Question 1

The horizontal axis in a graph

Accepted Answer

A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis. 
A)  measures time in a scatter diagram. 
B)  measures the quality of a variable. 
C)  is named the y-axis. 
D)  is named the x-axis.

Question 2

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

Accepted Answer

A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope. 
A)  might be horizontal. 
B)  has a positive slope. 
C)  has a negative slope. 
D)  has an increasing then a decreasing slope.

Question 3

-In the above figure, which curve shows a positive relationship between x and y?

Accepted Answer

A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  All the curves show a positive relationship. 
A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  All the curves show a positive relationship.

Question 4

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

Accepted Answer

A)  perpendicular line. 
B)  line with slope equal to zero. 
C)  line that has positive slope. 
D)  line that has a negative slope. 
A)  perpendicular line. 
B)  line with slope equal to zero. 
C)  line that has positive slope. 
D)  line that has a negative slope.

Question 5

The "gifts of nature" are included as part of which factor of production?

Accepted Answer

A)  labor 
B)  land 
C)  capital 
D)  entrepreneurship 
A)  labor 
B)  land 
C)  capital 
D)  entrepreneurship

Question 6

A normative statement concerns

Accepted Answer

A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment. 
A)  what is provable. 
B)  what is correct. 
C)  what is incorrect. 
D)  a value judgment.

Question 7

-The slope of the line in the above figure is

Accepted Answer

A)  2/5 = 0.4. 
B)  5/2 = 2.5. 
C)  -2/5 = -0.4. 
D)  -5/2 = -2.5. 
A)  2/5 = 0.4. 
B)  5/2 = 2.5. 
C)  -2/5 = -0.4. 
D)  -5/2 = -2.5.

Question 8

-Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

Accepted Answer

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

Question 9

Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of the first forty hours will continue to be the usual $15 per hour. In terms of dollars, what is the marginal benefit of working each hour of overtime?

Accepted Answer

A)  zero 
B)  $3.00 
C)  $15.00 
D)  $18.00 
A)  zero 
B)  $3.00 
C)  $15.00 
D)  $18.00

Question 10

-In the above, which figure shows a linear relationship?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B 
A)  Figure A 
B)  Figure B 
C)  both Figure A and Figure B 
D)  neither Figure A nor Figure B

Question 11

Positive and normative statements differ in that

Accepted Answer

A)  positive statements can be tested, whereas normative statements cannot. 
B)  normative statements can be tested, whereas positive statements cannot. 
C)  normative statements depict "what is" and positive statements depict "what ought to be." 
D)  normative statements never use the word "should." 
A)  positive statements can be tested, whereas normative statements cannot. 
B)  normative statements can be tested, whereas positive statements cannot. 
C)  normative statements depict "what is" and positive statements depict "what ought to be." 
D)  normative statements never use the word "should."

Question 12

-What does the slope of the line shown in the above figure equal?

Accepted Answer

The slope equals the change in

Question 13

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Accepted Answer

A)  a macroeconomic decision. 
B)  scarcity. 
C)  a firm investing in workers' human capital 
D)  entrepreneurship. 
A)  a macroeconomic decision. 
B)  scarcity. 
C)  a firm investing in workers' human capital 
D)  entrepreneurship.

Question 14

Economics is best defined as

Accepted Answer

A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household. 
A)  how people make money and profits in the stock market. 
B)  making choices from an unlimited supply of goods and services. 
C)  making choices with unlimited wants but facing a scarcity of resources. 
D)  controlling a budget for a household.

Question 15

In economics, the term "capital" refers to

Accepted Answer

A)  the money in one's pocket. 
B)  buildings and equipment. 
C)  mineral resources. 
D)  consumer goods. 
A)  the money in one's pocket. 
B)  buildings and equipment. 
C)  mineral resources. 
D)  consumer goods.

Question 16

-Jamie is preparing to take his SAT tests. The table above shows how Jamie's score depends on the number of hours a week Jamie studies.
a) Plot the relationship in the figure, putting the hours studied on the horizontal axis.
b) Is the relationship you plotted positive or negative?
c) What happens to the slope of the relationship as hours studied increase?
d) Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e) How many variables are involved in the figure you just completed?

Accepted Answer

@#IMG-DLM& a) The figure above plots the relations

Question 17

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 18

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Accepted Answer

A)  3/5. 
B)  3. 
C)  5/3. 
D)  impossible to determine from the information given. 
A)  3/5. 
B)  3. 
C)  5/3. 
D)  impossible to determine from the information given.

Question 19

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

Accepted Answer

A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital. 
A)  physical capital. 
B)  venture capital. 
C)  entrepreneurship. 
D)  productive capital.

Question 20

Which of the following statements are correct? I. The "highest-valued alternative given up to get something" is the opportunity cost.
II) Wealthy economies don't experience opportunity costs.
III) Scarcity creates opportunity costs.

Accepted Answer

A)  I only 
B)  I and II 
C)  I and III 
D)  I, II, and III 
A)  I only 
B)  I and II 
C)  I and III 
D)  I, II, and III

Exam 1: What Is Economics

The horizontal axis in a graph

Along a curve, when one variable increases, the other variable decreases. The curve showing this relationship

-In the above figure, which curve shows a positive relationship between x and y?

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a

The "gifts of nature" are included as part of which factor of production?

A normative statement concerns

-The slope of the line in the above figure is

-Along a straight line, when x equals 90, then y equals 30. When x equals 120, then y equals 40. The slope of the straight line is

-In the above, which figure shows a linear relationship?

Positive and normative statements differ in that

-What does the slope of the line shown in the above figure equal?

Panasonic sends its HDTV salespeople to training sessions. This is an example of

Economics is best defined as

In economics, the term "capital" refers to

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.

-The above table shows data on two variables. If these data were graphed, the slope of the line would be

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

Which of the following statements are correct? I. The "highest-valued alternative given up to get something" is the opportunity cost. II) Wealthy economies don't experience opportunity costs. III) Scarcity creates opportunity costs.

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

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

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