Question 1

If two variables are unrelated,their graph is

Accepted Answer

A)  either a horizontal or a vertical line. 
B)  a downward-sloping line. 
C)  an upward-sloping line. 
D)  a curved line. 
E)  None of the above answers is correct because it is not possible to graph unrelated variables.

Question 2

A scatter diagram can be used to see

Accepted Answer

A)  if the value of a variable is rising or falling. 
B)  the value of a variable for different groups in a population. 
C)  if a relationship exists between two variables. 
D)  how a variable behaves over time. 
E)  whether a variable is positively or negatively related to itself.

Question 3

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 4

A time series graph

Accepted Answer

A)  shows how a certain variable changes over time. 
B)  uses bars rather than lines. 
C)  shows points that are scattered. 
D)  depicts a series of good economic times a nation had. 
E)  is not useful if the goal is to determine a variable's trend.

Question 5

Which of the following statements is a normative statement?

Accepted Answer

A)  Every American household should have health care insurance coverage. 
B)  Military spending as a percent of government spending decreased by 5 percent in the 1990s. 
C)  Welfare reform has decreased the amount the government spends on welfare. 
D)  The price of computers fell last year. 
E)  Fewer people are unemployed this year than last year.

Question 6

-The graph shows a

Accepted Answer

A)  positive relationship that becomes steeper. 
B)  negative relationship that becomes steeper. 
C)  positive relationship that becomes less steep. 
D)  negative relationship that become less steep. 
E)  negative trend between the total cost of a cake and the output of cakes.

Question 7

-In the figure above,an increase in z leads to a

Accepted Answer

A)  movement up along one of the lines showing the relationship between x and y. 
B)  movement down along one of the lines showing the relationship between x and y. 
C)  rightward shift of the line showing the relationship between x and y. 
D)  leftward shift of the line showing the relationship between x and y. 
E)  trend change in both x and y.

Question 8

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The relationship between the price and the quantity the florist can sell is

Accepted Answer

A)  positive. 
B)  negative. 
C)  nonexistent. 
D)  linear. 
E)  cross-sectionally trended.

Question 9

-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 ________ the slope at point B.

Accepted Answer

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

Question 10

________ shows the values of a variable for different groups in the population at a certain point in time.

Accepted Answer

A)  A time-series graph 
B)  The origin 
C)  A cross-section graph 
D)  A scatter plot 
E)  A trend-line graph

Question 11

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 12

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

Accepted Answer

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

Question 13

Must a rational choice always work out well? In other words,is it possible for someone to regret a rational decision?

Accepted Answer

The answer of Must a rational choice always work out...

Question 14

-The slope of the line shown in the above figure is

Accepted Answer

A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
E)  5.

Question 15

People must make choices because

Accepted Answer

A)  most people enjoy shopping. 
B)  of scarcity. 
C)  there are many goods available. 
D)  the question "What goods and services are produced?" is not adequately answered. 
E)  making choices is in the social interest.

Question 16

-The graph shows a

Accepted Answer

A)  positive relationship that becomes less steep. 
B)  negative relationship that is linear. 
C)  positive relationship that is linear. 
D)  negative relationship that become less steep. 
E)  None of the above answers is correct.

Question 17

Microeconomics includes the study of

Accepted Answer

A)  how countries decide to fund their budget deficits. 
B)  the choices that individuals and businesses make. 
C)  how a nation promotes economic growth. 
D)  the effect on the national economy of the choices that individuals make. 
E)  the overall amount of production within the economy.

Question 18

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 19

Making choices on the margin means

Accepted Answer

A)  scribbling on the edges of your notebook paper. 
B)  comparing all relevant alternatives systematically and incrementally. 
C)  making a decision based on emotions. 
D)  making decisions in the largest possible increments. 
E)  taking account of all marginal benefits, all opportunity costs, and all sunk costs.

Question 20

-The relationship between distance traveled in 5 hours and speed shown in the figure above is

Accepted Answer

A)  direct, linear. 
B)  inverse, linear. 
C)  direct, non-linear. 
D)  inverse, positive. 
E)  direct, negative.

Exam 1: Getting Started

If two variables are unrelated,their graph is

A scatter diagram can be used to see

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.

A time series graph

Which of the following statements is a normative statement?

-The graph shows a

-In the figure above,an increase in z leads to a

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The relationship between the price and the quantity the florist can sell is

-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 ________ the slope at point B.

________ shows the values of a variable for different groups in the population at a certain point in time.

Which of the following is a positive statement?

The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question.

Must a rational choice always work out well? In other words,is it possible for someone to regret a rational decision?

-The slope of the line shown in the above figure is

People must make choices because

-The graph shows a

Microeconomics includes the study of

A slope is measured as the

Making choices on the margin means

-The relationship between distance traveled in 5 hours and speed shown in the figure above is