Question 1

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

Accepted Answer

The slope equals the change in

Question 2

-Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Accepted Answer

A)  -1. 
B)  0. 
C)  1. 
D)  infinite. 
A)  -1. 
B)  0. 
C)  1. 
D)  infinite.

Question 3

Microeconomics is the study of topics such as national production and unemployment.

Accepted Answer

A) True 
 B)False

Question 4

A good economic model

Accepted Answer

A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables. 
A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables.

Question 5

A natural resource, such as fishing territories, is considered an example of

Accepted Answer

A)  both land and labor. 
B)  land, labor, capital and entrepreneurship. 
C)  land only. 
D)  only capital. 
A)  both land and labor. 
B)  land, labor, capital and entrepreneurship. 
C)  land only. 
D)  only capital.

Question 6

Which of the following is an example of a positive statement?

Accepted Answer

A)  Government should not redistribute income. 
B)  Business firms ought to contribute more to charities. 
C)  Households are the primary source of saving. 
D)  The foreign sector should be more tightly controlled. 
A)  Government should not redistribute income. 
B)  Business firms ought to contribute more to charities. 
C)  Households are the primary source of saving. 
D)  The foreign sector should be more tightly controlled.

Question 7

-When y changes, x stays the same. The line depicting this relationship would be

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope. 
A)  vertical. 
B)  horizontal. 
C)  linear with a negative slope. 
D)  linear with a positive slope.

Question 8

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "how" 
B)  "what" 
C)  "defense" 
D)  "for whom" 
A)  "how" 
B)  "what" 
C)  "defense" 
D)  "for whom"

Question 9

-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

Accepted Answer

A)  0.2. 
B)  0.4. 
C)  0.5. 
D)  2.5. 
A)  0.2. 
B)  0.4. 
C)  0.5. 
D)  2.5.

Question 10

Which of the following is a positive statement?

Accepted Answer

A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza. 
A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza.

Question 11

-A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

Accepted Answer

A)  the value of x never changes. 
B)  the value of y does not depend on the value of x. 
C)  the ratio of x to y is constant. 
D)  the slope of the line is not defined because y never changes. 
A)  the value of x never changes. 
B)  the value of y does not depend on the value of x. 
C)  the ratio of x to y is constant. 
D)  the slope of the line is not defined because y never changes.

Question 12

Suppose you are working four nights per week at your courses and your grade point average is 3.5. You want a higher grade and decide to study an extra night each week. Your GPA now rises to 3.8. What is your marginal benefit from studying for one additional night a week?

Accepted Answer

Marginal benefit is the benefit that ari

Question 13

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

Accepted Answer

A)  100. 
B)  0. 
C)  0.25. 
D)  -4. 
A)  100. 
B)  0. 
C)  0.25. 
D)  -4.

Question 14

-In the above figure, while moving along the line showing the relationship between household income and expenditure,

Accepted Answer

A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant. 
A)  household expenditures are held constant. 
B)  household income is held constant. 
C)  the interest rate is held constant. 
D)  no variable is held constant.

Question 15

Which of the following is a normative statement?

Accepted Answer

A)  The price of candy bars is $1.25 each. 
B)  Candy bars are more expensive than newspapers. 
C)  You should eat less candy. 
D)  Popcorn and candy are sold in movie theaters. 
A)  The price of candy bars is $1.25 each. 
B)  Candy bars are more expensive than newspapers. 
C)  You should eat less candy. 
D)  Popcorn and candy are sold in movie theaters.

Question 16

A graph cannot be used to show that two variables are unrelated.

Accepted Answer

A) True 
 B)False

Question 17

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal-Mart for $38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

Accepted Answer

A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart 
A)  the $45,000 you are paid for working at the Bureau of Labor Statistics 
B)  the $42,000 you would have been paid working for Ernst and Young 
C)  the $38,000 you would have been paid working for Wal-Mart 
D)  the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart

Question 18

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

Accepted Answer

A)  Brand B plus Brand C. 
B)  twenty dollars. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest-value alternative forgone. 
A)  Brand B plus Brand C. 
B)  twenty dollars. 
C)  Brand A. 
D)  Brand B or Brand C, depending on which is considered the highest-value alternative forgone.

Question 19

To graph a relationship that involves more than two variables, we use the "ceteris paribus" assumption.

Accepted Answer

A) True 
 B)False

Question 20

The opportunity cost of any action is

Accepted Answer

A)  all the possible alternatives given up. 
B)  the highest-valued alternative given up. 
C)  the benefit from the action minus the cost of the action. 
D)  the dollars the action cost. 
A)  all the possible alternatives given up. 
B)  the highest-valued alternative given up. 
C)  the benefit from the action minus the cost of the action. 
D)  the dollars the action cost.

Exam 1: What Is Economics

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

-Along a straight line, the value of y is always equal to the value of x. The slope of the line is

Microeconomics is the study of topics such as national production and unemployment.

A good economic model

A natural resource, such as fishing territories, is considered an example of

Which of the following is an example of a positive statement?

-When y changes, x stays the same. The line depicting this relationship would be

When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions.

-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

Which of the following is a positive statement?

-A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that

Suppose you are working four nights per week at your courses and your grade point average is 3.5. You want a higher grade and decide to study an extra night each week. Your GPA now rises to 3.8. What is your marginal benefit from studying for one additional night a week?

-In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points c and d is

-In the above figure, while moving along the line showing the relationship between household income and expenditure,

Which of the following is a normative statement?

A graph cannot be used to show that two variables are unrelated.

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

To graph a relationship that involves more than two variables, we use the "ceteris paribus" assumption.

The opportunity cost of any action is

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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