Question 1

Which of the following is a microeconomic issue?

Accepted Answer

A)  Growth in the U.S. economy slowed. 
B)  Increased federal government expenditures have lowered the unemployment rate. 
C)  The inflation rate fell this year. 
D)  The quantity of wheat grown in the United States increases this year. 
E)  The U.S. government cuts taxes to combat a recession. 
A)  Growth in the U.S. economy slowed. 
B)  Increased federal government expenditures have lowered the unemployment rate. 
C)  The inflation rate fell this year. 
D)  The quantity of wheat grown in the United States increases this year. 
E)  The U.S. government cuts taxes to combat a recession.

Question 2

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 3

The minimum point of a U-shaped curve,

Accepted Answer

A)  is a point where the variable is neither increasing nor decreasing. 
B)  has a slope equal to zero. 
C)  has the maximum slope possible. 
D)  Both answers A and B are correct. 
E)  Both answers A and C are correct. 
A)  is a point where the variable is neither increasing nor decreasing. 
B)  has a slope equal to zero. 
C)  has the maximum slope possible. 
D)  Both answers A and B are correct. 
E)  Both answers A and C are correct.

Question 4

Ceteris paribus when graphing a relationship refers to

Accepted Answer

A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
E)  swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis. 
A)  letting all the variables change at once. 
B)  changing the origin of the graph. 
C)  holding constant all but two variables. 
D)  rescaling the coordinates. 
E)  swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis.

Question 5

Rather than go out to eat by yourself,you decide to stay at home and fix dinner for yourself and your two roommates.Your roommates applaud your decision.Your roommates tell you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry.Is this comment correct?

Accepted Answer

Your roommates' comment is incorrect.The

Question 6

If a curve falls and then rises,it

Accepted Answer

A)  has a maximum. 
B)  has a minimum. 
C)  has a linear relationship. 
D)  has a constant slope relationship. 
E)  shows no relationship between the two variables. 
A)  has a maximum. 
B)  has a minimum. 
C)  has a linear relationship. 
D)  has a constant slope relationship. 
E)  shows no relationship between the two variables.

Question 7

The opportunity cost of a one-unit increase in an activity

Accepted Answer

A)  is greater than the marginal benefit. 
B)  is called rational cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity. 
A)  is greater than the marginal benefit. 
B)  is called rational cost. 
C)  decreases as you do more of it. 
D)  is called marginal cost. 
E)  is measured by what the person is willing to give up to get one more unit of the activity.

Question 8

-In the figure above,the relationship between the x variable and the y variable

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
E)  is non-existent because the two variables are unrelated. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
E)  is non-existent because the two variables are unrelated.

Question 9

Why does scarcity lead to the what,how,and for whom questions?

Accepted Answer

Human wants exceed the resources availab

Question 10

A slope is measured as the

Accepted Answer

A)  value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B)  value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C)  change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D)  value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E)  change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis. 
A)  value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
B)  value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
C)  change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
D)  value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
E)  change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis.

Question 11

Different nations answer the what,how,and for whom questions differently.China,for instance,builds dams using many workers and only a little capital equipment.The United States builds dams using a few workers and a lot of capital equipment.Which economic question are these two nations answering and why do the answers differ?

Accepted Answer

The nations are answering the "how" ques

Question 12

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

Accepted Answer

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

Question 13

-Graph the data in the table above in the figure.Label the axes.
   
a.Is the relationship between X and Y positive or negative?
b.What is the slope when X = 4?
c.What is the slope when X = 8?

Accepted Answer

@#IMG-DLM& 
The figure labels the axes a

Question 14

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  rational-decision statement. 
E)  marginal statement. 
A)  normative statement. 
B)  positive statement. 
C)  macroeconomic statement. 
D)  rational-decision statement. 
E)  marginal statement.

Question 15

Two variables are unrelated if their graph is
i.a vertical line.
ii.a 45 degree line.
iii.a horizontal line.

Accepted Answer

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

Question 16

Nathan drinks three cups of coffee per day.The marginal benefit that he enjoys from drinking the third cup is

Accepted Answer

A)  less than the marginal benefit that he receives from drinking the second cup. 
B)  the same as the total benefit from drinking all three cups minus the total benefit of drinking the first two cups. 
C)  both a and b. 
D)  greater than the marginal benefit that he receives from drinking the second cup. 
E)  none of the above. 
A)  less than the marginal benefit that he receives from drinking the second cup. 
B)  the same as the total benefit from drinking all three cups minus the total benefit of drinking the first two cups. 
C)  both a and b. 
D)  greater than the marginal benefit that he receives from drinking the second cup. 
E)  none of the above.

Question 17

The tendency for the values of two variables to move in a predictable and related way is known as

Accepted Answer

A)  a natural experiment. 
B)  a normative relationship. 
C)  an economic model. 
D)  correlation. 
E)  a policy relationship. 
A)  a natural experiment. 
B)  a normative relationship. 
C)  an economic model. 
D)  correlation. 
E)  a policy relationship.

Question 18

A normative statement

Accepted Answer

A)  depends on someone's values. 
B)  cannot use the word "should." 
C)  says what is currently believed about the way the world operates. 
D)  must be tested to determine if it is correct. 
E)  can be tested to determine if it is correct. 
A)  depends on someone's values. 
B)  cannot use the word "should." 
C)  says what is currently believed about the way the world operates. 
D)  must be tested to determine if it is correct. 
E)  can be tested to determine if it is correct.

Question 19

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Accepted Answer

A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  had no effect on the marginal cost or marginal benefit but did affect the total benefit 
A)  increased the marginal benefit 
B)  decreased the marginal benefit 
C)  increased the marginal cost 
D)  decreased the marginal cost 
E)  had no effect on the marginal cost or marginal benefit but did affect the total benefit

Question 20

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

Accepted Answer

A)  the two previous hamburgers. 
B)  all three hamburgers. 
C)  just the third hamburger. 
D)  just the second hamburger. 
E)  the third hamburger minus the pleasure from consuming zero hamburgers. 
A)  the two previous hamburgers. 
B)  all three hamburgers. 
C)  just the third hamburger. 
D)  just the second hamburger. 
E)  the third hamburger minus the pleasure from consuming zero hamburgers.

Which of the following is a microeconomic issue?

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

The minimum point of a U-shaped curve,

Ceteris paribus when graphing a relationship refers to

If a curve falls and then rises,it

The opportunity cost of a one-unit increase in an activity

-In the figure above,the relationship between the x variable and the y variable

Why does scarcity lead to the what,how,and for whom questions?

A slope is measured as the

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

-Graph the data in the table above in the figure.Label the axes. a.Is the relationship between X and Y positive or negative? b.What is the slope when X = 4? c.What is the slope when X = 8?

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Two variables are unrelated if their graph is i.a vertical line. ii.a 45 degree line. iii.a horizontal line.

Nathan drinks three cups of coffee per day.The marginal benefit that he enjoys from drinking the third cup is

The tendency for the values of two variables to move in a predictable and related way is known as

A normative statement

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

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 microeconomic issue?

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

The minimum point of a U-shaped curve,

Ceteris paribus when graphing a relationship refers to

If a curve falls and then rises,it

The opportunity cost of a one-unit increase in an activity

-In the figure above,the relationship between the x variable and the y variable

Why does scarcity lead to the what,how,and for whom questions?

A slope is measured as the

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

-Graph the data in the table above in the figure.Label the axes. a.Is the relationship between X and Y positive or negative? b.What is the slope when X = 4? c.What is the slope when X = 8?

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

Two variables are unrelated if their graph is i.a vertical line. ii.a 45 degree line. iii.a horizontal line.

Nathan drinks three cups of coffee per day.The marginal benefit that he enjoys from drinking the third cup is

The tendency for the values of two variables to move in a predictable and related way is known as

A normative statement

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Huey has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

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