Question 1

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 2

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

Accepted Answer

The slope equals the change in

Question 3

Which of the following is a macroeconomic topic?
i.China increases interest rates to slow its economic growth.
ii.Congress lowers tax rates to try and lower the unemployment rate.
iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Accepted Answer

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

Question 4

Correlation means

Accepted Answer

A)  "after this, therefore because of this." 
B)  other things remaining the same. 
C)  a natural experiment has been conducted. 
D)  the tendency for the values of two variables to move in a predictable and related way. 
E)  "on the margin." 
A)  "after this, therefore because of this." 
B)  other things remaining the same. 
C)  a natural experiment has been conducted. 
D)  the tendency for the values of two variables to move in a predictable and related way. 
E)  "on the margin."

Question 5

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Accepted Answer

The amount of goods and services a perso

Question 6

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 7

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

Accepted Answer

A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended 
A)  a positive but not linear 
B)  a negative 
C)  no 
D)  a positive, linear 
E)  cross-sectionally trended

Question 8

What typically happens to benefits as the amount of an activity is increased?

Accepted Answer

A)  Total benefits remain constant. 
B)  Marginal benefit increases. 
C)  Marginal benefit remains constant. 
D)  Marginal benefit decreases. 
E)  The marginal benefit changes only if the marginal cost changes. 
A)  Total benefits remain constant. 
B)  Marginal benefit increases. 
C)  Marginal benefit remains constant. 
D)  Marginal benefit decreases. 
E)  The marginal benefit changes only if the marginal cost changes.

Question 9

Scarcity exists because

Accepted Answer

A)  human wants exceed the resources available to satisfy them. 
B)  some individuals have low income. 
C)  the costs of production are high. 
D)  some people make bad economic decisions. 
E)  people take too much leisure time. 
A)  human wants exceed the resources available to satisfy them. 
B)  some individuals have low income. 
C)  the costs of production are high. 
D)  some people make bad economic decisions. 
E)  people take too much leisure time.

Question 10

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 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

-A cross-section graph

Accepted Answer

A)  is divided into different sections. 
B)  shows the 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 A and B are correct. 
A)  is divided into different sections. 
B)  shows the 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 A and B are correct.

Question 13

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 14

Economists measure opportunity cost

Accepted Answer

A)  only when it is on the margin. 
B)  as the best thing given up. 
C)  as the sum of all forgone opportunities. 
D)  as the same as marginal benefit. 
E)  as equal to the sum of all the sunk costs. 
A)  only when it is on the margin. 
B)  as the best thing given up. 
C)  as the sum of all forgone opportunities. 
D)  as the same as marginal benefit. 
E)  as equal to the sum of all the sunk costs.

Question 15

A positive statement
i.makes a statement about how the world operates.
ii.is a true statement.
iii.can be tested against the facts.

Accepted Answer

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

Question 16

Scarcity means we must

Accepted Answer

A)  consume less. 
B)  produce less. 
C)  make choices. 
D)  earn more. 
E)  work more. 
A)  consume less. 
B)  produce less. 
C)  make choices. 
D)  earn more. 
E)  work more.

Question 17

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

Accepted Answer

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

Question 18

-A graph of the relationship between two variables is a line that slopes down to the right.These two variables are ________ related.

Accepted Answer

A)  positively 
B)  directly 
C)  negatively 
D)  not 
E)  trend-line 
A)  positively 
B)  directly 
C)  negatively 
D)  not 
E)  trend-line

Question 19

A time series graph reveals whether there is a ________,which represents ________.

Accepted Answer

A)  trend in a variable; a general tendency for the variable to rise or fall 
B)  relationship between two variables; a cross-section relationship 
C)  trends in two variables; unrelated variables 
D)  relationship between two variables; a trend in a variable 
E)  cross-section relationship; a general tendency for the variables to rise or fall 
A)  trend in a variable; a general tendency for the variable to rise or fall 
B)  relationship between two variables; a cross-section relationship 
C)  trends in two variables; unrelated variables 
D)  relationship between two variables; a trend in a variable 
E)  cross-section relationship; a general tendency for the variables to rise or fall

Question 20

-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

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

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

Which of the following is a macroeconomic topic? i.China increases interest rates to slow its economic growth. ii.Congress lowers tax rates to try and lower the unemployment rate. iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Correlation means

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

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 figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

What typically happens to benefits as the amount of an activity is increased?

Scarcity exists because

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

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.

-A cross-section graph

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

Economists measure opportunity cost

A positive statement i.makes a statement about how the world operates. ii.is a true statement. iii.can be tested against the facts.

Scarcity means we must

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

-A graph of the relationship between two variables is a line that slopes down to the right.These two variables are ________ related.

A time series graph reveals whether there is a ,which represents .

-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 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

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

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

Which of the following is a macroeconomic topic? i.China increases interest rates to slow its economic growth. ii.Congress lowers tax rates to try and lower the unemployment rate. iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Correlation means

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

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 figure above shows the relationship between the time a student spends studying and the student's GPA that semester.This figure shows ________ relationship between the time spent studying and the GPA.

What typically happens to benefits as the amount of an activity is increased?

Scarcity exists because

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

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.

-A cross-section graph

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

Economists measure opportunity cost

A positive statement i.makes a statement about how the world operates. ii.is a true statement. iii.can be tested against the facts.

Scarcity means we must

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

-A graph of the relationship between two variables is a line that slopes down to the right.These two variables are ________ related.

A time series graph reveals whether there is a ________,which represents ________.

-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 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

A time series graph reveals whether there is a ,which represents .