure. 
A)  scatter diagram. 
B)  time-series graph. 
C)  cross-section graph. 
D)  time-stationary graph. 
E)  trend figure.

Question 20

The important characteristic of normative statements is that they

Accepted Answer

A)  explain what really exists. 
B)  are based on somebody's values and cannot be tested. 
C)  explain what normally happens in the real world. 
D)  help guide us to what will normally occur if some economic variable changes its value. 
E)  do not use the ceteris paribus assumption. 
A)  explain what really exists. 
B)  are based on somebody's values and cannot be tested. 
C)  explain what normally happens in the real world. 
D)  help guide us to what will normally occur if some economic variable changes its value. 
E)  do not use the ceteris paribus assumption.

Whenever one variable increases,another variable decreases.The two variables are

Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?

With y measured on the vertical axis and x measured on the horizontal axis,the slope of a straight line is defined as

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

A cross-section graph

An incentive is

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Which of the following is a microeconomic issue?

-In the figure above,ceteris paribus,an increase in x is associated with

Economics is best defined as the social science that studies

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

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

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

Canada has nationalized health care,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Canada has decided that "everyone,regardless of their ability to pay" is the answer to what microeconomic question?

What is a positive statement? Give an example.

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

Which of the following statements best describes the study of economics? Economics studies how

Which of the following is true? i.A rational choice is always made in the pursuit of social interest. ii.Economics is a social science. iii.Economists try to understand how the economic world works by testing positive statements.

A graph shows the average SAT scores for males and females in 2012.The kind of graph used to show these data would be a

The important characteristic of normative statements is that they

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

Whenever one variable increases,another variable decreases.The two variables are

Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?

With y measured on the vertical axis and x measured on the horizontal axis,the slope of a straight line is defined as

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

A cross-section graph

An incentive is

Suppose that,instead of taking this test,you could either have worked and earned income or partied and had a pleasurable time.Your opportunity cost of taking the test is the

Which of the following is a microeconomic issue?

-In the figure above,ceteris paribus,an increase in x is associated with

Economics is best defined as the social science that studies

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

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

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

Canada has nationalized health care,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Canada has decided that "everyone,regardless of their ability to pay" is the answer to what microeconomic question?

What is a positive statement? Give an example.

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

Which of the following statements best describes the study of economics? Economics studies how

Which of the following is true? i.A rational choice is always made in the pursuit of social interest. ii.Economics is a social science. iii.Economists try to understand how the economic world works by testing positive statements.

A graph shows the average SAT scores for males and females in 2012.The kind of graph used to show these data would be a

The important characteristic of normative statements is that they

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