Question 1

-In the figure above,between points A and B,what is the slope of the line?

Accepted Answer

A)  4 
B)  1 
C)  3 
D)  -3 
E)  0

Question 2

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 3

-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 4

Rational choice

Accepted Answer

A)  is a choice that uses the available resources to best achieve the objective of the person making the choice. 
B)  is always efficient. 
C)  is what you must give up to get what you want. 
D)  is made by comparing different incentives. 
E)  provides the answer to only the "how" question.

Question 5

What is the relationship between wants,resources,scarcity,and choices? Discuss the relationship for an individual and for a society.

Accepted Answer

The answer of What is the relationship between wants,resources,scarcity,and choices?...

Question 6

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

Accepted Answer

A)  marginal benefit and marginal cost 
B)  opportunity cost and the sunk cost 
C)  positive benefits and normative costs 
D)  normative benefits and positive costs 
E)  self-interest and social-interest

Question 7

As a person increases his or her caloric intake,the person's weight increases,ceteris paribus.The relationship between the person's caloric intake and the person's weight is an example of

Accepted Answer

A)  unrelated variables. 
B)  a positive relationship. 
C)  a negative relationship. 
D)  a single point on a graph. 
E)  a trended relationship.

Question 8

Scarcity

Accepted Answer

A)  is the inability to satisfy all our wants. 
B)  leads to higher prices. 
C)  applies only to people living in poverty. 
D)  is not something that affects very rich people. 
E)  used to exist everywhere but has been eliminated in advanced economies.

Question 9

If the marginal benefit of getting a college degree rises,rational people will

Accepted Answer

A)  attend college in greater numbers. 
B)  drop out of college. 
C)  not change their behavior. 
D)  require that college get easier. 
E)  raise the marginal cost of attending college.

Question 10

The benefit of an activity is

Accepted Answer

A)  purely objective and measured in dollars. 
B)  the gain or pleasure that it brings. 
C)  the value of its opportunity cost. 
D)  measured by what must be given up to get one more unit of the activity. 
E)  not measurable on the margin.

Question 11

What is NOT true about rational choice?

Accepted Answer

A)  It can result in different decisions for different individuals. 
B)  It involves comparing costs and benefits. 
C)  It might turn out not to have been the best choice after the event. 
D)  It is a choice that uses the available resources to best achieve the objective of the person making the choice. 
E)  It is the same for all individuals.

Question 12

The ________ of something is the gain or pleasure that it brings.

Accepted Answer

A)  opportunity cost 
B)  benefit 
C)  marginal cost 
D)  rational choice 
E)  rational margin

Question 13

-The figure above shows the relationship between the time a student spends studying and the student's GPA that semester.The slope of the relationship at point A equals

Accepted Answer

A)  3. 
B)  3/20 
C)  2/20. 
D)  1/20. 
E)  0.

Question 14

Matt pays a $50 a month membership fee at Bruno's Gym.He can exercise at the gym as many times as he wishes.If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis,the graph between his membership fee and the number of times he exercises will

Accepted Answer

A)  be a horizontal line. 
B)  be positively sloped. 
C)  be negatively sloped. 
D)  be a vertical line. 
E)  start out positively sloped and then, as Matt loses interest, become negatively sloped.

Question 15

To show how a variable ________,we typically use a ________.

Accepted Answer

A)  relates to another variable; time series graph 
B)  relates to another variable; pie chart 
C)  changes over time; time series graph 
D)  changes over time; cross section graph 
E)  changes over time; cross time chart

Question 16

A change in a marginal benefit or cost will

Accepted Answer

A)  increase consumption. 
B)  decrease production. 
C)  cause an individual to make a rational choice. 
D)  increase sunk costs. 
E)  change incentives.

Question 17

In the above figure,which of the figures show(s)a relationships between x and y with a positive slope?

Accepted Answer

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

Question 18

If Jessie studies economics for two hours instead of going to the movies with her friends,then

Accepted Answer

A)  the benefit of studying is the missed movie. 
B)  the opportunity cost of studying is the missed movie. 
C)  Jesse definitely is making a rational choice. 
D)  Jessie is ignoring a sunk cost. 
E)  Jessie is not responding to any incentives.

Question 19

When Fresh Express Salads decides to mechanically pick all of its lettuce,it directly answers the ________ question.

Accepted Answer

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

Question 20

What is the difference between microeconomics and macroeconomics?

Accepted Answer

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

Exam 1: Getting Started