Question 1

The study of economics is best described as a study of

Accepted Answer

A)  the factors that influence the stock and bond markets. 
B)  capitalism. 
C)  the choices made in producing goods and services. 
D)  coping with scarcity, and choices made as a result of scarcity in a society. 
E)  how people earn a living.

Question 2

Why do economists use graphs?

Accepted Answer

The answer of Why do economists use graphs?...

Question 3

What does the slope of a straight line equal? How is the slope of a curved line calculated?

Accepted Answer

The answer of What does the slope of a straight...

Question 4

-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.

Question 5

As the price of home heating oil rises,families buy less home heating oil.Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationship.

Accepted Answer

A)  positive 
B)  linear 
C)  time-series 
D)  negative 
E)  cross-sectional

Question 6

What do economists mean when they discuss "scarcity"?

Accepted Answer

The answer of What do economists mean when they discuss...

Question 7

-The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts.If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2,peanut farmers are willing to sell

Accepted Answer

A)  no peanuts. 
B)  1000 pounds of peanuts. 
C)  2000 pounds of peanuts. 
D)  4000 pounds of peanuts. 
E)  more than 4000 pounds of peanuts.

Question 8

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

Question 9

Which of the following best defines economics?

Accepted Answer

A)  Economics teaches how to limit our wants. 
B)  Economics studies how to choose the best alternative when coping with scarcity. 
C)  Economics helps you earn as much money as possible. 
D)  Economics analyzes all aspects of human behavior in general. 
E)  Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.

Question 10

All economic questions and problems arise from

Accepted Answer

A)  the fact that society has more than it needs. 
B)  turmoil in the stock market. 
C)  the unequal distribution of income. 
D)  a society's wants exceeding what its scarce resources can produce. 
E)  the difference between self-interest and social interest.

Question 11

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.

Question 12

Explain whether the statement,"Hillary Clinton was elected President of the United States in 2008," is a normative or positive statement.

Accepted Answer

The answer of Explain whether the statement,"Hillary Clinton was elected...

Question 13

When unskilled teens earn less than college graduates,society answers the ________ question.

Accepted Answer

A)  how 
B)  what 
C)  for whom 
D)  why 
E)  social interest versus self-interest

Question 14

Of the three major economic questions,which of the following is the best example of a "How?" question?

Accepted Answer

A)  Should we produce more heavy fleece coats? 
B)  Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
C)  Should we build log homes or build factories from bricks? 
D)  Should we spend more on health care? 
E)  Should we eat more oatmeal?

Question 15

Moving from left to right,a U-shaped curve starts with a

Accepted Answer

A)  positive slope, reaches a maximum, then ends with a negative slope. 
B)  positive slope, reaches a minimum, then ends with a negative slope. 
C)  negative slope, reaches a maximum, then ends with a positive slope. 
D)  negative slope, reaches a minimum, then ends with a positive slope. 
E)  negative slope, reaches a minimum, then ends with a negative slope.

Question 16

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.

Question 17

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  attending a movie 
B)  studying for an economics exam 
C)  answering his e-mail 
D)  attending a movie, studying for an economics exam, and answering his e-mail 
E)  going to the concert because that is what John choose to do

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

Question 19

The slope of a line equals the change in the variable measured along the

Accepted Answer

A)  x-axis divided by the change in the variable measured along the y-axis. 
B)  y-axis divided by the change in the variable measured along the x-axis. 
C)  x-axis minus the change in the variable measured along the y-axis. 
D)  x-axis multiplied by the change in the variable measured along the y-axis. 
E)  y-axis minus the change in the variable measured along the x-axis.

Question 20

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

Exam 1: Getting Started