Question 1

Scarcity requires that we

Accepted Answer

A)  produce efficiently. 
B)  learn to limit our wants. 
C)  have the most rapid economic growth possible. 
D)  have unlimited resources. 
E)  make choices about what goods and services to produce. 
A)  produce efficiently. 
B)  learn to limit our wants. 
C)  have the most rapid economic growth possible. 
D)  have unlimited resources. 
E)  make choices about what goods and services to produce.

Question 2

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours,Kiki could have played tennis or watched a movie.Therefore,the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect.The

Question 3

Which of the following is a microeconomic topic?
i.K-Mart's decision to close stores that are not making a profit
ii.Home Depot's choice to hire more full-time employees because its sales increased
iii.Delta Airlines changes its fares.

Accepted Answer

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

Question 4

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

Accepted Answer

A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  time axis. 
A)  origin. 
B)  y-axis. 
C)  x-axis. 
D)  variable. 
E)  time axis.

Question 5

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 6

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

Accepted Answer

A)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C)  He loses a total of $120 per day, so his decision is irrational. 
D)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E)  Adam is definitely making a decision that is in the social interest. 
A)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
B)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
C)  He loses a total of $120 per day, so his decision is irrational. 
D)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
E)  Adam is definitely making a decision that is in the social interest.

Question 7

Jamie has enough money to buy either a Mountain Dew,or a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is

Accepted Answer

A)  the Pepsi and the bag of chips. 
B)  the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. 
C)  the Mountain Dew. 
D)  the Pepsi because it is a drink, as is the Mountain Dew. 
E)  zero because he enjoys the Mountain Dew. 
A)  the Pepsi and the bag of chips. 
B)  the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. 
C)  the Mountain Dew. 
D)  the Pepsi because it is a drink, as is the Mountain Dew. 
E)  zero because he enjoys the Mountain Dew.

Question 8

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

Accepted Answer

A)  independent. 
B)  correlated. 
C)  statistics. 
D)  significantly related. 
E)  casually related. 
A)  independent. 
B)  correlated. 
C)  statistics. 
D)  significantly related. 
E)  casually related.

Question 9

-The relationship between distance traveled in five hours and speed shown in the figure above is

Accepted Answer

A)  positive. 
B)  negative. 
C)  inverse. 
D)  cross-sectional. 
E)  multilateral. 
A)  positive. 
B)  negative. 
C)  inverse. 
D)  cross-sectional. 
E)  multilateral.

Question 10

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

Accepted Answer

A)  larger than the marginal benefit 
B)  smaller than the marginal benefit 
C)  equal to the marginal benefit 
D)  not related to the marginal benefit 
E)  equal to the marginal cost and the marginal benefit 
A)  larger than the marginal benefit 
B)  smaller than the marginal benefit 
C)  equal to the marginal benefit 
D)  not related to the marginal benefit 
E)  equal to the marginal cost and the marginal benefit

Question 11

Which of the following is the best example of a "What?" question?

Accepted Answer

A)  Should automobiles be produced using workers or robots? 
B)  Should higher-income or lower-income people buy SUVs? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid? 
A)  Should automobiles be produced using workers or robots? 
B)  Should higher-income or lower-income people buy SUVs? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid?

Question 12

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

Accepted Answer

A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2. 
E)  2. 
A)  5. 
B)  2/5. 
C)  2/3. 
D)  5/2. 
E)  2.

Question 13

Which of the following statements is correct?

Accepted Answer

A)  When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B)  When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C)  The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related. 
D)  If two variables are directly related, a graph of the two variables has a negative slope. 
E)  None of the above statements is correct. 
A)  When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B)  When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C)  The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related. 
D)  If two variables are directly related, a graph of the two variables has a negative slope. 
E)  None of the above statements is correct.

Question 14

A statement that argues that "if taxes on gasoline increase,gasoline consumption will decrease" is an example of what kind of statement?

Accepted Answer

A)  a marginal statement 
B)  a macroeconomic statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement that violates rational choice 
A)  a marginal statement 
B)  a macroeconomic statement 
C)  a normative statement 
D)  a positive statement 
E)  a statement that violates rational choice

Question 15

-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 16

-In the above figure,which of the figures shows a relationship between x and y with a negative slope?

Accepted Answer

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

Question 17

A positive relationship exists between two variables if

Accepted Answer

A)  one variable has "positively" no effect on the other variable. 
B)  a decrease in one variable is associated with an increase in the other variable. 
C)  a decrease in one variable is associated with a decrease in the other variable. 
D)  an increase in one variable is associated with both a decrease and an increase in the other variable. 
E)  None of the above answers is correct. 
A)  one variable has "positively" no effect on the other variable. 
B)  a decrease in one variable is associated with an increase in the other variable. 
C)  a decrease in one variable is associated with a decrease in the other variable. 
D)  an increase in one variable is associated with both a decrease and an increase in the other variable. 
E)  None of the above answers is correct.

Question 18

-In the above figure,a negative relationship between x and y is shown in Figure

Accepted Answer

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

Question 19

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

Accepted Answer

A)  you must ignore the problem of scarcity. 
B)  you considered the marginal cost and marginal benefit of your choice. 
C)  you have used the ceteris paribus assumption. 
D)  you have made a positive statement. 
E)  you must have considered the social interest. 
A)  you must ignore the problem of scarcity. 
B)  you considered the marginal cost and marginal benefit of your choice. 
C)  you have used the ceteris paribus assumption. 
D)  you have made a positive statement. 
E)  you must have considered the social interest.

Question 20

If the change in y = 10 and the change in x = 3,there is

Accepted Answer

A)  a positive relationship between y and x. 
B)  a negative relationship between y and x. 
C)  an independent relationship between y and x. 
D)  no relationship between y and x. 
E)  a +0.33 relationship between the two variables. 
A)  a positive relationship between y and x. 
B)  a negative relationship between y and x. 
C)  an independent relationship between y and x. 
D)  no relationship between y and x. 
E)  a +0.33 relationship between the two variables.

Scarcity requires that we

Which of the following is a microeconomic topic? i.K-Mart's decision to close stores that are not making a profit ii.Home Depot's choice to hire more full-time employees because its sales increased iii.Delta Airlines changes its fares.

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

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

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

Jamie has enough money to buy either a Mountain Dew,or a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

-The relationship between distance traveled in five hours and speed shown in the figure above is

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

Which of the following is the best example of a "What?" question?

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

Which of the following statements is correct?

A statement that argues that "if taxes on gasoline increase,gasoline consumption will decrease" is an example of what kind of statement?

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

-In the above figure,which of the figures shows a relationship between x and y with a negative slope?

A positive relationship exists between two variables if

-In the above figure,a negative relationship between x and y is shown in Figure

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

If the change in y = 10 and the change in x = 3,there is

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

Scarcity requires that we

Which of the following is a microeconomic topic? i.K-Mart's decision to close stores that are not making a profit ii.Home Depot's choice to hire more full-time employees because its sales increased iii.Delta Airlines changes its fares.

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

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

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

Jamie has enough money to buy either a Mountain Dew,or a Pepsi,or a bag of chips.He chooses to buy the Mountain Dew.The opportunity cost of the Mountain Dew is

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

-The relationship between distance traveled in five hours and speed shown in the figure above is

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is ________ of the second burger.

Which of the following is the best example of a "What?" question?

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

Which of the following statements is correct?

A statement that argues that "if taxes on gasoline increase,gasoline consumption will decrease" is an example of what kind of statement?

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

-In the above figure,which of the figures shows a relationship between x and y with a negative slope?

A positive relationship exists between two variables if

-In the above figure,a negative relationship between x and y is shown in Figure

Suppose you decide to attend summer school and that this is considered a rational choice.When making this choice,

If the change in y = 10 and the change in x = 3,there is

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