Question 1

The fact that a hockey star earns $10 million a year while a teacher earns $75,000 annually is an example of an economy facing the ________ question.

Accepted Answer

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

Question 2

Use the table below to answer the following question.
Table 1A.2.3
  
-Refer to Table 1A.2.3.What type of relationship exists between w and u?

Accepted Answer

A) positive 
B) negative 
C) direct 
D) No consistent relationship exists. 
E) first a positive relationship,then a negative one 
A) positive 
B) negative 
C) direct 
D) No consistent relationship exists. 
E) first a positive relationship,then a negative one

Question 3

Use the table below to answer the following questions.
Table 1A.4.2  
-Table 1A.4.2 shows that

Accepted Answer

A) the number of boxes of strawberries purchased is negatively related to the price of strawberries,holding income constant. 
B) the number of boxes of strawberries purchased is negatively related to income,holding the price of strawberries constant. 
C) the price of strawberries is negatively related to family income,holding purchases of strawberries constant. 
D) there is no relationship between the price of strawberries and the number of boxes purchased. 
E) there is no relationship between family income and the number of boxes of strawberries purchased. 
A) the number of boxes of strawberries purchased is negatively related to the price of strawberries,holding income constant. 
B) the number of boxes of strawberries purchased is negatively related to income,holding the price of strawberries constant. 
C) the price of strawberries is negatively related to family income,holding purchases of strawberries constant. 
D) there is no relationship between the price of strawberries and the number of boxes purchased. 
E) there is no relationship between family income and the number of boxes of strawberries purchased.

Question 4

Which of the following statements are positive? 1.The federal government should increase production of biofuels.
2.Air travel has increased since September 11.
3.The greatest number of accidents are caused by drunk drivers.
4.We ought to have a cure for cancer.

Accepted Answer

A) Statements 1 and 4 are positive. 
B) Statements 2 and 3 are positive. 
C) Statements 1 and 2 are positive. 
D) Statements 3 and 4 are positive. 
E) Statements 2 and 4 are positive. 
A) Statements 1 and 4 are positive. 
B) Statements 2 and 3 are positive. 
C) Statements 1 and 2 are positive. 
D) Statements 3 and 4 are positive. 
E) Statements 2 and 4 are positive.

Question 5

Use the figure below to answer the following questions.   Figure 1A.1.2
-Refer to Figure 1A.1.2.When y increases from 5 to 6,x

Accepted Answer

A) increases from 5 to 6. 
B) increases from 7 to 8. 
C) increases from 7 to 9. 
D) decreases from 9 to 7. 
E) increases from 7 to 7 1/2. 
A) increases from 5 to 6. 
B) increases from 7 to 8. 
C) increases from 7 to 9. 
D) decreases from 9 to 7. 
E) increases from 7 to 7 1/2.

Question 6

The Latin term ceteris paribus means

Accepted Answer

A) "Innocent until proven guilty." 
B) "Fallacies are composed." 
C) "Compositions are fallacious." 
D) "The whole is not the sum of the parts." 
E) "If all other relevant things remain the same." 
A) "Innocent until proven guilty." 
B) "Fallacies are composed." 
C) "Compositions are fallacious." 
D) "The whole is not the sum of the parts." 
E) "If all other relevant things remain the same."

Question 7

Use the figure below to answer the following questions.   Figure 1A.2.5
-Which curve or curves in Figure 1A.2.5 shows a negative relationship between unemployment and inflation?

Accepted Answer

A) A 
B) A and B 
C) B,C,and D 
D) A and D 
E) B and C 
A) A 
B) A and B 
C) B,C,and D 
D) A and D 
E) B and C

Question 8

Use the figure below to answer the following questions.   Figure 1A.3.4
-In Figure 1A.3.4,the slope across arc BC is

Accepted Answer

A) -2/3. 
B) -3/2. 
C) -2. 
D) -4/3. 
E) -3/4. 
A) -2/3. 
B) -3/2. 
C) -2. 
D) -4/3. 
E) -3/4.

Question 9

Use the table below to answer the following questions.
Table 1A.3.2
  
-Refer to Table 1A.3.2.Suppose that w is measured along the x-axis.The slope of the line relating w and u is

Accepted Answer

A) +3. 
B) -3. 
C) -2/3. 
D) +3/2. 
E) -3/2. 
A) +3. 
B) -3. 
C) -2/3. 
D) +3/2. 
E) -3/2.

Question 10

In choosing among alternative models,economists generally have the strongest preference for models that

Accepted Answer

A) have assumptions that are close to exact replicas of reality. 
B) are detailed and complex,with every available fact and figure included. 
C) have few assumptions and are as simple as possible,even if they cannot predict very well. 
D) predict better than any other that is available. 
E) have assumptions that are complicated. 
A) have assumptions that are close to exact replicas of reality. 
B) are detailed and complex,with every available fact and figure included. 
C) have few assumptions and are as simple as possible,even if they cannot predict very well. 
D) predict better than any other that is available. 
E) have assumptions that are complicated.

Question 11

Use the figure below to answer the following questions.   Figure 1A.3.1
-The slope of the line in Figure 1A.3.1 is

Accepted Answer

A) 0.50. 
B) 0.75. 
C) 1.00 
D) 1.25. 
E) 1.50. 
A) 0.50. 
B) 0.75. 
C) 1.00 
D) 1.25. 
E) 1.50.

Question 12

Use the figure below to answer the following questions.   Figure 1A.1.2
-In Figure 1A.1.2,the value of y is 5 when x is

Accepted Answer

A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8. 
A) 4. 
B) 5. 
C) 6. 
D) 7. 
E) 8.

Question 13

The relationship between two variables that move in opposite directions is shown graphically by a line that is

Accepted Answer

A) positively sloped. 
B) relatively steep. 
C) relatively flat. 
D) negatively sloped. 
E) curved. 
A) positively sloped. 
B) relatively steep. 
C) relatively flat. 
D) negatively sloped. 
E) curved.

Question 14

A good economic model

Accepted Answer

A) does not include more than two variables. 
B) includes only those features of the world that are needed for the purpose at hand. 
C) describes all aspects of the economic world. 
D) includes only features of the world that can be described numerically. 
E) includes more than two variables but less than 10 variables. 
A) does not include more than two variables. 
B) includes only those features of the world that are needed for the purpose at hand. 
C) describes all aspects of the economic world. 
D) includes only features of the world that can be described numerically. 
E) includes more than two variables but less than 10 variables.

Question 15

Sue,who has a law degree,earns $200,000 a year,while Chris,a high-school dropout,earns $15.00 an hour.This is an example of an economy facing the ________ question.

Accepted Answer

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

Question 16

If the equation of a straight line is y = 6 + 3x,then the slope is

Accepted Answer

A) -3 and the y-axis intercept is 6. 
B) -3 and the y-axis intercept is -2. 
C) 3 and the y-axis intercept is 6. 
D) 3 and the y-axis intercept is -2. 
E) 3 and the y-axis intercept is -6. 
A) -3 and the y-axis intercept is 6. 
B) -3 and the y-axis intercept is -2. 
C) 3 and the y-axis intercept is 6. 
D) 3 and the y-axis intercept is -2. 
E) 3 and the y-axis intercept is -6.

Question 17

Use the figure below to answer the following question.   Figure 1A.3.6
-What is the slope of the line in Figure A1.3.6?

Accepted Answer

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

Question 18

Marginal benefit is

Accepted Answer

A) the cost of an increase in an activity. 
B) the sum of benefit and cost that arises from an increase in an activity. 
C) the cost of a decrease in an activity. 
D) the benefit that arises from an increase in an activity. 
E) the benefit that arises from a decrease in an activity. 
A) the cost of an increase in an activity. 
B) the sum of benefit and cost that arises from an increase in an activity. 
C) the cost of a decrease in an activity. 
D) the benefit that arises from an increase in an activity. 
E) the benefit that arises from a decrease in an activity.

Question 19

Each of the following would be considered a macroeconomic topic except

Accepted Answer

A) the reasons for a decrease in the unemployment rate. 
B) the cause of recessions. 
C) the effect of the government budget deficit on inflation. 
D) the determination of aggregate income. 
E) the selection of production techniques. 
A) the reasons for a decrease in the unemployment rate. 
B) the cause of recessions. 
C) the effect of the government budget deficit on inflation. 
D) the determination of aggregate income. 
E) the selection of production techniques.

Question 20

The scientific purpose of simplifying assumptions in an economic model is to

Accepted Answer

A) avoid confronting difficult issues. 
B) eliminate the need for further testing of the implications of the model. 
C) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
D) eliminate the possibility of personal bias in the model. 
E) add necessary hypotheses to the problem. 
A) avoid confronting difficult issues. 
B) eliminate the need for further testing of the implications of the model. 
C) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
D) eliminate the possibility of personal bias in the model. 
E) add necessary hypotheses to the problem.

The fact that a hockey star earns $10 million a year while a teacher earns $75,000 annually is an example of an economy facing the ________ question.

Use the table below to answer the following question. Table 1A.2.3 -Refer to Table 1A.2.3.What type of relationship exists between w and u?

Use the table below to answer the following questions. Table 1A.4.2 -Table 1A.4.2 shows that

Which of the following statements are positive? 1.The federal government should increase production of biofuels. 2.Air travel has increased since September 11. 3.The greatest number of accidents are caused by drunk drivers. 4.We ought to have a cure for cancer.

Use the figure below to answer the following questions. Figure 1A.1.2 -Refer to Figure 1A.1.2.When y increases from 5 to 6,x

The Latin term ceteris paribus means

Use the figure below to answer the following questions. Figure 1A.2.5 -Which curve or curves in Figure 1A.2.5 shows a negative relationship between unemployment and inflation?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4,the slope across arc BC is

Use the table below to answer the following questions. Table 1A.3.2 -Refer to Table 1A.3.2.Suppose that w is measured along the x-axis.The slope of the line relating w and u is

In choosing among alternative models,economists generally have the strongest preference for models that

Use the figure below to answer the following questions. Figure 1A.3.1 -The slope of the line in Figure 1A.3.1 is

Use the figure below to answer the following questions. Figure 1A.1.2 -In Figure 1A.1.2,the value of y is 5 when x is

The relationship between two variables that move in opposite directions is shown graphically by a line that is

A good economic model

Sue,who has a law degree,earns $200,000 a year,while Chris,a high-school dropout,earns $15.00 an hour.This is an example of an economy facing the ________ question.

If the equation of a straight line is y = 6 + 3x,then the slope is

Use the figure below to answer the following question. Figure 1A.3.6 -What is the slope of the line in Figure A1.3.6?

Marginal benefit is

Each of the following would be considered a macroeconomic topic except

The scientific purpose of simplifying assumptions in an economic model is to

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: What Is Economics

The fact that a hockey star earns $10 million a year while a teacher earns $75,000 annually is an example of an economy facing the ________ question.

Use the table below to answer the following question. Table 1A.2.3 -Refer to Table 1A.2.3.What type of relationship exists between w and u?

Use the table below to answer the following questions. Table 1A.4.2 -Table 1A.4.2 shows that

Which of the following statements are positive? 1.The federal government should increase production of biofuels. 2.Air travel has increased since September 11. 3.The greatest number of accidents are caused by drunk drivers. 4.We ought to have a cure for cancer.

Use the figure below to answer the following questions. Figure 1A.1.2 -Refer to Figure 1A.1.2.When y increases from 5 to 6,x

The Latin term ceteris paribus means

Use the figure below to answer the following questions. Figure 1A.2.5 -Which curve or curves in Figure 1A.2.5 shows a negative relationship between unemployment and inflation?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4,the slope across arc BC is

Use the table below to answer the following questions. Table 1A.3.2 -Refer to Table 1A.3.2.Suppose that w is measured along the x-axis.The slope of the line relating w and u is

In choosing among alternative models,economists generally have the strongest preference for models that

Use the figure below to answer the following questions. Figure 1A.3.1 -The slope of the line in Figure 1A.3.1 is

Use the figure below to answer the following questions. Figure 1A.1.2 -In Figure 1A.1.2,the value of y is 5 when x is

The relationship between two variables that move in opposite directions is shown graphically by a line that is

A good economic model

Sue,who has a law degree,earns $200,000 a year,while Chris,a high-school dropout,earns $15.00 an hour.This is an example of an economy facing the ________ question.

If the equation of a straight line is y = 6 + 3x,then the slope is

Use the figure below to answer the following question. Figure 1A.3.6 -What is the slope of the line in Figure A1.3.6?

Marginal benefit is

Each of the following would be considered a macroeconomic topic except

The scientific purpose of simplifying assumptions in an economic model is to

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters