Question 1

Use the figure below to answer the following questions.   Figure 1A.4.3
-In Figure 1A.4.3,a decrease in the value of z results in,ceteris paribus,

Accepted Answer

A) a decrease in the value of x. 
B) an increase in the value of x. 
C) an increase in the value of y. 
D) no change in the value of y. 
E) no change in the value of x. 
A) a decrease in the value of x. 
B) an increase in the value of x. 
C) an increase in the value of y. 
D) no change in the value of y. 
E) no change in the value of x.

Question 2

Complete the following sentence.Macroeconomics

Accepted Answer

A) is primarily concerned with the operation of individual markets in the economy. 
B) deals mainly with the economic behaviour of households. 
C) is the only part of economics to deal with government decisions. 
D) is primarily concerned with the behaviour of the stock market. 
E) is the study of the performance of the national economy and the global economy. 
A) is primarily concerned with the operation of individual markets in the economy. 
B) deals mainly with the economic behaviour of households. 
C) is the only part of economics to deal with government decisions. 
D) is primarily concerned with the behaviour of the stock market. 
E) is the study of the performance of the national economy and the global economy.

Question 3

The branch of economics that studies the choices of individuals and businesses is

Accepted Answer

A) macroeconomics. 
B) microeconomics. 
C) positive economics. 
D) normative economics. 
E) social economics. 
A) macroeconomics. 
B) microeconomics. 
C) positive economics. 
D) normative economics. 
E) social economics.

Question 4

When a firm decides to produce more hybrid cars and fewer gas guzzlers,it is answering the ________ question.

Accepted Answer

A) "how" 
B) "what" 
C) "who" 
D) "where" 
E) "when" 
A) "how" 
B) "what" 
C) "who" 
D) "where" 
E) "when"

Question 5

Which of the following relates factors of production to the sources of income correctly?

Accepted Answer

A) Land earns interest. 
B) Land earns rent. 
C) Labour earns rent. 
D) Capital earns profit. 
E) Entrepreneurship earns rent. 
A) Land earns interest. 
B) Land earns rent. 
C) Labour earns rent. 
D) Capital earns profit. 
E) Entrepreneurship earns rent.

Question 6

Statements about "what is" are called

Accepted Answer

A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses. 
A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses.

Question 7

Which one of the following topics does macroeconomics study?

Accepted Answer

A) decisions of individual firms 
B) effects of government safety regulations on the price of cars 
C) the performance of the global economy 
D) prices of individual goods and services 
E) effects of taxes on the price of gasoline 
A) decisions of individual firms 
B) effects of government safety regulations on the price of cars 
C) the performance of the global economy 
D) prices of individual goods and services 
E) effects of taxes on the price of gasoline

Question 8

Consider graph (a)of Figure 1A.2.1.Which one of the following statements is true?

Accepted Answer

A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) Both A and D are correct. 
A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) Both A and D are correct.

Question 9

The slope of a straight line

Accepted Answer

A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope. 
A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope.

Question 10

The relationship between two variables that are negatively related is shown graphically by a line that

Accepted Answer

A) slopes upward to the right. 
B) is horizontal. 
C) slopes downward to the right. 
D) is vertical. 
E) is below the x-axis and to the left of the y-axis. 
A) slopes upward to the right. 
B) is horizontal. 
C) slopes downward to the right. 
D) is vertical. 
E) is below the x-axis and to the left of the y-axis.

Question 11

The two big economic questions

Accepted Answer

A) involve self-interest only. 
B) involve only social interest. 
C) involve neither self-interest nor social interest. 
D) do not arise from scarcity. 
E) involve both self-interest and social interest. 
A) involve self-interest only. 
B) involve only social interest. 
C) involve neither self-interest nor social interest. 
D) do not arise from scarcity. 
E) involve both self-interest and social interest.

Question 12

Use the figure below to answer the following questions.   Figure 1A.3.3
-In Figure 1A.3.3,the slope across arc AB is

Accepted Answer

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

Question 13

Use the table below to answer the following questions.
Table 1A.4.1
  
-Given the data in Table 1A.4.1,holding y constant,the graph of x and z

Accepted Answer

A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) shows that x and z are not related. 
A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) shows that x and z are not related.

Question 14

Use the figure below to answer the following questions.   Figure 1A.3.9
-Refer to Figure 1A.3.9.Which one of the graphs shows a line with an infinite slope?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (b)and (c) 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (b)and (c)

Question 15

The creation of a successful movie can influence the main questions that economics seeks to answer.Choose the statement that is false.

Accepted Answer

A) The movie influences the how question because the movie can create new production techniques,which can be used in subsequent films. 
B) The movie influences the for whom question because the people who earn higher incomes through the movie production buy more goods and services. 
C) The movie influences the when question because movie crews work on many different films and must be available for the entire production. 
D) The movie influences the what question because it can lead to spinoff goods or a new movie genre,which can result in the production of similar films. 
E) The movie influences the how question because it can use unknown actors or Academy Award winners. 
A) The movie influences the how question because the movie can create new production techniques,which can be used in subsequent films. 
B) The movie influences the for whom question because the people who earn higher incomes through the movie production buy more goods and services. 
C) The movie influences the when question because movie crews work on many different films and must be available for the entire production. 
D) The movie influences the what question because it can lead to spinoff goods or a new movie genre,which can result in the production of similar films. 
E) The movie influences the how question because it can use unknown actors or Academy Award winners.

Question 16

Consider graph (b)of Figure 1A.2.1.Which one of the following statements is true?

Accepted Answer

A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) Both A and D are correct. 
A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) Both A and D are correct.

Question 17

"The rich face higher income tax rates than the poor,which is not good since it is the rich who provide jobs for the poor." This is an example of

Accepted Answer

A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) a theoretical statement. 
E) a descriptive statement. 
A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) a theoretical statement. 
E) a descriptive statement.

Question 18

Use the figure below to answer the following questions.   Figure 1A.2.4
-Refer to Figure 1A.2.4.If theory predicts that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y),which graph represents this relationship?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (a)or (c) 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (a)or (c)

Question 19

Choose the correct option regarding the earnings of economics majors.

Accepted Answer

A) A person who majors in economics,completes a Ph.D. ,and gets a job as an economist would expect to earn about $250,000 by mid-career. 
B) Graduates in economics can generally expect to earn more than graduates in sociology or business. 
C) Market research analysts and financial analysts can generally expect to earn more at mid-career than a person with a Ph.D.in economics. 
D) The Web resource payscale.com reports that the pay range for economists is between $25,000 and $250,000. 
E) Economists who work in finance,insurance,and government jobs earn less than other economists on average. 
A) A person who majors in economics,completes a Ph.D. ,and gets a job as an economist would expect to earn about $250,000 by mid-career. 
B) Graduates in economics can generally expect to earn more than graduates in sociology or business. 
C) Market research analysts and financial analysts can generally expect to earn more at mid-career than a person with a Ph.D.in economics. 
D) The Web resource payscale.com reports that the pay range for economists is between $25,000 and $250,000. 
E) Economists who work in finance,insurance,and government jobs earn less than other economists on average.

Question 20

The problem of scarcity exists

Accepted Answer

A) only in economies that lack incentives. 
B) only in economies that have incentives. 
C) in all economies. 
D) only when people are unemployed. 
E) now but will be eliminated with economic growth. 
A) only in economies that lack incentives. 
B) only in economies that have incentives. 
C) in all economies. 
D) only when people are unemployed. 
E) now but will be eliminated with economic growth.

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3,a decrease in the value of z results in,ceteris paribus,

Complete the following sentence.Macroeconomics

The branch of economics that studies the choices of individuals and businesses is

When a firm decides to produce more hybrid cars and fewer gas guzzlers,it is answering the ________ question.

Which of the following relates factors of production to the sources of income correctly?

Statements about "what is" are called

Which one of the following topics does macroeconomics study?

Consider graph (a)of Figure 1A.2.1.Which one of the following statements is true?

The slope of a straight line

The relationship between two variables that are negatively related is shown graphically by a line that

The two big economic questions

Use the figure below to answer the following questions. Figure 1A.3.3 -In Figure 1A.3.3,the slope across arc AB is

Use the table below to answer the following questions. Table 1A.4.1 -Given the data in Table 1A.4.1,holding y constant,the graph of x and z

Use the figure below to answer the following questions. Figure 1A.3.9 -Refer to Figure 1A.3.9.Which one of the graphs shows a line with an infinite slope?

The creation of a successful movie can influence the main questions that economics seeks to answer.Choose the statement that is false.

Consider graph (b)of Figure 1A.2.1.Which one of the following statements is true?

"The rich face higher income tax rates than the poor,which is not good since it is the rich who provide jobs for the poor." This is an example of

Use the figure below to answer the following questions. Figure 1A.2.4 -Refer to Figure 1A.2.4.If theory predicts that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y),which graph represents this relationship?

Choose the correct option regarding the earnings of economics majors.

The problem of scarcity exists

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

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3,a decrease in the value of z results in,ceteris paribus,

Complete the following sentence.Macroeconomics

The branch of economics that studies the choices of individuals and businesses is

When a firm decides to produce more hybrid cars and fewer gas guzzlers,it is answering the ________ question.

Which of the following relates factors of production to the sources of income correctly?

Statements about "what is" are called

Which one of the following topics does macroeconomics study?

Consider graph (a)of Figure 1A.2.1.Which one of the following statements is true?

The slope of a straight line

The relationship between two variables that are negatively related is shown graphically by a line that

The two big economic questions

Use the figure below to answer the following questions. Figure 1A.3.3 -In Figure 1A.3.3,the slope across arc AB is

Use the table below to answer the following questions. Table 1A.4.1 -Given the data in Table 1A.4.1,holding y constant,the graph of x and z

Use the figure below to answer the following questions. Figure 1A.3.9 -Refer to Figure 1A.3.9.Which one of the graphs shows a line with an infinite slope?

The creation of a successful movie can influence the main questions that economics seeks to answer.Choose the statement that is false.

Consider graph (b)of Figure 1A.2.1.Which one of the following statements is true?

"The rich face higher income tax rates than the poor,which is not good since it is the rich who provide jobs for the poor." This is an example of

Use the figure below to answer the following questions. Figure 1A.2.4 -Refer to Figure 1A.2.4.If theory predicts that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y),which graph represents this relationship?

Choose the correct option regarding the earnings of economics majors.

The problem of scarcity exists

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