Question 1

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

Accepted Answer

A)  the fall in the cost per mile becomes smaller. 
B)  the fall in the cost per mile becomes greater. 
C)  the cost per mile decreases. 
D)  the cost per mile increases. 
E)  the cost per mile remains unchanged. 
A)  the fall in the cost per mile becomes smaller. 
B)  the fall in the cost per mile becomes greater. 
C)  the cost per mile decreases. 
D)  the cost per mile increases. 
E)  the cost per mile remains unchanged.

Question 2

In making your decision whether to take a trip during spring break,you compare all the other activities you could undertake.As a result,you

Accepted Answer

A)  are making a choice on the margin. 
B)  limit the cost and the benefits you can gain. 
C)  are not making a rational choice. 
D)  do not face an opportunity cost. 
E)  must have made a choice in the social interest. 
A)  are making a choice on the margin. 
B)  limit the cost and the benefits you can gain. 
C)  are not making a rational choice. 
D)  do not face an opportunity cost. 
E)  must have made a choice in the social interest.

Question 3

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

Accepted Answer

@#IMG-DLM& The point is a maximum point.Examine th

Question 4

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 5

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.

Question 6

Why do economists say that even very rich people face scarcity?

Accepted Answer

A person faces scarcity whenever his or

Question 7

Scarcity means that

Accepted Answer

A)  what we can produce with our resources is greater than our material wants. 
B)  resources are unlimited. 
C)  wants are greater than what we can produce with our resources. 
D)  governments must make up for shortages in resources. 
E)  choices made in self-interest cannot be the same as those made in the social interest. 
A)  what we can produce with our resources is greater than our material wants. 
B)  resources are unlimited. 
C)  wants are greater than what we can produce with our resources. 
D)  governments must make up for shortages in resources. 
E)  choices made in self-interest cannot be the same as those made in the social interest.

Question 8

-The figure above shows the price of a DVD player from 1996 to 2000.
a.What type of graph is illustrated above?
b.What is the trend in the price of a DVD player?

Accepted Answer

a.The graph is a time-series graph becau

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

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Accepted Answer

A)  Should Ford build SUVs or luxury cars? 
B)  Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
C)  Should contractors build residential housing or shopping malls? 
D)  Is income distributed fairly in the United States? 
E)  Why are Christmas trees popular only in December? 
A)  Should Ford build SUVs or luxury cars? 
B)  Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? 
C)  Should contractors build residential housing or shopping malls? 
D)  Is income distributed fairly in the United States? 
E)  Why are Christmas trees popular only in December?

Question 11

A time series graph

Accepted Answer

A)  shows how a variable changes over time. 
B)  uses bars rather than lines. 
C)  shows points in a scatter diagram. 
D)  is similar to a cross-section graph because both can show trends over time. 
E)  is in the shape of a pie. 
A)  shows how a variable changes over time. 
B)  uses bars rather than lines. 
C)  shows points in a scatter diagram. 
D)  is similar to a cross-section graph because both can show trends over time. 
E)  is in the shape of a pie.

Question 12

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

Accepted Answer

A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
E)  -10. 
A)  -1/3. 
B)  -5. 
C)  -1. 
D)  -3. 
E)  -10.

Question 13

-In the above figure,no relationship between x and y is shown in Figure

Accepted Answer

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

Question 14

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

Accepted Answer

A)  a movement along the drawn curve. 
B)  a shift in the curve. 
C)  no impact on the curve because the variable is not measured on either of the axes. 
D)  either a shift in the curve or a movement along the curve, but more information is needed to determine which. 
E)  None of the above answers is correct. 
A)  a movement along the drawn curve. 
B)  a shift in the curve. 
C)  no impact on the curve because the variable is not measured on either of the axes. 
D)  either a shift in the curve or a movement along the curve, but more information is needed to determine which. 
E)  None of the above answers is correct.

Question 15

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 16

The cost of a one-unit increase in an activity

Accepted Answer

A)  is called the total one-unit cost. 
B)  is called the marginal cost. 
C)  decreases as more of the activity is done. 
D)  is called the marginal benefit/cost. 
E)  is called the unit cost. 
A)  is called the total one-unit cost. 
B)  is called the marginal cost. 
C)  decreases as more of the activity is done. 
D)  is called the marginal benefit/cost. 
E)  is called the unit cost.

Question 17

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 18

Which of the following is a normative statement?

Accepted Answer

A)  Flood victims should pay for their own rebuilding. 
B)  When the price of kiwi fruit increases, fewer people eat kiwi fruit. 
C)  An increase in the supply of computers has caused computer prices to fall. 
D)  Recessions lead to increases in the unemployment rate. 
E)  Hurricanes strike mainly Florida and North Carolina. 
A)  Flood victims should pay for their own rebuilding. 
B)  When the price of kiwi fruit increases, fewer people eat kiwi fruit. 
C)  An increase in the supply of computers has caused computer prices to fall. 
D)  Recessions lead to increases in the unemployment rate. 
E)  Hurricanes strike mainly Florida and North Carolina.

Question 19

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

Accepted Answer

A)  eat the slice of pizza. 
B)  not eat the slice of pizza. 
C)  be unable to choose between eating or not eating. 
D)  eat half the slice. 
E)  More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice. 
A)  eat the slice of pizza. 
B)  not eat the slice of pizza. 
C)  be unable to choose between eating or not eating. 
D)  eat half the slice. 
E)  More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

Question 20

As a curve approaches a maximum point,the slope will

Accepted Answer

A)  be positive and then negative after the maximum point. 
B)  be negative and then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
E)  decrease before and after the maximum point. 
A)  be positive and then negative after the maximum point. 
B)  be negative and then positive after the maximum point. 
C)  remain constant on either side of the maximum point. 
D)  increase before and after the maximum point. 
E)  decrease before and after the maximum point.

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

In making your decision whether to take a trip during spring break,you compare all the other activities you could undertake.As a result,you

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

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

An opportunity cost is

Why do economists say that even very rich people face scarcity?

Scarcity means that

-The figure above shows the price of a DVD player from 1996 to 2000. a.What type of graph is illustrated above? b.What is the trend in the price of a DVD player?

The question of "How are goods and services produced?" most closely addresses which of the following issues?

A time series graph

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

-In the above figure,no relationship between x and y is shown in Figure

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

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

The cost of a one-unit increase in an activity

Which of the following is a macroeconomic issue?

Which of the following is a normative statement?

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

As a curve approaches a maximum point,the slope will

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

-The figure above shows the relationship between the journey length and the cost of trip per mile.The curve becomes flatter because as the journey length increases,

In making your decision whether to take a trip during spring break,you compare all the other activities you could undertake.As a result,you

A graph has a point that is either a maximum or a minimum.To the left of the point,the slope of relationship is positive.To the right of the point,the slope is negative.Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.

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

An opportunity cost is

Why do economists say that even very rich people face scarcity?

Scarcity means that

-The figure above shows the price of a DVD player from 1996 to 2000. a.What type of graph is illustrated above? b.What is the trend in the price of a DVD player?

The question of "How are goods and services produced?" most closely addresses which of the following issues?

A time series graph

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

-In the above figure,no relationship between x and y is shown in Figure

Three variables are related and two of them are plotted in a figure.If the variable that is not measured on either the x-axis or the y-axis changes,then there is

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

The cost of a one-unit increase in an activity

Which of the following is a macroeconomic issue?

Which of the following is a normative statement?

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

As a curve approaches a maximum point,the slope will

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