Question 1

-The slope of the line shown in the above figure is

Accepted Answer

A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80. 
A)  -1 1/3. 
B)  -1 2/3. 
C)  -1.25. 
D)  -0.80.

Question 2

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

Accepted Answer

A)  human capital 
B)  physical capital 
C)  entrepreneurship 
D)  None of the above answers are correct. 
A)  human capital 
B)  physical capital 
C)  entrepreneurship 
D)  None of the above answers are correct.

Question 3

When an economy produces more houses and fewer typewriters, it is answering the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 4

-Which of the following correctly describes the above figure?

Accepted Answer

A)  There is no relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is a negative relationship between x and y. 
D)  None of the above answers are correct. 
A)  There is no relationship between x and y. 
B)  There is a positive relationship between x and y. 
C)  There is a negative relationship between x and y. 
D)  None of the above answers are correct.

Question 5

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

Accepted Answer

A)  the value of working and skiing. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  working, because you would be giving up a week's pay. 
D)  None of the above if you enjoy the time spent in Hawaii. 
A)  the value of working and skiing. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  working, because you would be giving up a week's pay. 
D)  None of the above if you enjoy the time spent in Hawaii.

Question 6

-The relationship in the above figure suggests that when the interest rate is 5 percent,

Accepted Answer

A)  a decrease in income will be associated with a decrease in expenditures. 
B)  a decrease in income will be associated with an increase in expenditures. 
C)  an increase in income will be associated with a decrease in expenditures. 
D)  There is no relationship between expenditures and income. 
A)  a decrease in income will be associated with a decrease in expenditures. 
B)  a decrease in income will be associated with an increase in expenditures. 
C)  an increase in income will be associated with a decrease in expenditures. 
D)  There is no relationship between expenditures and income.

Question 7

-In the above diagram, draw a straight line with a slope of zero.

Accepted Answer

@#IMG-DLM& A horizontal line has a slope

Question 8

-A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

Accepted Answer

A)  a horizontal line. 
B)  a vertical line. 
C)  a positively sloped line. 
D)  a negatively sloped line 
A)  a horizontal line. 
B)  a vertical line. 
C)  a positively sloped line. 
D)  a negatively sloped line

Question 9

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

Accepted Answer

Positive statements are statements that

Question 10

-In the above figure, using the slope across an arc, the slope of the curve between points b and c is

Accepted Answer

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

Question 11

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

Accepted Answer

A) True 
 B)False

Question 12

The study of the decisions of individual units in the economy is known as

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study. 
A)  macroeconomics. 
B)  microeconomics. 
C)  the study of incentives. 
D)  ceteris paribus study.

Question 13

-The term "direct relationship" means the same as

Accepted Answer

A)  correlation. 
B)  trend. 
C)  positive relationship. 
D)  negative relationship. 
A)  correlation. 
B)  trend. 
C)  positive relationship. 
D)  negative relationship.

Question 14

-In the above figure, which curve indicates that the level of food production does not affect the population growth rate?

Accepted Answer

A)  F 
B)  G 
C)  H 
D)  I 
A)  F 
B)  G 
C)  H 
D)  I

Question 15

-To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption.

Accepted Answer

A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus 
A)  one; scarcity 
B)  two; ceteris paribus 
C)  three; marginal benefit 
D)  one; ceteris paribus

Question 16

-In the above figure, the slope across the arc between points a and b equals

Accepted Answer

A)  5. 
B)  4. 
C)  2. 
D)  1. 
A)  5. 
B)  4. 
C)  2. 
D)  1.

Question 17

-The relationship depicted in the above figure is

Accepted Answer

A)  a negative linear relationship. 
B)  a positive linear relationship. 
C)  a positive becoming less steep relationship. 
D)  a positive becoming steeper relationship. 
A)  a negative linear relationship. 
B)  a positive linear relationship. 
C)  a positive becoming less steep relationship. 
D)  a positive becoming steeper relationship.

Question 18

Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes ________, to make the ________ of the firm remaining in New York.

Accepted Answer

A)  an incentive; marginal benefit exceed the marginal cost 
B)  an incentive; marginal cost exceed the marginal benefit 
C)  a command; marginal benefit exceed the marginal cost 
D)  a command; marginal cost exceed the marginal benefit 
A)  an incentive; marginal benefit exceed the marginal cost 
B)  an incentive; marginal cost exceed the marginal benefit 
C)  a command; marginal benefit exceed the marginal cost 
D)  a command; marginal cost exceed the marginal benefit

Question 19

Which of the following statements is correct?

Accepted Answer

A)  The United States produces more goods than services. 
B)  The United States produces more services than goods. 
C)  The percentage of people producing goods in the United States has steadily increased over the last 60 years. 
D)  The United States produces an equal amount of goods and services. 
A)  The United States produces more goods than services. 
B)  The United States produces more services than goods. 
C)  The percentage of people producing goods in the United States has steadily increased over the last 60 years. 
D)  The United States produces an equal amount of goods and services.

Question 20

Which of the following is a macroeconomic issue?

Accepted Answer

A)  The purchasing decisions that an individual consumer makes. 
B)  The effect of increasing the money supply on inflation. 
C)  The hiring decisions that a business makes. 
D)  The effect of an increase in the tax on cigarettes on cigarette sales. 
A)  The purchasing decisions that an individual consumer makes. 
B)  The effect of increasing the money supply on inflation. 
C)  The hiring decisions that a business makes. 
D)  The effect of an increase in the tax on cigarettes on cigarette sales.

Exam 1: What Is Economics

-The slope of the line shown in the above figure is

Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________.

When an economy produces more houses and fewer typewriters, it is answering the ________ part of one of the two big economic questions.

-Which of the following correctly describes the above figure?

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

-The relationship in the above figure suggests that when the interest rate is 5 percent,

-In the above diagram, draw a straight line with a slope of zero.

-A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.

-In the above figure, using the slope across an arc, the slope of the curve between points b and c is

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

The study of the decisions of individual units in the economy is known as

-The term "direct relationship" means the same as

-In the above figure, which curve indicates that the level of food production does not affect the population growth rate?

-To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption.

-In the above figure, the slope across the arc between points a and b equals

-The relationship depicted in the above figure is

Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes ________, to make the ________ of the firm remaining in New York.

Which of the following statements is correct?

Which of the following is a macroeconomic issue?

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

Filters

-To graph a relationship among several variables, we hold all but variable(s) constant and use the assumption.

Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes , to make the of the firm remaining in New York.