Question 1

Which of the following is a normative statement?

Accepted Answer

A)  Studying more hours leads to an increase in your GPA. 
B)  An increase in tax rates means people work fewer hours. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed. 
A)  Studying more hours leads to an increase in your GPA. 
B)  An increase in tax rates means people work fewer hours. 
C)  Taking extra vitamin C prevents catching a cold. 
D)  States should require all motorcycle riders to wear helmets to reduce the number of riders killed.

Question 2

Which of the following is NOT a normative statement?

Accepted Answer

A)  People buy more of a good or service when its price falls. 
B)  The distribution of income is fair. 
C)  The government ought to provide health care to everyone. 
D)  Corporations should be more socially responsible. 
A)  People buy more of a good or service when its price falls. 
B)  The distribution of income is fair. 
C)  The government ought to provide health care to everyone. 
D)  Corporations should be more socially responsible.

Question 3

-The slope in the above figure is

Accepted Answer

A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing. 
A)  negative and increasing. 
B)  negative and decreasing. 
C)  positive and increasing. 
D)  positive and decreasing.

Question 4

Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie. Therefore, the opportunity cost of attending class is the tennis and the movie she had to give up." Is your friend's analysis correct or not? Explain your answer.

Accepted Answer

Your friend's analysis is incorrect. The

Question 5

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1. This slope means that

Accepted Answer

A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y. 
A)  a change in x is associated with a bigger change in y. 
B)  a change in x is associated with a smaller change in y. 
C)  a change in x is associated with no change in y. 
D)  a change in x is associated with an equal change in y.

Question 6

Which of the following is a positive statement?

Accepted Answer

A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want. 
A)  Low rents decrease the amount of housing landlords make available for rent. 
B)  Low rents are good because they make apartments more affordable. 
C)  Housing costs too much. 
D)  Owners of apartment buildings ought to be free to charge whatever rent they want.

Question 7

-Using the above figure, the origin is at which point?

Accepted Answer

A)  Point a 
B)  Point b 
C)  Point c 
D)  None of the points in the figure is the origin. 
A)  Point a 
B)  Point b 
C)  Point c 
D)  None of the points in the figure is the origin.

Question 8

-If two variables are unrelated, a scatter diagram of those variables will

Accepted Answer

A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope. 
A)  be a vertical line. 
B)  be a horizontal line. 
C)  be either a vertical or horizontal line. 
D)  have a constant positive slope.

Question 9

-In the figure above, the value on the x-axis increases as we move from

Accepted Answer

A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A. 
A)  point G to point A. 
B)  point C to point A. 
C)  point F to point A. 
D)  point E to point A.

Question 10

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

Accepted Answer

A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class. 
A)  an hour of tennis given up. 
B)  an hour of sleep given up. 
C)  both the tennis given up and the sleep given up. 
D)  nothing because he is paying for his class.

Question 11

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

Accepted Answer

The statement is False because it is pos

Question 12

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

Accepted Answer

A) True 
 B)False

Question 13

-In the figure above, the relationship between the x variable and the y variable

Accepted Answer

A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive. 
A)  is positive. 
B)  is negative. 
C)  starts by being positive and then becomes negative. 
D)  starts by being negative and then becomes positive.

Question 14

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

Accepted Answer

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

Question 15

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

Accepted Answer

A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  None of the curves show a negative relationship. 
A)  Only curve A. 
B)  Only curve B. 
C)  Only curve C. 
D)  None of the curves show a negative relationship.

Question 16

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

Accepted Answer

A)  price of a pound of pecans is held constant. 
B)  price of a pound of peanuts is held constant. 
C)  quantity of peanuts that farmers supply is constant. 
D)  Both answers A and B are true. 
A)  price of a pound of pecans is held constant. 
B)  price of a pound of peanuts is held constant. 
C)  quantity of peanuts that farmers supply is constant. 
D)  Both answers A and B are true.

Question 17

-Using the information in the table above, what does the slope of the line between x and y equal?

Accepted Answer

A)  5 
B)  -0.5 
C)  2 
D)  -2 
A)  5 
B)  -0.5 
C)  2 
D)  -2

Question 18

Why do economists use graphs?

Accepted Answer

Graphs help economists, and others, to v

Question 19

Overtime worked by a JCPenney associate is considered ________ and earns ________.

Accepted Answer

A)  labor; wages 
B)  entrepreneurship; profit 
C)  human capital; interest 
D)  labor; profit 
A)  labor; wages 
B)  entrepreneurship; profit 
C)  human capital; interest 
D)  labor; profit

Question 20

The statement that ________ is a positive statement.

Accepted Answer

A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia 
A)  more students should study economics 
B)  the price of gasoline is too high 
C)  too many people in the United States have no health care insurance 
D)  the price of sugar in the United States is higher than the price in Australia

Exam 1: What Is Economics

Which of the following is a normative statement?

Which of the following is NOT a normative statement?

-The slope in the above figure is

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1. This slope means that

Which of the following is a positive statement?

-Using the above figure, the origin is at which point?

-If two variables are unrelated, a scatter diagram of those variables will

-In the figure above, the value on the x-axis increases as we move from

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer.

If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5.

-In the figure above, the relationship between the x variable and the y variable

The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions.

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

-In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the

-Using the information in the table above, what does the slope of the line between x and y equal?

Why do economists use graphs?

Overtime worked by a JCPenney associate is considered ________ and earns ________.

The statement that ________ is a positive statement.

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

Overtime worked by a JCPenney associate is considered and earns .