Question 1

-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 
-Graph the data in the table above...

Question 2

A cross-section graph

Accepted Answer

A) is divided into different sections. 
B) shows the values of an economic variable for different groups in a population at a point in time. 
C) measures time on the x-axis and the variable in which we are interested on the y-axis. 
D) Both answers A and C are correct. 
E) Both answers A and B are correct.

Question 3

If x increases and as a result y decreases,then x and y are

Accepted Answer

A) not related because the relationship is a causal one. 
B) positively related. 
C) negatively related. 
D) directly related. 
E) trend-line related.

Question 4

With y measured on the vertical axis and x measured on the horizontal axis,the slope of a straight line is defined as

Accepted Answer

A) y/x. 
B) x/y. 
C) (change in y)/(change in x). 
D) (change in x)/(change in y). 
E) y - x.

Question 5

Which of the following is a positive statement?

Accepted Answer

A) The rich should pay more in taxes. 
B) Everyone should have some knowledge of economics. 
C) Taxes on gasoline should be lower so that gasoline is more affordable to the poor. 
D) If we reduce welfare payments given to the poor,they will find jobs. 
E) Social Security must be reformed.

Question 6

-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.

Question 7

-In the diagram above,which figure(s)show(s)an inverse relationship between the variables?

Accepted Answer

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

Question 8

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 9

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) value of the variable measured on the x-axis minus the value of the variable measured on the y-axis.

Question 10

The additional benefit of increasing some activity by one unit is called the

Accepted Answer

A) marginal benefit. 
B) opportunity cost. 
C) total benefit. 
D) scarcity. 
E) unit cost/benefit.

Question 11

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 12

Suppose that your public library charges a fixed monthly membership fee of $12.Members are allowed to check out as many books as they want under this plan.The average member checks out 4 books per month.Suppose that your public library changes its policy.Now each book costs $3 to check out but there is no longer a monthly membership fee.What effect do you think the new policy will have on the total number of books checked out from your library each month? The new policy is likely to ______the number of books checked out because ________.

Accepted Answer

A) leave unchanged;members have already shown that they are willing to pay $12 to check out 4 books per month 
B) leave unchanged;the average cost of the library service is the same under both plans 
C) reduce;the marginal benefit of checking out books is now lower under the new policy 
D) reduce;the marginal cost of checking out books is now higher under the new policy 
E) increase;the average benefit of checking out more than 4 books is now higher under the new policy

Question 13

A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

Accepted Answer

A) falling. 
B) rising. 
C) high and not changing. 
D) low and falling. 
E) high and falling.

Question 14

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The answer of 
-What does the slope of the line...

Question 15

-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.

Question 16

-The figure above shows the relationship between study time and the number of problems worked.The curve becomes less steep because as you study more,

Accepted Answer

A) study time becomes less effective. 
B) study time becomes more effective. 
C) the number of problems worked increases. 
D) the number of problems worked decreases. 
E) the relationship between study time and the number of problems worked changes from direct to inverse.

Question 17

The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?

Accepted Answer

The answer of The question "Will doctors or lawyers have...

Question 18

What is the difference between microeconomics and macroeconomics?

Accepted Answer

The answer of What is the difference between microeconomics and...

Question 19

If x increases whenever y decreases,then x and y are

Accepted Answer

A) not related. 
B) positively related. 
C) directly related. 
D) negatively related. 
E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.

Question 20

What is an opportunity cost? Give an example.

Accepted Answer

The answer of What is an opportunity cost? Give an...

Exam 1: Getting Started

-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?