Question 1

-In the above,which figure(s)has (have)at least one point at which the slope equals zero?

Accepted Answer

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

Question 2

-In the diagram above,which figure(s)show(s)no relationship between the variables?

Accepted Answer

A)  both B and C 
B)  only B 
C)  both A and C 
D)  only D 
E)  both A and B

Question 3

-The slope of the curve at point B

Accepted Answer

A)  is greater than the slope at point A. 
B)  is less than the slope at point A. 
C)  is equal to the slope at point A. 
D)  cannot be compared with the slope at point A. 
E)  can be compared with the slope at point A, but more information is needed to determine if the slope is greater than, less than, or equal to the slope at point A.

Question 4

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.

Question 5

Economics is the social science that studies

Accepted Answer

A)  the real reasons people buy goods and services. 
B)  the psychology of individuals and businesses. 
C)  whether a nation has enough natural resources. 
D)  how people make choices to cope with scarcity. 
E)  how choices made in the social interest could eliminate scarcity.

Question 6

When the Dallas Cowboys score more than 30 points in a game,they win the game.This is an example of

Accepted Answer

A)  an economic theory. 
B)  a correlation. 
C)  an incentive to win the game. 
D)  a normative statement. 
E)  a statement on the margin.

Question 7

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then,there is

Accepted Answer

A)  a movement along the plotted curve. 
B)  a shift in the plotted curve. 
C)  no impact on the plotted curve because the variable is not measured on either of the axes. 
D)  an omitted variable. 
E)  a violation of the absence of trend assumption.

Question 8

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

The answer of A graph has a point that is...

Question 9

-In the above,in which figure(s)is (are)the slope the same at every point?

Accepted Answer

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

Question 10

Which of the following is a positive statement?

Accepted Answer

A)  An increase in college tuition is not fair to students. 
B)  A recession leads to higher enrollments at universities. 
C)  University bookstore prices are too high. 
D)  Parking tickets on campus impose an excessive fee. 
E)  The school needs more parking for students.

Question 11

$$\begin{array} { r r } 
X & Y \
\hline 2 & 20 \
4 & 16 \
6 & 12 \
8 & 8
\end{array}$$
-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

The answer of \[\begin{array} { r r } 
X &...

Question 12

An incentive is

Accepted Answer

A)  an inducement to take a particular action. 
B)  the marginal cost of some course of action. 
C)  the marginal benefit of some course of action. 
D)  the net gain of some course of action. 
E)  a constraint that society imposes on those who make self-interested choices.

Question 13

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

Question 14

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

Accepted Answer

A)  price of gold is falling. 
B)  price of gold is rising. 
C)  quantity of gold is falling. 
D)  price of gold is low and not changing. 
E)  price of gold fluctuates.

Question 15

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

The answer of Rather than go out to eat by...

Question 16

When Delta decides to quit flying to Lithuania,it directly answers the ________ question.

Accepted Answer

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

Question 17

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.

Question 18

An economist observed that as more computers are added to a factory,the costs of production initially decline,reach a minimum,and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis,the relationship always is

Accepted Answer

A)  negative and then linear after the minimum point. 
B)  positive and then negative after the minimum point. 
C)  negative and then positive after the minimum point. 
D)  linear and then positive after the minimum point. 
E)  negative both before and after the minimum point.

Question 19

The characteristic from which all economic problems arise is

Accepted Answer

A)  political decisions. 
B)  providing a minimal standard of living for every person. 
C)  how to make a profit. 
D)  hunger. 
E)  scarcity.

Question 20

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.

Exam 1: Getting Started

-In the above,which figure(s) has (have) at least one point at which the slope equals zero?

-In the diagram above,which figure(s) show(s) no relationship between the variables?