Question 1

The equation of a line is y = 4 + 2x.What is the y-axis intercept of this line?

Accepted Answer

A) 4 
B) -2 
C) -1/2 
D) 1/4 
E) 0 
A) 4 
B) -2 
C) -1/2 
D) 1/4 
E) 0

Question 2

Use the figure below to answer the following question.   Figure 1A.3.7
-The slope of the line in Figure 1A.3.7 is

Accepted Answer

A) 1. 
B) -1. 
C) 1/2. 
D) 2. 
E) dependent on where you measure it. 
A) 1. 
B) -1. 
C) 1/2. 
D) 2. 
E) dependent on where you measure it.

Question 3

Two variables are negatively related if

Accepted Answer

A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) both variables are less than zero. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other. 
A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) both variables are less than zero. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other.

Question 4

Which statement about incomes earned by factors of production is false?

Accepted Answer

A) Land earns rent. 
B) Natural resources earn rent. 
C) Labour earns wages. 
D) Capital earns profit. 
E) Entrepreneurship earns profit. 
A) Land earns rent. 
B) Natural resources earn rent. 
C) Labour earns wages. 
D) Capital earns profit. 
E) Entrepreneurship earns profit.

Question 5

Statements about "what ought to be" 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 6

The determination of prices in individual markets is primarily a concern of

Accepted Answer

A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics. 
A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics.

Question 7

Use the figure below to answer the following question.   Figure 1A.3.11
-Refer to Figure 1A.3.11.The graph shows a ________ relationship.The absolute value of the slope of the relationship ________ as the value of x increases.

Accepted Answer

A) positive;increases 
B) positive;decreases 
C) negative;decreases 
D) negative;increases 
E) negative;does not change 
A) positive;increases 
B) positive;decreases 
C) negative;decreases 
D) negative;increases 
E) negative;does not change

Question 8

Use the table below to answer the following question.
Table 1A.2.2
  
-Refer to Table 1A.2.2.What type of relationship exists between y and z?

Accepted Answer

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

Question 9

Economists test economic models by using

Accepted Answer

A) the what,how,and for whom questions. 
B) positive statements and normative statements. 
C) personal economic policy,business economic policy,and government economic policy. 
D) natural experiments,statistical investigations,and economic experiments. 
E) marginal benefit and marginal cost. 
A) the what,how,and for whom questions. 
B) positive statements and normative statements. 
C) personal economic policy,business economic policy,and government economic policy. 
D) natural experiments,statistical investigations,and economic experiments. 
E) marginal benefit and marginal cost.

Question 10

When Al makes the statement,"The cost of living has increased 10 percent over the past 10 years," he is

Accepted Answer

A) making a positive statement. 
B) making a negative statement. 
C) making a normative statement. 
D) testing an economic model. 
E) identifying the standard of living-cost of living tradeoff. 
A) making a positive statement. 
B) making a negative statement. 
C) making a normative statement. 
D) testing an economic model. 
E) identifying the standard of living-cost of living tradeoff.

Question 11

Complete the following sentence.Entrepreneurship is

Accepted Answer

A) defined as money. 
B) traded on the stock market. 
C) categorized as capital. 
D) the human resource that organizes labour,land and capital. 
E) categorized as the factor of production labour. 
A) defined as money. 
B) traded on the stock market. 
C) categorized as capital. 
D) the human resource that organizes labour,land and capital. 
E) categorized as the factor of production labour.

Question 12

The equation of a line is y = 4 + 2x.What is the x-axis intercept of this line?

Accepted Answer

A) 4 
B) -2 
C) -1/2 
D) 1/4 
E) 0 
A) 4 
B) -2 
C) -1/2 
D) 1/4 
E) 0

Question 13

According to Adam Smith

Accepted Answer

A) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can make a profit,but both buyers and sellers can't gain simultaneously. 
C) politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
D) when big corporations pursue their self-interest of maximum profit,they will inevitably conflict with social interest. 
E) the self-interest and the social interest never conflict. 
A) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest. 
B) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can make a profit,but both buyers and sellers can't gain simultaneously. 
C) politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes. 
D) when big corporations pursue their self-interest of maximum profit,they will inevitably conflict with social interest. 
E) the self-interest and the social interest never conflict.

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 a zero slope?

Accepted Answer

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

Question 15

Which of the following is a microeconomic topic?

Accepted Answer

A) the reasons why a consumer buys less honey 
B) the reasons why the average price level in a country falls 
C) the cause of increasing unemployment 
D) the effect of the government budget deficit on inflation 
E) the reasons why the labour force in a country decreases 
A) the reasons why a consumer buys less honey 
B) the reasons why the average price level in a country falls 
C) the cause of increasing unemployment 
D) the effect of the government budget deficit on inflation 
E) the reasons why the labour force in a country decreases

Question 16

A tractor is an example of which of the following factors of production?

Accepted Answer

A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy 
A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy

Question 17

To graph a relationship among three variables we

Accepted Answer

A) hold two variables constant to graph the third variable. 
B) hold one variable constant and graph the relationship between the other two variables. 
C) graph each of the three variables using a separate set of axes. 
D) must be able to draw in three dimensions. 
E) must be able to allow all three variables to vary simultaneously in one graph. 
A) hold two variables constant to graph the third variable. 
B) hold one variable constant and graph the relationship between the other two variables. 
C) graph each of the three variables using a separate set of axes. 
D) must be able to draw in three dimensions. 
E) must be able to allow all three variables to vary simultaneously in one graph.

Question 18

During the next hour John can choose one of the following three activities: playing basketball,watching television,or reading a book.The opportunity cost of reading a book

Accepted Answer

A) depends on how much the book cost when it was purchased. 
B) is the value of playing basketball if John prefers that to watching television. 
C) is the value of playing basketball and the value of watching television. 
D) depends on how much John enjoys the book. 
E) is equal to the marginal benefit from reading the book. 
A) depends on how much the book cost when it was purchased. 
B) is the value of playing basketball if John prefers that to watching television. 
C) is the value of playing basketball and the value of watching television. 
D) depends on how much John enjoys the book. 
E) is equal to the marginal benefit from reading the book.

Question 19

Self-interest choices are

Accepted Answer

A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote. 
A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote.

Question 20

Use the figure below to answer the following question.   Figure 1A.4.1
-Given the data in the following table,which one of the graphs in Figure 1A.4.1 correctly represents the relationship among x,y,and z?

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)

The equation of a line is y = 4 + 2x.What is the y-axis intercept of this line?

Use the figure below to answer the following question. Figure 1A.3.7 -The slope of the line in Figure 1A.3.7 is

Two variables are negatively related if

Which statement about incomes earned by factors of production is false?

Statements about "what ought to be" are called

The determination of prices in individual markets is primarily a concern of

Use the figure below to answer the following question. Figure 1A.3.11 -Refer to Figure 1A.3.11.The graph shows a relationship.The absolute value of the slope of the relationship as the value of x increases.

Use the table below to answer the following question. Table 1A.2.2 -Refer to Table 1A.2.2.What type of relationship exists between y and z?

Economists test economic models by using

When Al makes the statement,"The cost of living has increased 10 percent over the past 10 years," he is

Complete the following sentence.Entrepreneurship is

The equation of a line is y = 4 + 2x.What is the x-axis intercept of this line?

According to Adam Smith

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 a zero slope?

Which of the following is a microeconomic topic?

A tractor is an example of which of the following factors of production?

To graph a relationship among three variables we

During the next hour John can choose one of the following three activities: playing basketball,watching television,or reading a book.The opportunity cost of reading a book

Self-interest choices are

Use the figure below to answer the following question. Figure 1A.4.1 -Given the data in the following table,which one of the graphs in Figure 1A.4.1 correctly represents the relationship among x,y,and z?

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 equation of a line is y = 4 + 2x.What is the y-axis intercept of this line?

Use the figure below to answer the following question. Figure 1A.3.7 -The slope of the line in Figure 1A.3.7 is

Two variables are negatively related if

Which statement about incomes earned by factors of production is false?

Statements about "what ought to be" are called

The determination of prices in individual markets is primarily a concern of

Use the figure below to answer the following question. Figure 1A.3.11 -Refer to Figure 1A.3.11.The graph shows a ________ relationship.The absolute value of the slope of the relationship ________ as the value of x increases.

Use the table below to answer the following question. Table 1A.2.2 -Refer to Table 1A.2.2.What type of relationship exists between y and z?

Economists test economic models by using

When Al makes the statement,"The cost of living has increased 10 percent over the past 10 years," he is

Complete the following sentence.Entrepreneurship is

The equation of a line is y = 4 + 2x.What is the x-axis intercept of this line?

According to Adam Smith

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 a zero slope?

Which of the following is a microeconomic topic?

A tractor is an example of which of the following factors of production?

To graph a relationship among three variables we

During the next hour John can choose one of the following three activities: playing basketball,watching television,or reading a book.The opportunity cost of reading a book

Self-interest choices are

Use the figure below to answer the following question. Figure 1A.4.1 -Given the data in the following table,which one of the graphs in Figure 1A.4.1 correctly represents the relationship among x,y,and z?

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

Use the figure below to answer the following question. Figure 1A.3.11 -Refer to Figure 1A.3.11.The graph shows a relationship.The absolute value of the slope of the relationship as the value of x increases.